Updated on April 17, 2024
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In our rigorous review process, a team of seasoned financial specialists, boasting more than 20 years of experience in Forex trading, carries out an exhaustive evaluation of various trading services. Our team delves deep into the investigation of fees, assesses the trading platforms, and verifies adherence to regulatory standards. We also interact directly with customer support and conduct actual trades to gain a real-world understanding of the trading conditions. This comprehensive approach enables us to provide informed insights and advice on why we recommend avoiding LQDFX due to the issues we've identified.
Is LQDFX Scam or Legit Broker? ▲
Our extensive research into LQDFX has raised significant concerns, leading us to caution against engaging with this broker. LQDFX, operated by LQD Limited, positions itself as a legitimate financial service provider, based on the Marshall Islands' legal framework. Nevertheless, operating from such an offshore jurisdiction does not equate to being properly regulated or licensed.
Offshore zones like the Marshall Islands are known for their leniency, attracting entities looking to bypass stringent regulatory standards. The absence of strict oversight is a red flag since history has shown that unregulated firms often result in the loss of client investments. Therefore, we strongly advise against putting your trust in offshore companies lacking proper licensing due to the prevalent risk of fraud.
LQDFX, established in the latter part of 2015, is a Straight Through Processing (STP) broker, claiming leadership in the Forex industry with several accolades. The broker provides a wide range of forex pairs, including major, minor, and exotic currencies, alongside options to trade in precious metals like gold and silver, various global stock indices, energies, and agricultural commodities. It also offers up to 1:500 leverage for Micro account holders.
However, our investigation reveals concerning details. The broker's website lacks clear company address information, only offering a British contact number, implying unauthorized service offerings to UK residents. Moreover, LQDFX's claims of prestigious awards appear to be unfounded. Numerous negative customer reviews online further paint a grim picture of the broker, with many clients struggling to withdraw their funds.
In light of the regulatory and safety concerns uncovered during our investigation, LQDFX receives a dismal overall ranking from our team. With a score of 0.4 out of 5, LQDFX significantly lags behind in comparison to other brokers we have assessed among a pool of 1000 brokers. Our findings underscore the critical importance of trading with brokers who are well-regulated and have a proven track record of reliability.
LQDFX offers a variety of funding methods, including bank wire transfers, cryptocurrencies, Visa and Mastercard payment cards, as well as several e-wallet options like Skrill, Neteller, FasaPay, and Load. The minimum deposit requirement stands at a mere $20 for the Micro account, aimed at beginners entering the online trading world.
Withdrawal options mirror the deposit methods, with minimum withdrawal amounts varying by method: $100 for wire transfers, $20 for payment cards, $10 for Bitcoin, $30 for other cryptocurrencies, and between $0 to $10 for e-wallets. Despite these seemingly flexible options, the numerous client complaints regarding withdrawal issues are a significant concern.
For traders on the move, LQDFX facilitates mobile trading through a version of the MetaTrader 4 platform tailored for iOS and Android devices. The mobile app offers various charting options and technical indicators, albeit in a more limited capacity than the desktop version. Features such as one-tap trading, interactive charts, market depth, and internal transfers are retained, aiming to provide a comprehensive trading experience on the go.
LQDFX extends the opportunity for traders to refine their strategies and familiarize themselves with the trading platform through its demo account offering. With a virtual balance of $100,000, traders can explore the platform's functionalities and assess its suitability for their trading needs without any financial risk.
In conclusion, the investigation into LQDFX reveals a troubling picture, marred by regulatory inadequacies, dubious claims, and a slew of negative client testimonials. The risks associated with trading through an offshore, unregulated broker like LQDFX cannot be overstated. Therefore, in the interest of safeguarding your investments and ensuring a secure trading environment, we strongly recommend exploring alternative trading platforms that boast robust regulatory compliance and a proven record of reliability.
When considering alternatives, brokers like Interactive Brokers, City Index, and AvaTrade stand out. They not only offer the security of stringent regulation but also bring to the table comprehensive trading solutions that can meet the needs of both novice and seasoned traders.
LQDFX Review 2024
