Beware! LSS Markets is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
LSS Markets is an offshore broker that’s highly overrating itself and also promising big but at the same time fails to deliver. It’s somewhat linked to a few other fishy brokers, which makes it even more suspicious and less trustworthy. Find out everything you need to know about this Forex broker in the full LSS Markets review.
LSS Markets Capital REGULATION AND SAFETY OF FUNDS
LSS Markets is allegedly registered in St. Vincent and the Grenadines. It’s a Caribbean island that is notoriously famous for the lack of proper financial regulations. In fact, the Forex brokers based there are not regulated in any way and the financial authority- SVGFSA explicitly stated that they are not going to impose any rules and regulations or issue Forex licenses. The SVG brokers are out of control and might conduct illicit activities, which are potentially harmful to the funds of the traders. The customer protection is non-existent there, so you should avoid such brokers!
Your funds are not safe if you make a deposit with BeForex Capital because it’s an unlicensed, unauthorised and unregulated offshore Forex broker, which might pocket your money and run away!
We recommend that you should trade with the EU (mostly CySEC regulated) or UK (FCA regulated) Forex brokers because these two jurisdictions provide the safest environment for the funds of the retail traders. Moreover, most of the leading brokers in the world hold EU or UK license, which will definitely help you with the choice. The customer protection is a top priority and there are a variety of stringent rules and regulations imposed on the Forex brokers including the minimum capital requirement of 730 000 EUR, segregation of the clients’ accounts, negative balance protection (the trader cannot lose more than the sum deposited) and predefined stop-out levels, to name a few. Most importantly, however, the traders are guaranteed by the deposit insurance funds that were inaugurated to further contribute to the health of the system. Under CySEC (Cyprus) regulation, the clients can claim up to 20 000 EUR in compensation, while under FCA (Britain) the clients can claim up to 85 000 GBP per client. If you trade with an anonymous or offshore broker, you are entitled to nothing, but troubles and issues.
LSS Markets Capital TRADING SOFTWARE
LSS Markets claims to offer MetaTrader5 accounts to its customers, which suggest that it’s an ECN broker that’s making money by commissions. MetaTrader4 accounts are not available for the traders. However, they claim not to charge commissions, which makes LSS Markets very suspicious broker indeed! But it’s even worse, as the traders cannot download their Metatrader distribution, because the links are broken. Hence there is no functional trading platform available.
The installation file is called liquiditysoftsolutions5setup.exe, which is a name that we’ve seen before. Fishy brokers such as AbsolFX, LSS FX Markets and TrintFX are also supplied with the same MT5 modification, which raises a gargantuan red flag, not to mention the similarities in the names! You should stay away from LSS Markets, because it’s highly a controversial Forex broker and most seemingly a scam!
As a result, we have no information about the real size of the spreads and the leverage- the two principal trading features for the clients! The spread determines the trading costs and the rule says that the lower the spread, the bigger the potential profits. LSS Markets states that the spread might be as low as 0.2 pips, but we cannot confirm their statement as valid. It’s a favourable spread, but LSS Markets isn’t a stable broker!
The leverage on the other side makes the markets open to everyone because this financial tool allows the traders to increase the size of their positions. However, the risk escalates, and the loss potential becomes much greater. EU and UK capped the leverage at 1:30 because the higher ratios are considered inadequate for the retail traders. LSS Markets declares to offer a maximum leverage of 1:2000, and it’s a ratio that shouldn’t be deployed because the risk becomes tremendously huge! Such a ratio might eat up the account balance, causing a margin call seconds after the opening of the trade, or an indebted account, which is even worse! SVG brokers are known to allow negative balance, so you should stay away!
LSS Markets Capital DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit is $200, which is not too high opposed to the rest of the industry. Most of the legit entities will ask for no more than $100 from the traders on average to open a micro trading account.
No minimum withdrawal amount and no fees applicable, which is in line with the rest of the industry.
Warning! The Terms and Conditions link was broken, too, which raises yet another red flag. We were unable to browse through their provisions and as a result, we have no information about critical aspects such as the dormant account policy or non-deposited funds if these apply. The dormant account policy deals with the accounts that have become inactive- the trader has either stopped logging in, trading or making deposits/withdrawals. It’s an important one because way too often the scam brokers utilize it by including unfair clauses that consume the balance in your account!
There are a variety of bonuses, but the separate terms and conditions were also inaccessible, which makes LSS Markets a broker that should be avoided at all costs. We have to make it clear- the bonuses are dangerous for the funds; you can find further information in the paragraphs below!
HOW DOES THE SCAM WORK
A group of scammers usually operates many different scam brokers, scam websites and call centres. Sometimes they will rely on the quantity; they will publish tens or hundreds of websites and will wait for traders and investors with little or no experience to bite. Nowadays, it’s really cheap to create one, and it looks like a profitable strategy, as they carry on doing it.
You can easily find plenty of promotions and generous bonuses offered by scam Forex brokers. Everyone loves gifts and candies, and it’s an effective way to entice more and more customers! People will usually get scammed because they are searching for increased leverage or a bonus. The bonuses are prohibited in EU and UK because the trading incentives are considered to be inadequate for a financial market! The leverage on the other side is capped at 1:30 as a customer protection measure.
The traders will think that they are getting free money if they receive a bonus, but that’s not true, because it’s simply a leverage tool that’s further increasing the risk. The scammers will change the trading conditions for the worse, once you accept a bonus from them. The minimum trading volume that they will require will be almost impossible to achieve, effectively locking your funds and you will not be able to make a withdrawal. It is a great excuse for them to refuse a withdrawal and as there is no financial watchdog to report to or ask for protection, it certainly means that you have lost your money.
WHAT TO DO WHEN SCAMMED
No one is immune to scam, and anyone can fall into the trap. Scammers are always looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
It’s also important not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. These will most likely ask for an advanced payment, but will do nothing to help you recover your losses!
Share online your experience; it’s important to protect others, as well. Be responsible!