4xAi review – 5 things you should know about 4xai.net

Beware! 4xAi is an offshore broker! Your investment may be at risk.

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4xAi assures us that it is a regulated and award-winning forex broker that we can trust with our investments. But fact checking reveals a very different truth. 4xAi is not what it claims to be. This website is yet another online scam masquerading as a legitimate financial services provider. Let’s take a detailed look at why you should stay away from 4xAi and how you could find a trustworthy forex broker to suit your needs.

4xAi Regulation and safety of funds

The most important information about a financial services provider is its regulatory status. Licensed brokers provide detailed information about which company runs them, where it is based, which jurisdictions it is authorised in and which regulatory bodies oversee its activities.

4xAi  alleges that this broker is operated by a company named Lighthouse ventures LLC. The website states that this company is based in Singapore and has offices in the UK and Australia.

A check shows that there is no licensed broker with this name on the Monetary Authority of Singapore (MAS) and UK’s Financial conduct Authority (FCA) register.

The Australian Securities and Investments Commission (ASIC) has issued an explicit warning that 4xAi  is not licensed.

The text of the Terms and Conditions states that Lighthouse ventures LLC is in fact based in an obscure offshore zone –  Fomboni Island of Mohéli in Comoros Union and Grenadines.

We did not find this company in the local legal register. But even if the owner of 4xAi is indeed based there, this neither provides any guarantees for clients’ funds nor gives the broker the right to offer its services in regulated jurisdictions.

If you intend to invest in financial instruments, you should beware of the many fake brokers lurking online. Always check carefully whether the broker you choose really has the necessary licences. There are numerous benefits to working with a company that is truly authorised and supervised by a regulatory institution such as the ASIC, FCA or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).

Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds.  In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK.

4xAi Trading software

4xAi employs a web-based trading platform. Here is how it looks like:

It should be noted that the presence of some kind of trading software is no guarantee that this is a genuine broker. Financial scammers often use rigged trading platforms to fool their victims that their money is actually being invested. However, this trading is entirely fictitious and the money goes directly into the scammers’ pockets.

Legitimate brokers offer clients a wide selection of trading software, including desktop, mobile apps and web-based platforms. The most widely used platforms in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.

4xAi Trading instruments

4xAi advertises trading in over 3,500 instruments across all major asset classes. But we have no guarantee that the trading offered by this unregulated broker is real. It is in your best interest to invest only through diligently licensed and regulated brokers.

4xAi Spreads and cost of trading

In the trading software we see a very low spread of 0.1 pip. Such a spread suggests that the broker is charging some commission for the trade. But 4xAi does not provide any information about the price paid by the trader.

4xAi Maximum leverage

4xAi advertises leverage up to 1:300, which is also evidence that this is not a licensed broker. The maximum leverage allowed for retail traders is 1:20 in Singapore and 1:30 in Australia and the UK.

Another such piece of evidence is the claim that 4xAi offers bonuses. Regulated brokers are prohibited from offering bonuses and promotions. Scammers often use promises of supposedly generous bonuses to tie their potential victims to extortionate terms.

If you are nevertheless willing to take the risk of high-leverage trading and want to take advantage of bonuses, promotions and prize games, the best option is to use the services of offshore brokers operating under an established brand.

4xAi Deposit and withdrawal methods

4xAi allows depositing funds via credit/debit card and cryptocurrencies via Match2Pay. Scammers prefer cryptocurrencies because these transactions are not subject to refunds.

Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer and established e-wallets such as PayPal, Skrill or Neteller.

4xAi Minimum deposit

4xAi specifies a minimum deposit of 250 EUR/USD/GBP, which is the industry standard. But this means that for the same amount you could open a trading account with an established and duly licensed forex broker. Some of the leading brands in the industry offer Micro and Cent accounts with a very low entry threshold that are suitable for novice investors.

4xAi Withdrawal requirements

4xAi states that withdrawal requests take up to 7 days to process, which is suspiciously long. The minimum withdrawal amount is between 50 and 500 currency units depending on the payment method used. If the account has used a bonus, it can only withdraw funds after meeting the minimum volume requirements. These requirements are vaguely described – “minimum trading volume of 30 times for every 1-unit bonus.”