Luxe Capitals – Is It a Reliable Broker?

Website URL: https://www.luxe-capitals.com/en/home/

Founded: N/A

Regulations: Unregulated

Languages: English, Italian

Deposit Methods: Credit/Debit Cards and Bank and Wire Transfer

Minimum Deposit: €500

Free Demo Account: No

Number of Assets: N/A

Types of Assets: Commodities, CFDs, Cryptocurrencies, Indices, Forex, and Shares

Trading Accounts and Conditions 

Luxe Capitals offers three types of accounts for traders. Below we provide a brief comparison of each account.

• Bronze Account

The minimum deposit for this account is €500. As per the broker, this account is designated for traders who are new in the Forex market. It offers a maximum leverage of 1:500* and spreads from 1 pip. Its trade size is from 0.01 lot up to 5 standard lots.

• Silver Account

The minimum deposit for this account is €5,000. It offers a maximum leverage of 1:400** and spreads that are fixed for forex. Its trade size is from 0.01 lot up to 60 standard lots per position.

• Gold Account

The minimum deposit for this account is €25,000. This is intended for traders with a good deal of experience. It offers a maximum leverage of 1:300* and spreads from 0 on forex. Its trade size is from 0.1 lots up to 80 standard lots per position.

Luxe Capitals   – Advantages

This broker doesn’t offer any advantage to traders.

Luxe Capitals   – Disadvantages 

At first glance, Luxe Capitals may seem to be legit because of its well-designed website. However, looks can really be deceiving because when we investigated further, we discovered that this broker has several misleading information, red flags, and signs of it being a big scam. Below are some of the disadvantages of this firm.

• Unregulated and unlicensed broker

As shown on its website’s footer, Luxe Capitals claims that it is regulated by the FCA, UK’s official regulator, and CONSOB, Italy’s official regulator. These are two strong claims; hence, we had to conduct verification.

To verify, we accessed FCA and CONSOB’s online database which contain all of their registered entities. However, the name of Luxe Capitals never appeared. Furthermore, when we checked the reference number that is associated with its regulation, the name of the licensor appears to be Wallwood Capitals.

Wallwood Capitals is a clone firm of FCA, claiming to be an authorised regulator that has been targeting people in the UK. The FCA has published an article warning people about this scam firm.

With this, we can rule out that Luxe Capitals is not regulated by the FCA, nor CONSOB, and is associated by a scam licensor firm called Wallwood Capitals. Hence, we have no choice but to label this broker as an unregulated and unlicensed broker which poses a risk to your investments.

Plus500

$100

Minimum Deposit

Start Trading

Read Review

82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

 

AvaTrade

$100

Minimum Deposit

Start Trading

Read Review

The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.

• Unavailable demo account

This broker claims that it offers three trading platforms: the MetaTrader 4, Mobile Trading, and a Webtrader. However, when we tried checking the demo account, we were redirected to the company’s contact page. This implies that in order to open a demo account, we need to request it first by calling its customer support.

Demo accounts are supposed to be free and readily available. Most legit brokers offer a free demo account to their clients so traders can determine if the trading conditions offered to them are worth it. But the fact that this broker hides this essential tool may imply that its trading platforms may be lousy.

• Unconfirmed deposit and withdrawal methods and fees

According to its website, it supports the following payment methods: credit/debit cards and bank and wire transfer. However, we weren’t able to confirm this because we didn’t complete our registration.

The firm’s minimum withdrawal fee is €200 and all withdrawal requests have 24 hours processing time. Upon checking further, the only method for withdrawing is via a wire transfer which doesn’t coincide with the initial information it provided in terms of payment methods.

Moreover, the withdrawal fees aren’t stipulated. What’s more fishy is that the website doesn’t have Terms and Conditions. It only has a risk disclosure which states that it will not explain or disclose in full details all the risks and significant aspects that are associated in trading with it. It only mentions that investors should contact its customer support to have a more comprehensive understanding of all the involved risks. This is a sure-fire indication of this broker being a scam.

• High capital requirements for its trading accounts

The three account types offered by this broker require minimum capital requirements of €500, €5,000, and €25,000, respectively. These amounts are so much higher than the regular industry standard which is only $10. This means that Luxe Capitals only want investors who are ready to take risks.

• High leverage and spreads

The leverage and spreads offered by this broker are very high. The leverage is capped off at 1:500*, a level that is not allowed in several jurisdictions because of the high risk involved for losing capital. As the leverage increases, the profit you gain will also increase. However, if you lose, you’ll also lose big time.

As a general rule in trading, always manage your risks. With this, you’ll be able to cut down on losses and protect your money. With Luxe Capitals advocating high leverages and spreads, we can rule out that this broker is only after gaining profits from its investors.

Conclusion 

Luxe Capitals is an unregulated and unlicensed broker that misleads traders using false information. Its claim to be regulated by the FCA turns out to be a big lie, and in fact the said regulator has issued a warning against this broker. Moreover, its claim to be licensed by Italy’s regulator, CONSOB, also appeared to be another lie. Aside from these red flags, it offers high leverages and spreads that are banned by several jurisdictions. This implies that it’s operating under conditions that are illegal.

With these reasons, we can conclude that this broker is not reliable at all. Our best advice is not to trust your funds with this broker or it will result in the total loss of your investments.

For a safer way to invest your funds and gain from trading, choose brokers that are licensed by either the FCA or CySEC as these two regulators have the best standards in screening off legit ones from fraudulent ones.

Luxe Capitals

2.5

User Experience

3.2/10

Payment Options

2.2/10

Security

2.5/10

Support

2.3/10

Reputation

2.4/10

Pros

• None

Cons

• Unregulated and unlicensed broker
• Unavailable demo account
• Unconfirmed deposit and withdrawal methods and fees
• High capital requirements for its trading accounts
• High leverage and spreads