Beware! 4TFX 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.
Our first impression of 4 TFX’ interface is that it looks bland and uninspiring with cliche images of success and power. However, what is more important is whether this broker is reliable to trade with, so we look at some key features on its website.
4TFX Regulation and safety of funds
If you are looking for a reliable forex broker to trade with, the first thing you should do is check whether it is regulated by the financial services authority of the respective jurisdiction. However hard we tried to find the address of this broker on its website, we came empty-handed. Our only clues were the telephone number for contact that starts with the country code for the UK and the statement in the Terms and Conditions document that the governing law in case of a dispute is the one on the Marshall Islands which happens to be an offshore zone for forex trade. Brokerages in that jurisdictions are not regulated and as such, they cannot provide any guarantee for the safety of their clients’ funds and protection against scammers.
We do not consider this forex broker to be reliable to trade with and what’s more, there is a warning by the Financial Conduct Authority (FCA), the official body that regulates forex traders in the UK, that this broker is not authorised to do any financial activities (screenshot below). This statement cannot be more explicit in its warning and we hope that you got the message.
If you are new in forex trading and need to find a reliable broker but don’t know where to look for, we can help you by providing useful information and links that you can research. Our advice is to look for a broker from one of the well-established jurisdictions around the world – the US, Australia, the EU and the UK. In these jurisdictions, forex brokers must be well-capitalised which among other things serves as a barrier against scammers. For example, in the US forex brokers must deposit the staggering amount of $20 million as initial capital, in Australia, 1 million AUD and in the EU and the UK, 730,000 EUR. No scammer will ever match such huge amounts of money just to look legit. But the protection measures do no end with this! Licensed brokers must keep traders’ accounts separately with tier-1 bank establishments and report daily on their transactions for transparency. In addition to that, in the EU and the UK, brokers must deduct funds towards compensation funds or schemes from which their clients will be compensated in case of insolvency. If the broker is regulated by CySec and contributes towards the Investor Compensation Fund, then its clients will be reimbursed up to 20,000 EUR per person. The compensation amount in the UK is much higher than that – up to 85,000 GBP per person but only if the broker is regulated by FCA and contributes to the local Financial Services Compensation Scheme.
You won’t find better conditions than these ones, so please do your homework and research thoroughly these brokers to find the best one for you.
4TFX Trading platform
4TFX is a CFD, stocks, indices, cryptocurrencies and forex broker and the trading software offered to its customers is a web trader (image below). On the left-hand side of the platform, you see the menu with trading products which in this case shows the forex currency pairs with their bid/ask price. In the middle of the screen, you see displayed the chart of one of these forex pairs, EUR/USD and the fluctuation in its price in a given time frame. On the right-hand side are the buttons for executing transactions. By looking at the bid/ask price for this pair, we can calculate the spread to be 0.4 pips which is quite below the industry average and is beneficial to traders as the cost of transactions won’t be too high and they will be able to make a sustainable profit in the long run. Also, if you look at the right-hand side of the image, you will see that the leverage is 1:2. Such low leverage is also beneficial to traders as it won’t expose their funds to too much risk in case of transactions ending in financial loss. Keeping low leverage is also one of the methods of protecting traders’ funds and in the EU and the UK licensed brokers cannot exceed leverage of 1:30. However, if you look in the last screenshot where the account types information is, you will notice that for one of the accounts the leverage is 1:40 which is above the leverage cap in the UK and once again is proof that this broker is non-legit.
If you have some experience with trading software, you would know that a web trader is not the best of them and doesn’t offer many trading tools and instruments to enhance traders’ experience. On the other hand, MetaTrader 4 and MetaTrader 5 have so much more to offer and they are choice number one among around 80% of the forex brokers. Their reputation is well-deserved as both platforms have many advantages compared to other trading platforms. They are equipped with an auto trading option, VPS, trading signals that can be obtained for a subscription fee, code base with custom scripts, an app market, a financial calendar, etc. In addition to that, their charting options and technical analysis indicators are second to none and help traders predict the future direction of exchange rates and make a profit.
We strongly recommend finding a licensed broker that offers either platform.
4TFX Deposit/Withdrawal methods and fees
The trading accounts offered by 4TFX are five – Basic, Silver, Gold, Platinum and Diamond (screenshot below). Unfortunately, the account types image does not show what the minimum initial deposit is and due to some broken links in the ‘open account’ buttons, we were not able to find out. A good point of reference for you will be to know that some licensed brokers will ask for as little as $1-5.
Trading accounts that stay inactive for 12 months will incur an annual fee of $30.
Another sign that this broker is not legit is the fact that it offers different bonuses depending on the trading account. For the Basic account, it is 50%, whereas for the Diamond account it is 150%. You should know that licensed brokers never offer bonuses or other incentives. A bonus may look good to you and you may think that it will increase your trading power. However, the hidden side of it is that it belongs to the broker, not the trader and usually there are some heavy to fulfil conditions attached to it. In this case, should you accept a bonus, you won’t be eligible to withdraw your funds unless you execute trading volume that is equal to 30 times the deposit plus the bonus amounts. This is not easily achievable even for traders with some experience, so we advise you not to accept bonuses and in general to stay away from brokers that offer them.
How does scam work?
A lot of people get scammed in different scammers’ schemes not because they are naive but because scammers are masters of persuasion and manipulation. It all starts with unsolicited telephone calls or a flashy ad on the Internet or social media. Sometimes people give up to temptation and invest money in shady schemes made to look legit and attractive and always promising quick and easy money fall. Once you deposit money into any of these schemes, you reach a point of no return! Your money is gone down the scammers’ food chain and you’ll have a lot of trouble recovering it. Scammers will do anything in their power to delay you, so you miss the opportunity to file for a chargeback. They will ask you for this and that document and will find hundreds of reasons not to let you retrieve your money. The trick with offering bonuses in forex trading is one of those as your funds are mixed with the bonus money and it takes a lot of hassle to fulfil the broker’s requirements before you are able to withdraw any funds.
What to do if scammed?
Speed does it! You need to act very quickly if you want to recover your money. Immediately apply for a chargeback if you have made your deposit via credit card. Fortunately, VISA and MasterCard give you 540 days within which to apply for a chargeback.
If you have paid via wire transfer or Bitcoin, chances of retrieving your fund are grim. Anyway, we want to warn you that some of the so-called recovery agents may approach you and offer to retrieve your funds. For a fee, of course! Be cautious when dealing with them as it may be another form of scam! Always check if the recovery agency is legitimate and visible to the public!
Another thing we advise you to do is to immediately cancel any credit cards if the scammers have your CVV code. Also, make sure to erase any programs on your computer that give scammers access to your personal data on your PC.