Thinking of a new forex broker? When I was looking for a new broker, it dawned on me how much of a challenge this can actually be. Where do you look? Who’s reviews can you trust? What qualities do I need in a broker? In this article we will be having an in-depth look into LMFX, the company itself and what they can offer to traders around the world. Let’s dive in…
Who Are LMFX?
Founded in 2015, LMFX are a forex trading broker offering a huge 1:1000 leverage for traders. This broker offers a 100% deposit bonus on all deposits, no fees, great customer support and a range of 7 trading platforms to choose from. With tight spreads on Forex, Commodities, Indices, Oil and Shares, this broker really does make trading accessible to a whole range of different types of traders.
So, let’s look at LMFX in a bit more detail and see where it gets its reputation from…
LMFX Trading Conditions
Depending on which account type you choose with LMFX, you’ll have access to a maximum of 1:1000 leverage on your account. If you are concerned about the risk that comes with a high level of leverage, there is an option in the account dashboard to reduce your leverage all the way down to 1:1 – but of course you will need a higher deposit to trade with reduced leverage.
|Forex Pairs||All Majors, Minors & Exotics|
|Leverage||Up to 1:1000|
|Spreads||Depending on account, averaging 1.1 pips on EURUSD|
|Commission||Depending on account, $8 per lot traded|
They offer a huge amount of tradable products, including forex majors, minors, commodities and indices. For the large majority of forex retail traders, you will only need the majors and minor pairs, plus maybe gold. The spreads do vary per account type as on the fixed account, the spread is fixed, and on the edge account the spreads are dramatically reduced in exchange for leverage. This is the average spreads however on the premium account:
Are there brokers with better trading conditions than LMFX? Yes, I’m not going to tell you that these are the cheapest spreads and fees in the industry because it’s not true, there are brokers like IC Markets and Blueberry Markets offering slightly cheaper trading costs. However, where this broker does come out ahead is on the deposit bonuses – making it a great broker for beginners or traders with low deposits!
This forex broker offers 3 account types, alongside a free demo account for beginners looking to get a grasp of trading. The 3 accounts cater to a range off different types of traders, from scalpers to day traders, depending on which account you choose. The Premium, Fixed and Zero accounts are all accessible on MT4, with great execution and leverage up to 1:1000.
The Premium account is great for beginners and day traders! This is the most popular account and offers a minimum lot size of 0.01, with a minimum deposit of $50 and spreads starting from 1 pip. You will have access to the full range of tradable products LMFX offers on the MT4 platform, with absolutely no commissions! Sign up now!
The Fixed account is also great for beginners, day traders and scalpers! In fact, this is the perfect account for algo & EA traders as well, due to there being a completely fixed spread. This means that you will not pay any commission on the trades opened and the spreads never fluctuate. The minimum deposit on this account is $250, with 1:400 leverage and the full range of products on MetaTrader 4. Sign up now!
The Zero account is the perfect account for scalpers and actually my favourite account. The minimum deposit on this account is $100, with a maximum leverage of 1:250. The spreads are ranging around 0.0 pips and there is a $8 per lot commission on the trade. This is the perfect account for people trading the lower time frames (less than the 1H), as you don’t need to worry about being taken out by spreads! Sign up now!
Of course, alongside this is the free Demo account, where traders can practice and test the market conditions without actually risking losing any money. Although I recommend trading on live accounts so you can learn the psychological aspects of trading, you can create your demo account here!
Are LMFX Regulated?
Trading with a regulated broker has a lot of perks – mainly just that you can never be subject to unfair trading conditions such as prices being manipulated, delays on orders, withdrawals never coming and insane trading fees. So, is this broker actually regulated?
LMFX are completely unregulated by any financial authority. This is worrying for most traders as it does mean your capital can be at risk as there is no regulators keeping an eye on what the broker is actually doing and how they operate. It is ALWAYS best to trade with a regulated broker if at all possible, like IC Markets or BlackBull Markets for instance.
As LMFX are unregulated, they are able to offer clients 1:1000 leverage and a 100% deposit bonus, something that is not allowed by regulators. This is definitely a perk of trading with an unregulated broker, but the lack of safety is still something of concern.
The broker does still claim that they have segregated client fund accounts. This means that if the broker happens to go under or the company has to close, you should still be able to withdraw your trading capital. Whether this is actually true though with the case of LMFX, we cannot confirm – and hopefully will never have to.
When it comes to choosing a broker, making sure that they offer the right trading platforms is crucial. Having a bad platform can actually decrease your edge in the market, with bad fills and a lack of analysis tools. LMFX offers MetaTrader 4 as their trading platform.
A brief run down of this trading tool –
|Free to use|
|Great for beginner traders|
|9 built in time frames|
|Market place full of EA’s and indicators|
|Easy trade execution tools|
|Great for Algo traders|
|Accessible on Web, PC, Mac, iPhone, Android and iPad.|
|News built in|
MetaTrader 4 is actually the most popular platform for retail traders all around the world. In fact, you’ll be hard pushed to find a broker that doesn’t offer traders the options of MT4. The platform is extremely simple, frankly there isn’t too much you can do with it, beyond the basic charting and basic order types – but for the large majority of traders, that is all that’s needed. Due to MT4 being accessible on all platforms and so easy to use, this is a great platform for beginners! I have personally spend years using the platform.
As great as MT4 is, it’s fairly limited and a lot of professional traders prefer to use external charting tools like TradingView for their analysis, then just enter the orders on the MT4 platform. I much prefer doing it this way and it is a shame that LMFX only offer the one platform, when some brokers offer multiple platforms.
Deposit & Withdrawal Options
LMFX has a whole range of deposit and withdrawal options that make it really simple and easy to get started trading. All deposits and withdrawal have absolutely NO FEES charged from the broker. It’s worth noting that I did have to pay a fee from the bank during the deposit, so a small fee will be taken but not from LMFX. The deposit and withdrawal methods are:
All deposits and withdrawals are processed extremely fast so you will be up and trading within a few hours. (Of course wire transfers will take longer to process). Deposits are met with a 100% deposit bonus! This increases your account margin, meaning you are able to grow your account faster with the additional bonus capital added onto your account!
Luckily, there are plenty of ways to get in touch with LMFX. I have used various different contact methods whilst testing the broker, which have all been satisfactory. I have also noticed that on the forums like FPA, the support team seem to respond to every single query – a good sign!
The best ways to contact the broker are:
- Contact Form
- Live Chat
- Telephone – +44 2035192105
- Customer Support Telephone – +44 2035192105
- Email – email@example.com
For small queries I would recommend using the live chat or telephone support as these are typically yielding an instant response. With anything larger like any withdrawal issues or something more serious, I would recommend using the contact form or sending over an email so you have a paper trail of what has been said.
LMFX Reviews and Reputation
When choosing a forex broker, one of the most effective ways to check if the broker is a good fit for you is to look at reviews from other traders around the world. There are some reputable forums where forex traders just leave brief reviews about their experiences with various brokers in the aims of helping the community. What does LMFX’s reputation look like?
This broker has a rating of 3.3/5 stars, which is a good rating! It has to be said that they don’t actually have too many reviews on Forex Peace Army, which is slightly concerning as we don’t have many reviews to work with.
Typically within these reviews you can see that retail traders seem to be really happy with LMFX as a broker, siting that they don’t have any issues with the company and that they are receiving payouts – which we want to see.
One of the main criticisms of this broker, on the forums, is that they do not have free deposits. As mentioned in the deposit and withdrawal section, LMFX doesn’t charge any fees on deposits, any fee is taken by the third party you are using for the transfer – so bare that in mind.
In summary, LMFX are a great forex broker for beginner traders. They offer 1:1000 leverage on the premium account, along with a 100% deposit bonus, competitive spreads and all the tradable products you could ever need, on the Metatrader4 platform.
They have a good reputation within the industry and a great customer support team! The only thing that lets LMFX down as a broker is the fact they are not regulated by any governing bodies. This is a huge risk to traders and can pose a whole range of problems in the future. For this reason alone, if you are a more experienced trading looking to deposit a large amount of capital, I would advise trading with a more regulated broker like IC Markets, Blackbull markets or even Hot Forex.
If you are just a beginner looking to trade and practice, this broker is absolutely perfect – Sign up now!