Beware! Luxe Capitals is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
The allure of Luxe Capitals is its website that is inviting and easy to use. Yet, for a forex broker, the information presented here is not nearly as coherent nor as detailed as we would have wanted it to be. Thus we started questioning everything from the getgo. Read the review to find out what we discover about this broker.
We tried to access the live account registration, but our access was denied.
As always, our theory rests on the possibility that Luxe Capitals picks its brokers before they even have a chance to register. This fraudulent approach is best explained at the end of the review.
For a demo account, the website redirected us to its contact page. This suggests that the user has to contact the broker with a request to open a demo account, a prospect that is ridiculous. Demo accounts are there to try out the platform and the trading conditions that the broker offers.
So, what this means is that all trading information ash to be taken from the website. The Accounts page claim that the average spread is 1 pip for an undisclosed asset. However, it is further revealed that the EUR/USD is 2.5 pips 0.7 when fixed, and 0.7 pips when not ficed. This is very confusing info, and is found in the Trading Requirements on the website.
The leverage is capped at 1:500. which is a common offshore brokerage value. According to the website, the following are the financial instruments: forex currency pairs, commodities, indices, cryptocurrencies.
The languages are English and Italian.
LUXE CAPITAL REGULATION AND SAFETY OF FUNDS
The footer of the website gives us two very strong statements.
The first one is that the broker is regulated by the FCA, which we found hard to believe. Yet, we still felt like we had to check with the regulator’s online database of all registered entities. And, as we expected, we found no results of a Luce Capitals. Furthermore, the reference number given is actually associated with a regulated broker going by the name of Wallwood Capitals. So, Luxe Capitals is not regulated by the FCA.
The second statement claims that CONSOB, the Italian FX regulator, is also a licensor of Luxe Capitals, which against we thought to be preposterous. And as we suspected CONSOB’s online database of regulated entities had no mention of a Luxe Capital, and so we can rule out any possibility of the broker being regulated in Italy.
Aside from these two very misleading pieces of information, there is nothing really concrete on a regulation. Thus we label Luxe Capitals an UNREGULATED broker, and a risk to all investments.
All user who are interested in trading Forex or CFD, are urged to do so only with the real regulators of the industry. Some of the most renowned and secure are the FCA and CySEC. These regulators act upon a set of rules that have been put into a legal framework with the local governments, and that is why users should trade only with brokers regulated by them; once a broker is granted a license from one of these watchdogs, they immediately adapt these legal frameworks as their own rules of conduct. What’s more is that the FCA and CySEC make it is obligatory for all brokers under their gaze to participate in financial compensation schemes; 85 000 pounds per person for FCA, and up to 20 000 euros CySEC.
Moreover, as far as we can tell, there seem to be no Terms and Conditions. There are some other legal docs, but the main one has been dismissed. The most important legal binds have been left out, and this is again a sign of an unregulated entity.
LUXE CAPITAL TRADING DEPOSIT/WITHDRAW METHODS AND FEES
All payment information will be taken from the website, due to our inability to register. With unregulated brokers, these details are not accurate most of the time.
The Accounts section of the website reveals that the minimum deposit is €500 for the lowes of the account tiers. However, the Fund section of the site claims this minimum to be €250. The confusion created leads us to believe that only registered users get to know the real requirement. The alleged depositing methods are credit cards, debit cards, and wire transfer.
All withdrawal requests will be processed in 24 hours, and it seems that the only method for doing so is wire transfer. The minimum withdrawal is €200. There is no mention of fees, however, seeing that Luxe Capitals is unlicensed and that there are no Terms and Conditions, we have to assume that there might be some anyway. If not for withdrawing, then for something else.
Our best advice to you all is to stay away from this broker. It is obviously a scam!
How does the scam work?
Scammers have been known to use the same type of scammer structure, with just different hues and approaches. With that said, the way the scam works is actually incredibly easy to grasp, and once you know how it works, you will always be able to detect it.
The first step to being scammed, if we can express ourselves so, is to be lured in by an ad online. These are found all over the internet, but especially on social media websites. Illicit FX firms advertise false promises and fake trading conditions. Internet users that are tempted by these will either be redirected to a so-called robo-scam website or straight to the unlicensed entity. These websites will require you to register with an email or a phone number, and once you provide these details, you will start getting contacted by reps of these scammer firms. These reps require a minimum deposit from users, and will probably achieve to convince you because they are charismatic and confident in what they do.
However, they are no match for the expert scammer, whose goal is to talk you into making more deposits, and in the end, will tell you that you cannot withdraw your funds for a number of reasons that will sound suspicious. In the end, what matters is that the client will not be able to withdraw his or her money back.
What to do if scammed?
The only thing to do in that case is to file for a chargeback with your credit card provider. VISA and MasterCard have extended their chargeback time span to 540 days, so good news for those that have deposited by either of these methods.
If you have deposited via bank transfer, be sure to block the account or change the password. Or you could contact your bank and see what they can do.
Never deposit funds using crypto methods into an unregulated broker. These methods are untraceable, and there is no way to get your money back.
Last but not least, do not trust the so called recovery agencies, who are nothing more than fraudsters in disguise. If you get scammed, you might get contacted by someone claiming t be a recovery agent who is willing to fight for your money back, in exchange for a small hiring fee. Once you pay them the fee, they will disappear.
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