The Definition of Failing on Commitments
LBLV is a broker company based out of Seychelles. It is the trading name of LBLV Ltd. It is only “registered” against its false claims of being “regulated” by the lesser-known Seychelles Financial Service Authority (FSA).
Professional traders are already aware of the basic fact that merely registration at any particular location is no indication about the security in trading with the company. Most important are the details of the regulation and the regulating authority, its jurisdiction and its modus operandi.
Seychelles Financial Service Authority (FSA) is a recently authorized body that has its jurisdiction over the Seychelles area only. It is responsible for the non-banking financial services registration in the region. It has been established long before but they do not have any authorization of issuing forex trading regulation licenses to the investment companies. In order words, FSA simply maintains the registers of the companies about their necessary details.
There are many established financial regulating bodies like the UK Financial Commission Authority, Cyprus Securities and Exchange Commission (CySEC), etc. which observe a good reputation among the traders. A regulatory body must obey strict laws and regulations in issuing forex licenses to the broker companies. They are the sole pillar of help, in case, the traders are stuck in fraudulent transactions or the company went bankrupt. The potential of forex trading invites huge scams and frauds which can be best controlled by a strict unbiased vigil of the regulating body.
Based in a Scams Prone Area
Seychelles is a small cluster of islands in East Africa. It is a small but ideal place for the fraud and fake companies which play with the funds of its traders and are least interested in abiding the compliances of the trading. Needless to say, operating in these areas invites tax evading as well.
The company has tried best to extract the customers by keeping the star player Ronaldinho Gaucho as their ambassador. But it fails to serve its purpose as the star player is already a defendant in class action through involvement in the company named 18k financial pyramid. Not only this, but it is also the second time he has been involved in this doubtful association with the same company. The star player is already a defendant in a moral and material damage action case for $526,000.
Interestingly, LBLV has been banned by the Securities and Exchange Commission of Brazil (CVM) for its operations in Brazil. The company cannot extract customers from Brazil.
CVM is the securities market authority of Brazil. The main objectives of CVM include the proper functioning of the security exchange and protecting the securities holders from any type of fraud. It also sees the over the counter markets and makes sure that the companies hence regulated are maintaining transparency and working according to the standard operating procedures. The company is blamed for promoting the irregular acquisition of the customers.
The companies do take celebrity endorsements as a ladder to improve the brand’s personality. LBLV has failed to achieve this. A ban by a leading financial regulator along with the skeptical celebrity player involved at its endorsements, all lead the LBLV to be an unreliable off-shore broker in the market.
In simple terms, LBLV is an offshore Seychelles based locally registered unregulated company. It has been in news for getting blacklisted from some of the best regulating authorities of the forex trading.
LBLV Trading Accounts
LBLV is a forex and CFD Broker Company. It provides a demo account with limited access. While writing this LBLV review, I accessed the demo account, and found that the spread is capped at 3 pips for USD/EUR pairs. It is contradictory to the company’s claim of competitive spreads as it will result in loss of money and the trader will end up exhausting all of the funds due to bad trading conditions. The company provides 5 types of trading accounts.
- Rookie account
- Basic account
- Premier Account
- Elite Account
- VIP Account
- Rookie account: The minimum initial deposit required for this account is $5,000. It is an astonishingly high amount to be termed as a minimum limit. Then comes, the leverage up to 1:500. Risks, with no help in the real-time trading scenario, are all that this account will offer you. The competitors, on the other hand, offer leverage as less as 1:50 with initial deposits going a maximum of up to $250 only. As compared to any other broker company, LBLV is charging 20 times more than the average minimum initial depositing while providing 10 times high leverages.
- Basic account: This account has a minimum deposit limit of $25,000. An increase of whopping $20,000 from the rookie account with no additional services. All of the services are the same as provided in the rookie account.
- Premier Account: Add another chunk of $25,000 to set the minimum deposit limit to $ 50,000 and what you get is the premier trading account of LBLV with no additional spreads or leverages.
- Elite Account: Don’t’ blame us, if it looks like a table-training math’s class, LBLV has to be blamed for its ill-managed trading accounts. The company invites an initial investment of $100,000 for opening an elite account.
- VIP Account: You need to spend 1,000,000 as minimum initial deposit. Needless to say, it is hardly equivalent to the total profits earned by a trader. While it gives access to the services of the company, it is of no use to make such a big investment as a deposit, on top of that, the company does limit the withdrawals as well.
What does an ideal trading account mean to a trader? While LBLV has totally failed in understating the same, an ideal trading account is the one with minimum initial deposit requirements that must not charge any deposit fees and must provide competitive leverages and spreads. A single account of the company has failed to achieve the status of a good trading account. As a result, their customers gripe over the accounts and the trading conditions.
Inflowing Deposit and Faulty Withdrawal
LBLV invites funds through credit/debit cards, an e-wallet like Neteller, Skrill, UnionPay, WebMoney, Yandex, etc. It also accepts bank wire transfers. Like most of scam companies, there are no harsh rules for depositing. They are very keen on your money.
You are eligible for the first-time deposit bonus, but hang on; it is not as lucrative as it looks to be. You will get an additional 30% amount credited for your first deposit which you are not able to withdraw. You can only trade with this bonus amount. Hence a perfect bait for new-comers in forex trading.
Withdrawal is a problem with LBLV. Here is a snapshot of the company’s terms and conditions for withdrawal.
The company has the right to impose a limit on your withdrawal. It is a clear case of scam activities going on in the trading industry. No company can fix any limit on the withdrawals for the trader’s money.
In short, the company has left no option for its traders but to be at the mercy of them. It will let you in your money but will not allow you to withdraw and will force you to invest more. You just invest in their company; start trading and you will hardly notice this major flaw until you decide to withdraw your money. Again, you will be pushed to trade more so that the company needs not to give away your funds. It is the next undercover scam run by the company.
LBLV trading is MT5 compatible. MetaTrader 5 is the undisputed ruler of the trading platforms. It is the updated version of MetaTrader 4 which was intended for forex trading only. Its Successor Meta Trader 5 provides forex trading, CFD’s, indices also.
Looking at the LBLV Online page with handle @lblvonline proves that all of the likes and followers are not for the company but for the star player Ronaldinho itself. The company fails to share educational information about trading practices to help investors.
The Twitter page of the company is newly made and has very fewer followers. It has been created in the year 2018 only.
Limited Customer Support
The self-proclaimed 24*7 customer service is available for limited periods only. The email sent to the support team gets a response after 1 day or 2 days. It also restricts the quality of live support required by the traders on any busy trading day.
LBLV is an offshore forex broker with non-economic trading accounts. It is not regulated directly by any authority. Spread and leverage are not attractive. Amid blacklisting and false regulation claims, my LBLV review doesn’t recommend their services at all.
- Nasty Scam!
- Major Red Flags
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