Lot-Forex.com: Is it Legit or Scam? The Truth Exposed (2023)
Lot-Forex.com is a very shady and unprofessional broker. Their website is sufficient to drive away their customers. It seems as if this broker has learned everything a forex scam does and has implemented them all at once.
The website of this broker is ridden with bugs and technical errors. Creating an account and trying out their services was a nightmare. There are no trading conditions available with this broker too!
Lot-Forex.com is a scam and you don’t even need to read the entire review to know this. However, if you are interested in understanding why this broker is a scam, read this Lot-Forex.com review and find out.
Lot-Forex.com License and Regulation
Lot-Forex.com claims to be based in Cyprus, which is home to one of the best forex regulators in the world. Seeing how terrible their website was, I was certain that they didn’t hold a license from CySEC. However, this broker shows a fake certification from CySEC to deceive traders on its website!
Nonetheless, I checked the CySEC register and I was proven right. Lot-Forex.com is an unregulated broker with no license. They are lying to people by showing a fake certificate on their website.
How can you spot a broker who is trying to deceive you?
A broker’s credentials, registration, and job history can be reviewed using BrokerCheck, a free online tool provided by FINRA. Disputes with clients, disciplinary actions, and specific financial and criminal matters on the broker’s record are all covered in the disclosure portion of BrokerCheck.
I suspect CySEC will issue a warning against this broker as soon they notice this shady operation.
The first thing you should always look for is the broker’s address. The address of a broker would determine which jurisdiction it would fall into. In case the broker belongs to an offshore area such as Marshall Islands or St. Vincent and the Grenadines, you should stay away from them.
Apart from the location, you should always check whether a broker is licensed or not. Unregulated and unlicensed brokers are very dangerous as they can steal your funds (through hidden charges) and even your private data!
Regulatory authorities such as CySEC (Cyprus Securities and Exchange Commission) or FCA (Financial Conduct Authority) have many rules and regulations. These regulations make sure the broker doesn’t harm the interests of their users, and doesn’t deceive them.
Moreover, regulatory authorities have insurance policies in case one of their licensed brokers breaks a regulation or steals their users’ funds. With unlicensed brokers, you don’t get any of these benefits.
Lot-Forex.com Trading Conditions
Even though the license of a broker can tell you a lot about its reliability, the second-most important factor is its trading conditions. What trading platform does it offer? What’s the minimum deposit limit? We’ll discuss these factors in detail to determine whether Lot-Forex.com is a reliable broker or not:
Lot-forex.com claims to offer the popular MetaTrader 4 and MetaTrader 4 platforms to its clients. However, when I checked those platforms, I realised that they don’t offer real trading accounts on these platforms. You can only use a demo account on those platforms.
So, Lot-Forex.com is falsely claiming to offer MT4 and MT5 to its clients.
The most popular trading platforms in the industry are Metatrader 4 and Metatrader 5. They pack a lot of features and benefits while providing excellent customer support. That’s why around 80% of the industry uses these platforms.
This broker is trying to use the popularity and reputation of MT platforms to seem reliable. It doesn’t have a trading platform to offer, which is a sign that Lot-Forex.com is definitely a scam.
First of all, you can’t trust any claims a shady broker makes. Moreover, as all the claims this broker made have been proven false, there’s no reason to trust their further claims.
However, I will mention the trading conditions this broker claims to offer as they are ridden with red flags.
The minimum deposit requirement of Lot-Forex.com is $1000. Most regulated brokers keep their minimum deposit requirements around $100 or $50. That’s because they want to give their new users a chance to experience their services without making a big financial commitment.
A high minimum deposit usually indicates that the broker is a scam.
On the other hand, shady brokers don’t want you to test out their services, usually because they are terrible. They force you to invest a heavy amount at the start so they can steal at least that amount from you. You should stay away from brokers that have high minimum deposits.
Leverage and Spreads
This broker offers 1:1000 maximum leverage to its clients which is just astounding. Such high leverage is too dangerous for even an experienced trader.
If a broker offers very high leverage, you should be wary of them. Many financial regulators in different regions have imposed restrictions on how much leverage brokers can offer to their clients.
For example, in the US, a broker can offer a maximum leverage ratio of 1:50.
They have these restrictions because a high leverage ratio can cause you huge losses very quickly. Such leverage ratios are dangerous for new traders particularly.
Lot-Forex.com doesn’t have a real trading platform so there is no information available on what spreads it offers.
Lot-Forex.com Payment Methods and Charges
Lot-Forex.com doesn’t give any information on the payment options it accepts. However, it has specified that all the withdrawal requests it receives after 10:00 am get processed the next day. And all the withdrawal requests you make before 10:00 am get processed within the same day.
As this broker has kept its transaction methods hidden, I can’t comment on them.
Like most forex scams, Lot-Forex.com has kept its fee-related information hidden from its clients. Even though I went through their terms and conditions, I didn’t find any information regarding the fees they charge.
Usually when a broker keeps such information hidden, the broker turns out to be a scam. Reliable brokers don’t keep their fee-related information hidden because they don’t need to. Only scams resort to such shady tactics of deception.
Although I didn’t find any promotional offers on their website, I can’t say for sure that they don’t offer bonuses.
You shouldn’t trust a broker simply because it offers bonuses. Bonuses can be quite dangerous as they allow the broker to impose certain restrictions on withdrawal without the user knowing about them. Forex scams use bonuses to lure people into signing up on their platforms too.
This is why the UK’s financial regulator, FCA, prevents its brokers to offer bonuses to their clients.
Is Lot-Forex.com a Scam? Yes!
The forex industry has expanded exponentially in the last few years. Because of that, many kinds of scams have entered this sector as well. Usually, a scammer would target novice traders through bonus offers and bogus claims so they would sign up on their platform. Such brokers usually have unfair terms and conditions but people rarely read them before accepting the same.
When a person finally signs up and makes a deposit on their account, the broker can do whatever they desire. They can steal the user’s funds through hidden fees or even steal their private data.
Usually these brokers operate from offshore areas such as St. Vincent. These regions don’t have financial regulators like the US or the EU so they have become havens for shady forex brokers.
Lot-Forex.com Review: Conclusion
Lot-Forex.com is definitely a scam. The website of this broker is horrible and ridden with technical issues. On the other hand, the broker lies about its license by showing a fake CySEC certificate. There’s no reason to trust this broker. Stay away from it!
I hope my Lot-Forex.com review helped you make an informed decision regarding this broker. There are many scams in the forex industry similar to this one. It’s best to stay alert and do some research before signing up with a new broker.
Lot-Forex.com is a scam posing as a forex broker. They don't even have a valid trading platform to offer and they lie about everything. You can't trust them with your money.
- Lie about having a CySEC license
- Lie about providing MT4 and MT5
- Hide fee-related info
- Terrible website