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LCMFX seems to have what it takes to get a five star rating, but we must never judge a broker by its look. Read on to find out more about this one.
LCMFX and its parent company Lucror Capital Markets LP, claim to be operating from New Zealand, but fails to mention if it is regulated there, or any other place. In New Zealand the FMA, or the Financial Market Authority, regulates forex firms. The main objective of the FMA is to make sure that all the brokers under its rule follow the agency’s strict guidelines. The FMA requires from all its brokers a minimum operational capital of NZ$1 million before conducting any sort of legitimate financial services with traders. We checked the FMA’a registry for both names and got no results, which means that LCMFX is not regulated by the FMA.
The company mentions no other location or regulator, and so we must conclude that the broker is UNREGULATED.
Investing in unregulated brokers is the digital equivalent of throwing your money away for the wind to disperse it. It’s obvious that no one would do such a thing. Go with brokers that are regulated by trustworthy organizations like the FCA or CySEC. These entities work closely with the law, enforce it when called for, and have strict requirement for those under their gaze. Not to mention that those under their jurisdiction are members of compensation funds that cover victimized clients’ losses of up to £85 000 (FCA) and €20 000 (CySEC).
Besides the lack of a regulation, the website is in pretty good shape. It’s accessible and functions well, and when we tried to register we were required to give out ID documentations which is a rare demand from an unlicensed broker.
The leverage is capped at 1:500. The spread we got once we opened a demo account for the EUR/USD currency pair was 0.9 pips which is a very good value.
The broker offers only Forex Pairs, and Precious Metals as trading instruments. The ones that are missing are obviously crpyto, shares and indices, plus some other commodities.
The only language made available is English.
The only platform here is the MT4.
Metatrader 4 still holds on its own when it comes down to delivering what is necessary. The functionalities are all there including drag and drop charts, user friendly accessibility and multiple order types. With MetaTrader 4 you can set automatic trading bot to do your deals for you while you preoccupy your time with different activities.
The leverage is maxed out at 1:500.
The broker makes it clear that there are no commissions.
We opened a demo account and got a 0.9 pip spread for the EUR/USD pair.
The platform can be accessed via Android/iPhone or by means of a standalone desktop trader.
LCMFX MINIMUM DEPOSIT
The minimum deposit is $100 for the STP Trade Account, and $500 for the PRO Trade Account according to the Accounts Page. According to the Deposits and Withdrawals page the minimum deposit is $25. However, the Terms and Conditions state that a minimum deposit of $1000 is needed. This is the first hint of the broker’s shadiness. It arrived a bit late but was expected to come at one point or another.
According to the T/Cs the only two means to fund an account are via Wire Transfer and Credit Card. The Deposits and Withdrawals page on the website gives us Skrill as well. Again. We do not know which source to trust.
Due to he broker’s lack of any regulation, we advise against depositing any amount whatsoever. If traders wish to invest in online forex, they will find that any FCA/CySEC regulated broker will surely do. These agencies are at the top of their game, demanding a strict conduct from brokers, and requiring regular reports on their activities.
DON’T PROVIDE YOUR CREDIT CARD CVV CODE
The CVV code is the one thing that separates a buyer from a product. Without it, one cannot complete a purchase, even if him/her has given all other necessary information. By giving this detail to someone else, you are essentially inviting them to use your funds for their own means. And be warned that unregulated brokers most certainly plan to do so.
DON’T PROVIDE ACCESS TO YOUR COMPUTER AND BANK ACCOUNT VIA ANYDESK OR TEAMVIEWER
AnyDesk and TeamViewer software are double edged. For one, you provide complete access to your computer to someone else who, essentially, takes over as the new user. This can be helpful if the person with access is a friend, colleague, or acquaintance; or it can be devastating to your private information, including bank info, if you provide entry to someone with a shady background. Hence the double edge. Note that these software are 100% legal meaning that your approval will be needed if someone is to tinker inside your PC.
LCMFX WITHDRAWAL TIME AND FEES
The minimum withdrawal seems to be $10 if we are to trust the Deposits and Withdrawals page. There is no other info on a minimum withdrawal. However, we did find a disturbing clause in the Terms and Conditions, stating that an account must maintain a minimum of $1000 to be active:
According to the Deposits and Withdrawals page all request are processed within one working day.
There seem to be no fees, but judging by the broker’s illegitimacy, it is fully capable of coming up with unexpected fees.
ADDITIONAL FEES AND TAXES
As mentioned above, the broker has the potential of charging fees and commissions, as exemplified by the following clause in the T/Cs:
Heed our words. Unregulated brokers do not care who you are and what your situation is; all they see is money, and they will trick you into giving it to them every chance they get. It is only logical then, that any attempt at withdrawing will be unsuccessful. The most popular excuses for denying your withdraw requests are usually smart and for the most part scripted. These include but are not limited to loopholes in the T/C, asking for more deposits in order to withdraw, or just prolonging your pending withdrawal by claiming that the market will suddenly propel, multiplying your winnings by unrealistic proportions.
If a broker is unlicensed, never give you ID and personal details to it, because the broker will use these details against you once you file for a charge back. Furthermore, any allegation held against the brokerage will be easily refuted if they have in their possession a copy of your ID and proof of address.
The most important thing to note is that this broker will not return your deposit, nor will it pay your winnings. It never had this intention in the first place. The best advise is to walk away from it, and go straight for a regulated broker. The FCA and CySEC are the top non-US license issuers, and those under their gaze are bound by the law to put the security of users’ funds as pivotal priority.
HOW TO RECOVER
Don’t delay, and file for a charge back ASAP with your bank or credit card company, but also ask them what the situation with your current account is.
If you have given a CVV code to the broker, be sure to cancel your credit card as soon as possible, because the broker will not delay with draining every cent from it.
Also, beware of self proclaimed “recovery” agencies or agents. These cheeky scammers promise to fix your problem and restore the lost funds. They offer their services in exchange of a small sum from your end, after which you won’t ever hear from them again.
The last line of defense for these indecent folk is more like a desperate cry: often times they will comment on reviews and cite the whole ordeal as a conspiracy initiated by competitive brokers against them; at times even claiming that reviewers are anything but objective, and that no one writes good reviews. The absurdities are limitless!
We think that LCMFX has potential, and all that is stopping it is a proper license and quick review of its legal documents. We don’t recommend it in the state it is now, but do keep and eye out for it in the future.
LCMFX compared to other brands
United Kingdom, Cyprus, South Africa, Mauritius
Cyprus, Saint Vincent and the Grenadines