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.
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I was with 4XP for a long time. I never withdrew any money because I was confident that my funds are secured. This is also what the broker made me feel that is why I just kept adding more funds and actively trading. I was so surprised when the broker suddenly stopped its operations. I was clueless. I did not know what was happening. In the end, all the investment I made was gone.
Forex Place should never be back into business. It is so unfair how its owners were never caught. This broker has deceived thousands of investors and was able to embezzle a huge amount of money.
I was only trading for two months when 4XP suddenly stopped their operations. My account froze and no one from the company was answering to any of the messages. In the end, we never got our accounts and money back and it was proven that the broker was involved in fraudulent activities.
It has been a year since I last had access to my account at Forex Place. This broker surely made a huge impact on me. I was not able to start any investment until today because I am afraid that I would only end up with a fraud like Forex Place.
I still cannot understand how Forex Place was able to operate for several years. If they have been shut down right from when its clients have started complaining against the broker, then they wouldn't have been able to fool more investors.
For about three months, I was blindly trading with ForexPlace. My account manager kept communicating with me pretending to guide me through my trades. When he told me to add more funds to my account to increase the profit rate, I instantly did so. I never imagined that it was only a ploy to get more money from me.
One day, the website of Forex Place was just inaccessible. I tried contacting them but they never replied. Later on, I read an article about how the broker left all their clients hanging and fled off. With that, I realized that I was never going to get my money back anymore.
I hope people will become more cautious of choosing a company to trust. I hastily believed Forex Place based on what their representatives told me and what was displayed on their website. This was a huge mistake because I failed to see the complaints that their clients have been saying about them.
Forex Place is a horrible Forex broker. This company never cared about their clients. They are thieves who only intended to attract clients so that they can collect money. It is devastating that I let this company trick and fool me.
Well, we cannot blame ourselves for trusting the broker. The company really did well in presenting itself as a reliable company. We were just so unfortunate to have encountered them.
I never imagined that I will ever get myself involved with a fraudster. When I opened an account at Forex Place, I did not suspect anything because the broker presented itself professionally and they had impressive trading offers. I never thought that I would be throwing my money away when I opened an account with them.
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