LMFX Review 2023

LMFX has structured its services by offering three distinct types of accounts in order to cater to different types of Forex traders. The first account is called a Zero account and the name derives from having zero pips spreads on some of the Forex pairs. While there are commissions involved, we found them to be very low.

LMFX only requires a $100 opening deposit and Forex traders can subsequently top-up their account by adding a minimum $50 whenever they want to. While LMFX offers crazy leverage like 1000:1 on their other accounts, which is approaching the highest in the Forex industry, the Zero account caps it at 250:1. LMFX has structured the Zero account to cater to traders who conduct a lot of trades, such as scalpers. By looking at the Zero account features, it is clearly signaling an ECN model service.

The Second account type offered by LMFX is called a Fixed account. As the name suggests, the Fixed account has fixed spreads. Traders can be certain that if they open a trade with 3 pips spread, the trade will be closed with 3 pips of spreads. However, the problem with such an approach is that during highly volatile market conditions, the Fixed account tends to skip filling market orders if the price moved too fast. But we found that during relatively regular market conditions when liquidity and volatility are stable, the Fixed account provides accurate quotes and fills the orders with predictable spreads.

LMFX is clearly being a market maker to keep the spreads static with the Fixed account. Nonetheless, it comes with the added benefit of having much higher levels of leverage compared to the Zero account. The Fixed account requires traders to make an initial deposit of $250.

The last account type you can have with LMFX is their Premium account. It might sound like the highest tier account a broker can offer, but surprisingly, it has the lowest minimum opening deposit requirement of $50.

But the Premium account is indeed catered for the serious traders as it comes bundled with perks like a Personal Account Manager, no commission trading environment, and the functionality to open a hundred trades at a time. Not to mention, the Premium account from LMFX offers one of the highest leverage we have come across, which is 1000:1. It means you can deposit $100 and trade up to $100,000 or a full standard lot worth of currencies with the Premium account.

While the Premium account offers insanely high leverage, there is a catch. And, the catch is that it has a margin call threshold of 50%, much higher compared to the other two accounts, where the margin call threshold is set at 30%. So, if you use high leverage, you will likely get a margin call much faster with the Premium account.

LMFX has positioned itself to be a primarily a Forex broker. But they have introduced a range of other assets in recent years to cater to the growing demand for diversification from traders. Currently, you can trade 48 Major and Minor Forex pairs; 7 commodities like Gold, Silver, and Oil; 5 Commodity CFDs, including Coffee, Copper, and Platinum; 9 stock Indices such as the U.K.'s FTSE or the German DAX; and some of the major stock CFDs from the NYSE, NASDAQ, and the London Stock Exchange (LSE).

One of the great benefits of trading with LMFX is its policy about allowing unlimited usages of the demo accounts. Existing clients can simply open new demo accounts to test their strategies and forward test the viability of expert advisors in real-time.