LH-Crypto

LH-Crypto is an odd one indeed. It has all the features and intricacies that constitute major brokers, yet we could not find a hint of info concerning a regulatory entity under which the broker is registered. Even the parent company of LH-Crypto Larson & Holz IT Ltd withheld all information concerning an actual license that would allow them to operate within the confines of the law. The closest thing we found was a Business Structure that showcases where the company carries out its services.

Even with all of these locations there is still no hint at a license. It says under Saint Vincent and the Grenadines “dealing, trading terminal” which is as close as it gets. However, we must remind readers that the Financial Services Authority in SVG recently issued a statement that they no longer regulate Forex and CFD brokers. Therefore we have to conclude that LH-Crypto does NOT fall under the category of regulated brokers, which directly makes it untrustworthy and a potential scam.

We strongly advise traders to trade only with regulated brokers that hold a license from renowned and severe institutions such as the FCA or CySEC. Not only do these agencies oversee operations and require regular reports from brokers registered with them, but those under their jurisdiction are members of compensation funds that cover victimized clients’ losses of up to £85 000 (FCA) and €20 000 (CySEC)

Aside from that LH-Crypto works the same many non-major regulated brokers work.

The maximum leverage is 1:500, which is the typical value permitted by offshore license issuers. Interestingly, there is a whole section dedicated to ESMA and the restrictions on leverages in Europe and the UK.

The only logical explanation for this would be that LH-Crypto offers its services to EU/UK citizens. Why else would they mention ESMA? As a result this would mean that in order to be compliant with ESMA the broker must hold a license from a EU/UK regulator. Yet it doesn’t as the brokerage would have otherwise included it.

The tradable instruments are as follows: Cryptocurrencies, Forex, Commodities, Energy, Indices and Shares.

Languages offered at LH-Crypto are English, Russian, French, Chinese and Spanish. There are icons for other languages but at the time of writing this review we weren’t able to access them.

LH-CRYPTO LOGIN

MT5 makes an exclusive appearance as the only platform.

METATRADER 5

The MT5 platform is here to give you a pushing hand towards the right direction. Although not as popular as MT4 MT5 still retains some great features that you will want in your trader’s repertoire. MT5 allows for a centralized market trade and is certified by many stock exchanges. There are also improvements in the time frames, Expert Advisors, better charting tools allowing for greater accessibility, and more pending order types for more versatile trading options.

The EUR/USD spread depends on the account type. Accounts at LH-Crypto work according to the deposited amount. The Start Account package does not require any documents or ID to be uploaded. With Standard Account holders the normal procedure ensues. The same goes for the Pro Account.

On our demo account we were given a EUR/USD spread of 0.3 pips. This is a very good number, yet usually there are commissions attached to it.

The commissions are given in percentages, which is confusing and time consuming to calculate, so let us just give you a straight view of the fees using the EUR/USD pair. For 1 standard lot with the Start Account the commission for EUR/USD is 0.0068% per side which is 0.0136% round turn. In plain numbers, the round turn commission is €13.6 which increases the EUR/USD spread of 0.3 pips to an actual spread of 1.63 pips. This is still considered the industry average.

Standard Account holders have a 10% discount on all commissions, while Pro Accounts have 30%.

The terminal is accessed through a browser trader, a desktop trader, and can be downloaded as an app from the App or Google Play stores.

LH-CRYPTO MINIMUM DEPOSIT

There is no minimum deposit. However, account types depend on the funding amount. For example if you deposit under €250 you are eligible only for the Start Account type. The Standard Account requires a minimum of €250, while Pro Accounts need at least €10 000 to be made available.

Payments are exclusively made in cryptocurrencies. Funding methods are: Qiwi, Perfect Money, Credit Cards and Bank Transfer.

We remind readers that this broker is not to be trusted due to its lack or regulation. It’s only logical that we advice traders against it. Brokers with proper licenses from the FCA and CySEC (among others) operate in ways that put the trader’s security of funds and personal information as a pivotal priority. These agencies are the top non-US financial license issuers, which should give you an idea of the brokers working under their oversight.

DON’T PROVIDE YOUR CREDIT CARD CVV CODE

Furthermore, for safekeeping your money NEVER share your credit card number and CVV code with a salesperson. Even though LH-Crypto instructs against uncovering your CVV code in the Anti-Money Laundering Policy, we are still compelled to advice you. All online payments require this 3 digit number in order to complete purchases or transactions, and by giving yours away to some offshore broker may lead only to the complete drainage of funds from your credit card.

DON’T PROVIDE ACCESS TO YOUR COMPUTER AND BANK ACCOUNT VIA ANYDESK OR TEAMVIEWER

Another novice mistake that has been numerously repeated and taken advantage of is providing access to your computer and bank account via AnyDesk or TeamViewer. These two softwares allow for others (in our case the people behind the shady brokerage) to log-in to your PC and flip through all files and browsers, essentially taking over your computer as another user and having access to your personal information like bank account passwords, credit card information etc. Thankfully, these platforms are completely legal and will need your own personal approval in order to be used.

LH-CRYPTO WITHDRAWAL TIME AND FESS

To withdrawal there have to be no open trades in an account. And since deposits are done only in crypto then it’s only logical that withdrawals are received exclusively in cryptocurrencies.

There are two modes of withdrawing: Automated and Manual. Automated withdrawals take on average between 1-3 minutes, while Manual withdrawals are mostly used for larger amounts (over €500), and requests are processed within 3 days by the broker before being sent over to the appropriate payment system. In order to use Manual mode the trader must complete trading with at least 3 standard lots.

There is no indication on a minimum withdrawal amount.

We double-checked the website for any hidden fees. There were none.

ADDITIONAL FEES AND TAXES

Nevertheless, we want to remind readers that many offshore brokers have no intentions of paying you back. Any effort to withdrawal your money will be unsuccessful. Either the broker will find a loophole in the terms and conditions that is completely made up, will firmly advice you against withdrawing, or they will ask more deposits needed if one wished to withdrawal. Scammers come up with additional fees and taxes for the sole purpose of keeping you on stand-by, and to deplete as much money from you as is possible.

We are not saying that this will necessarily happen to clients of LH-Crypto; we just want to protect you from the perils of unlawful brokers.

ACCOUNT VERIFICATION

Beware, once more, when giving away an ID and a proof of address. Trustworthy brokers ask for these before traders can deposit to make a check up. Deceitful ones will ask for these details, using the anti-money laundering legislation as pretext, once you start asking too many questions and are getting suspicious of their activities. Understand that they will use these to build a stronger case against you in the event that you request a chargeback.

HOW TO RECOVER

The most sound advice we could give you is to immediately file for a chargeback with you credit card company.

If you have given away your credit card details including the CVV code to the “broker” you should cancel it ASAP and check with your bank to see the damage inflicted.

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.

Again, LH-Crypto may not be a scammer, but the lack of any kind of license is extremely suspicious.

BOTTOM LINE

In all honesty, we had some trouble figuring this one out. All the pieces seem there, but the framework, a.k.a regulation, is missing. The parent company further exemplifies this. Aside from that, LH-Crypto is as stable as it can get, and twists the delivery of some features in interesting ways.

However one thing is certain. LH-Crypto is NOT regulated and thus we recommend users to steer clear.