Beware! 4ex7 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.
4EX7 aims to be entertaining with its word play in the title, yet the forex industry is anything but a playground. So, just by the name of this one we can say so many things… Nevertheless, the website is surprisingly appealing, utilizing a cool and fluid interface, reminding us of browser game, one of those that you have to pay for. Of course 4EX7 is nothing like that. So what is 4EX7, and should you deposit you funds in it? Read the review for all the answers.
Another quick and simple registration process down, and we yet again, are faced with a trading platform that also serves as a client dashboard. There is a small drop-down tab on the navigation bar where all the account options are. As for the trading platform, it gave us a EUR/USD spread of 3 pips, a value that confirms our suspicions. Such a spread is lucrative only for 4EX7. Our leverage was capped at 1:100. The trading instruments as per the web-terminal are Forex Pairs, Crypto, Commodities, Stocks, and Indices.
The languages of the website are English, Spanish, Italian, and Russian.
Please note, that 4EX7 has the right to impose limits or change the trading volumes on a user’s accounts, with no notice. This is a definite sign that 4EX7 is up to no good.
4EX7 REGULATION AND SAFETY OF FUNDS
The broker claims to be functioning under the laws of the Marshall Islands, a country very well known for harboring illegal brokerage firms. 4EX7 might be registered there, or it may not; what matters is that the island nation has no financial regulator, making 4EX7 anything but regulated there. And seeing that there is no other licensing details to be found, we have to conclude that 4EX7 is NOT REGULATED, and therefore a risk to all those that invest in it!
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
Furthermore, the Risk Disclosure document reveals that the user is protected under the Investor Compensation Fund as issued by CySEC of Cyprus. This is without a doubt a lie, as a firm cannot be unlicensed and at the same time hold a compensation fund.
4EX7 TRADING SOFTWARE
The website speaks of an MT4, but were were only provided with a trading software used mostly by scammer brokers.
Here are the defining features of this platform, without which we would deem it even more lackluster than it already is: pending orders, chart customization options, time frames, and that is all. Without a doubt, this web terminal is aimed towards novices who don’t know any better.
4EX7 DEPOSIT/WITHDRAW METHODS AND FEES
As the payment section in the client area says, the depositing gateways are as follows: Credit and Debit cards, and Ask4Bit, a cryptocurrency gateway which is without a doubt unsupervised. The minimum deposit is $250.
The legal documents mention the following withdrawal methods: Credit/Debit cards, Bank Transfers, and Skrill. However, the withdrawal section only allows us to write down the amount requested and from which account to be withdrawn. These are some drastic inconsistencies:
According to the Deposits and Withdrawals section of website, the withdrawal minimum is $100 for bank transfers, and $50 for all other methods (whatever they are). Processes for withdrawal request take up to 4 days, and there is a 3.5% (minimum $30) withdrawal fee.
Furthermore, there are certain conditions that must be met before withdrawing: there must be no active bonuses, the account must be fully verified, and most notably, the withdraw amount must not be bigger than the users’s current balance, essentially telling us that a client can never withdrawal all of her funds.
The Roll-Over fee is found with every broker. However, what 4EX7 does is that it will directly debit a user’s card should her trading account hold no money in it. This is completely unacceptable. A broker should never directly debit fees fro a user without her consent.
In the following confusing clause the broker reveals in its own ambiguous words, that a user may lose more than his initial deposit which is against the Negative Balance Protection policy, making this provision yet another in a range of illicit ones. At least this is how we understood it; if 4EX7 was clearer we would probably be saying something else.
Before withdrawing a bonus, a user must complete a turnover requirement of 30 times the bonus+deposit amount.
For dormant account holder the following fee is applied: should a user we inactive for more than 12 months, an annual fee of $30 will be issued. This is nothing compared to other brokers, but it can still be a nuisance.
The broker grants itself the right to close an account without prior notification.
The broker can modify the contents of the T/C or discontinue it entirely without telling the user. This is a very dangerous provision, giving the broker full control of your account.
With the following provision, the company basically states that it will not provide refunds to anyone.
Here is an indemnification clause, a standard addition to any fraudulent broker. This one mentions that once a client deposits, the act alone will be considered a sign of the good quality of service that 4EX7 provides, which is another way of absolving itself of all guilt.
How does the scam work?
The most common scams are quite simple and straightforward and involve a multi-level scheme that usually goes by the following scenario. Internet users are lured by the numerous ads promising quick and easy fortunes by trading in the Forex world. When they click on such an ad they are redirected to a website tailored to the continuation of these false pledges, which asks them to register with their personal information. This data is then used by the scam brokers who immediately start to work on getting them to make an initial deposit of $200 – $300 by making even greater promises of big profits.
Once the users make their first deposit, the scam brokers get a fat commission on it. Now the senior scammers enter the scene. They are smooth talkers who will not stop at anything to convince traders that they are on their way to become very rich, if only they follow their advice and deposit more money to trade with.
Sooner or later the users will start suspecting something is not right and will want to withdraw their funds. This will not prove very easy, however. The scammer will do everything to delay their requests, by persuading them now is not the right time, asking for additional documents, or referring to specific withdrawal clauses. This is also part of the scam since the con-artists are trying to delay the users from filing for chargeback with their financial institution, and they miss the time frame for such chargeback, traders will lose their money without a chance of getting it back.
What to do if scammed?
If you’re scammed you should immediately file for a chargeback with your credit card provider. Good news is that VISA and MasterCard recently extended the chargeback period to a year and a half in an effort to combat online fraud. If you deposited with bitcoin or bank wire there is not much chance.
If you provided the scammers with any bank account or credit card details, such as security codes or passwords, make sure to cancel the card and talk to your bank. Also, if you are being approached by any “recovery agencies” promising to get your money back for a fee, do not fall for that. This is a piggyback scam, using the vulnerability of recently defrauded people and their hope the fraud may be reversed, and it will not recover your funds. These so-called agents will collect their fee and you will never hear from them again.