Fx4Lux – Can You Trust This Broker?

Website URL: https://fx4lux.com/

Founded: 2019

Regulations: Not Regulated

Languages: English, Italian, German

Deposit Methods: Not Known

Minimum Deposit: Not Known

Free Demo Account: Yes

Number of Assets: N/A

Types of Assets: 70 Forex pairs, CFDs on stocks, commodities, indices, metals

Trading Accounts and Conditions

Fx4Lux claims to be a luxurious trading platform that offers its clients 3 different accounts for trading:

• Standard Account: Those who use a Standard account will be offered a leverage ratio of 1:100 and a spread of 9 pips.
• Gold Account: If you use a Gold account, then you will be offered a leverage level of 1:200.
• Platinum Account: Platinum account users get a leverage ratio of 1:400.

We could find any information on the minimum deposit requirement, and with the exception of the Standard account, there was also no information provided about the spreads offered.

Fx4Lux – Advantages

Here are some of the advantages of trading with Fx4Lux:

• MetaTrader 4 Platform Offered

Fx4Lux is offering its clients the MetaTrader 4 platform for trading, which we always consider a positive. This is because this platform is the best software in the world right now, with 8 out of 10 traders using it for executing their trades.

The MT4 platform is not only easy to use for all types of traders, but it also comes loaded with extra features that make trading more efficient and effective. You get a range of market indicators for analytics, and also charting options. You also get to use an array of trading robots if you wish to carry out automatic trading.

And all these features are customizable to suit your specific trading style.

• Range of Trading Instruments

Another plus we found with Fx4Lux is the range of trading instruments they offer their customers. There are more than 70 forex pairs from which to choose, as well as numerous CFDs on stocks, indices, metals, commodities and also cryptocurrencies.

Fx4Lux – Disadvantages

The few advantages we have mentioned are overshadowed by the many disadvantages of trading with this broker.

• Offshore Broker that is Unregulated

Fx4Lux is a broker that is owned and operated by a company called Global Pegasus Ltd. This company is based in St. Vincent and the Grenadines, which means that you will be dealing with an offshore brokerage.

Added to that, there is also mention of a company called FX4LUX Pvt Ltd, but there is absolutely no corporate information given about this entity.

Now, this broker’s website is available in 3 languages – English, Italian and German, so we can safely assume that these are the three main regions that Fx4Lux is targeting for its customer base.

To be able to operate in the UK, Italy or even Germany (or Switzerland), this broker would need to be regulated by one or more of the financial authorities in these countries.

However, when we checked the online registries of the financial regulators of the UK (the FCA), Italy (CONSOB) and Germany (BaFin), we found no trace of either Global Pegasus or FX4LUX on their lists of regulated companies.

This means that this broker is completely unregulated and is therefore operating illegally.

• Blacklisted by CONSOB

While searching through the various registries of the financial regulators in the UK, Italy and Germany, we came across some key – and worrisome – information.

Fx4Lux has been blacklisted by the Italian regulator, the CONSOB (Commissione Nazionale per le Societa e la Borsa). According to the warning issued by the watchdog, this broker has been listed as a scammer.

It is wise to remember that dealing with an unregulated and blacklisted broker is the best way to get scammed, so before you invest your hard-earned money with any broker, it is necessary to check reviews such as ours on the broker to ensure that you are not dealing with another unscrupulous fraud.

• Remote Access App Offered

Another sign that this broker is a scammer is that it offers its clients an app called Any Deck. This is a remote access app which is apparently designed to allow you to access your trading account remotely from anywhere.

However, what the broker fails to mention is that they also end up gaining access to your PC when you download this app. Which means that all the data on your personal computer – your personal information, banking information and so on – are all accessible to the broker.

At the best of times, it is not a good idea to share your sensitive data with anyone, but in this instance, it is tantamount to you handing over your money to Fx4Lux, especially since they have already been marked as scammers.

• Outrageously High Spreads

We were able to access Fx4Lux’s demo account on its trading platform. And when we did, we were shocked by the spreads offered. This broker has a spread of 9 pips, which is outrageously high.

This spread is more than 4 times the average in the market, and basically means that your trading costs will be so high that you will just be giving money to the broker.

• Trading Bonuses Offered

Fx4Lux also offers its customers trading bonuses. Trading bonuses have been banned by most regulators for a reason. They come with harsh conditions, where a trader is forced to meet impossibly high trading volume targets before they are allowed to withdraw funds from their own accounts.

These bonuses are typically used by scammers to rob traders of their money.

• Unknown Payment Methods

Brokers usually clearly mention the types of payment methods they support. But in the case of Fx4Lux, we do not know the payment methods offered.

Conclusion 

Everything about Fx4Lux points to the fact that this broker is a scammer and that it would be best for all traders to avoid contracting with them.

Fx4Lux

2.5

User Experience

3.1/10

Payment Options

2.3/10

Security

2.4/10

Support

2.2/10

Reputation

2.5/10

Pros

• MetaTrader 4 Platform Offered
• Range of Trading Instruments

Cons

• Offshore Broker that is Unregulated
• Blacklisted by CONSOB
• Remote Access App Offered
• Outrageously High Spreads
• Trading Bonuses Offered