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LowCostForex Review - is it scam or safe?

LowCostForex review - Is lowcostforex.com scam or good forex broker?

RATING: 1.8 / 1 REVIEWS ForexBrokerz LowCostForex
LowCostForex is an offshore broker. Your money is not safe.

RECOMMENDED FOREX BROKERS


LowCostForex is a forex and CFD broker, offering three account types, including a micro account on the MetaTrader4 platform. If you are considering opening an account with them be sure to read this review first.

 

Account type Min. deposit Max. leverage Spreads
Micro ECN Account $1000 1:1000 0,3 pips, floating
Pro ECN Account $5000 1:1000 0,3 pips, floating
VIP ECN Account $50 000 1:200 0,3 pips, floating

 

LowCostForex Advantages:

 

Competitive spreads

 

In its presentation LowCostForex says it is offering spreads starting as low as 0,3 pips on its Micro ECN Account, from 0,2 pips on its Pro ECN Account and form 0,1 pips on its VIP ECN Account. Besides, the broker says they do not take any commission and that really sounds great.

 

As tested with a demo account the EURUSD spread fluctuated between 0,2 pip and 0,4 pips and that is in line with what they say to be offering with their Micro ECN Account. Still here you may want to check our list of brokers, offering similar tight spreads:

 

>> Lowest spread forex brokers<<

 

Leverage of up to 1:1000

 

Leverage of up to 1:1000 is basically as good as it can get. And while such leverage gives traders the opportunity to score reasonable profit with relatively small initial deposit, it also works as a two edged knife – the higher the leverage the higher the risk of loosing your funds much faster. Professional traders, knowing that well, rarely trade with leverage exceeding 1:100.

 

Good variety of trading instruments, including crypto CFDs

 

LowCostForex offers some 51 forex pairs, including exotic currencies like Israeli Shekel, Hungarian Forint, South African Rand, Singapore Dollar, Turkish Lira, Russian Rubla, Swedish Krona, Norwegian Krone, Mexican Peso, Hong Kong Dollar and Danish Krone. 

 

The broker also offers spot metal CFDs on gold, silver, aluminum, palladium, platinum and nickel, CFDs on various commodities like soybean, corn, sugar, cotton, coffee, rice, wheat, cocoa, oil and natural gas, stocks, some 16 indices and crypto CFDs on major coins like Bitcoin, Litecoin, Ethereum, Bitcoin Cash, Dash and Monero. Still here you may check our list of brokers, offering Bitcoin CFDs as well:

 

>>Bitcoin Forex Brokers<<

 

Bitcoins accepted as a payment method

 

LowCostForex accepts various payment methods, including major credit cards like VISA and UpayCard, e-wallets like, NetellerSkrill and UnionPay and even Bitcoins. As crypto payments are getting more and more popular, here you may check our list of brokers also accepting bitcoins. 

 

Micro account available

 

LowCostForex offers its clients a Micro Account, which basically allows you to trade with as little as 0,01 micro lots or just 10 currency units (1 micro lot equals 1000 currency units). Here you may want to check our list of brokers, also offering Micro Accounts:

 

>>Micro Account Forex Brokers<<

 

MetaTrader4 supported

 

MetaTrader4 is the platform of choice for many experienced and beginner traders alike. With its user friendly and intuitive interface, great charting tools, numerous market indicators and the option to run automated trading sessions, no wonder the platform dominates the market for the better part of the past decade. Here you may check our list of brokers, also supporting MetaTrader4:

 

>>Find other MT4 brokers here<<

 

LowCostForex Disadvantages:

 

Lack of regulation

 

LowCostForex is operated by PHP-International Live Quiddity Ltd., registered in Anguilla, British West Indies. The broker, however, says nothing about their regulatory status or a license, so we diligently checked the register of the Financial Conduct Authority (FCA) in the UK.

 

Unfortunately the company was not listed there and we will have to regard them as an unregulated entity for the purpose of this review. 

 

Proper regulation is crucial for the safety of any investment with brokerage companies. Among other benefits for the customers, regulated brokers are obliged to keep all clients money in protected, segregated accounts and in some cases even to insure traders capital. 

 

Under the FCA backed Financial Services Compensation Scheme for example, in case the broker goes under, traders can receive back up to 50 000 GBP of their capital. Similar compensation scheme with the CySEC in the Cyprus guarantees traders up to 20 000 EUR of their investment. Here you can check our list of brokers licensed by CySEC:

 

>>Forex brokers in Cyprus<<

 

Excessive minimum deposit requirement

 

To open the starting Micro ECN Account with LowCostForex you should invest at least 1000 USD and that in our view is excessive as with most brokers you can open a standard account with just 250 USD or less, while some big names like FBS and IG do not have a minimum deposit requirement at all. Besides the minimum investment requirement to open a Pro ECN Account with LowCostForex is 5000 USD, while for a VIP ECN Account you will have to cash in at least 50 000 USD.

 

Conclusion:

 

LowCostForex is an unregulated, offshore broker with an excessive minimum deposit requirement and that significantly erodes its credibility. Apart form that, we should note they offer rather good spreads with generous leverage and support the MetaTrader4 platform. Still we strongly advise you to trade with properly regulated brokers only.

 

 

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Traders` reviews for LowCostForex

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