A Fraudulent Broker with No Character
Lima Forex claims to be a Peru-based unregulated Forex broker. The address of the company is believed to be Avenida Jose Larco 453, Miraflores Lima 18, Peru. While writing this Lima Forex review, I searched the details of the company, the same address is said to be occupied by a restaurant, which to my surprise, is still functional. What a mockery that a Forex company is operating from a restaurant? This is a sheer case of forgery by providing a pretended registered address to the traders.
The company has mentioned in its terms and conditions about the non-requirement of license for rendering services.
The financial supervisory authority Superintendencia De Banca of the Republica del Peru is the governing body for financial institutions. Lima Forex is not regulated by this regional governing body. The very address of the company is not genuine and less can be drawn, if the company is operating from Peru or not. This is the first evidence of the fraudulent activities of the company.
Blacklisted by the CNMV
Blacklisting is no wonder for scam firms like Lima Forex. The warning against the company by the reputed Comision Nacional Del Mercado De Valores is an indication of the fraud going on in the company.
The National Securities Markets Commission (CNMV) has issued a red flag against the company for its illegal services to Spanish traders. The company is not authorized to provide any services to the traders from Spain and has been caught extracting the traders from the region. If a trader is stuck in the company, there is no compensation from the CNMV’s side to the trader. Also, the funds invested are at high risk due to the unavailability of the segregated accounts.
Lima Forex has mentioned that the applicable laws to the company are the Peruvian laws.
On one side, the company is not registered with any of the regulatory bodies and then how can the Peruvian laws help in the rescue of the trader? This is a serious case of counterfeiting. There are no reliable sources for a trader to rely upon. The owners of the company have hidden their identity, there are no channels to reach the company, and the address of the company is not registered. All these add up to the chaos of a trader dealing with an offshore unregulated company.
There is no demo account provided by the company. This is no shock as any offshore unregulated broker does not take the risk to provide the demo account to any of its traders. A demo account will give a clear picture of the company’s misrepresentation of the working standard of its operations and its commitments. It is harmful to an unregulated company as the trader will understand the catch behind the lucrative deals and will not invest with the company.
There is no choice in trading accounts. On the contrary, the competitors of the company are providing 4-5 choices in the trading accounts so that they can serve at each level out of the hub of the prospective traders. An amateur trader must be given the basic account with the lowest minimum first deposit amount so that he can try his hand at trading with minimal risk of losing. The professional traders must be provided with competitive trading conditions along with average trade sizes and minimum initial deposit amounts so that they can use their expertise in trading. Similar services can be extended to the VIP or Premium customers according to their investment needs and the trading business.
The trading account of the company has a whopping minimum initial investment of $25,000. It is 500x higher than the industry’s average. In addition to this, the trading conditions are not specified by the company.
This is a gigantic amount and must not be considered as the minimum deposit amount. This can be considered as the scam funding done by the company.
The company provides a PAMM account. The Percentage Allocation Management Module is provided at the mercy of the account manager of the company.
The minimum number of accounts allowed in the PAMM must be according to the conveyance of the trader, but the Lima Forex has kept this jurisdiction under the account manager. There is a question over the trading experience and the skills of the account manager provided by the company.
An exchange-traded fund (ETF) account of the company needs an enormous amount of $30,000 as a minimum initial deposit.
There is no mention of the services extended to the ETF account holders. Leave about the services but the money as the minimum initial deposit is very high and the risk must not be taken to trade with the company.
Depositing and Withdrawal
No conditions and charges are mentioned under the fund’s transfer. The company has riddled the basic channels for the fund’s transfer. The absence of the payments through a popular e-wallet like Skrill is no astonishment as it does not deal with unregulated offshore brokers. Skrill has adopted an anti-scam policy after which it has stopped providing its services to fraud companies to save the traders’ money.
Unknown Trading platform
There is no mention of the type of trading platform provided by the company. Whether the company is supporting MetaTrader or it has its customized platform, there is no information about the same. The lack of details of the trading platform hints at the lack of operations of the company. The company must have stopped working or is just into a website with no trading at all. The website aims to attract traders to invest the money, and once it is done, the company becomes as far as a moon. The traders gripe over the company’s services while losing a large amount of their hard-earned money.
Website and Social media Presence
The website of the company is https://limaforex.com.
The domain of the company is registered with Blue Razor Domains Incorporation, an Arizona province address.
Another concern is the non-availability of the services to the traders from the US.
The domain of the website is registered with the address of the USA, but it is not allowed to extract traders from the USA. This clears the doubt of the double entity. Any financial institution has to be regulated by the USA supervisory bodies to provide the Forex and CFDs trading services there. The company thus does not have any legit permission of its operation around the globe, through any of the financial regulatory associations.
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There are no accounts of the Lima Forex over Facebook and Twitter. The company has failed once again in catching the online presence potential of the brokerage to reach its customers and prospective clients. This is a whisper of the negative responses scattered over social media.
Disremembered Customer Support
The company claims to be observing the high level of standards in maintaining a healthy client relationship but draws a blank by not mentioning any of the channels of contact to the company.
There is no option for live chat, no Skype number, no phone numbers. How will a trader contact the company, in case there is an urgent need for technical support from the company side?
Even if a trader is stuck in an error on an ongoing deal, there is no chance that it can get resolved due to the weak customer support of the company. Lack of interest in solving the problems of the traders clearly indicates the level of unprofessionalism and the money-mindedness of the company.
It has managed to hide the information to fool the traders. There is no strong base of the origin and owners of the company. The trading platform and trading accounts are insufficient. I don’t recommend doing business with them.
Lima Forex doesn't have permission to operate internationally but they still do! They have no regulation from any government entity. It's an obvious scam and should be treated as such. Stay away from Lima Forex!
- Fake regional address
- Unregulated offshore broker
- Blacklisted by the CNMV
- No Demo account
- Exorbitant minimum deposit
- Unknown trading platform