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LQDFX Review - Is it scam or safe?

LQDFX Review - is www.lqdfx.com a safe forex broker or scam?

RATING: 2 / 4 REVIEWS LQDFX
LQDFX is an offshore broker. Your money is not safe.

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Trading Accounts

 

Account type Minimum deposit  Minimum trade size Maximum leverage Average Spread (& Commission )
Micro $20 0.01 1:500 1.4 pips on EUR/USD
Islamic $20 0.01 1:300 1.4 pips on EUR/USD
Gold $500 0.01 1:300 0.8 pips on EUR/USD
ECN $500 0.01 1:300 0.2 pips on EUR/USD + $3.50 per standard lot
VIP $25 000 0.1 1:100 0.2. pips on EUR/USD + $2.50 per standard lot

 

While most brokers usually offer several account types, Clients of LQDFX are offered a choice of 5 account types: 3 commission-free ones, as well as ECN and VIP one, offering tighter variable spreads and involving commission. Maximum leverage available varies by account types, reaching 1:500, and micro lots are offered on all accounts, except the VIP one.

 

In addition, this broker provides a swap-free account, intended for investors of Islamic belief.

 

The Company. Security of Funds

 

Company Country Regulation
LQD Limited Marshall Islands FinaCom

 

Established in late 2015, LQDFX is a pure STP brokerage offering trading in 47 currency pairs and a number of CFDs on indices & commodities.

 

Behind this brand is LQD Limited, a company registered in the Marshall Islands, providing financial services under the laws of the Marshall Islands Business Corporation Act.

 

Due to its location, this forex broker is not under any regulation. According to the information on its website, LQDFX keeps clients’ funds completely separate from the company funds, so in the unlikely event that the brokerage enters liquidation, clients’ assets cannot be used to pay back creditors. This may be true, however no authority oversees the activities of brokers registered on the Marshall Islands.

 

We generally advise traders to avoid brokers registered offshore, and to select among companes authorized and regulated by ASIC or CySEC, for instance, however LQDFX seems ok. Besides, in 2017 LQDFX joined the Financial Commission (FinaCom), a Hong Kong-based external dispute resolution (EDR) organization, the EDR said on Thursday. The broker has an active member status B category, which means its clients are entitled to a compensation of up to $5,000 per person in case it gets in trouble.

 

Trading Conditions

 

Minimum Initial Deposit

In order to open an account with LQDFX, one has to deposit just $20, which is a comparatively low minimum initial deposit requirement. In comparison, FX Choice, which is also registered in the Marshall Islands, demands $100 for all account types as a start (including ECN).

 

Average spreads & Commissions

As a 100% Straight-Through-Processing (STP) broker, LQDFX offers variable spreads, which vary by account type. Typical spreads on the Micro account, for example, amount to 1.4 pips on EUR/USD, which is average. If you choose to open an ECN account with this broker, spreads are averaged 0.2 pips on EUR /USD and a commission of $7 per standard lot applies (round trip). This in fact means that average trading costs for the EUR/USD pair would amount to 0.9 - 1.0 pips, commission included, which is a fairly good pricing.

 

In comparison, FX Choice offers variable spreads averaged 1.2 pips on EUR/USD on its commission-free account, while the Pro account provides spreads from 0.5 pips on EUR/USD, and a commission of $3.86 per lot (per side). For further information, you may look up real-time spreads of 15 leading brokers here.

 

Note: When we tried out the LQDFX’s xStation platform, ECN spreads were a little bit higher than the ones advertised on the broker’s website – around 0.5 pips on EUR/ESD.

 

Maximum Leverage

Maximum leverage levels offered by this brokers are high, reaching 1:500. Nonetheless, many forex brokers offer leverage equal to or exceeding 1:500.

 

Leverage allows traders to gain large exposure to diversified markets with a relatively small amount of invested capital, however the higher the leverage level, the greater the risk. That is why we advise investors to exercise caution when trading on margin with high leverage levels.

 

Trading Platforms

 

LQDFX offers its customers the popular MetaTrader 4 (desktop & mobile versions available), as well as xStation.

 

The MT4 is the most widely used forex trading platform, as the it features a number of technical indicators, extensive back-testing environment, advanced charting package and a wide range of Expert Advisors (EA), allowing clients to fully automate their trades.

 

The other platform used by this broker, xStation, is based on open-API XOH Trader (developed by X Open Hub). It is available as a desktop, web and mobile versions with LQDFX.

 

xStation is an intuitive multi-functional platform that also features one-click dealing and the ability to deal straight from the chart. The platform is equipped with a number of technical analysis tools and advanced charting package.

 

LQDFX’s xStation platform. Click to enlarge.

 

Promotion

The broker offers 100% on-deposit bonus (up to $20 000) to all live account holders (except PAMM) who have deposited at least $250. The 100% bonus value is calculated as $5  per round turn lot traded. Only positions over 0.1 lots (10,000 units round turn) and open for at least three minutes qualify for the bonus.

 

Methods of Payment

 

LQDFX offers its clients wide range of payment options, including: bank wire, credit card, e-wallets Neteller, Skrill, China UnionPay, FasaPay, Sofort, iDEAL, as well as vouchers (virtual, prepaid payment methods) jeton, paykasaepaycode, cashixir, gscash.

 

There is a $50 fee charged by international banks for wire transfers, which is covered by brokerage if the deposit amount is above $250.

 

Conclusion

 

LQDFX is a relatively young offshore broker, whose offering seems really attractive: competitive cost of trading, low initial deposits required and high leverage levels available on two trading platforms. What is more, it accepts US clients. Nonetheless, we have one major concerns with this LQDFX: its light touch regulation. Here are, in a nutshell, the advantages and disadvantages of LQDFX:

 

Pros

Cons

Tight spreads, reasonable commission fees (if any)

Light touch regulation

Pure STP model

 

High leverage levels, low minimum initial deposit

 

MT4 available

 

Variety of trading platforms & accounts

 

Accepts US clients

 

 

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Traders` reviews for LQDFX

Spread

Pros

Cons

 

 

Slippage

Pros

Cons

 

 

Requotes

Pros

Cons

 

 

Price feed

Pros

Cons

 

 

Platform

Pros

Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

Pros

Cons

 

 

Summary

Pros

Cons

 

 

Horrible customer experience

It has been a nightmare to setup my LQDFX account, I have been trying to set it up for 2 months and I still haven't been able to fully "access" and "deposit" into my account. They're rules are anal and they have not been able to satisfy something as easy as opening an account. They require you to give every single piece of ID and information you have in such a ridiculous way. Even the slightest difference and they'll delay your account in 3-4 days, I don't have time to wait 3-4 days every single time they encounter a stupid problem like "the transaction date to verify you account is not the same on our records" of course it isn't, that's not how online transactions work, they will occur on different dates naturally due to the fact that online wallets take 24-48 hours to process. They are honestly the worst FX company I have ever come across. Avoid them at all costs.

Sehajvir Deol 01/16/2019

It's a scam

Its a scammmm I deposited £20 and they said I cant use it because its a "Third party transfer" and they havent even transferred my money back f*king d*kheads

Tyresse 09/27/2018

LQDFX is a scam

I withdrew money from my account 21 days ago and still have not recieved it.
They said it would take 7-10 business days.
They have not given me a clear explanation and are blaming it on 3rd party.
Don’t go through the headache of LQDFX; go elsewhere!

David 06/12/2018

Quality broker

Been trading with lqdfx for quite some time now and I can say this is a broker to trust! Loving the tight spreads and their customer support is very fast and friendly. It's not easy to find a broker offering such trading conditions, especially for US clients. What makes it even better for me is that I can deposit and withdraw by card - 5 stars for that!

Ben 03/23/2017
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