Beware! LGS Markets 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.
At first glance, LGS Markets doesn’t look different from any other forex companies. And if you are looking at its website and wondering whether you should trust your hard-earned money to this company, we can help you by looking at some key features that will tell us whether this company is legit or scam.
From the company’s website, we find out that it trades in forex, CFDs, indices, metals and commodities. So, nothing unusual here.
Then we find out that it offers 4 accounts (as per the screenshot below). To open an account, you need to register and almost immediately you get a confirmation email.
LGS Markets Regulation and safety of funds
From the footer in the company’s website, we see that LGS Markets are owned and operated by Liquidity Global Markets Ltd., licensed by the Financial Services Authority (FSA) of St. Vincent and the Grenadines (SVG). And here we just can’t help it but lough! Why? Because FSA does not regulate forex companies and if there is a forex brokerage pretending to be registered there, it is a sure sign for scam!
A forex company’s registration and regulation is a key feature when identifying whether it is a scam or not. To be on the safer side when looking for a forex brokerage, we advise you to look into companies that are registered and regulated in the well-established jurisdictions where you can have a guarantee for safety of funds and your money will not be put in jeopardy. To be registered and regulated, genuine forex companies must fulfil many strict requirements. For example, in EU and UK they must have an initial capital of no less than 730,000 EUR. Also they must contribute to a compensation fund in case they go belly up. In EU, a client of a legitimate and regulated forex company could be compensated up to 20,000 EUR in case of bankruptcy and in UK the compensation is up to 85,000 GBP per client. This is why you should always look for legitimate and regulated forex companies that can guarantee you safety of funds. Obviously, the company we review today is not one of those, so stay away from it!
LGS Markets Trading software
To its clients, LGS Markets offers a topnotch trading platform – MetaTrader 5. It is one of the recent trading platforms that has quickly gained popularity among forex brokers for its advanced features. In addition of a great charting package and automated trading systems, it provides options for traders to execute trades on different financial markets through a single account and provides a variety of instruments and over 80 indicators. It has an app market, a financial calendar, VPS and more.
In the screenshot above you see the interface of unbranded MT5 Metaquote’s default version. On the left, you see the menu for currency pairs with their bid/ask price and below the navigator options. In the middle, there are 4 charts displaying 4 pairs of currencies with the fluctuations in their price. If we look at the EUR/USD pair and the sell/buy price, we can find out that the spread for this currency pair is 0.4 pips. The spread shown on the company’s account info is 2 pips which is not too wide either. Given the high leverage in the account info (1:500), we consider trading via this brokerage to be risky. The high leverage they offer signifies 2 things – a big win or a big loss. Given the high percentage of financial loss in forex trade (over 70%), we advise you to choose another company that offers lower leverage. If you take a look at forex companies regulated in Europe, you will see that they have a cap on leverage which is only 1:30 and in USA it is 1:50. These are measures to protect traders from taking risks and suffering financial loss. So, as tempting as it may seem, stay away from leverage this high!
LGS Markets Deposit/Withdrawal methods and fees
The minimum initial deposit is $100 for the Classic account. The other accounts start at $500 and $10,000.
If you open the deposit info on the company’s website, you see many payment options listed there – VISA, MasterCard, WeChatPay, American express, Maestro, JCB, Skrill, Neteller, WebMoney, Yemadai, Giropay, to name a few. However, when you open the deposit box in your trading account, you see that your options are reduced to only 2 – credit card or bank transfer.
The same happens with the withdrawal methods. In the withdrawal info you see again the same numerous options as above, but in reality only bank wire, Neteller and Skrill are available when you open the withdrawal box in your trading account.
The way the deposit and withdrawal method information is presented on the website is misleading to the traders who may think that they really have so many payment methods available when in reality it is not so.
The company claims on its site that there are no deposit/withdrawal fees. However, the link to the Terms and Conditions document is broken and we cannot find confirmation to that in its legal document. A self-respecting forex company will have such document displayed and easily accessible on its site. Yet another proof that there is something wrong with this company!
How does scam work?
If scammers make a movie, it will probably be called “Dream on”. They make everything sound credible and build their scam on your dreams of getting an easy and quick profit. People get duped if they decide to deposit money into one of the scammers schemes. What you probably do not know is that your hard-earned money goes as commission to the scammers. Next, you get inundated by daily calls. First, the scammers congratulate you for joining their business, next they try to persuade you to invest even more money. After all, the more money you send, the bigger money fall you can expect. This of course is not how things work. By the time you realise that no money is coming your way, it might be too late. All you want now is to get your money back and get out of there but the scammers have other plans for you and they won’t late get away so easily. Now they try to delay you so that you miss the deadline for chargeback.
What to do if scammed?
If you get scammed, our advice is to act immediately and if you have paid your deposit via credit/debit card you may still have a chance. Visa and MasterCard allow you 540 days time limit to file for chargeback which gives you a fighting chance to recover your money.
However, if you have used bitcoin or bank wire for your payment, the chances of you recovering your money are really slim.
Cancelling your credit/debit card in case you have given the scammers your CVV code may be another good idea. Also, make sure to remove from your PC any software that my give scammers access to your private data stored on your computer.
Whatever you do to recover your funds, beware of the so-called recovery agents. Please make sure that you are dealing with a genuine one by checking their credentials and company’s information transparency. Otherwise, you may fall victim to another form of scam.