LQDFX Review

Review

About LQDFX

LQDFX is a relatively new Forex broker that was established in 2015.  They trade 47 currency pairs and a number of CFDs on indices & commodities.  They require a small initial deposit of only $20 to start trading, which is much lower than most other Forex brokers require.

The parent company for LQDFX is called LQD limited which is located in the Marshall Islands, and, at the time of this LQDFX review, the company is not regulated, which should be noted by every trader and potential trader before depositing with LQDFX.  That being said, they do keep investors funds separate from company funds so in the event of the brokerage closing, creditors cannot take the customer’s funds to pay the company’s debts.  The firm recently registered with the Financial Commission (FinaCom), a Hong Kong-based external dispute resolution (EDR) organization. LQDFX has an active member status B category, which means its clients are entitled to a compensation of up to $5,000 per person in case the brokerage hits financial troubles.  So, even though this is an offshore firm, with little or no regulation, they seem to be one of the safer ones, and one that is willing to take precautions on behalf of their investors.

Account Types

This firm offers a choice of 5 different account types.  Three of these account types are commission-free.  LQDFX also offers VIP and ECN accounts that are commission based but with higher leverages and tighter variable spreads. They offer micro lots on all accounts with the exception of the VIP account.  LQDFX also offers a swap free account suitable for Islamic traders.

Spreads & Commissions

The spreads and commissions from LQDFX vary greatly based on account type.  Since they are a Straight-Through-Processing (STP) broker, there is no delay or profit for the brokerage built in to the trades, so the way they make their money is to increase the spreads.  The account types without commission, obviously have higher spreads than the VIP or ECN accounts which have a $7 commission on all trades but the spread is an average of 0.2 Pips as compared to the other account types with an average spread of more like 1.4 Pips.

Leverage

The maximum leverage offered by LQDFX is 1:500 which isn’t uncommon for brokerages like theirs but is a bit risky for traders and should be approached carefully. This can be seen as an advantage by some and a disadvantage by others.  While higher leverage offers the possibility for greater profits with less initial deposits, it can also cause traders to lose their investment capital quickly if trades go the wrong way.

Trading Platform

MetaTrader4, one of the most popular trading platforms is the platform of choice for LQDFX.  They offer their traders the ability to use this platform and all of its Expert Advisors, charts and technical indicators.  Of course this platform is available on desktop, mobile and web.

This broker also offers a second platform.  The xStation platform is based on open-API XOH Trader (developed by X Open Hub). It is available as a desktop, web and mobile versions with LQDFX.  Giving traders the ability to trade straight from the charts, this is an easy to use multifunctional platform that comes with many technical analysis tools and advanced charts.

LQDFX Website

This firm has a clear, easy to navigate website that will provide you with the information you need to start trading with them. The website is translated into 5 different languages.  They accept payments in many different forms, and will even cover your $50 wire transfer fee if you deposit more than $250 at a time.

Customer Service

According to their website, customer service is available 24 hours a day, five days a week.  LQDFX also offers customer support via web form, live chat, phone, skype and email.  That’s a pretty comprehensive list so you should be able to get help with their systems however and whenever you need it.  They also offer courses, help with chart analysis, an economic calendar and calculators to make sure that the traders have everything they need.  Demo accounts are available so that newer traders can become comfortable with both the platform and the brokerage before taking risks with actual funds. 

LQDFX is a pretty new brokerage with many advantages.  The variety that they offer in both their account types and platforms is very attractive to many traders. They have high leverages, and require low minimum deposits.  This broker uses a STP model which is a benefit to traders as well.  This might seem like an easy choice but beware that the broker isn’t currently regulated. 

 

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