Beware! LMFX is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
LMFX is a CFD forex brokerage, based in Macedonia. It provides the MetaTrader 4 trading platform and а web-based one. Traders are extended a leverage of up to 1:1000 which is the highest we have seen so far in forex. Furthermore, there is a wide range of trading products from which to choose and a spread of 1.2 pips on EUR/USD. The minimum deposit is also considerably low – only $50.
LMFX regulation & safety of funds
LMFX states that it’s company is registered in Macedonia by the name Global Trade Partners Ltd, however, it also lists an offshore company in St. Vincent and the Grenadines as its payment provider. The governments of both countries do not include forex trading within their regulatory framework. The problematic nature of lacking credible regulation cannot be overstated. It also inclines us to doubt whether potential clients of the brokerage are not open to substantial risk.
Prestigious regulatory agencies, such as the FCA and CySec, require compliance with a number of strict rules that give significant assurance for the security of the clients funds.
The segregation of accounts is among the rules which are especially important in the trading world, because it drastically lowers the risk of possible commingling.
Another is the participation in a compensatory scheme by which the client’s losses will be covered in the unlikely case the broker goes bankrupt or attempts to swindle traders.
LMFX deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw via Bank Transfer, wire transfer, credit and debit cards, Neteller and Skrill. In the terms and conditions of the brokerage we did find quite a few toubling provisions. LMFX outright says it reserves the right to freely make deposits or withdrawals in the client’s account. This should immediately warn us that the broker has ill-minded intentions.
We must remind readers of all the ways a trader may test the brokerage’s intentions. Firstly, traders are advised to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
Traders may become aware about the ongoing scamming in forex through either falling victim to it themselves, or through reading about it beforehand. We all agree that everyone would rather learn it the latter way. Here is how a typical scam would go about:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Crypto-unlocked or Cryptoodukes where registration will require you to give your email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the forex hustlers have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The angle here is pretty blunt – traders have up to six months to file a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
You may contact your bank or credit card provider and file a chargeback, but only within six months of the initial deposit, as was noted above.
If, however, you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!
