4xCube – Scam Report
4XCube is a CFD forex brokerage registered in the UK. It states that it provides the MetaTrader 4 trading platform and extremely generous leverage. Traders are extended a leverage of up to 1:200. Furthermore, there is a wide range of trading products from which to choose and a very favorable spread of 0.8 pips on EUR/USD. The minimum deposit is $100 which is also below the industry average and in favor of traders.
4XC regulation & safety of funds
The information given by the brokerage is quite unclear. We gather that the company behind the brokerage is registered in the UK by the name 4XC Limited, however, we are also lead to believe that the brokerage is registered in Cook Islands and regulated by the Financial Supervisory Commission. Here is a screenshot:
Such a statement is problematic because it is misleading. Cook Islands is an offshore zone linked politically with New Zealand which does not regulate CFD brokers. They (FX brokers) may simply register there, as they can in pretty much every other country. However, 4XC does have a license issued for foreign currency exchange which we must underline is not the same thing as CFD trading, which the brokerage purports to provide. Furthermore, such a license does not guarantee the same protection for clients as a license by the FCA or CySec. We have no participation in a compensatory scheme, nor assurance for the segregation of accounts. A lack of credible regulation is always worrisome. However, to do justice to the brokerage – we must say that it provides the MT4 platform, as well as a demo account with a favorable spread:
We urge traders to exclude such risk in trading by only associating with brokers regulated by prestigious regulatory agencies, such as the FCA and CySec, which require compliance with a number of strict rules that give significant assurance for the security of the client’s funds.
The segregation of accounts is among the rules which are especially important in the trading world because it drastically lowers the risk of possible commingling.
Another is the participation in a compensatory scheme by which the client’s losses will be covered in the unlikely case the broker goes bankrupt or attempts to swindle traders.
4XC deposit/withdrawal methods and fees
Clients may deposit or withdraw via Bank Wire, Perfect Money, PaySec, 2pay4you, Paysec, Vload, sofortBanking, Neteller, Skrill, and Bitcoin. Going through the broker’s website we did find some withdrawal conditions in the terms of the brokerage. There are both withdrawal and deposit fees, which aren’t excessive and are explicitly stated on the website. Here is a screenshot:
However, without the assurance which goes hand in hand with a license by a respectable agency such as the FCA, we cannot be certain whether the brokerage won’t further charge clients with unexpected fees, once they have deposited the money.
Precisely due to this we also remind readers of all the ways they may test the brokerage’s intentions. Firstly, traders are advised to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterward, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
We strongly believe the best prevention of scamming would be well-informed traders that can easily deduce if a certain set-up is legitimate and if it is not. This would be done best when they know how scammers operate. Here is a description of the typical three steps:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or The bitcoin miner where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back. Due to the high instances of fraud – both Visa and MasterCard have taken upon themselves to circumvent scammers in forex trading. Backing up their intentions – MasterCard has already increased the previous time period of six months for filing a chargeback to a year and a half and Visa is expected to follow suit in December.
What to do when scammed?
As was mentioned above, scamming is quite common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
You may contact your bank or credit card provider and file a chargeback.
If, however, you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!