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Broker ceased to exist

4XP


Forex Place Ltd, delivering its brokerage services under the 4XP brand, has terminated its operation due to the revocation of a conformity certificate issued by the Financial Market Relations Regulation Center (FMRRC).

According to the statement posted by the Financial Market Relations Regulation Center in October 2013, the regulatory authority ruled that Forex Place Ltd had been deprived of a license on account of unsatisfactory provision of trading services and improper execution of its commitments.

The ruling was adopted by the executive board at a FMRRC session.

Police raid offices of 5 forex brokers in Israel

In 2016, the Israeli police closed offices of 5 forex brokers that were implicated in a large-scale fraud scheme. Every client suffered an average loss of 210,000 euros. These brokers are: Forex Place (4XP), BForex, Sisma Capital, Tradaxa, and Aston Forex (Aston Invest Ltd.).

The stock market regulator Autorité des Marchés Financiers (AMF) and the Israeli police together started investigating fraudulent activities in the forex and binary options markets in Israel. The investigation was aimed at five companies that are suspected of fraud in the amount of around 105 million euros. Fifty lawsuits with at least 500 victims of the dubious brokers were brought in court.

According to the Israeli mass media at that time, alleged fraudsters included Forex Place (4XP), Sisma Capital (Tradaxa), Bforex, and Aston Forex that are closed now.

What is known about these brokers?

4XP headquartered in Ramat Gan was managed by Benny Abramov, Yair Abramov, and Shimon Choen. They did not give any comments about the investigation. Bforex was based in Mitzpe Ramon and had call centers in Herzliya, while a namesake company was registered in the UK. Its director Tzachi Rosenbaum also made no comments.

According to the French regulator, the brokers were operating without the permit of any legal regulation authority, tricked clients into giving money through online chats and phone, while promising them annual profits of 20%, 30%, and even 88% from derivative trading.

The investigation showed that the brokers’ employees introduced themselves as office managers of companies in London or Paris winning clients over. The brokers’ representatives promised that clients’ funds will be stored in the European banks, such as ING, RBS, or HSBC. Instead of it, the money was instantly moved outside the EU: mainly to Israel, Georgia, or Singapore and to offshore accounts on the Seychelles, the British Virgin Island, and in Belize.

The French media reported that two employees of 4XP had been featured earlier in similar cases. One of them was involved in a hate crime against a Palestinian taxi driver in 2007. Another was arrested in a hotel in Paris in November 2015. The police found 6,000 euros in 50-euro bills. The man claimed he won the money in poker. To secure his release, he had to pay 80,000 euros.

Bforex ran into problems in 2016. According to clients, the broker was not withdrawing money, and the client support was not responding. In April 2017, an announcement appeared on the company’s website about a transfer of Bforex business activities and traders’ accounts to Financika (Sharp trading Ltd.).

Sisma Capital Ltd. stopped operating on May 6, 2014. Later the FSMA regulator warned investors that the company continued working under the names of Broker & Co and Tradaxa. This way, fraudsters concealed themselves as other companies and continued with illegal activities until 2016.

End to binary options in Israel

The Israeli authorities received a lot of complaints and lawsuits from duped foreigners. As a result, the country’s reputation in the global community was harmed.

After multiple investigations, the Israeli bill on securities was amended in order to ban binary options trading for foreigners. The Israel Securities Authority can punish the Israeli brokers that sell binary options to foreign traders. Now such an activity is considered the violation of the money laundering law.

The opinion of the review`s author is private and not obligated to reflect the position of the resource. If you have any remarks and suggestions on new articles please contact us via this form.
Autor de  4XP: Simon | Fecha de   2021-01-21
ForexPlace never had any intention to release their clients' money. I did not see any sign of fraudulence before because they seemed very trustworthy. And as I saw it, many were starting their trading journey with this broker as well. With that, I did not hesitate to open an account as well. Had a great start, but when I tried to withdraw my money, my account was instantly terminated.
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Autor de  4XP: Mirjana | Fecha de   2021-01-06
I had a great experience at Forex Place at the beginning of journey. This lasted for a few months and I was so impressed by how well I was doing in my trading activities. Now, after profiting a good amount, I decided to withdraw it. This is when the problem started. The broker did not want to release my money. At first, they were making excuses such as technical issues. But later on, they just never responded to me again and before I know it, I can no longer access my account.
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Autor de  4XP: Toneza | Fecha de   2020-12-24
For sure, our money will never be returned to us. Investing at Forex Place was so devastating. I felt so betrayed because I trusted them so much. Honestly, all I want now is for the people behind this broker to pay for what they did. They might have gone away already but I am still hoping that they will get punished eventually.
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Autor de  4XP: Guillaume | Fecha de   2020-12-14
Because of the bad publicity the Forex Place received, I decided to withdraw my funds. There were a lot of complains regarding non-release of clients' funds so I naturally got scared. At first, I only attempted to withdraw a partial amount just to see if they really were not processing withdrawals. This request was denied even though all documents were submitted. Then after that, I just decided to withdraw all the remaining balance and close my account. What 4XP did was close my account without releasing the money.
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Autor de  4XP: Diezmo | Fecha de   2020-12-09
Sadly, I invested more than one thousand dollars on Forex Place. Years have passed already since I lost the money on this fraud broker but until now I am still reminded of this mistake and I feel so foolish for trusting them. To be honest, I still haven't started any investment ever since losing my money on them. It is just so hard to trust again when you have already experienced being defrauded.
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Autor de  4XP: Aidan | Fecha de   2020-12-03
Great, this fraud broker is finally out of business. I traded with them for about half a year and all those months, I was only being played. I thought that I was making progress in my trades and I was so hyped up by my account manager. I deposited a total of $700 and I regret it so much. I could have spent it on something more meaningful but now it is gone.
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Autor de  4XP: Keane | Fecha de   2021-01-11
I feel you, mate. We have all been played by this broker. They appeared reputable and trustworthy in the beginning. And to manipulate our charts so we would think that we are gaining just shows that they never cared about us from the start. This was their plan all along and they never really intended to provided brokerage services.
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Autor de  4XP: Anna | Fecha de   2020-11-24
I have invested on this broker for almost two years and all that time, I thought that I was with the right broker. I was doing well in my trades and when I decided to withdraw the profits, they suddenly suspended my account. Then I never got it back again. Well, what's important now is that their operations have been stopped. But I still hope they would pay for what they did.
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Autor de  4XP: Kenan | Fecha de   2020-11-16
Back when I was trading at 4XP, I made three deposits. I did it because my account manager told me that I will have higher profit rate if I have higher capital. At first it seemed like it was working. My profit rate really increased. That is why I made the third deposit. Sadly, after that, my account started to go downhill. For some reason, all of my trades never won again. Apparently, all of my trading activities and results were manipulated by the broker and they did it to embezzle money from their clients.
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Autor de  4XP: Leif | Fecha de   2020-11-13
I traded with 4XP for almost a year. When I made a huge profit, I tried to withdraw it but the broker did not allow it. They said that my account needs verification even though I already completed it right after opening an account. I still obliged and submitted the documents again but they kept rejecting them. I kept asking for more documents until there was nothing left to show. They still did not allow the withdrawal of my profit and when I demanded, they terminated my account.
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Autor de  4XP: Chanchal | Fecha de   2020-11-03
When I was still trading at Forex Place, the experience was quite decent. I was earning and the platform was working well. However, when I earned enough and decided to withdraw my profits, that is when the problem started. I made a withdrawal request and it was approved in a short time. However, even though they approved it, it was never transferred in my bank account. I waited for weeks and still nothing. Until one day, the transaction was labeled completed. I checked my bank account but nothing was credited. I asked the broker about it but no one answered to me.
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