The internet is bursting with many online forex brokers who offer several trading services. Most times, making a choice becomes difficult especially as some brokerages are not very popular. Many traders settle for unregulated brokers because they accept clients from all over the world, offer some restricted services and allow all trading styles.
In this article, we will review and compare the brokerage services offered by LQDFX and LMFX which are both offshore forex and CFD brokers that operate over the internet. Generally, their services are similar but we will explore the differences so that a trader will be able to make a choice based on the services he finds most appealing.
LQDFX vs. LMFX: Head-to-Head Comparison
More about LQDFX
LQDFX is a forex and CFD broker that was established on the virtues of honesty, devotion, and quality. The brokerage proudly states that it has no dealing desk as it processes all orders via the “LQDX aggregator”, which ensures execution at the best prices. Clients’ funds are held in segregated accounts and negative balance protection is active on all accounts.
Traders can speculate on over 140 forex pairs, indices, commodities, cryptos, and stocks CFDs on the popular MT4 trading platform. LQDFX offers a 100% deposit bonus to clients who meet the requirements. Newbies can take advantage of its training resources as well as risk-free demo accounts.
Key Features
- Multilingual customer support via phone, web chat, and email.
- ECN broker with spreads from 0.0 pips and full STP execution.
- Zero-balance protection and segregated funds.
- Training resources in the form of video lessons, eBooks, etc.
- 100% deposit bonus is available.
Cons
- No regulation from any regulatory authority.
- No social trading or managed accounts.
More about LMFX
LMFX is an online broker that provides platforms for its clients to speculate on the price direction of about 100 forex and CFD instruments. The broker promises tight spreads, premium execution without requotes, and a quality client support desk that is available 24/5.
Anyone can easily create an account by filling out the online forms, verifying the account, uploading KYC documents, and funding the account using the most convenient options. Then, the platform is downloaded and trading can start. If you are new, you can go through the knowledge articles, open a demo account and start learning by trading with virtual funds.
More Comparison : KOT4X Vs LMFX : Pros, Cons, and More!
Key Features
- The maximum leverage is as high as 1:1000.
- Free VPS for high-volume traders.
- Deposit bonus and other bonuses.
- Multiple payment options including crypto and e-wallets.
- Traders are supported with trading tools like calculators, economic calendar, etc.
Cons
- Not regulated by any authority.
- There is no in-house team of analysts that supplies traders with quality analysis, trading ideas or signals.
Learn More : EagleFX Vs LMFX : Features, Pros , Cons , and More!
LQDFX vs. LMFX: What are the key differences?
Below are some of the striking differences between the two brokers under review:
- LQDFX has a robust education section with more than 25 video lessons, about 10 MT4 training videos, and an eBook while LMFX only has 5 training articles.
- LMFX affords its traders opportunities to partake in demo contests and bonuses while LQDFX has no contests but offers a 100% bonus.
- LQDFX offers a micro account which is perfect for beginners immediately they are done with demo trading while LMFX has none.
- Investors and money managers can take part in PAMM accounts available with LQDFX. There are no PAMM accounts with LMFX.
- LMFX has fixed spread accounts which are ideal for some trading styles like scalping but LQDFX offers only variable spreads.
- The minimum account opening balance is smaller for LQDFX; $20 while LMFX requires at least $50.
- LMFX accepts direct payments via bank transfers and e-wallets such as Skrill, FasaPay, and Neteller but LQDFX does not.
- Maximum leverage is higher with LMFX than with LQDFX. LMFX is 1:1000 while LQDFX is 1:500.
More Comparison : ProsperityFX Vs LMFX : Fees, Features, and More !
Company Information
LQD LLC is the owner and operator of the brokerage ‘LQDFX’. It is registered in St. Vincent and the Grenadines. LMFX is the trading name of ‘Global Trade Partners Ltd’; an investment firm registered in North Macedonia.
Just like most unregulated brokers, both LQDFX and LMFX did not disclose their company profiles or management team. But LQDFX has phone numbers on its contact-us page showing that its ‘Account support’ operates from the UK while the General enquiries support team is in Cyprus. For LMFX, their customer support team shows that they are in the UK.
Account types and features
LQDFX has different account types targeted at different traders. Here are the account types:
Micro accounts are for new traders who are new to live trading and so, cannot risk much. $20 is the minimum amount needed to open this account. The typical spreads start from 1.0 pip with no commissions. The maximum leverage is 1:500 and only a max of 5 lots can be opened in one trade.
The gold account requires a minimum deposit of $500 and comes with a max leverage of 1:300. Spreads start from 0.7 pips with no commissions; you can trade a maximum of 40 lots. The ECN account is similar to the Gold account except that the spread is from 0.1 pips with a commission of $3.5 per lot.
VIP accounts are for professionals who place trade high-volume orders. You need at least $25,000 to open this account. Typical spreads start from 0.1 pips while commissions of $2.5 are charged per lot. The maximum leverage is 1:100.
Islamic accounts are very similar to Gold accounts except that the minimum opening deposit is $20. Also, it is primarily designed for Muslim traders who are prohibited from paying or receiving swap fees by their religion.
But, LMFX has only 3 account types which are Premium, Fixed, and Zero accounts. You need only $50 to open a premium account; it comes with a max leverage of 1:400 and the spread is from 1.0 pip.
Fixed accounts have fixed spreads starting from 1.8 pips, max leverage is 1:400, and requires $250 as the opening balance. Zero accounts come with spreads starting from 0.0 pips, and commissions of $8 per lot while the opening balance is $100.
Both brokers support trading with demo accounts which come with virtual currency capped at $100,000.
Spreads and commissions
For LQDFX, spreads range from 0.1 pips for VIP accounts up to 1.0 pip for micro-accounts. Commissions of $2.5 are charged from VIP accounts while $3.5 are charged from ECN accounts.
For LMFX, fixed spread account has the highest spreads starting at 1.8 pips while zero account holders pay a commission of about $8 for each traded lot.
Trading Services Offered
LQDFX offers forex and CFD trading as well as PAMM accounts. LMFX also offers the trading of forex and CFDs. In addition, LMFX organizes trading contests in which the participating clients can win funded accounts.
Platforms and Features
Traders who have signed up for accounts with any of the two brokers can only trade with the MT4 trading platform. There is no doubt that MT4 is currently the most popular third-party trading platform used by most brokers and traders across the globe. From the platform, you can analyze charts, automate your strategies using Expert Advisors (EAs), and participate in social trading.
The MT4 trading platform was launched in 2005 by MetaQuotes Software Corporation. It is a free platform that comes loaded with robust features that have appealed to traders over the years. Though it comes with powerful trading and analysis tools, you can also expand its features with plug-in apps developed with the MQL4 coding language.
Market and Instruments
LQDFX offers about 71 currency pairs, 6 commodities, 11 indices, 13 crypto pairs, and 37 stocks CFDs. Similarly, LMFX offers 48 currency pairs, 9 indices, 5 commodities, 7 metals and oils, and 37 stocks CFDs drawn from American and UK exchanges.
Deposit and withdrawal
There are many methods of funding accounts. Here are the available methods:
LMFX accounts can be funded directly via Bitcoin while LQDFX accepts deposits in BTC, LTC, USDT, and XRP. It has also partnered with Confirmo to assist clients who do not have cryptos. Similarly, LMFX has partnered with Instacoins to enable clients to purchase BTC with cards, Skrill, and bank transfers. Crypto transactions are processed in less than one hour.
Both brokers are merchants with PayRedeem; a website that issues eCards used for anonymous payments on merchant websites. The minimum eCard deposit is $10 while the minimum withdrawal is about $100 via payout eCards issued by the broker once the withdrawal request is approved. The eCards can be redeemed via bank transfers initiated on PayRedeem’s website. It may take 3-5 days before the withdrawal is received by the trader.
Both brokers accept credit or debit cards issued by Visa or Mastercard for both deposits and withdrawals. The minimum transaction amount is $20 for LQDFX and $50 for LMFX. There are no deposit commissions but LQDFX charges a withdrawal fee of $10. Card deposits are instantly processed but withdrawals take 2-15 days.
LMFX clients can use direct bank transfer, but the minimum amount is $250 and it takes 2-15 working days before the transfer is complete. LQDFX clients can only use bank transfers to buy PayRedeem eCards or to pay for the purchase of Bitcoin via Instacoins.
Online payments like Skrill, FasaPay, and Neteller are also accepted by LMFX for both deposits and withdrawals. The least deposit amount is $50 while the minimum withdrawal is $10. Online payments are processed instantly or at most within 30 minutes.
Learn More: Hankotrade Vs LMFX: Fees, Features, and More!
Frequently Asked Questions
Is LQDFX better than LMFX?
No, it is not outrightly better than LMFX because, on the aggregate, they offer the same services and operate the same platforms. But LQDFX is more beginner-friendly while LMFX offers better benefits for expert traders.
How do you withdraw funds from LQDFX?
You can withdraw to your Visa/MasterCard debit card, PayRedeem payout card, or via Cryptocurrencies. For debit cards, $20 is the minimum amount and a $10 withdrawal fee is charged. Cryptos and PayRedeem attract no withdrawal charges and it takes 1-2 days to approve withdrawals.
Is LMFX a legit broker?
Given that it has been running smooth operations for the last 7 years, it can be inferred that LMFX is a legit broker. On the other hand, its unregulated status is a big drawback when it comes to broker ratings because it means that the broker is not compelled to comply with any standards. So, if any trader is offended, no higher authority can hold the broker accountable.
Final Impression
LQDFX and LMFX are modern STP brokers that enable forex and CFD traders to speculate on the prices of the underlying assets via the MT4 platform. Both brokers are not regulated and offer speedy executions courtesy of a liquidity pool made up of top global financial institutions.
A newbie may find LQDFX more attractive because it has several video lessons and an eBook to help with training. After practising on a demo account, the micro account is a good way to start live trading with low trading capital of as little as $20.
