4XP.com scam, What Went Wrong With Your Company? - Singapore Forex Trading, Singapore Forex Academy, Singapore Forex Association

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4XP.com scam, What Went Wrong With Your Company?

There are 2 usual ways for a broker to earn a scam finding. The first is to slowly mistreat trader after trader until the FPA has no choice but to give a scam finding. This sometimes involved delaying payments, but usually just enough traders get paid to delay a scam finding. Usually the company talks to the FPA and provides many excuses for the problems. The second is to suddenly go out of business. One day everything is normal. A few days later, the trading servers and website go down. 4XP chose a different course.

Instead of suddenly disappearing, 4XP.com decided to delay and then stop processing withdrawals. The biggest warning sign that things were seriously wrong was when Forex Place began asking some clients to accept withdrawals spread out in smaller payments over a year. Every time the FPA has seen this, it meant that the broker was on the way down. Unlike prior cases where brokers make excuses and delays, the time from first complaints until complete failure to pay anyone was short.

In 4X Place's case, the time between delays and monthly payments to no payments didn't last long. One of the 7 Guilty verdicts in the FPA Traders Court involved a client who got 1 of 12 promised payments.

The FPA repeatedly asked 4XP to come into the forums and address the issues. There was a post from a representative in one thread before Traders Court cases were filed. After the first cases were filed, one 4XP.com employee emailed the FPA and said he'd deal with the issue. He then stopped replying to emails.

There had been a small advertising contract for 4XP at the FPA. Because the problems were serious and getting worse, the FPA suspended 4XP.com's advertising contract. After 4XP failed to reply to emails about Traders Court cases, the contract was canceled.

The only other communication with the company was indirect. A groups of accounts were created. These accounts had one major item in common. They seemed to want to talk about 4XP, even in areas of the forums where commercial postings were prohibited. Several ended up getting banned for violating FPA anti-spam rules. Most of the rest were banned when one of them got into a discussion thread inside of the Scam Alerts folder and showed information that should only be available to a 4XP.com employee or IB.

The FPA did not want to declare 4XP.com to be a scam. In the past, the company had a representative in the forums and reviews. That person helped to resolve many client issues. The FPA hoped that this could be the case with the recent wave of complaints, but was disappointed to find out that 4XP no longer seems to care for open and honest discussions to fix problems.

Regretfully, the FPA has no choice but to declare 4XP to be a scam. We hope the company changes its course soon. If not, we believe it will be out of business very soon.