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Lockwood Review - is it scam or safe?

Lockwood review - Is lockwoodinv.com scam or good forex broker?

RATING: 1 / 0 REVIEWS Lockwood
Lockwood is an offshore broker. Your money is not safe.

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Lockwood is a broker that offers both forex and CFD trade, and binary options and that, we should note, is a bit unusual as most brokers focus either on conventional forex or on binary options bets, which, by the way, were recently banned by the European Securities and Markets Authority (ESMA). 

 

Account type Min. deposit Max. leverage Spreads
Micro Account $500 1:200 70 pips, floating
Mini Account $2500 1:200 n/a
Silver Account $5 000 1:200 n/a
Gold Account $10 000 1:200 n/a
Diamond Account $50 000 1:300 n/a

 

Apart form that we have some very serious concerns about the regulatory status and the legitimacy of the broker as a whole, so if you are thinking about opening an account with them be sure to read this review first.

 

Lockwood Advantages:

 

Plenty of forex pairs and Crypto CFDs as well as binary options bets

 

Lockwood has one clear advantage and that is the great variety of trading instruments on their platform. 

 

We counted over 50 forex pairs on the Lockwood trading platform, some with exotic currencies like Norwegian Krone, Swedish Krona, Danish Krone, Hungarian Forint, Israeli Shekel, Mexican Peso, Polish Zloty, Russian Rubble, Chinese Yuan, Singapore Dollar, Turkish Lira, South African Rand and  Honk Kong Dollar.

 

Other assets include CFDs on a number of crypto coins like Ripple, Monero, Stellar, Qtum, Tron, NEO, Litecoin, IOTA, Ethereum, Ethereum Classic, EOS, Dash, Bitcoin Gold, Bitcoin, Bitcoin Cash, Cardano and Zcash, as well as a variety of commodities including oil, natural gas, cocoa, coffee, cotton, orange juice, soybean, sugar and wheat and spot metals like  gold, silver, platinum, palladium and copper.

 

We should also note the CFDs on ETFs, bonds, stocks and indices as well as the opportunity for binary options bets on almost all of those assets.

 

Still, as all crypto assets are getting more and more popular, here you may also check our list of brokers, offering Bitcoin CFDs:

 

>>Bitcoin Forex Brokers<<

 

Leverage as high as 200:1

 

Leverage as high as 200:1, as offered by Lockwood, is perfectly enough to fit even the most aggressive trading style. And yet, you should always use leverage with caution as it is associated with an increased risk. 

 

If you use higher leverage and the market swings in the wrong direction, you may not be able to support your position and basically your funds might evaporate in a matter of minutes. Have in mind, as well, that in the beginning of August the European Securities and Markets Authority (ESMA) caped the maximum leverage allowed with forex trade at 30:1, precisely to cut investment risks. Similar restrictions already exist in the US and Japan.

 

Lockwood Disadvantages:

 

No license

 

Lockwood is owned and operated by a Bulgarian company -  SolutionsCM LTD, which, unfortunately is not registered and authorized to provide financial services by the Bulgarian Financial Supervision Commission or any other financial regulator in the rest of EU. 

 

Besides, because earlier this year ESMA also banned all binary options bets in EU, Lockwood operations in Europe and other well regulated markets like the USA, Japan and Australia are totally illegal. 

 

The main problem with all unregulated brokers is that the safety of your investment depend totally on the integrity of the people behind those brokers. Unfortunately, our experience shows that their integrity is quite often not very high.

 

Brokers, regulated by well respected institutions like the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC) or the Cyprus Securities and Exchange Commission (CySEC) on the other hand have to abide by strict financial and ethical rules among which to report regularly to their supervisor, to allow external audits, to keep a certain level of operational capital and to deposit all clients money in a segregated, protected form creditors account. On top of that some regulators even require brokers to insure some of the trading capital.

 

Traders with CySEC brokers, for example, can receive up to 20 000 EUR of their capital back in the event their broker is unable to pay. Similarly, traders with FCA brokers are entitled to a compensation of up to 50 000 GBP. Here you may check our list of FCA regulated brokers:

 

>>FCA Regulated Forex Brokers<<

 

Outrageously high spreads

 

We are not sure if there was any technical problem with the Lockwood trading platform, when we tested it, but the benchmark EURUSD spread was nearly 70 pips high. Have in mind that with a standard account the EURUSD spread, which is usually the lowest, should not exceed 1,5 pips in order to be considered acceptable.

 

 

So here you may definitely want to check our list of brokers, offering tighter spreads:

 

>> Lowest spread forex brokers<<

 

Excessive minimum deposit requirement

 

Lockwood  wants a deposit of at least 500 USD for its starting Micro Account and this is simply too much. Have in mind that on average, brokers ask for about 250 USD, while some big well established playerss like FBS and IG do not have a minimum deposit requirement at all. 

 

Unusual withdraw conditions

 

Be aware that if you accept a bonus by Lockwood, in order to be eligible to withdraw anything from your account, you will have to reach a certain trading volume, calculated by the formula: the bonus plus your deposit times 30. See for your self:

 

 

Neteller and Skrill not accepted

 

Most brokers accept payments with NetellerSkrill, which are the most popular e-wallets on the market.  Lockwood does not work with those and this is another negative. Also, with Lockwood you can not fund your account with Bitcoins, so here you may check our list of brokers, accepting payments with Bitcoins:

 

>>Forex Brokers Accepting Bitcoin<<

 

MetaTrader4 not available

 

As we noted Lockwood operates as a binary options broker and may be this is the reason why they offer the same lousy web based trading platform both for forex and the binary options bets. The platform is rather simplified and lacks some basic features, standard with the MetaTrader4 like, for example, the option to run automated trading sessions. Here you may check our list of brokers, supporting the MetaTrader4:

 

>>MT4 Brokers<<

 

Conclusion:

 

Lockwood is a unregulated broker, with rather limited credibility, which also offers absurdly high spreads. As we discussed earlier, trading with unregulated brokers has always been associated with unreasonably high risk of loosing your money to scammers. So our best advise is to trade with properly regulated brokers only.

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Traders` reviews for Lockwood

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