Cypriot financial regulator, CySec, has issued a warning to investors about Forex Place (4XP), stating that it isn’t permitted to offer financial services in the country, and has never been authorized by CySec. While not promoting itself as Cyprus-based, 4XP operates as an off-shore unregulated broker. Officially registered in the BVI, 4XP had a brief stint several years ago as a UK FSA regulated firm, before deciding to discontinue its licensing there (the firm is included in the FSA’s list of brokers receiving warnings from foreign regulators).
While not operating or promoting itself as a Cyprus-based broker, 4XP does accept clients in regulated jurisdictions. According to Forex Magnates’ sources, the firm has been the target of customer complaints to numerous financial regulators where 4XP markets provide services to. In the beginning of 2013, sources voiced concern about account holdings following a period where the company experienced back office system failures. The same sources did update us that the issues had been resolved.
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In addition to the unregulated 4XP, the broker shares a mutual service provider, Israel based Dealserv, with the CySec regulated SkyFX and ASIC licensed FXTG brands. (Update: SkyFX and FXTG have since been sold to new management in November ’13, ending their connection to 4XP and Dealserv) Account holders and partners who have worked with 4XP have expressed to Forex Magnates that representatives from the firms have cross-marketed the brands. As such, the current CySec announcement may be in response to EU customer complaints about 4XP, as well as making it clear that the broker is unregulated as opposed to the SkyFX brand.