Limit Prime – Are They Safe?

Website URL: www.limitprime.com

Founded: N/A

Regulations: Unregulated

Languages: English, Montenegrin

Deposit Methods: Unknown

Minimum Deposit: Unknown

Free Demo Account: No

Number of Assets: less than 100

Types of Assets: FX pairs, CFDs on Global Indices, Commodities

Trading Accounts and Conditions

Limit Prime offers its customers 3 different types of trading accounts: Real Account, Swap-Free Account and Scalper Account. There is no information given about the minimum deposit requirements. The leverage ratio offered is 1:100, but we do not have any information about their spreads either. The broker also states that there are no commissions on its spreads.

Limit Prime – Advantages

Here are the advantages we found Limit Prime to have:

• MetaTrader 5 Platform Supported

The biggest advantage we find is that this broker supports the MetaTrader5 trading platform. This software is the latest offering by MetaQuotes, the maker of the MetaTrader 4 platform.

Like the MT4 platform, the MT5 interface is easy to use, has market analysis and charting tools, as well as the famous Expert Advisors – automatic trading robots. The MT5 platform also has added features such as increasing time frames, live calendar, centralized market trading a larger range of pending orders, in-built email and so on.

• Swap-Free Accounts Available

These accounts are also known as Islamic accounts, which allow you to hold open positions overnight without you needing to pay interest. Created specifically for Muslim traders, since Sharia laws forbid the payment or earning of interest.

• Micro-Lots Available

Another plus to contracting with Limit Prime is that you will be able to trade in micro-lots. A standard lot size is 100,000 units of currency, while a micro-lot is just 1,000 units of currency. This means that traders who just want to test a broker’s offerings, or prefer to trade with less money can use this broker’s services.

• Solid Leverage Offered

According to the information on Limit Prime’s website, you are offered a maximum leverage of 1:100, which is quite decent. Such a ratio allows you to adopt relatively higher risk trading strategies.

Professional traders are offered even high leverage ratios of up to 1:200.

However, we also need to warn you that using higher leverages also mean a higher risk of losing money on the market, so this advantage should be used with care.

• Negative Balance Protection

Negative balance protection ensures that you cannot lose more money than what you have in your account. So, the fact that Limit Prime offers this facility is a definitely positive. You should also know that all regulated brokers are required by law to offer such protection to their clients.

Limit Prime – Disadvantages

Here are the disadvantages we found Limit Prime to have:

• Not Regulated in the EU

Unlike other brokerages that are clear-cut scammers, this broker actually does have a license to operate. But there is problem with its regulation status. Let us explain further.

Limit Prime is owned and operated by Investiciono drustvo Limit Prime Securities AD Podgorica (called Limit Prime Securities in short). This company is regulated by the Montenegrin Capital Market Authority (CMA), which is one of the 3 financial governing bodies in the country. The broker has also provided the license number as well as its registration number, both of which check out.

The problem is that Limit Prime targets customers in the European Union, so it needs to be regulated by a member country’s financial authority.

Montenegro is not yet a part of the EU, even though it is in accession talks and is expected to join the union in the near future. So, while this broker is regulated, it isn’t regulated by the authorities of the EU (at least, this broker does not mention any other regulatory information other than its registration with Montenegro). Which means that it is offering its services to customers in that region without the proper authorization.

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• No Demo Account

Another problem we have with this broker is that it does not offer its customers a demo account. A demo account is important since it allows traders to test the trading conditions and the platform offered by a broker.

And since this broker has left out key information on its website, a demo account would have been very helpful in finding out what the minimum deposit requirement or the spreads are.

• No Minimum Deposit Requirement Shown

As we mentioned, this broker has left out key information on its website. We do not know what the minimum deposit requirements Limit Prime has.

What you should know as that the market standard for minimum deposits ranges from $100 to $250, so if you do decide to trade with this broker, this will give you an idea about whether they are too expensive or within the standard.

• No Payment Methods Mentioned

Another point that worries us that Limit Prime has omitted information on its payment methods on its website. The only piece of information that this broker has given is that its withdrawal processing time is about 2 days.

Conclusion 

This is a broker that we have a mixed reaction to. There are many things that Limit Prime has done right. It offers a great trading platform, its client dashboard is great, it has a great website and when you register you are asked for further details (which shows that it is focused on meeting regulatory requirements). This broker also has Swap-Free Accounts, micro-lots, decent leverages and negative balance protection.

However, the biggest issue we have with Limit Prime is that it is not regulated by any financial authority in the European Union, which is where most of its target customers are. Furthermore, key pieces of information are missing from this broker’s website – information on minimum deposits, trading conditions and even payment methods.

While this broker does have a lot of good points, its lack of regulation and the missing key information on its website is what leads us to not recommend this broker.

Limit Prime

2.5

User Experience

3.3/10

Payment Options

2.3/10

Security

2.4/10

Support

2.5/10

Reputation

2.2/10

Pros

• MetaTrader5 Platform Supported
• Swap-Free Accounts Available
• Micro-Lots Available
• Solid Leverage Offered
• Negative Balance Protection

Cons

• Not Regulated in the EU
• No Demo Account
• No Minimum Deposit Requirement Shown
• No Payment Methods Mentioned