Lux Trading Firm Review 2024
Website: www.luxtradingfirm.com
Min. Deposit: US$ 149
Leverage: 1:100
Trading Platforms: MT5, Lux Trading
Regulation: UK, Dubai, Montenegro
Headquarters: London, UK
Founded: 2020
Regulatory Licenses:
- Lux Trading Firm Ltd — registered in UK registration number 13160991
- Lux Trading Firm ME L.L.C-FZ — registered in Dubai, UAE registration number 2311235.01
- Lux Trading Firm Ltd — registered in Montenegro registration number 2023-00292
Updated on February 28, 2024
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In our quest to provide an unbiased and comprehensive review of Lux Trading Firm, we have employed a meticulous approach. Our analysis is grounded in the examination of over 1000 brokers across various dimensions, including fees, leverage, trading platforms, customer service, regulatory compliance, and the breadth of instruments available for trading. Our team has also taken into consideration user feedback and firsthand experience with the trading platforms. This thorough methodology ensures that our recommendations and critiques are balanced, providing potential traders with a clear understanding of what Lux Trading Firm offers.
What is Lux Trading Firm?
Lux Trading Firm, also known as LUX Trading, stands out as a premier proprietary trading firm based in Manchester, UK. Esteemed for its provision of services to retail traders worldwide, it has established a significant presence within the forex trading community, celebrated for its robust track record and excellence. A distinctive feature of their business model is the profit-sharing arrangement, requiring traders to share a part of their earnings with the firm under terms that fluctuate based on experience and performance levels. Furthermore, Lux Trading Firm prioritizes training and support, offering educational resources, mentorship, and access to trading strategies and risk management techniques, all vital in the volatile trading arena.
They present an exceptional opportunity for traders to enhance their earnings by trading with funded account balances potentially surpassing $10,000,000. To access these funds, traders must first navigate a comprehensive evaluation process. Upon meeting specific profit targets set by the firm, traders are entitled to keep 65% of the profits generated.
Pros
Lower profit targets make it easier for traders to achieve profitability.
Weekend holding is permitted, offering flexibility in trading strategies.
A free trial is available, allowing traders to test the platform without financial commitment.
Profit share from the challenge phase provides an incentive for success.
MT5 platform support with Expert Advisors (EAs) enhances trading capabilities.
Refundable fee once you become a funded trader, mitigating initial cost concerns.
Potential for scaling up to $10,000,000 in trading funds.
No time limit on achieving profit targets, reducing pressure on traders.
Cons
The absence of strict oversight may pose risks for undisciplined traders.
The challenging criteria to become a funded trader can be a significant barrier.
The limited range of instruments might restrict trading strategies.
Low leverage could limit profit potential for some traders.
High minimum trading day requirements can extend the duration to become a funded trader.
Is Lux Trading Firm Legit?
Is Lux Trading Firm a scam? Before delving into any proprietary trading firm, it's paramount to educate oneself on the nuances of Proprietary Trading and the inherent risks involved. Opting for a firm with an established reputation and a lengthy history in operations can provide a sense of stability in their offerings. While traders don't directly invest large sums but rather pay subscription fees, this model generally results in lower potential losses compared to trading with personal funds in the actual market.
Lux Trading Firm Evaluation Rules ▲
A pivotal part of our Lux Trading Firm review is deciphering the structure and prerequisites of their evaluation challenge. It's crucial to grasp the specific benchmarks or criteria required to be met for a trader to qualify for a Funded Trading Account and become a Proprietary Trader. An equally important aspect to consider is the financial commitment required from a trader to embark on this journey, which usually encompasses a Registration Fee. This evaluation is vital for understanding the roadmap to trading with Lux Trading Firm.
Account Balance and Registration Fee ▲
To commence with Lux Trading Firm, one must select the trading platform, account type, and balance size desired. The challenge conditions slightly differ depending on the chosen account size. This selection also dictates the registration fee needed to partake in the challenge. Notably, Lux Trading Firm pledges to refund this fee upon a trader attaining the Funded Trader status. For a more detailed insight into how these fees vary, refer to our Registration Fee comparison table below.
Lux Trading Firm offers two evaluation programs – a One-Step Evaluation Program and a Two-Step Evaluation Program.
The Two-Step Evaluation Program by Lux Trading Firm includes an account scaling plan. Here, traders are required to meet a 10% profit target to elevate their accounts to the next phase of growth. This scaling can extend up to an ultimate capital ceiling of $10,000,000.
Lux Trading Firm provides several balance options, including $25,000, $50,000, $100,000, or $200,000.
In the initial phase of the program, the goal for traders is to hit a 6% profit target, with a maximum drawdown limit also pegged at 6%. This phase allows the freedom to carry trades over the weekend and permits trading in any style preferred by the trader. It enables trading across a variety of forex pairs and commodities, without any timeframe restrictions to meet this target.
Upon advancing to trading with professional live capital, the criteria adjust slightly: traders are then tasked with reaching a 10% profit target while keeping within a 6% drawdown limit.
The maximum loss parameter establishes the cap on the total loss a trader can sustain before the account is deemed violated. From our analysis of over 1000 brokers, for all account sizes, this maximum loss is consistently set at 5%, which shifts to 4% upon the account receiving funding.
The minimum trading days requirement outlines the necessary period a trader must engage in trading before they can successfully conclude an evaluation phase or initiate a withdrawal. For the evaluation stage, there's a stipulation of at least 29 trading days (or 15 calendar days for swing traders). Conversely, in the Advanced stage, the regulation on the minimum number of trading days is lifted.
Lux Trading Firm Funded Account ▲
Once a trader has cleared the evaluation hurdles, they will be allotted a Funded Account, which is generally activated within a few business days. It's pivotal to understand that the particulars and balance of this funded account are aligned with those of the account that was used during the qualification phase. For those aiming to manage a higher-tier account, it necessitates undergoing the evaluation process anew for the desired Account Balance level.
Upon the successful navigation through both the Evaluation and Advanced phases, traders are awarded a live funded account, dubbed the Professional account. This particular account is characterized by the absence of profit target constraints for withdrawals, bounded solely by a 4% maximum loss regulation. Traders are eligible for their inaugural payout 30 calendar days following the initiation of their first trade within the funded account, with a generous profit split of 75% on the profits accrued in the live funded account. Additionally, it's paramount to note that subsequent payouts adhere to a monthly schedule, with the profit split consistently pegged at 75% based on the profits generated within the funded account.
An in-depth analysis of Account Conditions is indispensable, encompassing the variety of account offerings, Trading Platforms, Instruments, and accompanying Costs. Scrutinizing the Leverage levels and specific Trading conditions is equally crucial, as certain Brokers might impose restrictions on specific strategies or practices in Funded accounts, potentially leading to account forfeiture and the necessity of reattempting the evaluation test.
Lux Trading Firm boasts an extensive array of trading instruments, spanning forex pairs, commodities, indices, bonds, and shares, catering to the tastes of a wide spectrum of Forex Traders. Despite the broad selection, traders with a keen interest in alternative instruments such as Stocks or Futures might find it beneficial to consider other Proprietary Trading Firms that more closely align with their trading predilections.
Lux Trading Firm distinguishes itself with its competitive commission structure, charging merely $4 per lot per round for Forex trades and $0.02 for Shares. These rates stand out as considerably lower than the prevailing industry norms, rendering the firm's pricing architecture particularly appealing to traders.
Lux Trading Firm extends a leverage of up to 1:30 across all trading instruments, applicable in both the Challenge and Funded trader phases.
Lux Trading Firm offers traders the choice between two trading platforms: the Lux Trader trading platform, which benefits from Direct Market Access via a consortium of Liquidity Providers, and MetaTrader 5, operating with Ox Securities as the broker.
Lux Trading Firm facilitates a variety of popular trading conditions, including News Trading, Swing Trading, EA Trading, and Weekend Holding. Furthermore, traders benefit from the option of employing Copy Trading from another Lux Trading Firm account, a feature particularly advantageous for those implementing diverse strategies. However, it is imperative to acknowledge that certain practices, such as High-Frequency Trading, Latency Trading, and Arbitrage, are prohibited.
Lux Trading Firm has designed its withdrawal methodologies to accommodate the flexibility and convenience needs of traders. Those utilizing the Professional Accounts are entitled to a 75% share of the profits, contingent upon achieving a net profit for the current month, with consideration to the High-Water Mark. Profit calculations are executed during the first weekend subsequent to the month's end, with payouts for these accounts typically processed in the week immediately following this calculation.
