Is 4xpremium a scam or a legit broker?
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No, it is not safe to trade with 4xpremium.
4xpremium is owned and operated by Index Limited.
The broker doesn’t provide any information about its regulation and its contact details.
4xpremium offers trading with Forex and CFDs, including Indices, Commodities and Stocks. However, without disclosing essential details about the company and its trading conditions, the broker usually cannot be trusted and taken seriously.
The terms and conditions on the website state that the company is under the jurisdiction of Cyprus.
We have checked the registration of the Cyprus regulator CySEC and didn’t find any records of 4xpremium or Index Limited.
Moreover, the company has been blocked by several regulators. In September 2018, the UK’s Financial Conduct Authority issued a warning against 4XPremium/Index Limited.
The regulator mentioned that the owner-company Index Limited is a clone of the FCA-regulated Global Market Index Limited:
“Fraudsters are using or giving out the following details as part of their tactics to scam people in the UK: Index Limited t/a 4XPremium (clone of FCA authorised firm).”
Also, the broker has recently been banned in Italy by its local regulator CONSOB:
4xpremium is a scam
“The National Commission for Companies and the Stock Exchange has ordered according to toto article cities, letter b) of the Consolidated Law on Finance (TUF), the following companies to cease infringement: Index Limited through the website.”
We advise all investors and traders to avoid 4xpremium and other unregulated brokers. Traders should trade with well-regulated brokers such as UK brokers or brokers in Australia and reliable brokers such as City Index and XM.com. The lack of information about the broker’s regulation, trading conditions, and contact details should be an enormous red flag for those who plan to invest with the entity. Usually, such companies run investment scams.
4xpremium website is no longer active.
How Do Forex Brokers Scam Investors?
Traditional forex scams and developing scams are the two main types of forex fraud. Data security may serve as a good comparison in this situation. When it came to stealing confidential information, thieves had only one option: break into the building where it was being stored and take the physical copy files!
Data breaches are being reported regularly, and most of them occur online. Cybercriminals don’t even have to leave their sofa to steal confidential information that’s half a globe away. Scams that adapt to new technology or FBI raids are evolving scams. For the sake of this article, we’ll examine each form of forex scam one by one.
Why are there so many Scam Brokers?
Stop hunting is a systematic risk management strategy in investments using a stop-loss order. An order with a stop-loss condition isn’t limited to foreign exchange trades. It’s relatively frequent across a wide range of investment categories.
The point-spread fraud is a “classic” seen in many other kinds of investment trading, not only forex.
While point-spread forex scams aren’t as common as they previously were, it doesn’t mean they’re gone. To pull off the point-spread scam, brokers adjust the spread between the bid and ask prices using the forex platform. This raises the broker commission and eats away at any gains made by the unwary forex trader.
Another traditional Forex scam is the signal-seller scheme, which is practised in forex and other industries. According to the scam’s theory, certain people (human or automated) are “Forex experts,” and they are privy to information regarding currency pairings, Forex patterns, and market movements (the “signal”).
A forex broker will only acquire access to churning-type activity if a customer enables the broker to trade on the customer’s behalf (for example, by signing a discretionary agreement). The forex broker may then say they were only doing their job and blame the client’s losses on the usually turbulent currency market.
It’s important to remember that churning is challenging to detect and much more challenging to demonstrate. Nevertheless, if the fraudster is discovered and proved guilty, they will be subject to hefty penalties and SEC repercussions. Meanwhile, you’ll have to develop creative ways to make up for the financial damage caused by churning.
Scammers that prey on the currency market is evolving along with it. FX fraudsters have had plenty of new chances open up with the emergence of online forex brokers, automated digital algorithms, and computer technology. However, you may be shocked to learn that only some of the most recent and sophisticated forex scams use sophisticated technology to achieve their objectives.