Alyaziah Hayat | March 27, 2022
Table of Contents
LQDFX is a Forex and CFD broker founded in the Marshall Islands since 2015. It offers Forex, Metals, Commodities and Indices for trading online via the very popular MetaTrader 4 platforms for desktop, web and mobile. Though unregulated, the broker segregates client funds and follows strict security procedures. Clients are offered STP executions, PAMM accounts, daily market news and training. However, the lack of regulation is a big concern for our broker review team.
Broker Pros / Cons
- STP executions without a dealing desk
- PAMM accounts are available
- Trading is done on the versatile & popular MT4 platform
- Multilingual customer support team available 24/5
- Unregulated broker
- Limited trading instruments; no Stock CFDs, ETFs, Cryptos, etc
- No alternative trading platforms
LQDFX is a forex and CFD broker established with the goal of being a quality, honest and committed STP broker. It was established in 2015 and has its head office in the Marshall Islands while other customer support subsidiaries are all over the world. The broker offers over 100 assets for trading on the MT4 trading platform. It also offers multiple account types, multiple payment options and a dedicated client support team.
LQDFX prices and executions come from top-tier banks which serve as its liquidity providers. The broker uses its price aggregator to match clients order with the best prices for execution. This technology has brought about good trade execution speeds and minimal requotes. There is no conflict of interest between the broker and clients because the broker only profits from the spread charges and commissions. LQDFX asserts that it follows the Straight-through processing (STP) execution model and has no dealing desk.
LQDFX provides no regulatory information on its website. The broker is registered in Majuro, Marshall Islands with the registration number MH96960. Lack of broker regulation is a huge red flag for us, especially considering there are many other regulated and established trading brokers to choose from.
LQDFX asserts that all clients’ funds are kept in segregated bank accounts maintained with the tier-one EU banking institutions such as Barclays, HSBC and Deutsche banks. The funds should not be used by LQDFX for any reason. The broker states that even if it goes into liquidation, clients’ funds are completely segregated off the balance sheet and cannot be used to pay creditors.
The broker’s website and terminals are protected using a 256-bit Secured Socket Layer (SSL) encryption provided by COMODO; which is a reputable American cybersecurity company. This takes care of digital security of all clients’ transactions by encrypting all user data before transmitting to the servers.
LQDFX affirms that it continues to identify, assess and manage the various risks associated with its brokerage operations in order to improve its security, efficiency and overall quality.
LQDFX has an Anti-Money Laundering policy (AML) which can be downloaded from its website. The broker is committed to preventing money laundering through its services and has implemented some policies to combat this menace. Cashless policy and reporting suspicious transactions are some of the measures adopted to deter money launderers.
LQDFX has no list of exempted countries on its website; rather it states that its services are not directed to any jurisdiction where it would conflict with the local laws. This includes the United States.
MT4 Desktop Platform
MetaTrader 4 (MT4) is a professional forex and CFD trading platform that has attained the status of the ‘industry standard’. This is because of its widespread popularity among brokers and traders. It is fast, flexible, user friendly and fully customizable. It is loaded with tools for analysis, order management and executions. LQDFX clients can trade with the MT4 on windows desktop computers and mobile apps.
Some features of the MT4 platform include:
- Ultra fast order executions supported by LQDFX trading technologies.
- Supports the development and installation of Expert Advisors (EAs) which automates forex and CFD trading using programmed strategies.
- Multiple charting using 3 chart styles on 9 timeframes.
- Technical analysis using up to 30 technical indicators which can be extended to thousands with plugin apps developed with the MQL4 language.
- It includes up to 24 analytical tools.
- Supports one-click trading and multiple order management.
- Supports up to 4 pending orders and risk management tools including ‘stop loss’ and ‘take profit’.
- Price alert notifications can be sent via email, SMS and platform pop-ups.
MT4 Mobile App
The MT4 mobile app is available for Android and iOS devices. Each app can be downloaded from the respective app stores. The app is suitable for monitoring the markets, analysis and trading. Here are some of the features:
- It integrates seamlessly with the accounts created on the desktop MT4 version.
- It is user friendly and customizable.
- All the quotes of tradable assets can be viewed in real time.
- Traders can enter positions, modify or close open positions from the app.
- Multiple orders including market and pending orders are available on the app.
- Chart analysis is done using 3 chart styles on 9 timeframes.
- Up to 30 inbuilt technical indicators and 24 drawing objects can be used for technical analysis.
- Push notifications for price alerts.
This section of the website gives the daily market news. It is updated by LQDFX experts but sourced from Reuters, Investing.com, CNN money, etc. The forex essentials section comprise of articles that gives vital bits of information to the traders. It is unfortunately not regularly updated.
The trading calculators available are:
- Pivot calculator: This calculates the pivot points when given the high, low and closing price.
- Fibonacci calculator: It calculates the Bull and Bear prices at 38%, 50% and 62% when the trading high and low prices are inputted.
- Deal size calculator: It calculates the size of the deal and risk amount when the trader specifies his account value, risk percentage and pips to stop loss.
This is a calendar of important financial events and their forecasted impact on the financial markets. The LQDFX economic calendar lists the date, time, currency, event, impact forecast and previous forecasted percentage. Clicking on an event gives its full analysis and an option to place a trade from the economic calendar. This calendar is important in fundamental analysis.
Percentage Allocation Management Module (PAMM) Accounts
Traders who want to invest in other traders to trade with all or a portion of the funds in their account can invest into PAMM accounts. There are over 45 PAMM master accounts to choose from. When logged into the clients’ area, traders can access the PAMM statistics to view a list of PAMM accounts and their performances. This helps in making a choice of where to invest. Expert traders can choose to become PAMM masters. Each master sets the minimum deposit and performance fee; which is the payment for his services. It should be strongly noted that there is absolutely no guarantee of performance when using a managed account and you should understand the significant risks involved with trading.
LQDFX has an education centre on its websites with lots of training resources especially for beginner traders. There is a beginners’ course comprising of 4 video lessons and a glossary. The courses trains new traders on the basic terms, orders and strategies. There are 5 video lessons on trading tools teaching clients trading psychology, market analysis and capital management. Trading strategies focus on 10 strategies such as Tunnel, Fractal, Fishing strip, Zigzag, Fibo trap strategies, etc. There are videos on ECN trading and MetaTrader tutorials on desktop and mobile platforms. A 78-page eBook is also available for reading that is designed for training new traders.
The following instruments are available for trading online with LQDFX:
- 73 Forex Currency Pairs
- 16 Metal Assets
- 12 Indices
- 6 Commodities
LQDFX offer different types of accounts which depend on the trader’s capital. All account holders can only trade over 100 instruments on the provided MT4 platforms. An account manager is assigned to every client irrespective of the account type chosen.
Here are the trading account types offered by this broker:
- Micro account: This account type designed for beginner traders who want to test their newly acquired skills on a live environment. The typical spread is 1.0 pip and a maximum of 5 lots can be traded at once. The minimum deposit is $20 while the maximum leverage is 1:500. No commissions are charged.
- Gold account: The minimum deposit is $500 while the typical spread is 0.7 pips. The maximum leverage is 1:300, no commissions are charged and the maximum trade size is 40 lots.
- ECN account: At least $500 is required to open this account while the maximum leverage is 1:300. The spread starts from 0.1 lots but commission of $3.5 per lot is charged on every trade. A maximum of 40 lots can be placed in one trade.
- VIP account: $25,000 is the least amount required to open this account type. The maximum leverage is 1:100 while the spreads start from 0.1 pips. A commission of $2.5 per lot is charged per trade. There is no limit on the number of lots per trade.
- Islamic account: This account is strictly for Muslims and it is the only account type that swap fees are not charged for positions that are open by midnight. LQDFX may require a proof of Islamic faith from a client before approving this account type. The minimum deposit is $20 and the maximum leverage is 1:300. Spreads start from 0.7 pips and no commissions are charged. The maximum trade size is 40 lots.
Demo accounts are freely available without any risks to the client. When opening a demo account, clients have the option of choosing the amount of funds to trade with and it can be up to $100,000.
The customer support desk at LQDFX is multilingual and works 24/5. They can be reached on live chat, email or telephone. If you wish to schedule a phone call, use the ‘Request a callback’ form which is available on the ‘contact us’ page of the website. A customer care representative will get back to you. On social media, they can be reached on Facebook, Twitter, Instagram and LinkedIn.
LQDFX prohibits cash deposits in compliance with its Anti-Money laundering policy. The name from the funding source must exactly match the name on the trading account. In other words, third party deposits are rejected. For withdrawals, the broker reserves the right to demand for documentations or verifications.
Here are the accepted payment options:
- Bank transfer: The minimum deposit is $250 and it takes 2-7 business days depending on the client’s country of residence. No deposit fees for deposits from $500. For withdrawals, the least amount is $100 and it takes 2-10 days. The charges depend on the corresponding banks.
- Credit/Debit cards: The major cards that can be used are Visa and MasterCard. The minimum transaction amount is $20 while the maximum deposit is $15,000 per card. There are no deposit fees and it is processed within 30 minutes. Withdrawals are processed within 2 business days and a fee of $10 is charged. However, clients should expect to receive the funds within 5-10 days depending on the card processors.
- Online payment: The options available are Skrill, Neteller, FasaPay, UPayCard and VLoad. The deposits are processed immediately without any commissions. The minimum deposit amount is $20 except for VLoad which is has a minimum transaction amount of $50. For withdrawals, the minimum is $5. There are no withdrawal fees and it is processed within a business day.
- Cryptocurrencies: The accepted cryptos are Bitcoin, Litecoin, Ethereum, Ripple and Bitcoin cash. The minimum transaction amount is $30 while there is no maximum. There are no deposit fees and the deposits are processed instantly. Withdrawals are processed within a business day and there are no commissions.
To open a live trading account, visit the brokers website and click on ‘Open account’ and choose ‘individual’ to open a personal account. The 3-page form below displays:
Fill in your name, email, phone number and click ‘next’. Then, enter your date of birth, address, choose a password and click ‘next’. Finally, fill in your financial and employment information and then, trading experience, account currency and platform. The account is created and you are logged onto the clients’ area where you can download platforms, make deposits and start trading.
|Broker Features||AvaTrade||IG||IC Markets|
|Regulated||ASIC, BVI, CBI, FFAJ, JFSA, FSCA, IIROC, ADGM FRSA||FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF||ASIC, CySEC, FSA, SCB|
|Country||Australia, Ireland, South Africa, Japan, British Virgin Islands||Australia, UK, USA, Switzerland, UAE, Singapore, Japan||Australia, Seychelles, Bahamas, Cyprus|
|Min. Deposit||Min $250 Deposit||Min $100 Deposit||Min $200 Deposit|
|Commission||From $0||From $0||From $0|
|Instruments||Forex, Commodities, Cryptocurrency, Stocks, Shares, Indices, Metals, Energies, Options, Bonds, CFDs, ETFs||Forex, Commodities, Stocks, Shares, Indices, Cryptocurrencies, Metals, Energies, Options, Bonds, ETFs, CFDs||Forex, Commodities, Cryptocurrency, Stocks, Shares, Indices, Metals, Energies, Bonds, CFDs|
|Platforms||MetaTrader 4, MetaTrader 5, AvaTradeGO, AvaOptions, AvaSocial, DupliTrade, ZuluTrade, Web, Mobile||MetaTrader 4, IG Platform, IG Progressive Web App, ProRealTime (PRT), L2 Dealer, FIX API, Web, Mobile||MetaTrader 4, MetaTrader 5, cTrader, Web, Mobile|
|Type||Market Maker, STP||STP, ECN, DMA||ECN|
|Funding||Wire Transfer, Credit/Debit Card, Paypal, WebMoney, Neteller, Skrill||Wire Transfer, Credit/Debit Cards, PayPal||Wire Transfer, Credit Card, Debit Card, WebMoney, Neteller, PayPal, Skrill, FasaPay, UnionPay, Qiwi, Bpay, Poli|
|Visit Broker||Visit Broker||Visit Broker||Visit Broker|
LQDFX is an online brokerage firm that offers STP trading, low spreads and fast executions with minimal requotes. Though not regulated, the broker has an AML policy, segregates client funds and has put in place standard security measures to ensure a safe trading environment.
Over 100 instruments can be traded on the MT4 platform which is suitable for all types of traders and trading strategies.
Clients are offered multiple account types accommodating various trading conditions and trading capitals. Multiple funding options are provided which includes cryptocurrencies and online payments. Market news, economic calendars, calculators are some of the tools provided to help the traders succeed.
However, the asset listing is poor and inadequate when compared to the competition. The broker’s unregulated status is a huge problem as many traders avoid unregulated brokers. There is no comprehensive analysis. Maybe, the broker should consider partnering with third party providers like ‘Trading Central’ in order to give its clients expert and reliable research and analysis.
LQDFX seems to be a committed and honest broker but it needs to improve its services in order to compete with the best trading brokers.