While legitimate brokers boost your chances of success, opening an account with a shabby broker can make your trading journey no less than a nightmare. There have been many incidents where people have lost thousands of dollars to scam entities. This piece highlights how scam brokers like LQDFX trap clients and how you can avoid becoming their prey.
LQDFX - A Quick Overview
LQDFX (www.lqdfx.com) is an offshore broker based in Saint Vincent and the Grenadines. The broker claims it has been in the business for over five years. While it doesn't offer a custom-built proprietary trading platform, clients may use the industry standard MT4 platform to explore tradeable opportunities at LQDFX, according to the website. The broker supports multiple financial markets, including forex, commodities, stocks, indices, and cryptocurrencies. Depending on clients' deposits, the company also offers a bonus of up to $20,000. Other features and services include flexible account types, various payment methods, and a handful of educational resources.
Is LQDFX Regulated?
LQDFX was a registered firm in the Marshall Islands (IRI). However, during our investigation, we found that the broker's registration with IRI has been annulled. However, the company still holds registration with Saint Vincent and Grenadines Financial Service Authority (SVGFSA). It is worth mentioning that neither IRI nor SVGFSA has the authority to oversee forex intermediaries or issue licenses. All in all, LQDFX is not regulated.
People hold an adverse opinion about LQDFX. Investors blame the company doesn't release their funds. BrokersView has received many complaints concerning the same issue.
Some clients have also denounced the company for poor customer support. According to clients, the broker remains good with you as long as you haven't initiated a withdrawal request. Let us share some screenshots showing what customers think about LQDFX.
How LQDFX Scam Clients?
Following up with customers via phone calls, emails, and WhatsApp and pushing them for deposits tempt them with fictitious promises of high returns - this is the prime methodology of the broker.
But it's not the worst. The client is then referred to a retention agent, who will try to suck blood from the bones. When you decide you've had enough of a broker, it's like you've never dealt with them before. The company hardly answers your calls or responds to your emails. In short, you will not be able to use your funds again.
What if I have already deposited funds at LQDFX?
It might be too late to do yourself a favor. Still, you can at least try it out. According to clients, the broker sometimes frees up your funds to make you trust it and incentivize you to add more money. You might be able to use this to recover some of your losses.
How to avoid falling prey to scam brokers like LQDFX?
Scam brokers lack regulation. Also, they repeatedly ask you to deposit funds and lure you into fake profitable trades, but often receive poor customer feedback. Remember, checking your broker's reputation and regulatory status is by far the most effective way to help you protect yourself from fraudulent entities.
In addition to checking your broker's reputation on third-party independent audit sites like BrokersView, don't forget to check with the relevant regulators about the regulatory status of your potential broker. Of course, you can also ask BrokersView to find out the regulatory status of a broker.