4x-Trade – Are They a Scam?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
4x-Trade - DO NOT TRADE WITH THIS PROVIDER
2.4/10
$100
Minimum Depositupdated 2021
The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you’ll be asked to enter your name, email address, phone number, and password. You’ll also be asked to accept their Terms and Conditions and confirm that you’re over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account.
Try these regulated brokers if you want to start trading cryptocurrencies
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
Website URL: https://4x-trade.com
Founded: 2020
Regulations: Unlicensed
Languages: English, German
Deposit Methods: Credit Cards, Wire Transfers, Skrill
Minimum Deposit: $250
Free Demo Account: Unavailable
Number of Assets: N/A
Types of Assets: Forex, CFDs, Commodities
Trading Accounts and Conditions
4x-Trade offers you the following trading accounts:
- Basic: The minimum deposit amount to open this account is €250.
- Advanced: The minimum deposit amount to open this account is €5,000.
- Pro: The minimum deposit amount to open this account is €25,000.
- Custom Made: The minimum deposit amount to open this account is €50,000.
- MAM Account: There is also something called a MAM or Multi-Account Manager. The broker states that one fund manager can manage multiple trading accounts from one fund account without the need for creating an investment fund. The profits or losses from this type of account are distributed among the participating trading accounts. The leverage for this account is 1:400.
There is no information given about the spreads; the only thing the broker claims on their Account Types page is that their spreads are competitive.
4x-Trade – Advantages
We did not find anything that could be considered an advantage when dealing with 4x-Trade. In fact, we would actively warn traders against doing business with this broker.
4x-Trade – Disadvantages
Here are all the issues we uncovered while reviewing 4x-Trade:
-
Unlicensed Broker Blacklisted by CONSOB
In the footer of its website, 4x-Trade claims to be owned and operated by a company called Evergo Ltd, which is based in the Marshall Islands. There is no information presented with regard to its regulation status.
The issue is this: the Marshall Islands has no financial regulations in place for forex brokerages. Added to this, the country has become known as a favorite for shady brokers who wish to operate under the radar of the law. Therefore, if a broker is based in the Marshall Islands, it means that it is unregulated by any financial authority – unless it presents its license and registration information from another regulator. In this case, there is no other information, therefore, we can safely assume that 4x-Trade is operating outside the bounds of the law.
We are not the only ones to have noticed this anomaly. The CONSOB – Commissione Nazionale per le Società e la Borsa – the financial regulator in Italy, has blacklisted this broker as a scammer.
What we have found has proved that this broker is not to be trusted and if you invest money with them, you will be in danger of losing all your money.
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
-
Issues About Trading Platform and Registration
4x-Trade claims to offer you the MetaTrader 4 software for executing your trades. If this were true, then it would be a great win for the broker since this software is considered the best in the world for forex trading. The platform is so easy to use that even novice traders will have no problem using it. And for the more advanced traders, there are a wide range of tools to help make their trading more effective as well as efficient.
The reason we use the word if is because the download link to this software is broken on this broker’s website. Another issue is that when we tried to register for an account, we found out that the only way to do so is if you have a promo code provided by the broker.
The lack of access to their trading platform and the inability to easily register for an account are all signs that this broker is not to be trusted.
-
Very High Leverage
Another dead giveaway that this broker is a scammer is the leverage ratio offered by 4x-Trade. Leverage is a tool used to help traders make bigger trades; it’s like borrowing. However, due to the fact that this tool has been grossly misused in the past, many jurisdictions around the world have placed limits on how much leverage can be offered to traders. In the European Union, the UK, Australia, and New Zealand, that limit is set at 1:30. And in Canada and the US, that limit is slightly higher at 1:50.
Now, based on the fact that this broker offers its website in English and German, we can safely say that 4x-Trade is targeting traders in the EU, which means that the leverage offered by this broker is not only dangerously high it is also illegal.
-
No Information on Spreads
Another red flag we have is the fact that there is no information on the kind of spreads 4x-Trade provides. Spreads are key information that traders need to know because it lets them know the actual cost of a trade. The higher the spread, the higher the cost of trade. Therefore, when this information is missing, a trader cannot make an informed choice.
-
Very High Fees
The transaction fees are also very high with this broker. While there is no minimum withdrawal requirement for debit/credit cards, if you wish to make a wire transfer, then you need to make at least $100 withdrawals. And the cost of these withdrawals are huge. For credit and debit cards, you need to make a 3.5% payment, and for wire transfers, there is a flat $30 fee.
-
Unfair Bonus Conditions
And, of course, no scam broker is complete without its unfair bonus conditions. This broker too offers bonuses with conditions that can never really be met – it’s there in their terms and conditions. So, if you accept bonuses from 4x-Trade, you will never get a chance to withdraw your money since you will never really achieve the turnover targets set by the broker.
Conclusion
4x-Trade is a scammer that has been exposed by the CONSOB as one. This broker cannot be trusted and should be avoided completely.
4x-Trade
Pros
- None
Cons
- Unlicensed Broker Blacklisted by CONSOB
- Issues About Trading Platform and Registration
- Very High Leverage
- No Information on Spreads
- Very High Fees
Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more