Beware! 4X banks is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
4X Banks is a forex brokerage which does not disclose much information about itself. Traders are provided the MT4 trading platform and a wide range of trading products. From the website we gather that potential clients are also extended an extremely generous leverage of up to 1:500 and required to put up a deposit as low as $100 in order to do real-money trading.
4X Banks regulation & safety of funds
We could not find information regarding the company behind the brokerage – Up4x limited – and its country of origin on the brokerages website. There is also no mention of a regulatory status, nor even a contact address. Up4x limited is known to operate another broker brand – UP4x – which is most likely a scam. It has also been flagged by the Italian regulatory body Commissione Nazionale per le Società e la Borsa (CONSOB) as a likely scam and authorities further urge traders not to contract its services. The lack of crucial information and the possible link to a scammer, as well as the clear lack of regulatory oversight are all warning signs for traders and reviewers alike. Such irregularities make us suspect that clients will be open to a number of risks.
We urge traders to exclude such risk in trading by only associating with brokers regulated by prestigious regulatory agencies, such as the FCA and CySec, which require compliance with a number of strict rules that give significant assurance for the security of the clients funds.
The segregation of accounts is among the rules which are especially important in the trading world, because it drastically lowers the risk of possible commingling.
Another is the participation in a compensatory scheme by which the client’s losses will be covered in the unlikely case the broker goes bankrupt or attempts to swindle traders.
4X Banks deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw only via VISA and MasterCard. Popular e-wallets such as Skrill or Neteller are missing. While going through the brokers terms we did not come across any worrisome provisions such as excessive procession fees or large minimum withdrawal amounts. However, this should not in any case be viewed as a guarantee that there aren’t any. Judging by all the signs – 4X Banks is most likely a scam and scammers usually enjoy charging clients unexpected fees only after they have received their initial deposits.
This is why we remind readers of all the ways a trader may test the brokerage’s intentions. Firstly, traders are advised to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
One of the reasons regulation has such value in the trading world is because scamming is quite common and it acts as a sort of guarantee that such a thing would not happen. Nevertheless, here is how a typical scam would go about:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or The bitcoin miner where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The angle here is pretty blunt – traders have a limited time period for filing achargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back.
It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And with the case of 4X Banks – they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half. Visa is expected to do the same in December.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
You may contact your bank or credit card provider and file a chargeback.
If, however, you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!