September 8, 2020

4XFX Broker Review

Overview

4XFX is a trading platform that was founded in 2018, and has currently shut shop. The company was reportedly owned by GRF Europe, a company based in Estonia. However the company also mentioned that it could be contacted over the phone in the UK as well. The company also had a postal address on their website that was for Berlin, Germany. Also, they mentioned in their terms and conditions on their website that they follow the rules of Germany. However, they were not regulated by the German regulator body, BaFIN. Read the full 4XFX Scam review here.

About 4XFX Scam

4XFX claimed to be an easy to use trading platform, built by Panda TS. Though not having required licenses, they were offering CFD trading on a variety of underlying assets that included, crypto, forex and commodities. Even the ASIC in Australia had issued a warning against 4XFX stating and clarifying that they are not licensed. 4XFX, when operational, asked customers for 250 USD for a new trading account, when you signed up.

But it wasn’t just the ASIC that shunned 4XFX in 2019, it was also the Manitoba Securities Commission or MSC. The MSC stated and warned Canadians against taking out any financial services from 4XFX as it is not licensed or regulated by them. This came after a senior investigator at the MSC got multiple reports of 4XFX targeting investors in Manitoba. This investigator reportedly found numerous inconsistencies in their data, including the inception date of the company. The company was reportedly involved in a type of scam called recovery room. In this type of a scheme, a person who was actually robbed off of over 8000 USD in a Bitcoin trading platform scam, was being contacted by unknown sources offering to help him recover his lost wealth. While this sounds like welcome help, it is too good to be true. As it is the second part of this scam where a second fraudster knows of the victim’s first loss and tries to coax out more money from the victim, in the charade of helping them recover their money. This happens as the first fraudster leaks all the contact information of the victim in fraudster circles, who start harassing the victim for more money.

 Also, in 2019, The Financial Conduct Authority (FCA) in the UK, also warned the public about 4XFX; stating that it was operating without a valid license and was actively targeting the British people with potential scams. The FCA also made public all the contact information and details of 4XFX to notify and warn the public.

The verdict

Based on the fact that none of the financial regulator bodies had given 4XFX a license, and had actively warned the public about it’s scams; and the numerous bad reviews that it got online, it’s no surprise that 4XFX was a scam that has now been closed.