Review Is LCM-FX A Legit Or Scam Broker

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LCMFX Review: this is the name of a Forex broker that claims to be based in New Zealand. Is a legit broker or another scam?

The broker is said to be registered in New Zealand where it is based. However, we found that although it previously held a license there, in 2020, it seems to have been deregistered. The registration page of the commission tags it “Overrun”.

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It offers traders a Multi Account Manager feature and claims to have multiple partnerships. Security of funds is assured also and the leverage maximum and trading platform offered are encouraging. The address of this broker is:

Suite 1008-1009, 300 Queen Street, Auckland, 1010 New Zealand.

When we investigated the trading instruments offered traders, the broker announced that it would soon start cryptocurrency trading. This is good to know as many traders are beginning to delve into digital currency trades.

LCM-FX Trading Platform

The broker claims to offer traders the opportunity of using the MetaTrader 4 trading platform.

Legit brokers are known to offer at least the popular MetaTrader 4 trading platform.

This platform is a very good sign along with MT5, as they have become some of the most widely used by experienced traders. They are found to be compatible with various devices’ operating system. All can be used on desktops, Linus, windows, iOS and Android.

Tools that comes with these trading platforms are also found to be useful for traders. It has proven to be user friendly as well and helps traders in analyzing the market easily.

Trading instruments offered are not very encouraging as they include about 30 forex pairs, and CFDs on silver and gold. But like we mentioned earlier, it is soon bringing crypto trading into its portfolio.

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Leverage offered can reach a maximum of 1:500 which is high and competitive. Spreads however are unfavorably high and found to start from about 3 pips.

Spreads of 1.5 pips or below are what is obtainable in the forex industry and traders are asked to look out for this. Leverages of between 1:30, 1:50 and 1:25 are also common among regulated brokers.

Deposit and Withdrawal methods on LCM-FX

The broker allows deposits and withdrawals via credit and debit Visa and Master Cards. Bank Wire Transfer are also allowed and it supports Skrill payments. It is an encouraging find.

This is because standard and legit brokers make deposit and withdrawals available via Visa, MasterCard and Wire Transfer. Many offer e-wallets like: Skrill, Neteller, UnionPay, FasaPay, and so on.

A minimum deposit of $100 is required to start trading with this broker and we did not come across withdrawal charges and fees. This may be indicated in the terms of use available via a link on the website.

This information is important so that clients can invest any little amount they can spare. In order to be able to first watch the working of the brokerage. If then they are satisfied with what they see, they can determine when to withdraw their money.

Is LCM-FX Licensed?

No. Like we mentioned in the beginning, the broker seems to have lost its license as we found that its parent company, Lucror Capital Markets LP, has been deregistered by the commission in New Zealand.

Non regulated brokers are very dangerous to trade with as funds misappropriation are not under the jurisdiction of any authority. Traders have been warned to avoid such brokers.


To contact the customer care agent of this broker, dial: +649-9722150 or email: [email protected]


LCM-FX is not licensed and the spreads are not encouraging as they are higher than the obtainable average. Other trading conditions seem to be good except the small trading instrument portfolio it offers.



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LCM-FX Review – is it scam or safe?

Trading Accounts and Conditions

Trading account Min. deposit Max. leverage Spread
STP $100 1:500 From 1.8 Pip
Pro $500 1:500 From 0.9 Pip (+ $9 / lot)

LCM-FX is a forex broker based in New Zealand. It offers trading on the good old MetaTrader4 platform and a choice of two trading accounts. Here are our impressions of this broker, after we made a thorough research on the company and tested its platform.

LCM-FX Advantages

A member of a dispute resolution scheme in NZ

Although LCM-FX is no longer registered in the Financial Services Providers Register of New Zealand, it is still a member of the dispute resolution scheme Financial Services Complaints Limited. This certainly provides clients of this broker with some peace of mind.

Click on the image to view full-size.

This scheme provides independent and impartial dispute resolution service and is free to consumers. The members of the scheme include non-bank lenders and finance companies, credit unions, building societies, insurance companies, mortgage brokers, insurance brokers, financial advisers, trustees, fund managers, issuers of securities, transactional service providers, card issuers and many more.

Access to the MT4

As we mentioned in the beginning, LCM-FX provides access to the global financial markets via the highly praised MT4 platform. Developed by MetaQuotes, this piece of trading software offers amazing functionalities, such as advanced charting, support for automated trading systems and multiple ways to copy trades. Besides, the MT4 is user-friendly and available as desktop download, web version, and mobile apps.

Reasonable initial deposit required, high leverage provided

As advertised on the broker’s website, one can open an account with LCM-FX by investing $100, which is more or less the industry’s average.

Besides, the broker provides high leverage ratios, reaching 1:500. Leverage is an important part of forex trading, but it is also a bit controversial. Higher leverage allows opening of larger positions, as well as the chance for higher profits. It does, however, also hide the risk of heavy losses. That is why it is capped in many jurisdictions, and actually New Zealand and Australia are one of the few countries where forex brokers are regulated, but still able to offer high leverage levels.

LCM-FX Disadvantages

LCM-FX is a trading name of Lucror Capital Markets LP, a company based in New Zealand. The firm also operates LucrorFX brokerage brand. Unfortunately, this company is no longer registered with the NZ Financial Services Providers Register, so it is not regulated by the local Financial Markets Authority (FMA).

With no regulatory oversight we can’t be certain about the company behind the operation and whether it will fulfill its obligation towards clients.

Spreads above the average

According to the contract specifications on LCM-FX ‘s website, the EURUSD spread on STP accounts is starting from 1.8 pips, which is higher than the average spreads in the sector. Besides, when we tested the broker’s MT4 in demo mode, we traded with a spread of around 1 pips on EUR/USD, but a commission of $9 applied per standard lot.

Click on the image to zoom in.

Limited product portfolio

Another thing we noticed while testing the broker’s MT4 is that its product portfolio is quite limited in terms of tradeable products. The broker offers trading in around 30 forex pairs, Silver and Gold. That is all. Most brokerages usually have wider range of currency pairs in their product portfolios, as well as more asset classes of CFDs – on indices, stocks, commodities and cryptocurrencies like Bitcoin.


What LCM-FX offers is more or less standard in the forex world – trading on the MT4, generous leverage, deposits and withdrawal via bank wire, cards, and Skrill. While this doesn’t sound bad, we cannot rate the broker with 2 starts or more, because it is no longer regulated.

If you are looking for a reliable broker licensed in New Zealand, check out the below link:

And finally, here are the highlights of the present review of LCM-FX:

Pros Cons
A member of a dispute resolution scheme in NZ Not regulated
Generous leverage, reasonable initial deposit Trading costs above the average
MT4 available Limited product portfolio
Broker Advantages

FXTM a regulated forex broker (regulated by CySEC, FCA and FSC), offering ECN trading on MT4 an MT5 platforms. Traders can start trading with as little as $10 and take advantage of tight fixed and variable spreads, flexible leverage and swap-free accounts.

XM is broker with great bonuses and promotions. Currently we are loving its $30 no deposit bonus and deposit bonus up to $5000. Add to this the fact that it’s EU-regulated and there’s nothing more you can ask for.

FXCM is one of the biggest forex brokers in the world, licensed and regulated on four continents. FXCM wins our admirations with its over 200,000 active live accounts and daily trading volumes of over $10 billion.

FxPro is a broker we are particularly keen on: it’s regulated in the UK, offers Metatrader 4 (MT4) and cTrader – where the spreads start at 0 pips, Level II Pricing and Full Market Depth. And the best part? With FxPro you get negative balance protection.

FBS is a broker with cool marketing and promotions. It runs an loyalty program, offers a $100 no-deposit bonus for all new clients outside EU willing to try out its services, and an FBS MasterCard is also available for faster deposits and withdrawals.

FxChoice is a IFSC regulated forex broker, serving clients from all over the world. It offers premium trading conditions, including high leverage, low spreads and no hedging, scalping and FIFO restrictions.

HotForex is a EU Regulated broker, offering wide variety of trading accounts, including Auto, Social and Zero spread accounts. The minimum intial deposit for a Micro account is only $50 and is combined with 1000:1 leverage – one of the highest in the industry.

LCM FX review – 5 things you should know about

Beware! LCM FX is an offshore broker! Your investment may be at risk.

Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

LCM FX is a forex brokerage registered in New Zealand. It provides the MetaTrader 4 platform and also offers a test-drive. We learn from the website of the brokerage that potential clients are extended a leverage of 1:100 and the spread on EUR/USD is at 1.8 pips which is a bit above the industry average of a pip and a half.

LCM FX regulation & safety of funds

According to the website the company – Lucror Capital Markets Co.,- behind the brokerage is registered in New Zealand with a registered address 300 Queen Street, Auckland 1010, New Zealand. Forex brokers operating on the territory of New Zealand have to be licensed by the Financial Markets Authority – the New Zealand financial regulator. However, going through the online registry of the FMA we did not find the company among the list of licensees. This means the website is offering financial services without proper authorization and illegally. Here is as screenshot:

We did not come upon any other signs of trouble going through the website, nor is there a lack of information, however, the lack of regulation inclines us to suspect that potential clients of the brokerage may be open to substantial risk.

Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.

LCM FX trading software

However, putting all this aside – the brokerage does provide the MetaTrader 4 trading platform which we always view favorably since it is the foremost trading terminal at the moment equipped with features such as almost a 100 market indicators, as well as customizable trading robots. It is also the preferred choice for more than 80 percent of the traders in Forex. Here is a screenshot:

However, there are a couple of problems worth pointing out. First of, according to the platform the spread on EUR/USD is the meager 0.2 pips which is absurdly low and makes us question whether it is so in fact. No brokerage may hope to yield a profit through so low a spread. Furthermore, on the website of the broker we read that the spread for the most basic account is actually 1.8 pips which is believable and a bit above the industry average. Such misleading info is a sign of trouble, but we do highlight that the required minimum deposit is quite low at $100 and much in favor for traders.

LCM FX deposit/withdrawal methods and fees

There is a staggering lack of information on the website regarding the deposit and withdrawal of funds. We could not gather the payment methods available for clients, there isn’t a mention of them even in the terms and conditions. This is quite common with scammers because they choose not to disclose such “unfavorable” details to traders and only after having received a deposit from a client do they charge some unexpected withdrawal fee or maintenance fee. With LCM FX, however, it’s worse. Here is a screenshot:

LCM FX only states that clients may have to pay withdrawal fees and other charges but does not specify the amount. This is why we advise traders to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.

How does the scam work?

Information is a pretty solid criteria for judging a brokers legitimacy. Scammers would not share much of their information, because precisely there inconsistencies and irregularities may appear which expose the whole set-up. A good example is this very broker and the lack of crucial information about the company behind it.

After informing themselves for the brokers trading conditions – traders should be well-versed in the way of the scam:

Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Crypto Revolt where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.

After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.

Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back.

What to do when scammed?

As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.

You may contact your bank or credit card provider and file a chargeback. Furthermore, due to the high instances of fraud – both Visa and MasterCard have decided to sidestep scammers as best they can in forex trading. The first thing we have seen so far is that MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half with their rival Visa expected to follow suit in December.

If, however, you have provided the broker with your credit card details, immediately cancel your credit card.

If you have given information regarding your online banking pass – you should switch it asap!

Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!

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