Is LQDFX a legit broker?
Since there are many offshore brokers currently on the market, it’s hard to tell which one is good and which is not. Even offshore brokers should be regulated by the regulatory body of the country of residence. Mostly, those type of companies is avoiding any kind of regulations. Read our LQDFX review, and let’s see what the case with this one is.
|Regulated by: No regulation|
|Headquarters Country: Marshall Islands|
|Foundation year: 2015|
|Instruments: FX, indicies, commodities|
LQDFX Regulation and Security
As mentioned, LQDFX is a broker based offshore in the Marshall Islands. The broker has no regulation and operates illegally. When there is no regulation, there is no security of the funds as well. You don’t have any regulatory body that makes sure your funds are safe and can repay you in case of any issues. The broker’s website is out of function currently, so if you have any funds with the LQDFX broker, most likely you can’t access them.
When choosing a broker, make sure it is regulated by a tier-one regulatory body such as FCA or ASIC.
The US CFTC blacklists the broker. Since it was illegally providing financial services there, CFTC finally noticed it and issued a warning to all the US residents to be aware of this broker’s scam. In case you had any issues with the LQDFX broker, you can report it to your country’s regulatory body.
What can you trade with an LQDFX broker?
We’ve decided to check what options clients have to trade with. According to our review, the only options available are commodities, indicies, and currency pairs. And even this choice is pretty narrow. Only 71 currency pair, 22 commodities, and 21 indicies. Way less than other regulated brokers are offering.
The spread of LQDFX broker is also not the most competitive; it’s 1.8 pips for GBP/USD pair. There are brokers offering you 0.0 pips.
The leverage broker is providing is exceptionally high, 1:500. This puts you at increased risk, and it’s recommended to avoid high leverages. This is why almost all the regulatory bodies limit the leverage to up to 1:30 for currency pairs in order to keep you and your funds safe.
Be aware of the LQDFX scam!
Deposit and Withdrawal Methods
The minimum deposit with the LQDFX broker is $250 for a wire transfer or $30 for Bitcoin, other E-wallets and card deposits. For other cryptocurrencies, the minimum to start with is $20. This makes no sense since they require clients to deposit more to use one crypto than all the others. Most deposits are visible instantly (within 30 minutes), while wire transfers are visible within 2 – 7 business days.
The same payment methods are available for withdrawals. If you want to make a withdrawal using any method other than a credit card, you will be able to withdraw profit without fees. However, if you’re going to use your card, you will have to pay a $10 commission. According to this broker’s website, withdrawals are processed within 2 – 10 business days.
However, there are many bad reviews regarding withdrawals from the LQDFX broker.
Conclusion about LQDFX
LQDFX is a broker based in the Marshall Islands, operating with no regulation. It has no restrictions in its operations, and that resulted in being blacklisted by the American CFTC. According to LGDFX reviews, there are many complaints about this broker worldwide, in the UK, Australia, the USA, Canada, South Africa.
After saying all this, you can understand that this is another typical offshore scheme with no regulation. Be careful when starting an account with this broker, and in case you’ve been scammed, do not hesitate to ask for help.