Lux Trading Firm Review: Company Has No Respect For Traders

Traders looking for a good partner should avoid this company. The firm lacks transparency, has difficult-to-understand trading conditions, and is accused of effectively blocking withdrawal attempts.

Read more about this online scheme in our Lux Trading Firm review.

Several Branches Active

The exact legal status of the Lux Trading Firm prop firm is somewhat difficult to determine. The website claims that it is owned and operated by Lux Trading Firm Ltd, which operates from a small offshore country called Saint Lucia.

This country’s business register requires login credentials in order to preview it, so we could not confirm if the firm is indeed in that database. What is evident is that the business is registered offshore, probably in order to avoid supervision and hide their operations from the public eye.

Another entity mentioned on the site, Lux Trading Firm Ltd, was incorporated in 2021 in the UK as an “educational support services” provider. Final branch (Lux Trading Firm ME L.L.C. – FZ) is found in Dubai, UAE in the register of the Ministry of Economy of Dubai.

Partner Broker

Although the prop firm itself isn’t a broker and doesn’t support this kind of online financial services, their partner broker needs to be regulated. The company uses FX-Edge as their liquidity provider, according to the chat agent we contacted. 

Being only an offshore-regulated (FSC Mauritius) Forex dealer, this platform isn’t exactly considered the safest out there, so caution is advised.

Alarming Public Opinion

A simple company registration is not a good measure of honest work. Investigating the client’s opinions, we came across a number of problems. One thing we noticed is that the firm, although not very popular, still has over 600 ratings on TrustPilot. The Lux Trading Firm reviews are nearly all positive, with a whopping 87% being 4-stars or 5-stars.

Users of the Reddit board have noticed this as well, and decided to warn the public of possible deception. Another discussion on the same website lists numerous issues with the company’s trading rules.

Finally, the company is not listed on the popular PropFirmMatch website. This platform, too, has posted a trader warning.

Prominent on Social Media

The luxtradingfirm.com domain has been around for a while, having been created in 2020. Despite owning Facebook, Instagram, X, and YouTube social profiles, it is not a very popular domain.

Many of their traders are from these areas:

• United Kingdom
• United States
• Germany
• France
• Canada

This firm shows very suspicious behavior. If you believe you’ve been defrauded by this group, contact our legal team for help.

Account Creation Reveals Fraudulent Intent

Forget about a demo or a preview of the trading application. If you want to create any kind of an account with these guys, you gotta jump through some hoops. This means you must upload your ID and proof of residence first, cough up the cash second, and comply with a bunch of rules third. Only then will you be considered as a potential applicant for the program? Of course, nothing prevents the cheaters from selling your personal information to the highest bidder.

The Trading Rules clearly weren’t written by anyone who is either a legal or finance professional. This leaves a lot of ambiguity, which the fraudsters are happy to exploit, just like Bull Capital Market does.

Evaluation Plans – Growth Stages

There are a total of 9 so-called Growth Stages that clients can choose along with the funded amount. The Lux Trading Firm funded account is acquired after traders manage to reach the profit target, which also depends on the account size. 

The starting amount on funded accounts can be one of the following:

• $50,000 – 199£
• $200,000 – 449£
• $1,000,000 – 999£

Of course, the higher the starting sum, the higher the target profit you need to achieve with max relative drawdown of 4%. Profit share for all options is 75%.

Mentorship Package

1-on-1 educational program is offered to clients who wish to first sharpen the decision-making skills needed for the evaluation phase. Sessions are quite costly and boil down to just 1 to 5 meetings of unknown length with alleged Forex gurus:

• 1 meeting – £125
• 3 meetings – £365
• 5 meetings – £595

Unknown Trading Platform

You’ll see advertisements for different trading programs depending on where you are on the website. For instance, the homepage advertises MT5, while the Trading Terms talk about Lux Trader.

It doesn’t matter which of these you choose, the company says, because the trades can be copied to the Match Trader! Of course, without a demo, you won’t have any way to know what’s actually available.

High Trading Commission

The maximum Lux Trading Firm leverage on FX, indices, metals, and energies is 1:30, and 1:5 on Equity CFDs and cryptos. This is somewhat within the regulatory standards, but only partially. 

Now, trading fees are quite high and go up to $10 per turn on the majority of assets except on crypto, which incurs a commission of 0.04% of the price per side. 

One attractive feature is that there’s allegedly no withdrawal fee. All transfer fees are covered by the firm. At least that’s what the support agents will try to convince you of.

Traders Don’t Get Paid

Allegedly, the participation fees are refunded in two separate stages. First 50% upon finishing the Evaluation account and the other 50% upon completing the Advanced account. Further payouts are then available from the generated profits, or so the company says on its website.

Unfortunately, we’ve already debunked the Lux Trading Firm’s legit status, and the firm has a reputation for denying any payouts from the platform. Even if the traders have managed to satisfy all of the trading rules the company has imposed, the swindlers will invent new ones on the spot.

How To Get Your Money Back

Online fraud is more widespread than you think. This prop trading firm, along with WiseCapitalX are just some of the examples of unscrupulous entities that lurk online.

Losing money to an online fraud is not an easy thing to handle, but there is a way to recover it. Should you require help in this matter, consider booking a free consultation with our expert team. You may reach us at any time via the live chat on our site.

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