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LMFX is a broker that offers asset trading on the MT4 terminal.
About company. Fund security
Little is known about the company's history. LMFX is a brand allegedly operated by Global Trade Partners Ltd., registered in the Republic of Macedonia. However, LMFX lists GTP Global Solutions Ltd., a registered offshore company in Saint Vincent and the Grenadines, as a payment service provider.
Registering a broker does not mean that it is licensed or controlled by regulatory authorities. Most often, brokers choose offshore zones because there is a very simple and cheap registration process. Offshore brokers are less likely to be audited regularly and are not obligated to participate in investor compensation programs. Therefore, we recommend that traders read the reviews before opening accounts with offshore companies and, even more so, making large investments.
Trading conditions
LMFX offers its clients a choice of three account types to suit different traders' preferences. While its trading conditions seem attractive, let's take a closer look at them.
LMFX offers trading in many currency pairs, including popular and exotic ones, as well as a wide range of CFDs on indices, commodities, stocks and precious metals. Despite the fact that it does not include popular cryptocurrency CFDs, such a portfolio of products is considered to be quite complete.
We tried to register a demo account with LMFX as we could not find a free downloadable MT4 broker on their website. However, we were only able to access the LMFX client area.
Minimum deposit
A deposit of $ 50 is required to open an account.
Spreads and commissions
LMFX lists a typical spread of 1.2 pips on EUR / USD. This value is considered competitive in Forex.
Many traders believe that the price per trade is the most important thing for a broker. While this is undoubtedly important, the safety of your investment should be a priority. In other words, it is always better to trade with a well-regulated broker rather than an offshore company that promises low spreads but eventually disappears with your money.
Leverage
The leverage levels provided by this broker vary depending on the type of account, however, the ratios offered on their premium account go up to 1: 1000. A high level of leverage can help you make big profits by investing small amounts, but it can also result in losses that exceed your initial investment. The second scenario seems much more likely, especially if you are an inexperienced trader.
Trading platforms
The choice of the platform by this broker is not surprising, as over 80% of Forex companies we come across offer access to MetaTrader 4.
The platform is well known to traders and is chosen because it is intuitive and reliable. On top of that, charts and automated trading by advisors make trading easier. Besides Expert Advisors, you can also record your own technical analysis indicators and run simulations using historical data.
Significant services
The broker has an online hub that collects educational and analytical materials. You will find video tutorials, Fibonacci calculator, dot reversal, position size, pip value, risks, economic calendar and more.
Support service
Traders can contact an LMFX representative by phone and email. Online chat is available 24/5.
Ways of payment
Funding can be done via bank transfers, credit and debit cards, and online payments through Neteller, Skrill and FastPay. The minimum deposit amount is $ 50. The minimum withdrawal amount is $ 10.
The withdrawal of funds is carried out using the same methods as the deposit.
Criticism of traders
Traders mainly complain about changing trading conditions without agreement. Nevertheless, the company's support responds to complaints from traders on many public Internet resources.
Pros:
there is MT4; selection of assets for trading; analytical tools for trading.
Minuses:
no demo accounts; not regulated.
LMFX is a company whose task is to provide intermediary services to traders. Brokers / Crypto exchanges provide access to currency / cryptocurrency trading, first of all. Also, many of them, if we are talking about brokers, give the opportunity to make transactions with company shares, bonds, commodities, precious metals, indices, cryptocurrency and other assets. A private person can make transactions with all these instruments only on a trading platform, access to which is provided by a broker or a crypto exchange.
In addition, thanks to such companies, an individual can operate in the market with amounts significantly exceeding the amount of his own funds. This is called the provision of leverage. For example, having a deposit of 1,000 USD with a leverage of 1:400, a trader can make transactions for 400,000 USD.
As well, the broker / crypto exchange opens access to analytics, auxiliary tools, trading signals. Without all this, modern trading is impossible.
LMFX profits from traders' trades, usually in two main ways
.
First – most common. Using spreads. This word refers to the difference between the best prices for buying and selling a certain asset at a particular moment. Moreover, in a transaction between a trader and a broker, the price is one, and between the broker and market users - another. The mediator takes the difference.
The second method is easier to understand. This is a fee for each operation performed. Most often it has a standard value, but can also be measured as a percentage.
Therefore, the company is interested in attracting as many clients as possible and that they conduct active trading.
How honest brokers / crypto exchanges should work and how they work, we found out. And now let's look at how scammers act, they are also called kitchens.
The most common way to cheat – is to twist quotes. Broker / crypto exchange gives the trader quotes that differ from the real market. There is a substitution of data in order to make operations unprofitable. The deposit is reduced, and then completely reset. At the same time, the trader thinks that his operations were made on the market, but in fact – just on the site of scammers.
Bonus – traps. They are generously distributed for anything: registration, account replenishment, etc. Only after that, in order for the client to withdraw his own money mixed with bonus money, it will be necessary to fulfill a number of actually impossible conditions. For example, to conduct trading operations in the amount of ten times more than the size of the deposit.
The User Agreement may also mask a clause that allows the broker / crypto exchange to dispose of the client's money. Inattention when reading such an agreement most often turns into a complete loss of the deposit.
One of the key points – it is the place of registration and regulation of the company's activities.
First let's talk about registration. As a rule, traders are more trusted by companies either from their own country or from an economically developed country, for example, a member of the European Union. Of course, compliance with UK law is reassuring, and compliance with the laws of an unknown island in the Indian Ocean does not mean anything to most at all.
On fact, most brokerage companies are registered offshore, and we are talking not only about small offices, but also about world leaders. Saint Vincent and the Grenadines, Belize, Marshall Islands, Mauritius are popular offshore zones among companies. Registering there, companies pay significantly less taxes than in the place of actual location, which is sometimes carefully hidden.
If a trader has claims against such a company, then it is likely that he will have to deal with it in accordance with the laws of the same conditional Belize. It is possible to be physically present there at court hearings. And this is extremely expensive and difficult.
No is it worth running like fire from just the word «offshore»? As an answer, we will cite the names of companies that are not related to brokerage, but with an impeccable reputation and also save on taxes with the help of offshore registration: Apple, Pfizer, Microsoft, General Electric, Intel.
And here we come to the second important point – this is the regulation of the broker / crypto exchange. First of all, it is carried out at the level of the state where the company is registered. Each country has its own regulatory body for brokering. So, in Russia it is the Central Bank of the Russian Federation. The trader can find permits on the websites of such authorities. But there are also supranational structures. For example, the International Financial Commission, which is an independent self-regulatory organization, specifies disputes between its members – brokers and their clients.
If there is no information on the broker's website / crypto exchange about the regulation of its activities or license, then it is almost certainly a scammer. Or on the site there is data on some license issued by him, but this information is not confirmed anywhere else. Most likely, these are also scammers.
When choosing a brokerage company, or crypto exchanges, study its history. Look at the links to its experts. If one of the leading TV channels in the economic news for 5 years in a row refers to the opinion of the analyst of the broker in question – this is good. If the broker / crypto exchange assures that it has been working for 15 years, but there is no information about it on the Internet at all – this is bad.
It is important to pay attention to reviews about the company. And read them not only on the website of the broker itself / crypto exchange. In the kitchen, they will certainly be only praiseworthy. It is better to view as many sites as possible.
Pay attention solely to the specifics in the offers on the websites of brokers / crypto exchanges. Honest companies openly write about interest, spread size, minimum deposit, etc. Scammers lure loud streamlined phrases about a rich tomorrow, a stable income, mislead with incomprehensible terms about multi-sites, superfunctions and so on.
Specify the company's connection with well-known brands, financial institutions, public organizations. For example, it can be sponsored. Large brokers / crypto exchanges sometimes hold social promotions. Scammers will definitely not do this.
Therefore, the process of choosing a broker / crypto exchange is complicated. But if you approach it carefully, it will allow you to enter the world of trading, which has made millions of people rich around the world
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Before any trade and choosing a broker You must always read reviews on this site and on other sites. Companies who are honest, have a rating of above 3.8. Also there is always the risk of loss when trading CFDs. Be careful and read the disclosure on the website of the company you chose. LMFX received a score of 1 of 5 on our resource.