LVM Exchange review – 5 things you should know about Lvmexchange.com

LVM Exchange review – 5 things you should know about Lvmexchange.com

Beware! LVM Exchange is an offshore broker! Your investment may be at risk.

Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

 

LVM Exchange is an offshore Forex brokerage registered in St. Vincent and the Grenadines. It provides a web-based trading platform, not the MT4 trading platform and there is a wide range of payment methods available, however, further trading conditons remain undisclosed.

LVM Exchange regulation and safety

On the brokers website we read that the broker brand is owned and operated by a SVG-based company with the name LVM Ltd. Saint Vincent and the Grenadines is a well-known offshore zone and a preferred location for shady brokerage. We remind readers that the government of SVG has multiple times publicly stated that it does not oversee Forex trading and thus we may safely conclude that not only is the brokerage not regulated. Furthermore, trading with an offshore, unregulated brokerage hides a lot of risk. There may be commingling which means that the brokerage may commingle together the finances of the firm and the finances of the clients. On top of all this we learn that the brokerage is acting as a market maker which may lead to conflict of interest if it wishes to give trading advise or manage the accounts of clients since market makers are on a profit only when clients lose money. And not surprisingly, from the terms and conditions of the broker we do learn that LVMExchange does offer managed accounts. It seems the website is nothing more than the typical market maker scam we have seen quite a lot lately.

Overall, the lack of regulation inclines us to suspect that potential clients of the brokerage may be open to substantial risk. Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.

LVM Exchange trading software

For the sake of objectivity we do highligh the fact that the brokerage does provide the MetaTrader 4 trading platform which is very advantageous for traders since it is the foremost trading terminal at the moment equipped with features such as almost a 100 market indicators, as well as customizable trading robots. There is a demo account available which we consider as a huge positive for the broker since it is the most transparent way of discerning the trading conditions.Through the demo account we could see a floating spread of about 0.5-0.6 pips on EUR/USD which is extremely favorable, especially having in mind the fact that the brokerage supposedly does not charge any trading commissions. However, the lack of regulation inclines us to question these favorable trading conditions and their validity. Last but not least, the trading platform is provided by a third party which isn’t uncommon but does not speak very well for the legitimacy of the brokerage either. 

LVM Exchange deposit/withdrawal methods and fees

We could not find any information regarding the available payment methods. Usually in Forex trading potential clients of a brokerage may deposit or withdraw via the standard Visa, MasterCard and bank wire, as well as e-wallets such as Skrill or WebMoney.

Reading through the terms and conditions of the broker we did discover troublesome provisions. The managed accounts that are offered by LVM Exchange go hand in hand with very unusal withdrawal conditions. We first read that traders will not be able to withdraw if the amount in the account falls bellow $5000. This aside – the client will not be eligible for withdrawal at all, irrespective of the sum, for the first year which is an absurd provision found only in the terms of shady brokerages. There is also a 25 percent performance fee that will be charged whenever the brokerage sees fit which leads us to safely conclude that traders should not invest with LVM Echange. This is why we advise traders 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?

Even though the Forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. Here is a quick overview of how it is done: Through clicking an ad with promises for fast money, you will be redirected to a website such as DaxRobot or CryptoContracts where registration will require you to give your address, 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 con-artists 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 a limited time period for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back. It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And with the case Traderia – they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.

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.  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!

Rich Snippet Data
Review Date
Reviewed Broker
LVM Exchange
Broker Rating
1.31star1stargraygraygray

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