Beware! 4XPoint 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.
4XPoint is a Forex brokerage registered in St. Vincent and the Grenadines. It provides the MetaTrader4 platform and an extremely generous leverage of up to 1:100. Furthermore, there is a wide range of trading products from which to choose and a spread of 3 pips which is double the industry average. The required minimum deposit is $250 which is pretty standard.
4XPoint regulation & safety of funds
According to the website the company behind the brokerage is registered in St. Vincent and the Grenadines with the name Allmedia Ltd with a standard SVG address we have seen in countless other brokerages. Furthermore, we find no mention of a regulatory status which shouldn’t strike us as surprising due to the location of the brokerage. The government of SVG does not include Forex trading within its regulatory framework and we can safely conclude that 4XPoint is not subject to any regulatory oversight.
In the terms and conditions of 4XPoint we also come across another name of a company – Yukon Global LTD. Such a lack or clarity in the corporate information of a brokerage is a definite red flag, especially when the broker is also registered offshore and unregulated. However, the brokerage does provides the MetaTrader4 trading platform, as well as a demo account, which is worth noting. The MetaTrader4 platform is among the foremost trading terminals in Forex trading and we always consider it an advantage if a brokerage offers it. On it we could see a spread of just over 3 pips which is double the industry average and a bit excessive in our view. There certainly are better offers in Forex trading.
The lack of regulation and the slightly high spread inclines us to recommend interested clients not risk it with an offshore brokerage and look for other trading options.
We urge traders to exclude any 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.
4XPoint deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via Visa and MasterCard, wire transfer and the e-wallet Skrill. In the conditions of the brokerage we find there is a minimum withdrawal amount of $100 for withdrawals via wire transfer. There are also withdrawal fees. Here is a screenshot:
The withdrawal fees are as follows: for Visa and MasterCard up to 3.5 percent and for wire transfer up to $30. It appears that withdrawals via Skrill are charge-free. Such fees certainly aren’t excessive but the minimum withdrawal amount for wire transfers is worrisome. Furthermore, 4XPoint has hidden some nerve-wracking provision deeps inside the lengthy terms and conditions.
It reads that “funds may only be sent to a credit card if the initial deposit was in the last 120 days. If it exceeds 120 days funds will be sent via bank transfer. This isn’t something very interesting unless we have in mind the fact there is a minimum withdrawal amount for withdrawals via bank transfer. On top of all this – we also find a dormant account fee and a “auto-trading fee”.
4XPoint will charge a $100 fee on accounts that have been inactive for more than 45 days, as well as charge a $100 auto-trading fee for accounts that haven’t achieved at least 20 trades with the software. Such provision are quite troubling and speak only about the ill-minded intentions which are to drain the clients funds dry through numerous fees.
This is why we advise traders 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?
Information is a pretty solid criteria for judging a brokers legitimacy. Scammers would not share much of their information, because precisely there inconsistencies and irregularities may appear which expose the whole set-up. A good example is this very broker and the lack of crucial information about the company behind it.
After informing themselves for the brokers trading conditions – traders should be well-versed in the way of the scam:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Crypto Revolt 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 motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back.
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. Furthermore, due to the high instances of fraud – both Visa and MasterCard have decided to sidestep scammers as best they can in forex trading. The first thing we have seen so far is that MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half with their rival Visa expected to follow suit in December.
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!
