Investment in forex markets always carries some risk exposure. However, negligence should never serve as the source of losses. One of the most crucial things for a successful trading endeavor is carefully selecting your prospective broker to protect your money from con artists. BrokersView deemed it necessary to educate clients on how scam brokers like LS Markets defraud investors and loot their money. Today's highlight is a fraudulent broker LS Markets, so let's start unleashing it.
LS Markets - A Quick Overview
LS Markets (https://www.lshqtz.com/) is a Chinese forex and CFD broker registered in the British Virgin Islands. The company facilitates online trading across multiple financial markets, such as forex, stock, energies, and metals. The broker takes pride in its astute awareness of the need, depth of knowledge, robust network infrastructure, and faultless enterprise management approach. In addition to posting limited information on available account types, the company hasn't shared the list of tradable financial instruments. The broker offers custom-built trading software and a third-party trading platform - MT5, to enable clients to access the markets. Since no information is available on supported payment methods, you must open an account with the company to view the available options. The company provides customer services around the clock via telephone, email and live chat.
Is LS Markets Regulated?
No! LS Markets is not a regulated broker. The company claims to be an operating brand of Lend Lease Global Investment (LS MARKETS PTY LTD), holding regulations from the Australian Securities and Investment Commission (ASIC) and being authorized by National Futures Association (NFA).
However, that's not true. Though we found the matching result for the broker on the ASIC website, it appeared as deregistered. Even if the broker was registered with ASIC earlier, its licensing status has now been revoked.
According to NFA, the broker is not an NFA member, not under valid regulation of the regulator.
Why LS Markets Is A Scam Broker?
First of all, it pretends to be a regulated entity despite knowing its licensing status has been cancelled. The broker's intentions are clear. The company doesn't want to disclose the dismissal of its regulatory status to retain clients' confidence.
Secondly, it entices clients with deposit bonus offers of up to $25,000, which is a straight lie. Brokers who offer insane bonuses typically have cunning conditions in place to qualify for them.
Further, it is located in an offshore location. It is a common practice for fraud brokers to register offshore to avoid strict regulatory checks, though exceptions are always there.
How LS Markets Scam Clients?
The company ask clients for a deposit and offer them lucrative bonuses. When a customer adds fund to their accounts, they get to know that the bonus amount is only accessible after meeting certain trading criteria. According to some clients, the broker sets the qualifying criteria unrealistically. Moreover, if the broker is asked to process withdrawals, it first comes up with lame excuses, then either blocks your access to your account or keeps you waiting forever.
The forex market is almost overly populated with good and bad brokers. You need to be very careful when investing. Always verify your broker's regulatory status before committing your hard-earned money. You can also check a broker's credibility score on several independent reviewers' websites like BrokersView.