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Is 4xFX a Scam or Legit Forex Broker
No, it is not safe to trade with 4xFX.
4xFX is a Forex and CFD broker owned and operated by GRF EUROPE OÜ, Estonia based company that claims it registered with a Register of Economic Activities.
However, it does not mean the broker is regulated and authorized to deliver its service. The register is just a register without following the company sustainability and delivery of the financial service itself.
Despite this, every EU based company should hold a license that proves its sustainability before its service is offered in the market and to potential clients.
Even though the company mentions its trusted and secure financial service provided by meeting high regulatory and financial standards, it is not regulated or overseen by any reputable authority. Therefore, 4XFX is another non-regulated trading provider among the thousands of other companies we do not advise trading with.
Several regulators have also banned the broker:
“The business listed below (4XFX) has made unsolicited calls or sent emails about investing, financial advice, credit or loans and does not hold a current Australian Financial Services (AFS) license or an Australian Credit license from ASIC.” ASIC, 10 January 2019
“Finantsinspektsioon (the Estonian Financial Supervisory Authority) would like to inform clients and investors that GRF Europe OÜ does not hold an activity licence for the provision of investment services in Estonia and therefore GRF Europe OÜ is not authorized to provide investment services in Estonia.” Estonian FSA, 14 January 2019
this is a broker you should avoid.
They are not present online but have massive datasets on people they can call, stay away.
their profit is your loss, and this means they have a vested interest in letting you lose your investment
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 known as evolving scams. For the sake of this article, we’ll examine each form of forex scam one by one.
Using a stop-loss order, stop hunting is a systematic risk management strategy in investments. 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 the world of 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.