For the first time, we decide to write about a nonregulated broker…
LMFX is nonregulated forex broker formed in the year 2008, the online broking company LMFX offers services in trading for institutional as well as trading clients worldwide. In the Forex trading, LMFX has a goal of offering its clients with highly competitive conditions for trading to CFD, forex, indices, and commodities.
With LMFX traders get comprehensive types of desktop and mobile MT4 platforms. However, it also lacks research, regulation along with customer service.
LMFX also offers competitions in trading, where the clients trade for winning exciting prizes along with high leverages.
Overall, the broker gets low scores across the board instead of the competitors in the market. So, what are the benefits and disadvantages of LMFX?
PROS
* More than 10,000 traders worldwide
* Only $50 minimum deposit required
* Tradable and good varieties of assets available
* A new and young company formed in 2009
CONS
* Poor customer support
* Unregulated
* Hedging not allowed
IS THE LMFX REGULATED?
The broker isn’t regulated through government-owned agencies but this is operated through Global Trade Partners Ltd. Well, the Global Trade Partners Ltd has been registered in the Republic of Macedonia.
LMFX claims that it strictly follows the regulations and laws in the country. According to them, this is beneficial for the traders as it allows them for providing high leverage which is more than 1:1000 with the Premium Account.
Also, the broker has thorough policies for Anti-Money Laundering with Segregated Accounts.
According to LMFX traders, funds can be sent to the individual accounts of clients holding separate pool funds for company funds.
Brokers go on the state meaning that accounts get segregated, and LMRX no longer offers services to all its clients. Also, client fund will get returned as they’ll get accounted for correctly before trading activities get terminated.
In case when LMFX gets liquidated, then brokers say “all designated funds as the funds of clients, and are held in client accounts, get returned to clients as per funds that were held by the company, minus all costs related to distribution and administration of all these funds.”
However, issues with all these statements would be that LMFX remains unregulated – which leaves no way for ensuring that all procedures are intact and in fact will happen provided the occurring situations.
Again, now to be specific and quite clear in answering the vital question of whether the LMFX is regulated or not? The answer here is no.
Being unregulated, it is advised for traders to exercise caution, mainly while dealing with any offshore unregulated broker. The protections investors have gone through the regulations don’t apply for unregulated brokers such as LMFX.
DIFFERENT LMFX ACCOUNTS AND THEIR FEES
LMFX FEE
The fees would differ based on account type with present market conditions. Also, broker charges commission with various other fees such as:
* The LMFX charges fees for inactivity
* Withdrawal fees would vary depending on the method of your payment
* A deposit fee is charged by LMFX
* Commission is charged for CFD shares
* Variable and Fixed Spread
LMFX provides both variable and fixed spreads but these are subjected to change. It means that either it can be 0 pips, or also might be more than 25 pips.
The fixed spread can be a lot high depending on the volatility of the market.
TYPES OF LMFX ACCOUNTS
Different flexible accounts are meant to suit the styles and requirements of different traders. Clients select between the premium of brokers, fixed and zero accounts with varying spreads leverage, and commissions with various differences that get outlined below.
Traders also open LMFX demo accounts for getting the feel for conditions and trading markets online. A lot of experienced traders can test the strategies and also experience trading platform without paying any cost.
With Demo Account you get:
* Trading from the selected platform
* Enable strategies and EA testing
* Close real market condition replicas
* Unlimited usage
The newly added customers require registering firstly with LMFX, and the existing clients are able to login their Wallet while opening a trading account through there.
PREMIUM ACCOUNT
A minimum $50 deposit is required for maintaining a premium account with its variable spreads beginning from 1 pip without any charged commission.
The minimum lot is 0.01 with a maximum total trading size is of 60. Leverage more than 1:1000 is available on such type of account.
The premium account is with a minimum size of trading at 0.01 lots with a $50 deposit. Clients can trade until 60 lots with a single trade. This also offers offerings for the flexible bonus with an account manager.
FIXED ACCOUNT
The fixed account of LMFX suits Expert Advisors and work fine with the fixed spreads. The minimum lot is 0.01, with 75 as maximum trading size, and this requires a minimum $250 deposit. The account also has the leverage of more than 1:400.
Also, a fixed account provides a Personal Account Manager with bonus offerings.
WHY IS LMFX RECOMMENDED?
LMFX is available with MetaTrader 4, available on Apple, Android, and Desktop devices. The MT4 platform has been popular among traders with an intuitive interface with great features. The MT4 lets you view instruments for trading while getting market quotes and loading charts.
The platform has more than 50 technical indicators allowing users in analyzing charts with the capability to create customized indicators. Traders also can set alerts with the various order types which are not supported.
The broker also provides an economic calendar.
TRADABLE ASSETS
The tradable assets are the best feature by LMFX. In total 161 trading tools are available with LMFX. The market has commodities, Forex, shares, oils, indices and metals.
IN WHAT AREAS IT CAN IMPROVE?
CUSTOMER SUPPORT
The Support for LMFX is not quite helpful, and it doesn’t help much for answering anything that is asked, and it mostly only links to the pages and mentions finding information by yourself.
The customer support team reaches you on the live chat available for five days a week and 24 hours a day.
Live chat isn’t of much help! Response from email support can take around a few hours or an entire week. Although the phone support is prompt.
EDUCATION
With LMFX clients get to know about some fundamentals. You get a few video tutorials, with beginner courses for trading along with the Metatrader4 course. Overall, the video course quality is standard and not much exciting, and there is plenty of scope for improvement.
WITHDRAWING MONEY THROUGH LMFX
After making $50 deposits, new traders have to sign up for a demo account for practicing before they sign up.
You’ll be asked questions regarding your trading experience which can take around 5 to 10 minutes. While you can start exploring the platform right at the moment, you’ll not make trades prior to approval, which takes about 3 working days based on individual circumstances.
FINAL THOUGHTS
Traders get nice tradable asset selection like CFDs assets, Forex, commodities, etc. Also, it does well to offer traders with account type selections for meeting different requirements.
Customer service is overall fine, but not too handy for new traders on platform or people trying to know more about the company before signing up.
Most importantly, with the LMFX REVIEW we come to know that it isn’t regulated and even while having segregating accounts, no way is there for making sure that you’re covered in high-risk situations because of the lack in regulation. Thus, new traders are cautioned for investments involving high risk.
