Stocklux – Are They a Scam?

Website URL: https://stocklux.co

Founded: 2020

Regulations: Unregulated

Languages: English

Deposit Methods: Visa, MasterCard, Bank Transfer

Minimum Deposit: $250

Free Demo Account: No

Number of Assets: N/A

Types of Assets: Spot Metals, Forex, Shares, Spot Indices, Futures, Commodities, Cryptos

Trading Accounts and Conditions

Stocklux offers the following trading accounts to its customers:

• Micro Account: The deposit range is from $250 to $4,999. Maximum leverage is 1:100 and spreads on majors are fixed.
• Standard Account: The deposit range is from $5,000 to $24,999. The maximum leverage is 1:200 and the spreads on majors are fixed.
• Platinum Account: The deposit range is from $25,000 to $49,999. The maximum leverage is 1:350 and the spread on majors can be fixed and variable.
• Premium Account: The deposit range is from $50,000 to $99,999. The maximum leverage is 1:500 and the spreads are fixed and variable.
• VIP Account: The deposit range is from $250,000 to 499,999. The maximum leverage is 1:750 and the spreads are fixed and variable.
• Business Account: The minimum deposit is $500,000 and the leverage is 1:1000. The spreads offered are both fixed and variable.

While the broker has not given details about the spread on its website, we were able to access its trading platform, where we found out that the spreads for the EURUSD stand at 3 pips.

Stocklux – Advantages

Despite going through the broker’s website in detail, we did not find any advantages on trading with Stocklux.

Stocklux – Disadvantages

Here are all the reasons why we believe that this broker is not to be trusted and that traders should not deal with it in any way:

• Unregistered Broker

Stocklux states on its website that it is the trade name of a company registered in the British Virgin Islands (BVI) – Konstos Markets Ltd. Forex brokers in this jurisdiction fall under the purview of BVI’s Financial Services Commission.

So, we checked the online register of the FSC but we did not find any entity – either by the name of Konstos Markets Ltd or Stucklux – listed there. This means that this broker is not regulated and is offering its services illegally.

We also need to mention that even if this broker were registered with this FSC in the British Virgin Islands, you would still not get the safety of funds that are offered by other, more stringent financial regulators such as the FCA (Financial Conduct Authority) of the UK or even the CySEC (Cyprus Securities and Exchange Commission).

Another problem is that this broker claims to have offices in the UK and Switzerland. Therefore, to be able to operate in either the UK or Switzerland, the broker needs to be regulated by either the FCA in the UK or by any EU member-country’s financial regulator. Stocklux is not regulated at all.

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• Broken Links

Stocklux’s website has broken links. Two which raise serious red flags are both related to the registration process. If you try to register for an account using the signup link, you will not be able to, because that link is broken. Even the links on each of the account type descriptions are broken.

The only way that you can signup for an account is by accessing the broker’s trading platform first.

• Clients Asked to Install AnyDesk / Team Viewer

Another thing that worries us about Stocklux is that it asks clients to download the AnyDesk or the Team Viewer applications. These are apps that allow remote control of desktops.

So, if you download these apps and then details of the installation with Stocklux, you are giving them access to your personal computer. This means that this broker will have access to sensitive information – your bank account details, PIN numbers, passwords, credit card details and so on.

Would you really want to trust a broker that is operating illegally with such information?

• High Spreads

As we mentioned earlier, Stocklux has not mentioned the details about the spreads on its website. But we were able to access its web-trader platform and get that information.

The spread for the EURUSD pair starts at 3 pips, which is much higher than the industry average. Most legitimate brokers offer spreads that range from 0.5 pips to about 1.5 pips.

• High Leverage

Stocklux offers leverages that are as high as 1:1000. High leverages are banned by authorities in the UK and the EU because of the high risks associated with them. The maximum leverage that EU and UK brokers can offer their clients is 1:30.

So, the fact that this broker offers such high leverages not only puts its clients at risk, but it is also illegal.

• Unfair Bonus Withdrawal Conditions

Stocklux offers its clients bonuses. This itself is a red flag since bonuses such as those offered by this broker are banned in the UK and the EU.

However, let’s move forward. The biggest issue we have is that this broker imposes very unfair withdrawal conditions if a client has availed of their bonus.

If you have accepted the bonus offered by Stocklux, then you will not be allowed to withdraw your funds unless you have executed a minimum trade volume of 30x the amount you have deposited in your account plus the bonus amount. If you do not meet this target, your withdrawal request will be cancelled.

Conclusion 

There are too many things wrong with Stocklux for us to recommend this broker to any trader. It is operating illegally without the requisite licenses. It is difficult to register an account with the broker because the links to its registration page are broken. You are asked to install remote access software. The spreads and leverages are too high, and the bonus withdrawal conditions are plain unfair.

With all this evidence, we can say that this broker shows all the signs of being a scam.

Stocklux

2.6

User Experience

3.2/10

Payment Options

2.4/10

Security

2.3/10

Support

2.4/10

Reputation

2.5/10

Pros

• None

Cons

• Unregistered Broker
• Broken Links
• Clients Asked to Install AnyDesk / Team Viewer
• High Spreads
• High Leverage