Beware! LSS Capital 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.
LSS Capital Markets is a Forex broker with a website layout we have seen more than once before. It is certainly a cause for concern, because their page is very very similar with the webpage of two other brokers, which we have recently reviewed. Other than that, LSS Capital Markets provides the public with many pieces of conflicting information about itself. Find out more details about this Forex broker in the full LSS Capital Markets review.
LSS Capital Markets REGULATION AND SAFETY OF FUNDS
The very first thing we have to start with is the website of LSS Capital Markets, its structure is incredibly similar to the one used by TrintFX and 7FXGT. Have a look.
Further proof, which undoubtedly points that these alleged Forex brokers are being operated by the same group of scammers, is the account activation e-mail, sent by TrintFX, as a matter of fact! And it didn’t actually work, which is not only the next red flag, but also a fail, stay away!
Apart from that, LSS Capital Markets points an address in the Seychelles, but no information about a company registered on the island is given. Our check with the FSA in the Seychelles was fruitless, nothing about LSS Capital Markets emerged. Also, they point a company allegedly registered in London, which is, in fact, non-existent, there isn’t such an entity in UK!
Your funds are not safe if you deposit with LSS Capital Markets, it is an unlicensed, unauthorized and unregulated Forex broker, blatantly lying the public about it’s regulation. Avoid them and find a broker which is legit, transparent and truly regulated in EU or UK, as the jurisdictions mentioned provide the safest environment for your funds. The European Forex brokers put the customer protection on top of their priority list and will treat your funds with an utmost care, not because they want to, but because they have to. One of the rules agreed and implemented throughout Europe is the negative balance protection on a per account basis, meaning that the losses cannot exceed the total funds deposited. In other words, you cannot end up in debts, owing money to the Forex broker. USA and Australia are still trying to catch up with the Europeans in terms of customer protection, but there are certain steps taken in that direction.
There are also money protection schemes in operation, such as ICF in Cyprus and FSCS in UK, which guarantee the deposits of the clients. Under CySEC(Cyprus) supervision you can claim up to 20 000 EUR in compensation, while in UK under FCA you are guaranteed of even up to 85 000 GBP. Each EU member state is compelled to create and further operate similar insurance funds, which are seen to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
LSS Capital Markets TRADING SOFTWARE
LSS Capital Markets offers only MT5 accounts, MT4 or a web-based trading platform is not available. However, upon installation there is no way you can open any account, real or demo. Their liquidity provider is called The Liquidity Software Solutions Limited, but it seems that its license has expired, and the platform itself is frozen. In fact, TrintFX and another Forex broker, called LSS FX Markets, a very similar name, indeed, use the same liquidity provider!
However, the spread is said to be as low as 0.5 pips, but only if you open their Classic Account that require a minimum deposit of 5000 USD. The leverage might reach the staggering 1:1000! We do not recommend using such an increased leverage levels, because the risk is immense and we are no longer talking about trading, but gambling. In EU and UK, a leverage cap was introduced, 1:30 is the maximum ratio that a Forex broker can offer to its clients. The product intervention was launched for a reason, traders with little or no experience tend to be attracted by the huge leverage, which typically results in greater losses accumulated in a shorter period of time.
LSS Capital Markets DEPOSIT/WITHDRAW METHODS AND FEES
We have to start with the fact that there aren’t any legal documents, whatsoever, Terms and Conditions, User Agreement or Client Agreement are not presented to the traders which is a red flag to note, and another evidence of scam!
The minimum deposit with LSS Capital Markets is 50 USD and there are many funding methods listed such as bank cards, wire transfers, Skrill, Neteller, WebMoney, Bitcoin etc. However, we cannot confirm that all of these are available, because the confirmation link in the e-mail sent to us didn’t work.
No minimum withdrawal specified, but they reassure that there are no withdrawal fees applicable, also the request is said to be processed instantly which doesn’t sound feasible. No other fees mentioned, no dormant account policy found.
There is a 15% deposit bonus offered, but LSS Capital Markets fails to specify the Terms and Conditions related to this trading incentive. Bonuses are banned in UK, so it’s another proof that LSS Capital Markets has nothing to do with UK regulation and is in fact a pure scam!
There is a partnership program, but here they also fail to give enough information, stay away!
HOW DOES THE SCAM WORK
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 for traders and investors with little or no experience to bite. Nowadays, it’s very cheap to create one, and it looks like a profitable strategy, as they carry on doing it.
Fraudsters are working in the social media nowadays, an increasing number of scammers will first introduce their “services” to the people through Facebook or Instagram. You will click on a page, promising a lush lifestyle if you follow their example, they will contact you, probably offer you a demo account and after some time you will be tempted to invest and make guaranteed profits. Once you are signed-up they will ask you to deposit money and this is just the beginning, because gradually they will be asking for more, no matter if you lose or make profits. The end is always the same, a robbed-off investor who lost his hard-earned money.
WHAT TO DO WHEN SCAMMED
No one is immune to scam, anyone can fall into the trap. Scammers are constantly looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, 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 happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience, it is important to protect others, as well. Be responsible!