LuxFins Review – 5 things you should know about luxfins.com

LuxFins Review – 5 things you should know about luxfins.com

Rating: 1

Beware! LuxFins is an offshore broker! Your investment may be at risk.

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It is impossible for LuxFins to convince us that they are a legitimate broker. They do their best but we could never trust a broker that offers no Terms and Conditions or even access to some sort of platform they advertise as brilliant and cut-edge. Don’t trust all the talk about fund security and segregated accounts – this is just another unregulated company, moreover – it is one of the companies with the weirdest credentials we have recently encountered. We hope we have caught your interest and convinced you to read our review – because this might save you a lot of headaches and money lost.

LuxFins REGULATION AND SAFETY OF FUNDS

Let’s talk about those interesting credentials first. LuxFins is short for Luxembourg Financials – the company clearly wants to convince you they are a Luxembourg broker as they have also provided an address there. However, this is not remotely true. The Commission de Surveillance du Secteur Financier (CSSF) is the financial authority responsible for regulating Luxembourg brokers. This regulatory body imposes pretty much the same laws when it comes to trading as every other EU regulator. Brokers should prove that they will be able to survive on the financial markets by always maintaining a capital of at least €730 000. They also have to participate in compensation schemes which ensures that in case of a licensed broker going bankrupt, their clients won’t just be left emptyhanded – they would be able to claim a compensation of up to €20 000. So working with a regulated Luxembourg broker would be just as safe as working with a broker licensed in any other EU country – which means pretty safe.

LuxFins, however, is not a licensed broker. Upon checking the register of the CSSF, we found absolutely nothing on them.

Well, at least the broker does not actually claim that they are regulated anywhere in the EU (which means they should not be able to offer services in the EU). They do claim to hold a license in South Africa and provide a license number we checked in the register of the Financial Sector Conduct Authority (FSCA) of South Africa. A company with that name did show up but when we looked into that more carefully, we found a ton of inconsistencies. The only company of the same name we could find was an Australian catering equipment provider. Their address matched with the address LuxFins had provided on their website – with the slight difference that ‘36 Hardy St, Lilydale VIC 3140, CAPE TOWN WESTERN CAPE‘ is actually an address near Melbourne and not in Cape Town.

This is the definition of shady and more than enough to convince us we are dealing with some sort of scam scheme.

LuxFins TRADING SOFTWARE

LuxFins supposedly has its own platform called LuxTrading  that you can download as an Android or iOS app. However, the website malfunctioned and there was no way to register an account. The download link for the platform  also did not work.

Better stick to tried and tested software like MetaTrader 4 and MetaTrader 5. These are the most popular platforms in the trading world and there is a good reason for that. Their functionality remains unrivaled and the features you can get access to are numerous. You can, for example, use pre-programmed Expert Advisors or try and develop your own trading bots and indicators with the MQL4/MQL5 language. Enough legitimate brokers trust those platforms and it would be better to check them out instead of trusting scammers like LuxFins.

LuxFins TRADING CONDITIONS

As we could not set up an account with LuxFins or get access to any Terms and Conditions, we only had the account information as a source here. The minimum deposit is said to be $500 – a huge amount when you consider the fact that most brokers would rarely go above $250 for a starting deposit and there are those that could even open a micro account for $1.

The spreads for all account types were advertised as being around 2 pips – a bit higher than the industry average but still acceptable. We cannot, however, vouch for that without having tried the platform.

When it comes to the leverage offered, there were some inconsistencies. In the account information, the leverage was said to be up to 1:400. At another place, it was 1:200. Whatever the truth is, both of these leverage rates could not be offered by a legitimate EU broker. Leverage for retail clients in the EU cannot exceed 1:30 by law. Don’t be tempted to go to a broker offering insanely high leverage. Even though there is the possibility of earning a lot of money, there is an equally big possibly to lose a huge sum. There are no guarantees what is going to happen when your trading potential is increased 200 (or 400) times.

LuxFins DEPOSIT/WITHDRAWAL METHODS AND FEES

LuxFins has put the logos  of a few payment service providers on their website – Visa/MasterCard, Neteller, Skrill, the South African e-payment platform Ozow as well as bank transfer. We only can assume that these are the payment methods available but again – there is no way to be sure of anything without an account.

HOW DOES THE SCAM WORK?

The way such scams work is usually the same.

You are browsing and you see a banner or an ad for the scammer’s website promising you enormous profit. So you take a look at the website, think it looks good, and register – after all, who would not want to earn money so easily and quickly. And the scammers promise to make an experienced trader out of you in no time. The moment they acquire your contact info, you will start receiving emails and phone calls asking you to deposit. If you do, you will probably see you are making a lot of money soon – a trick aiming to make you invest more.

Time passes, you have made good money and now you want to withdraw. This is the moment the scammers will start making up wild reasons to delay that withdrawal – usually additional taxes. At some point you will start figuring out something is wrong and at that exact moment, the scammers will stop answering your phone calls.

WHAT TO DO IF SCAMMED?

Remain calm and don’t trust any so-called “recovery agents” that say they could retrieve your money if you only paid a small fee. Often enough, these are the same people that scammed you in the first place and even if they are not – that is a whole different type of scam aimed at desperate victims. Your “recovery agent” will disappear as soon as they receive the fee.

What you could do is ask your bank or credit card provider for assistance depending on your deposit method. With credit and debit cards you can file for chargeback within 540 days. Cryptocurrency transactions are non-refundable so don’t trust brokers only offering that payment method. Still, be prepared for the worst since such situations are rarely resolved in a happy manner. If you have verified your account, the scammers might use that as a basis for revoking your claim.

Still, make sure to change any passwords or other sensitive information scammers have received. Notify the authorities and spread the word – in your acquaintance circle and online. You can save a lot of people from the awful situation you might have found yourself in.

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