The UK is where 4XCube, a CFD forex brokerage, is based. It says that the MetaTrader 4 trading platform and a very high leverage are available. Traders can use up to 200 times as much money as they have. Also, there are a lot of trading products to choose from, and the spread on EUR/USD is a very good 0.8 pips. The minimum deposit is $100, which is less than the average in the industry and works in traders’ favor.
4XCube rules and keeping money safe
The brokerage’s information is not very clear. We know that the company behind the brokerage is called 4xCube Limited and is registered in the UK. We are also told that the brokerage is registered in the Cook Islands and is overseen by the Financial Supervisory Commission. Here is a picture:
This kind of statement is bad because it isn’t true. Cook Islands is an offshore area that is politically connected to New Zealand, but CFD brokers aren’t regulated by New Zealand. They can just register there, just like they can in almost every other country. But 4xCube does have a license for foreign currency exchange, which is not the same as CFD trading, which is what the brokerage says it offers. Also, this kind of license doesn’t give clients the same safety as a license from the FCA or CySec. We are not part of a compensation plan, and there is no guarantee that accounts will be kept separate.
We urge traders to avoid 4XCube for risk by only working with 4XCube who are regulated by reputable agencies like the FCA and CySec. These agencies have strict rules that brokers must follow, which gives traders a lot of confidence that their money is safe.
Separating accounts is one of the most important rules in the trading world because it makes it much less likely that money will get mixed up.
Another is taking part in a compensation plan that will cover the client’s losses if the 4XCube goes bankrupt or tries to scam traders, which is unlikely.
4XCube deposit and withdrawal methods and fees
Bank Wire, Perfect Money, PaySec, 2pay4you, Paysec, Vload, sofortBanking, Neteller, Skrill, and Bitcoin are all ways that clients can deposit or withdraw money. Going through the 4XCube website, we did find that the terms of the brokerage did have some rules about how to get your money back. There are fees for both deposits and withdrawals, but they aren’t too high and are made clear on the website.
But without the guarantee that comes with a license from a reputable agency like the FCA, we can’t be sure that the brokerage won’t charge clients extra fees after they’ve already put the money in.
Because of this, we also remind our readers of all the ways they can check to see if the brokerage is honest. First of all, traders are told to always put up only the minimum deposit required, rather than risking a larger amount without knowing for sure. After that, they might also try to take out a small amount to see if there are any fees or delays they didn’t expect. Most of the time, fees and delays like these are signs of a con artist.
How does the trick work? – 4XCube
We are sure that the best way to stop scams is for traders to be well-informed so they can easily tell if a set-up is legitimate or not. The best way to do this is to know how con artists work. Here’s a breakdown of the usual three steps:
If you click on an ad that says you can make money quickly, you will be sent to a site like Bitcoin Evolution or The Bitcoin Miner, where you will have to give your address, email, and phone number to sign up. After you give out your personal information, brokers will call you and try to convince you to invest with them so you can make a lot of money. After listening to their pitches for a few minutes, you decide to put down $200-$250. And just like that, the scammers get a big cut of the first deposit.
After they get what they want from you, senior scammers will try to get you to send even more money. They say it’s the only way to make even more money from trading. After you make the mistake of investing even more, you’ll want to get out of this and take out what you still have.
But this is not what the con artists have in mind. Now, they will start trying to get you to wait it out and not leave right away. The reason for this is pretty clear: traders only have a certain amount of time to file a chargeback with their bank and get their money back. The “recovery department” will just try to mislead you so that you miss this important deadline and lose any chance of getting your money back. Visa and MasterCard have taken it upon themselves to stop fraud in forex trading because there is so much of it. To back up their plans, MasterCard has already changed the time it takes to file a chargeback from six months to a year and a half. Visa is expected to do the same in December.
What to do when scammed? – 4XCube
As was said above, scams happen a lot in the business world, and unfortunately, you could be a victim. Even in a bad situation like this, you may still have some choices.
You can file a chargeback with your bank or credit card company.
If, on the other hand, you gave the broker your credit card information, you should cancel your card right away.
If you have told someone your online banking password, you should change it as soon as possible.
Watch out for calls from people who say they are from “recovery agencies.” They take advantage of traders who have been scammed and are desperate to get their money back. They will ask for a payment “up front” to help you, but after you pay them, you won’t get any help.
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