LUCRUM PRO'S CODE 9011190642
Lucrum Pro's website states that it is run by Exondary LLC, which is based in St. Vincent and the Grenadines (SVG). St. Vincent and the Grenadines is an offshore forex trading zone, and the country's Financial Services Authority does not supervise forex brokers. This suggests Lucrum Pro is a non-regulated and unlicensed broker, probably a fraudster, putting your assets at risk.
Licensed brokers in well-established countries throughout the world, including as the EU, the United Kingdom, the United States, and Australia, have safeguards in place to ensure the protection of traders' funds by storing them separately at tier-1 bank institutions. But not this broker! What we see in the Terms and Conditions agreement is extremely concerning. It says that clients funds belong to the company and will be treated as its own. In addition to that, the client will not be able to claim the money transferred to the company and the broker may do with them as seems appropriate. That means, no protection whatsoever for your funds and as soon as the broker disappears or shuts down the website, your hard-earned money will be gone!
Licensed brokers from the well-established jurisdictions we mentioned above have their own initial capital that is 730,000 EUR for the EU and the UK, $20 million for the US and 1 million AUD in Australia. As you can see, they are well-capitalised so there is no need to dip their fingers into the pot with their clients money.
Lucrum Pro is a currency broker that trades currencies, indices, commodities, stocks, and cryptocurrencies. A web trader is the trading program (screenshot below). On the left, you can see the trading items that are currently available on the forex currency pairings. The chart of the EUR/USD currency pair that we choose is presented in the middle, and it illustrates the price variation of the same pair over a set time frame. The sale and buy buttons are also visible for completing orders. The spread for the EUR/USD currency pair is 3 pips based on the bid/ask price. This spread is large and exceeds the industry average. We are not shocked because the firm earns money from the spread, hence they are attempting to swindle its traders, as mentioned in the Terms and Conditions agreement. A big spread means that transaction costs will be considerable, and traders will be unable to generate a long-term sustainable profit. And now you see why! We also determined the leverage to be 1:200 based on the information provided on the trading site. You may believe that high leverage is beneficial to trading since it enhances the possibility of profit, but you couldn't be more wrong! According to statistics, 70 percent of traders suffer financial losses. Besides, you should know that licensed brokers are not allowed to offer leverage higher than 1:30 in the EU and 1:50 in the US. This is so because someone is trying to protect your funds by not allowing you engaging in reckless trading that can lead to a substantial financial loss.
Web traders are not the best trading software and they are rather basic platforms that do not offer a lot to their traders. On the other hand, MetaTrader 4 and MetaTrader 5 can truly enhance your trading experience by providing you with an excellent package of trading tools and instruments, including auto trading option, an app market, a financial calendar, VPS, trading signals, code base with customs scripts, etc. Their charting options and an array of technical analysis indicators are second to none and they help the trader predict the future direction of exchange rates and make a profit. We strongly recommend that you find a licensed broker offering either platform for the benefit of your trading success.
Lucrum Pro Deposit/Withdrawal methods and fees
Lucrum Pro provides five trading accounts: Mini, Standard, Gold, VIP, and Lucrum Pro Islamic. There is no information in the account description concerning the minimum deposit amount for each account. However, once we started a genuine trading account, the system requested a $250 deposit, thus we assume that this is the minimum first investment.
PAYMENT METHOD
The sole payment method listed in the website's footer is credit card. This does not provide a diverse range of payment options. The minimum withdrawal amount through bank wire is $250, and the withdrawal request is handled within 5 business days, with the monies arriving in the client's account 10 days afterwards. We must admit, it was a lengthy operation!
We also learn that the broker charges fees for transfers and withdrawals of funds and that further costs may be imposed at any moment.
This is rarely advantageous to the traders!
INACTIVE/DORMANT ACCOUNT FEE
If a trading account is idle for 30 days, it is considered dormant, and a cost of 85 EUR/USD/GBP is applied. Licensed brokers, on the other hand, provide at least 6 months to a year before an account is labeled dormant, and their fees are lower. This broker, like other untrustworthy brokers, provides bonuses to its traders. Bonuses are not free presents, despite their appearance, and are cash belonging to the broker, not the trader. They are subject to stringent conditions that may jeopardize your funds and withdrawal alternatives. To withdraw the bonus sum, the trader must trade a volume equivalent to 10% of the bonus plus the deposit amount, according to this broker. This is not that simple, and we encourage new traders not to take bonuses, and to remember that regulated brokers never provide bonuses or other incentives.
SPREAD
The EUR/USD currency pair's bid/ask price reveals that the spread is 3 pip. This spread is large and higher than the industry standard. We are not shocked because it is mentioned in the Terms and Conditions agreement that the firm makes money from the spread, indicating that they are aiming to defraud their traders. The consequences of a high spread are that traders won't be able to generate a long-term, sustainable profit and that transaction costs will be significant. You now understand why! We determined that the leverage is 1:200 using the data from the trading platform. You could believe that high leverage is beneficial for trading since it enhances your chance of generating money, but you couldn't be more mistaken! If you consider the data showing that 70% of traders incur financial losses during transactions, you will see that there is a greater likelihood that you will lose significantly if you opt to trade with such high leverage.
Furthermore, you should be aware that authorized brokers are not permitted to provide leverage greater than 1:30 in the EU and 1:50 in the US. This is true because someone is attempting to safeguard your money by forbidding you from engaging in careless trading that may result in a big financial loss.
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