It’s a brand new day, so that means, unfortunately, there is a brand new financial scam to be wary of. This time, its the Australian Securities and Investments Commission (ASIC) who has updated their blacklist this Thursday, adding 4XFX.
In its own words, 4XFX, which also goes by the name of FRG Europe Ou, is “a leading online trading brokerage that allows you to invest in an array of opportunities, on a simple and user-friendly platform.” The company claims to facilitate the trading of foreign exchange (forex), commodities, stocks, cryptocurrencies, and indices.
However, ASIC has warned residents of Australia to not deal with this firm. This is because 4XFX is unlicensed in the country to provide financial services, and is operating without the proper authority. As a result, the company could be involved in a scam.
According to the warning from ASIC, 4XFX has made “unsolicited calls or sent emails about investing, financial advice, credit or loans and does not hold a current Australian Financial Services (AFS) licence or an Australian Credit licence from ASIC.”
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4XFX, which operates via its website www.4xfx.com, claims to be registered in Estonia, and based at the following address: Harju Maakond Tallinn Kesklinna Linnaosa Roosikrantsi tn 2-K397, 10119, Estonia.
Alleged online brokers like 4XFX that are operating without a license in Australia are not uncommon. In fact, a glance at ASIC’s unlicensed company warning list will show that there are many firms which try to sneak their operations into the country without obtaining the proper authority.
BaFin warns against FX trading robot
But Australia is not the only country where such scams occur; it’s a worldwide issue, as you might have gleaned from our consistent reporting on the issue. Only on Tuesday, Finance Magnates reported on a similar warning from BaFin, a financial regulator in Germany.
This warning targeted Top Algo Trade, a “100% Profitable Auto Trading Forex Robot”. According to the warning from the German regulator, Top Algo Trade does not have permission to conduct banking activities or provide financial services in Germany, as per the German Banking Act. Because it is, therefore, operating in the country without the proper authorization, it is most likely a scam.