LMFX Review: LMFX is a Republic of North Macedonia based trading website that provides trading services to clients. However, the brokerage firm is not licensed under any financial body and is not safe to trade. Moreover, the venture has a challenging UI/UX design and is difficult to understand for beginners. There is no research & educational material for enhancing the trading knowledge, and the new traders might face difficulty without the required knowledge. There is no clear information about all the fees, penalties, and is not recommended to any trader.
The available trading platforms are MT4, and WebTrader & the site claims 24/5 customer service. However, the call support did not respond, while other connecting methods were slow. The deposit and withdrawal is time taking, and there are several hidden charges. Here, we would highlight the LMFX broker review for all the clients. It would present points like safety, features, pros, cons, and customer service.
LMFX Review: LMFX Scam or Safe?
LMFX broker is an unsafe trading site and is not licensed by any financial body. The broker operates under the Global Trade Partners Limited, headquartered at the Republic of North Macedonia. The firm is an offshore organisation, and Macedonia is the easiest place as jurisdictions to open a broker firm. The trading site is not safe for trade, and the readers are suggested to invest their precious money with some other regulated brokerage firm like 101Investing, ETFinance, and PrimeFin. So LMFX is unsafe for trading and it is up to the trader if he or she wants to continue investing through it.
Republic of Macedonia Broker’s Jurisdiction Process
The jurisdiction process of Mauritius is one of the easiest in the world for trading sites and require the firm to register their venture online through the nation’s process, which is an easy task and open for everybody to apply. After that, verify your initial capital, which is a $2000 meagre amount, pay the Processing Fee, and get your Registered Company
A nation is a good place for shady brokers. Apart from it, the trading site did not clear about the other safety prospects such as whether it is an ICF member, or follows EU & MiFID rules or not? However, note that the basic tech securities like SSL encryption is available with the trading site and thus, is good with IT safety.
Overall, the broker is not regulated and licensed by any tier financial body, and thus, the safety of client funds can’t be assured. The bodies make sure that no broker does fraud activities with any customer. We would not recommend trading with an LMFX broker and suggest going with some regulated trading site, like 101Investing.
LMFX Review: Account Types
The broker offers only three account types, namely premium, fixed, and zero. All three account fail to provide high-end services and charge more than the industry average.
LMFX Review: Trading Platform:
LMFX broker offers the MT4 trading platform for meeting clients’ investment needs. The platform is useful but the offerings by the broker are not impressive. Further, there is no Meta Trader 5 with the LMFX broker and the traders would miss all the updates of the portal.
Moreover, there are limited tools for research in the trading platform with LMFX broker. It includes some indicators and no signals are available with the broker. Note that the firm only has one trading platform, i.e. MT4, and boasts the different versions as varied trading platforms. Meta trader itself is available via mobile, desktop, and website versions and there is no contribution from broker’s side.
Markets and Products
The broker has a limited range of trading assets and is not enough for the professional traders. There are 5 commodities, 7 indices, 7 metals, and a handful of shares & currency pairs. The meagre trading assets list limit the plausibility for investors to gain.
Account Opening
The account opening process of LMFX broker is time taking and complex to complete. It takes around 2-3 days to open an account with LMFX broker and requires several irrelevant, personal information.
Commissions and Fee
LMFX fees for trading is more than the average rate of the market and the site also has several hidden charges & commissions. The trading site fails to provide clear data on investment costs, penalties, and additional charges and mentions that the firm solely earns through spreads, which is ethically false. There are commissions on trading through different account types and the spreads are also above the industry standards. The spreads are floating and can vary as large as 0.0 pips to 25 pips. The spread charges automatically increase after the orders are executed.
For instance, the premium account type mentions the spreads starting from 1 pip but none of the trading assets had the same. The commissions on zero account are so high that it surpasses the spread-based, Premium account. Some of the hidden charges, we were able to discover with the broker were inactivity charge, withdrawal fees/penalty, overnight swap, and additional costs, that are not clearly mentioned on the broker website.
Note: The fixed spreads can also change in market volatility and there is no point to choose the fixed account type if it happens.
Deposit and Withdrawal
The deposit and withdrawal methods for the LMFX broker are time taking, complex to understand, and include unnecessary steps. Further, the available methods are limited and the service provided on them is of low quality. Bank wire transfer, debit/credit cards, and some of the e-wallets. There are no popular portals available such as Trustly, Safecharge, VPay, and more.
Notably, there is no cash deposit method available. Further, the deposit is processed within one day and the withdrawal takes more than 7-8 days.
Leverage
The broker provides more than average high leverage to customers which indicates the violation of EU rules & regulations. The European Union makes sure that no client falls to the prey of fraudsters and thus, have set the margin limit to 1:30 for retail investors. However, the LMFX broker out rightly break the norms and provide leverage up to 1:1000. The model puts the traders in high risk and they become prone to losing all their amount.
Research
The broker provides a limited range of research tools to clients. There are around 7-10 tools and none of them seems to be useful for beginners. The tools are complex and the absence of the right research section eliminates the plausibility to enhance clients’ skill base. Further, the demo account also becomes irrelevant for beginners in presence of complex tools.
A good broker, like HFTrading, provides a wide range of research tools that are useful for both beginners and professionals. It includes an economic calendar, earnings calendar market analyzers, news alerts, and reports sessions. All these tools aid traders make better investment decisions and enter the market at right time.
Customer Service
The LMFX broker’s customer service is pathetic and the executives are don’t seem to be capable of resolving client queries. There is no information on the working days for the customer support team and the calls went abruptly unanswered for days. The email option takes days for a single response and the answers were not useful or relevant to the asked questions. The available contact methods are telephone, email, and live chat, out of which phone & email fail to offer satisfactory services.
Education
The firm provides no learning material or content to the clients for their knowledge enhancement. It can come as a massive obstacle for the beginners as they are in the most need of the education section. Most of the right trading sites, like HFTrading and 101Investing offer, varied learning material like webinars, e-books, articles, journals, videos, and guides for all clients at no cost.
LMFX Review: Rounding Up
This was the detailed LMFX Review. The trading site is not regulated by any tier financial body, and thus, the safety of client funds can’t be assured. The governing bodies make sure that no broker does fraud activities with any customer. We would not recommend trading with LMFX broker and suggest going with some regulated trading sites, like 101Investing, ROinvesting, TradeATF, and PrimeFin, which offers a wide range of trading instruments through CFDs with relatively low commission and spread.
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FAQs
Is LMFX Broker Regulated?
No, LMFX broker is not licensed by any regulatory bodies, like CySEC, ASIC, or FCA, and thus, is not safe to trade.
What are the Commission & Fees with LMFX Broker?
The fees & charges with LMFX broker are high and above the industry average. The fixed spreads also change, making no sense for them being fixed, the commissions are more than $10 per lot, and spread for EUR/USD pair is 1.4, as compared to 0.7 industry average for the same.
What are Deposit & Withdrawal Methods with LMFX?
LMFX broker has a limited range of payment methods and includes only 4 major types of portal, i.e. bank transfer, cards, and some e-wallets.
Is there an LMFX education page?
No, there is no educational portal with LMFX Broker, creating a big obstacle for most novice traders.
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