Beware! 4XC 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.
4XC is one of the oddest firms we have ever reviewed. Read on to see what we mean.
Creating an account was very simple and easy, and we felt as if though we were treated without the care that normal brokers offer. However, after that, we had to input all this ID information, as well as answer a load of questions. Otherwise, the entire trader dashboard would have been closed for us! After some hustle, we were done.
But then another issue appeared, and as it turns out, 4XC does not have a trading platform, meaning that there are no applicable trading conditions, like spreads, leverages, and tradeable assets. You might stumble upon some trading information on the website, but rest assured that it is all fake news. It does not apply here! This is definitely a sign that things are not going in the right direction.
The website is available in English, Spanish, Russian, Portuguese, and Arabic.
4XC REGULATION AND SAFETY OF FUNDS
We have enough information confirming that the broker is a member of the Financial Commission. However, the Financial Commission’s only tie to the industry is that it is an independent external dispute resolution body that works with FX brokers. In no way is it a license issuer or a regulator. Thus being a part of it makes no real difference. And one more thing. All of the brokers we have reviewed that are a part of the commission have turned out to be complete scams!
We learn next that the firm is registered to operate in the Cook Islands, and is thus regulated by the local Financial Supervisory Commission (FSC). Even though this is a legitimate financial regulator, we found out that it currently does not regulate FX brokers. On its website, the category of licensees includes banks, insurers, money-changers, and trustee companies.
We encountered a small predicament. The alleged holding company of the broker, Geomatrix Ltd, is in fact registered in the FSC register. However, it is indicated as being a Licensed money-changing business, and not as a full-time broker, the way that the website advertises itself. And this is what matters in the end: that 4XC IN NOT A LICENSED FX BROKER!
Yet, it is licensed to do something, it just isn’t FX trading. There also exists the chance that 4XC has taken the company name Geomatrix Ltd from somewhere else and applied it to its own. Whatever the case is, we will be treading this broker as a risk to all investments!
It is imperative to always check if a broker is regulated! Only then proceed to consider investing! If the broker is regulated by either the FCA and CySEC then you are on the right track. Both regulators apply a set of harsh and demanding rules that apply to all brokers. There are penalties for those brokers that decide not to follow them! Furthermore, both FCA and CySEC offer compensation schemes to all users under their licensed brokers. The reimbursed can go up to 20 000 euros from CySEC, and 85 000 pounds per person from the FCA.
4XC TRADING SOFTWARE
There is no such thing as a trading software used here. The alleged MT4 and MT5 are simple illusions.
The user area gives registered clients the option to open an account with a Virtual Private Server company, supposedly for the purpose of trading. But there is no trading software!
4XC also promotes investment strategies, and this is the real bread and butter of the broker. Things are very confusing, and there is no real way of interacting with these strategies, aside from investing in them.
Each strategy comes with its own window, on which see these charts explaining some market price for the strategy. We find that we can only invest from this window. From the look of it, it seems that users can invest in stocks, and there are predictable return rates that seem unrealistic.
Users can also purchase a package service that brings them the forex signals on a daily basis, which might help them with their investment strategy, but to us, it seems like 4XC has found an additional way of getting more money.
It’s all very odd, and we don’t think we have ever encountered such a scheme!
4XC DEPOSIT/WITHDRAW METHODS AND FEES
The strange user area has no deposit or withdrawal sections. We found no way to invest, nor withdraw funds.
The website reveals a huge array of payment methods, but there is absolutely nothing in support of these methods. Aside from VISA, MasterCard, and crypto wallets, all other payment methods are based on alternative means. We also found no minimum deposit amount.
Later, we learn that users must request a wallet from the client area, and so we did, but we never got approved. Only through this wallet can users debit an account.
According to the website, withdrawal through wire transfer are charged: €5 for SEPA transfer and $49 for SWIFT. Credit and Debit cards are charged by 0.5%, and all other alternative payment methods take a toll between 2% and 3 %. And, crypto withdrawals are charged a $25 commission. Processing of withdrawals is between one to three days. However, there is no withdrawals section, and so the end question is how can user take their money back?
How does the scam work?
The same scheme is used by most FX fraudsters over and over again. They might choose to make it more unique, but the principle remains the same.
Online ads, especially on social media sites, are the frontier of these scams. The crucial aspect of these ads is to promote a successful and rich lifestyle from trading FX, shares, crypto, or whatever. This happens by including images and videos of beautiful houses, luxury cars and items, etc. Temptation leads to a website where users will be required to give away personal information, like an email or phone number. After which the client will start receiving calls, or emails, pushing the user to deposit his or her first deposit.
After the first deposit, the initial scammers have done their job. It’s now the turn of the “account managers” whose job is to continue to drain money from you. Their persuasion skills will convince you to deposit more. The client will realize she is being scammed at which time all withdrawal requests will be declined and the broker will stop responding to you. It may also shut down the website as a precautionary move!
What to do if scammed?
File for a chargeback as soon as you get scammed if you have invested through a credit or debit card. There is plenty of time to do that for VISA and MasterCard users. Both companies have extended their chargeback time span to 540 days.
Wire transfer deposits are harder to track down, and thusly it is best to prevent further account drainage. So we advise users to change their bank account passwords and usernames ASAP. Try also contacting your local bank; they might be able to help you.
Never invest by means of cryptocurrencies in unregulated brokers! The transfer is untraceable and your money cannot be returned!
On a final note, never trust recovery agencies or agents claiming they can restore all lost investments! They will want a price in return for this favor, and once this is paid, they will disappear.