Beware! Lot-Forex.com 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.
Even at its best, Lot-Forex.com still cannot fool us into thinking that it offers legitimate services. We have been doing this work long enough to notice when brokers are trying to limit our perception. There is something definitely going on here, as many of the illegal broker tropes are at full use here, including false regulatory information, an overwhelming website riddled with small mistakes and technical issues, and an uncanny resemblance to one legit broker. The following review will be talking about these things, and more, as we slowly but surely uncover the truth behind Lot-Forex.com!
The account creation process was very sloppy, and what resulted from it was a confusing and messy user area that blended with the website in confusing ways. There was no way to open a platform with an account belonging to Lot-Forex.com. The servers belonged to the MetaQuotes website, meaning that users can only open a demo account. and the demo account would also be under a different name. So technically, Lot-Forex.com does not offer any trading conditions to its users. Everything one sees on the website is one big lie! However, the broker did give us a leverage. It was capped at 1:1000.
The website is available in both English and Russian.
LOT-FOREX.COM REGULATION AND SAFETY OF FUNDS
Lot-Forex.com is registered in Cyprus, out of all the places! Cyrpus is home to one for the best FX regulators in the industry, and so Lot-Forex.com cannot go unnoticed by it, no matter how hard it tries. It was clear to us from the beginning that Lot-Forex.com was no regulated by CyCEC. There is no way that such a respected watchdog would harm its reputation with a broker like this one. The website provides a certificate from CySEC with the logo of the broker and everything, but is it obvious that the whole thing is a fake!
Moreover, something that many might have missed is the unsettling resemblance of Lot-Forex.com to HF Markets, previously know as Hot-Forex. One can say that Lot-Forex.com is a copy of it, almost a clone actually! By the looks of it, Lot-Forex.com has “borrowed” much of the structure and overall aesthetic of HF Markets. This is an illegal move on the part of today’s broker and is once and for all an indication that Lot-Forex.com is completely UNREGULATED, a scam, and a risk to all investors!
Be aware that all investments in unregulated brokers are at risk of being lost. Deposit should only e made once you have made sure that the broker is regulated. After that, you should see if the trading conditions fit your preferences! Never be too quick to invest. Take your time! The most common regulators are the FCA or CySEC, which consequently are two of the best FX broker licensors around. Not only do these agencies guarantee the safety of users’ funds, but they also push for a fair and safe trading space. Both the FCA and CySEC offer compensation schemes that cover users who have been victimized by brokers’ inability to pay them back, usually due to bankruptcy. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
LOT-FOREX.COM TRADING SOFTWARE
Lot-Forex.com proposes to its users the option to chose between the MT4 and the MT5, two excellent trading platforms, whose popularity is well earned.
However, as we have seen, none of the softwares’ trading servers are owned by Lot-Forex.com. Both the MT4 and MT5 come in their default MetaQuotes state, with servers allowing only;y for a demo account belonging to MetaQuotes. This account is usually open to anyone wishing to try out the terminals for free.
In essence, what we just explained says one thing about Lot-Forex.com. The broker does not really have an MT4 or MT5. As for an alternative trading software
LOT-FOREX.COM DEPOSIT/WITHDRAW METHODS AND FEES
It’s never a good idea to trust unregulated brokers with payment detail, but in our case, we have no other choice. All of the following details are taken from the website because we could not create an account and thus were not granted access to a payment area.
The minimum deposit is $1000, which is way too high to be considered fair. Usually, the minimum requirement is $250. This is the industry average. Withdrawal requests sent before 10:00 am server time are processed the same day. Requests filed after 10:00 am server will be processed the next day. There are no fees indicated, but we are sure that the broker might launch commissions if it wishes.
As for the payment methods, Lot-Forex.com has made sure not to indicate them. We have no idea what they are!
And what’s more, is that we could not look through the Terms and Conditions for any fees and similar payment insights for the reason that they were in Russian, with no way of changing that.
Lot-Forex.com has, as ironic as it sounds, expertly proven to be a pure scam! Never invest here!
How does the scam work?
There exist many takes on the most popular scam. Most brokers might add or subtract some approaches to tailor the scam more to their taste, but the general goal and structure are the same.
The first step and the most crucial part of the scam is to impel a preliminary deposit from a user. This is achieved through fake and misleading ads, phishing emails, and similar. Most of these ads promote a lifestyle that we all dream of, but never thought of actually having.
Being lured by these ads or emails will lead users to websites, either the broker itself or an intermediary source, where they will be asked to fill in their contact details and sometimes bank account or credit card info. The fraudsters will use this against the user in any way possible. Either they will withdraw all they can from an account or will contact users and convince them to deposit.
Usually, the way that happens is through a first deposit. After that, the user will be introduced to an account manager, who is nothing more than an expert scammer that will annoyingly push for more deposits. Account managers will deny all withdrawal requests by stalling the request itself, making up excuses as they go. The user will get increasingly suspicious and will want to withdraw her funds and get it done with.
At this point, the broker will have exhausted all excuses and will proceed to close down the account, block the account, or shut the website entirely! All the money will be lost!
What to do if scammed?
Filing for a chargeback with your credit or debit card company should be the first thing you do! The sooner you do it, the bigger the chance you have to recover any lost funds. There is good news here: VISA and MasterCard have increased their chargeback period to 540 days.
Bank transfer deposits are more tricky. If a user deposits through wire with a scammer broker, then he or she should immediately change their bank account password and username. Contacting the bank, and checking for a plan that they can set in motion, is also a good idea.
Any investments made through a cryptocurrency with a fraudulent broker are untraceable. That is why users should never deposit through crypto!
Beware of recovery agencies, promising to get all your money back in return for a fee. Most of these are either an extension of the initial scammers or a separate scheme! Once you pay them to retrieve your lost investments, they will disappear, putting you in an even more financially disadvantageous position.