4XC is an offshore CFD forex broker that entered the market in 2018. They have three account types, multiple trading platforms and a generous leverage. Their website looks promising with details on nearly everything you’d require to build trust.
However, 4XC aren’t that reliable as they seem on their website.
4XC is Unreliable: Why Your Funds are Unsafe with them
4XC is licensed by the Financial Supervisory Commission of the Cook Islands. Cook Islands is actually an island country located in the South Pacific area which has political links to New Zealand. Cook Islands is an offshore area and it doesn’t regulate CFD brokers, while 4XC is one. Any forex broker can go there and register, like any usual company can, but such a license is not comparable to a license from any reputed agency such as CySEC (Cyprus Securities and Exchange Commission) or FCA of the UK.
Reputed authorities have strict rules and regulations which ensure that a broker works in the interest of its customers, not against them. These rules and regulations prevent scams, and that’s why they are reliable.
Lack of proper regulation is always dangerous, especially when it comes to forex. I recommend that you only deal with brokers that hold regulation from reputed agencies such as CySEC or FCA. Usually, lack of proper regulation is a sign of a scammer and that’s why you should stay away from such brokers.
Doesn’t Serve US Clients
4XC mentions on its website that it doesn’t serve clients based in the US. The US has one of the most reputed regulatory authorities in the forex industry called the National Futures Association. It provides licenses to eligible forex brokers, enforeces adherence to its rules and fights fraudulent activities.
The US also has one of the most thriving markets too, so it’s highly suspicious that 4XC doesn’t serve customers here. They give vague excuses when someone asks why they don’t serve customers here, but let me tell you the exact reason why they don’t serve anyone from the United States.
To serve forex trades based in the US, a forex broker must have a license from the NFA, which has many strict regulations. Obviously, 4XC can’t adhere to those regulations because they are running a shady operation. Otherwise, why would a broker deliberately avoid one of the biggest and the most thriving markets in the world?
Warning from ASIC
The Australian Securities and Investments Commission had issued a notification to 4XC because of their fraudulent activities in 2019. The ASIC is the premier organization that handles forex brokers in Australia.
It’s a page on www.moneysmart.gov.au, which is a part of ASIC’s online work. ASIC has clearly advised people that “this company could be involved in a scam”.
Apparently, 4XC was sending unsolicited emails and messages to citizens of Australia to trade with them. You should know that 4XC doesn’t have a license to operate in Australia.
So, the ASIC had sent a notification to this company. It is another proof that 4XC is nothing more than a fraudulent broker.
4XC provides its customers with multiple payment options including Vload, Skrill, Bank Wire Transfers, PaySec, sofortBanking, and Neteller. The provision of multiple payment options makes them appear genuine, however, their conditions give another picture.
They have mentioned that they charge deposit and withdrawal fees on their website.
Because they lack any serious regulation, it raises suspicion on their fees and charges. Respectable authorities ensure that a broker doesn’t have any shady provisions that could result in traders losing their money. 4XC seems very dangerous in this regard.
I recommend you that you shouldn’t trust offshore, poorly regulated brokers like 4XC in this regard. If you open an account with a broker, make sure that you first deposit only the minimum amount they require. Then, you should wait for a day to see if they don’t deduct any hidden fees from it.
4XC tries to appear scot-free everywhere, but it’s not. There are numerous complaints against 4XC and its shady operations everywhere on the internet. People complain about losing all of their deposits due to 4XC freezing their accounts for no reason.
My 4XC review would be incomplete if I don’t mention how shady brokers scam people. First, they would push you to sign up on their website. When you get there, they redirect you to the sign up page of a terribly shady broker where you provide all of your information.
Now, after you’ve given them your information, you’d start getting calls from other shady brokers.
Sometimes, the broker doesn’t redirect you to someplace else but instead, keeps urging you to invest more. They ignore the market’s conditions and keep requesting you to invest further and make it seem like the more you invest, the more you’d get.
4XC has many qualities but because they lack credible regulation, I can’t recommend their services. You can find many forex brokers who have proper regulation along with such qualities. Working with a poorly regulated broker exposes you to unimaginable risk.
So, in conclusion to my 4XC review, I suggest you stay away from them.
- Tricky Refunds