Beware! LcoinMarket 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.
LcoinMarket is a Forex broker which offers variety of products and services, such as Forex trading and Savings accounts. They enlist contact numbers in many countries, some of them Austria, Switzerland and UK. They also claim to have been on the markets since 1994, reaching a turnover of 165 billion USD in 2016, wow!
The truth itself is completely different, in reality LcoinMarket is an offshore registered broker, with lacking information about it’s legal status, also totally anonymous online. There is nothing to be found about a company with hundreds of billions USD turnover, it’s ridiculous, isn’t it? In this review we are going to show you many red flags, stuck at LcoinMarket and hopefully help you preserve your money.
LcoinMarket REGULATION AND SAFETY OF FUNDS
LcoinMarket is a Forex broker registered in St. Vincent and the Grenadines, a Carribean country including several islands which not long ago was a British colony. A preferred destination for shady, nontransparent entities due to its offshore and tax haven status. There is a financial authority supervising, called SVGFSA, but they do not impose regulations on Forex brokers. LcoinMarket is an offshore broker which is not licensed and authorized to offer its services in the EU or the UK, and is not controlled and regulated in any way.
In EU and UK there are strict financial regulations put in place. Britain and each EU country control the Forex brokers within similar financial regulatory frameworks. These includes personnel qualification standards, daily trading reports and the obligation of the agents to hold the funds of their clients in segregated trading accounts.
Also, there are money protection schemes, including funds which guarantee the clients’ deposits. Those regulated by the Cypriot CySEC are guaranteed of up to 20 000 EUR per client, while the British FCA regulated brokers are guaranteed of even up to 85 000 GBP per client.
LcoinMarket is an offshore broker and your funds are not in safety if you deposit with them.
LcoinMarket TRADING SOFTWARE
LcoinMarket lists three trading platforms to choose from- MT4, WebTrader and a Mobile app. However, upon registration there is only a web trading platform available, called Activ8 trader. It is a rather unknown platform to the customers, there isn’t a single reputable broker which is offering this software. The trading software itself is very primitive, limited to only one chart at a time and only 4 indicators available!
Demo accounts are not available in reality! A significant red flag!
The sign-up process was quick and easy and there wasn’t e-mail confirmation requirement. When you see the dashboard you might start laughing, because it’s not professionally sustained in any way, and looks like a student’s homework.
The spread in EUR/USD is 3 pips,which is high compared to the rest of the industry. There aren’t leverage or margin requirements mentioned anywhere and shockingly, after sign-up you have no idea what your leverage is, which is a serious flaw. No reputable broker is going to deal with such an important question so carelessly! Stay away from LcoinMarket and if you are looking for a Forex broker make sure to choose the right agent for you. The one should be licensed to provide such products and services and also should be strictly regulated, which is a guarantee that the broker will not disappear with your money in his pocket. Such brokers will inevitably offer Metatrader accounts and will specify all of the important features in a professional manner, also easy to understand.
LcoinMarket DEPOSIT/WITHDRAW METHODS AND FEES
The initial minimum deposit should be 200 USD, according to the details given in the presented 4 types of accounts. It is important to note that in these presentations there aren’t any important trading conditions given, instead we see some absurd features such as VIP Signals or withdrawals for free.
There are some bonuses introduced on their Home page, but nothing specified in detail.
Also, savings accounts are offered, but again, no T&Cs applied and in reality there aren’t any in existence. There is a huge discrepancy between their Home page offers and what they really are able to deliver. We should note down another red flag, it’s alredy becoming trivial.
However, you can actually make an initial deposit of 100 EUR or USD which comes as a conflicting piece of information. Another, more substantial red flag was found instanteniously, no proof of identification, or other verification form is required in order to make a deposit.
As you can see from the pictures LcoinMarket is using only a single funding method- some AtomixPay, which is an online payment, very obscure indeed. We didn’t find sufficient information about this service, the only thing to know is that it is linked to Ukraine and there are less than 10 employees in the company. The leading Forex brokers offer variety of payment methods, it is a worrying sign if only a single anonymous payment service is available for funding.
Minimum withdrawals are set to be 100 USD for bank cards and 250 USD for wire transfers. We tried to test their withdrawal system, but unsuccessfully, there isn’t a single proof that wire transfers are actually possible!
There is 50 USD fee charged for a wire transfer and a 25 USD fee for card transfer plus 10 USD processing fee. Way too much, compared to the rest of the industry. Dormant accounts, inactive for 6 or more months, will be subject to a deduction of 10% each month, a ridiculously high fee!
It is really important to note here, that the Deposit and Withdrawal policy of LcoinMarket is absolutely the same as the one we recently found while doing the CapitalFunds review! Word by word, it is exactly the same! LcoinMarket also allow an account to become indebted, stay away, it’s a gargantuan red flag!
We have to stress on the fact that EU and UK regulated Forex brokers are forced to maintain negative balance protection of its customer accounts, which means that the losses cannot be greater than the sum deposited. Under FCA or CySEC supervision indebted Forex accounts are impossible! Keep your money safe and stay away from LcoinMarket!
HOW DOES THE SCAM WORK
The scam is a confidence trick! The scammers will promise you the moon and the stars only to gain your confidence, then will persuade you to invest money with them and sooner or later will take advantage of you and will run away with your money.
A group of scammers usually operates many different scam brokers, scam websites and call centers. Sometimes they will simply rely on the quantity, they will publish tens or hundreds of websites and will just wait. Nowadays, it’s very cheap to create one, and it looks like a profitable strategy, as they carry on doing it.
The most effective way to avoid scam is to be informed. Always do the research, get familiar with the Forex market, learn about the legal requirements towards the brokers, make sure to understand topics such as trading conditions, margin requirements, leverage, spreads etc., read reviews, stay informed!
WHAT TO DO WHEN SCAMMED
Anyone can get involved in scam, scammers are constantly changing their strategies and no one must feel safe. If being scammed the first thing you should do is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you important instructions to follow and will help you, if possible, recover your money.
Report what have happened to you, file a complaint, contact the financial regulator, contact other government institutions dealing with trading and investing. Seek help actively!
Share online your experience, it is important to protect others, as well. Be responsible!
Avoid LcoinMarket, there are too many red flags!