Just as expected, retail forex broker 4XP has ceased its operation, and despite the fact that the website is still running, the funds have been frozen and traders are unable to withdraw the funds. And while the phone numbers go unanswered there is a semi-formal statement from the broker to its clients:
“ Forex Place Limited (the "Company"), hereby notify you as follows:
The Company has received an immediate and surprising cease order, issued by the British Virgins Islands FSC, ordering the Company to cease its trading services operation. The Company has applied to the FSC against the order, and is considering other legal venues to renew its operations.
Due to the above order, banks and other financial institutes have frozen the Company's accounts. Furthermore, the Company's funds with liberty Reserve have being frozen as well, due to the procedures filed against Liberty Reserve and its officers.
As mentioned above, The Company is making efforts and taking actions as necessary in order to have the FSC order cancelled, and negotiates with its banks to have its Accounts reopened. According to professional legal advice provided to the Company, such actions shall take a few months at least. In the meantime, the Company must honor the order.
Due to the above, the Company is currently unable to process deposit and withdrawal requests, until further notice. The Company hopes such notice shall not take long.
As you well know, the Company has always been proud of its honesty and integrity. The Company trust that you understand that the events are beyond our control and cooperate with the Company's efforts, and we regret any inconvenience caused. “
Whether it is in fact the regulation issues or last moments of a dying broker, we are here to experience the fall of a previously reputable, strong and experienced broker in the trading industry.
4XP is now paying for its earlier mistakes. The broker never chose to get regulated by a well-known authority such as CySEC, FCA, BaFIN etc. Instead, 4XP claimed to have some sort of certificate from an independent Russian regulator FMRRC, which is ridiculous, since forex is not really regulated in Russia still. And even that certificate was annulled due to “poor provision of its brokerage services and improper performance of its obligations, based on FMRRC statement!
Unfortunately to all the traders that are stuck with the broker and unable to withdraw the funds, the experience tells us that it’s very unlikely that the situation will change any time soon, if ever.
What do we all learn from this notorious example? Trade with a broker that is regulated with an internationally-recognized regulator, otherwise you might find yourself in the same boat with the fallen brokers, completely bankrupt.
Let’s keep an eye on the latest developments. Stay tuned for more news!