While most brokers usually offer several account types, Clients of LQDFX are offered a choice of 5 account types: 3 commission-free ones, as well as ECN and VIP one, offering tighter variable spreads and involving commission. Maximum leverage available varies by account types, reaching 1:500, and micro lots are offered on all accounts, except the VIP one.
In addition, this broker provides a swap-free account, intended for investors of Islamic belief.
The Company. Security of Funds
Company Country Regulation
LQD Limited Marshall Islands FinaCom
Established in late 2015, LQDFX is a pure STP brokerage offering trading in 47 currency pairs and a number of CFDs on indices & commodities.
Behind this brand is LQD Limited, a company registered in the Marshall Islands, providing financial services under the laws of the Marshall Islands Business Corporation Act.
Due to its location, this forex broker is not under any regulation. According to the information on its website, LQDFX keeps clients’ funds completely separate from the company funds, so in the unlikely event that the brokerage enters liquidation, clients’ assets cannot be used to pay back creditors. This may be true, however no authority oversees the activities of brokers registered on the Marshall Islands.
We generally advise traders to avoid brokers registered offshore, and to select among companes authorized and regulated by ASIC or CySEC, for instance, however LQDFX seems ok. Besides, in 2017 LQDFX joined the Financial Commission (FinaCom), a Hong Kong-based external dispute resolution (EDR) organization, the EDR said on Thursday. The broker 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 it gets in trouble.
Minimum Initial Deposit
In order to open an account with LQDFX, one has to deposit just $20, which is a comparatively low minimum initial deposit requirement. In comparison, FX Choice, which is also registered in the Marshall Islands, demands $100 for all account types as a start (including ECN).
Average spreads & Commissions
As a 100% Straight-Through-Processing (STP) broker, LQDFX offers variable spreads, which vary by account type. Typical spreads on the Micro account, for example, amount to 1.4 pips on EUR/USD, which is average. If you choose to open an ECN account with this broker, spreads are averaged 0.2 pips on EUR /USD and a commission of $7 per standard lot applies (round trip). This in fact means that average trading costs for the EUR/USD pair would amount to 0.9 – 1.0 pips, commission included, which is a fairly good pricing.
In comparison, FX Choice offers variable spreads averaged 1.2 pips on EUR/USD on its commission-free account, while the Pro account provides spreads from 0.5 pips on EUR/USD, and a commission of $3.86 per lot (per side). For further information, you may look up real-time spreads of 15 leading brokers here.
Note: When we tried out the LQDFX’s xStation platform, ECN spreads were a little bit higher than the ones advertised on the broker’s website – around 0.5 pips on EUR/ESD.
Maximum leverage levels offered by this brokers are high, reaching 1:500. Nonetheless, many forex brokers offer leverage equal to or exceeding 1:500.
Leverage allows traders to gain large exposure to diversified markets with a relatively small amount of invested capital, however the higher the leverage level, the greater the risk. That is why we advise investors to exercise caution when trading on margin with high leverage levels.
LQDFX offers its customers the popular MetaTrader 4 (desktop & mobile versions available), as well as xStation.
The MT4 is the most widely used forex trading platform, as the it features a number of technical indicators, extensive back-testing environment, advanced charting package and a wide range of Expert Advisors (EA), allowing clients to fully automate their trades.
The other platform used by this broker, xStation, is based on open-API XOH Trader (developed by X Open Hub). It is available as a desktop, web and mobile versions with LQDFX.
xStation is an intuitive multi-functional platform that also features one-click dealing and the ability to deal straight from the chart. The platform is equipped with a number of technical analysis tools and advanced charting package.
The broker offers 100% on-deposit bonus (up to $20 000) to all live account holders (except PAMM) who have deposited at least $250. The 100% bonus value is calculated as $5 per round turn lot traded. Only positions over 0.1 lots (10,000 units round turn) and open for at least three minutes qualify for the bonus.
Methods of Payment
LQDFX offers its clients wide range of payment options, including: bank wire, credit card, e-wallets Neteller, Skrill, China UnionPay, FasaPay, Sofort, iDEAL, as well as vouchers (virtual, prepaid payment methods) jeton, paykasaepaycode, cashixir, gscash.
There is a $50 fee charged by international banks for wire transfers, which is covered by brokerage if the deposit amount is above $250.
LQDFX is a relatively young offshore broker, whose offering seems really attractive: competitive cost of trading, low initial deposits required and high leverage levels available on two trading platforms. What is more, it accepts US clients. Nonetheless, we have one major concerns with this LQDFX: its light touch regulation.
LQDFX Review Conclusion
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