Beware! LondonFX.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.
What can you expect from a broker named LondonFX.com? Personally, the moment we read the name was the moment we knew for sure that we were not dealing with a regulated broker. Conventionality is the enemy of any modern FX broker, whose difficult task is to stay away from cliches but still deliver a one-of-a-kind experience. LondonFX.com hasn’t considered this at all. Yes, the website is well structured, but it really does not matter how well it’s put, but how well it delivers. And LondonFX.com does not deliver. Read the review to find out why.
There was no way to open an account, at least for us, because of the nature of the account creation process. Instead of a typical registration tool, users have to leave a message with the broker’s agents and wait for them to open an account for the user. This is a very dangerous prospect, and we have never seen a legit broker do this. Only scammer ones.
Therefore, we are left with only one way around: all payment and trading details are taken from the website. We cannot fully put our trust in this broker for obvious reasons. So take the following with a dash of skepticism.
What we learn from the website is that the leverage is capped at 1:200. Unfortunately, we find no spread values, and for that matter, there are no tradeable assets revealed anywhere. However, on the home page, we see three crypto bases assets, conveying the possibility that LondonFX.com is predominantly a crypto-based broker, despite what the name suggests.
The website is available exclusively in English.
LONDONFX REGULATION AND SAFETY OF FUNDS
The client-broker agreement is said to be governed by the laws of the Marshal Islands, which is what we find in the terms and conditions. One thing we know of the Marshal Islands, that is especially helpful to understanding the broker, is that anyone can open a local online business without ever stepping foot on the small island nation. You can imagine how enticing this sounds to any scammer broker. Moreover, the Marshal Islands have no FX regulator, making it one of the perfect breeding grounds for scammer brokers.
Other than that, the terms and conditions tiptoe around regulatory information, and never give us anything more specific than the Marshal Islands details.
We can very safely say that LondonFX.com is NOT LICENSED, and therefore is a risk to all investors.
Never rely on unlicensed brokers. They are scams and will steal from you! Put you money where the real FX trading happens, with any FCA or CySEC regulated broker, or any other brokerage licensed by a legit overseer. All watchdogs demand a safe and integral conduct and do not tolerate unlawful behavior. Moreover, the FCA and CySEC offer compensation schemes applied to users whose broker cannot pay them back. CySEC offers a €20 000 refund amount per person, while the FCA guarantees up to £85 000.
LONDONFX TRADING SOFTWARE
We have information on an alleged MT4, but there is no real proof of this being true.
Seeing that we could not create an account, we have no way of knowing for sure if the broker actually supplies its users with an MT4.
Unregulated brokers tend to surprise us at times with the inclusion of the MT4 and even the MT5, but this one seems to have neither.
LondonFX.com might or might not have a web trader. It shouldn’t bother anyone, because we advise against investing here!
LONDONFX DEPOSIT/WITHDRAW METHODS AND FEES
According to the terms and conditions, users have the following payment options: credit cards and bank transfers. The website claims the minimum deposit to be €250.
Withdrawals are processed within 2 days, however, it may take more time.
Gold, Platinum, and Diamond Account holders get 1, 2, and 3 free withdrawals, respectively. This suggests that there are withdrawal fees. The terms and conditions confirm the presence of a range of fees, not only concerned with withdrawing but also commission applied to the usage of the website. Many of these fees are very common amongst the scammer broker community.
None of this information is verified, and it may be completely false. This is just one of the many reasons why readers shouldn’t bother with LondonFX.com. It’s unregulated, a risk to all, and a potential scam!
How does the scam work?
The scam really works when the reps of the broker contact the user, either through a phone call or an email address. They will start asking for deposits all the while promising super profit gains. Those that deposit might even get a taste of false gains, whose true purpose is to compel the client to deposit more. These scammers know very well how to manipulate users. Their catalog of psychological trickery is vast, and their patience is unbreakable.
An initial deposit leads to a second one, a third one and so forth.
As for the methods of these fraudsters getting a hold of your phone numbers or email addresses, they are many, and most of them follow simple steps. It takes a false ad to convince a user to give her contact details. These false ads are very promising, but ultimately misleading and very manipulative. You might have already seen them: luxurious cars and villas, care-free lifestyles, expensive items, and beautiful vistas. All are stock images to start you imagination and propel you to give away your contact address, and in the perfect scenario, to invest.
Once the client wishes to withdraw, either because she feels suspicious, or because she wishes to take out some cash from her profit, the broker will apply a number of very cheap techniques to make withdrawals impossible. For one, the scammer will close down the account, shut the entire website, or just not return phone calls and emails.
What to do if scammed?
If a user has lost funds by means of a credit or debit card, then the first thing to do is the file for a chargeback. MasterCard and VISA have a chargeback period of 540 days.
Bank account swindles are harder to get bank but not impossible. First of all, change you bank account user name and password, and then call the bank to find a plan of action together.
Never invest with cryptocurrencies sin an unregulated broker. All such deposits are lost, and cannot be recuperated.
Also, don’t trust the self-proclaimed recovery agents. These are also scammers, and will ask you for a fee, and in return they promise to recover all your lost funds. Obviously, once this commission is paid you will never hear from them again!