Lux Trading Firm: The Ultimate Review for Aspiring Investors

Lux Trading Firm

Leverage: 1:100
Regulation: UK, Dubai, Montenegro
Min. Deposit: £149
HQ: London, UK
Platforms: MT5, Lux Trading
Found in: 2020

Lux Trading Firm 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

What is Lux Trading Firm?

Lux Trading Firm, also operating under the name LUX Trading, is a prominent proprietary trading firm located in Manchester, UK. Renowned for its services to retail traders across the globe, the firm has carved out a significant niche, particularly in the forex trading community. It has earned an impressive track record and is well-regarded for its excellence in this field.

A notable aspect of their operation is the profit-sharing model. Traders are expected to share a portion of their profits with the firm, with the specific terms varying based on several factors, including experience and performance. Alongside the financial aspects, Lux Trading Firm places a strong emphasis on training and support. They offer educational resources, mentorship, and access to trading strategies and risk management techniques, which are crucial in the high-stakes world of trading.

The company provides a unique opportunity to amplify traders’ earnings through trading with funded account balances that can exceed $10,000,000. By successfully navigating their comprehensive evaluation process, traders become eligible for funding. This arrangement sets specific profit targets that traders are required to meet in order to boost their account balance. Upon successfully achieving these targets, they are entitled to retain 65% of the profit.

Lux Trading Firm Advantages	Lux Trading Firm Disadvantages
Lower Profit Target	No Strict Overseeing
Weekend holding allowed	It is hard to become Funded Trader
Free Trial	Limited Instrument Range
Profit Share from Challenge	Low Leverage
MT5 with EAs	High minimum trading day requirements
Refundable Fee once you become Funded Trader
Scaling up to 10 million USD
No time limit on profit target

Is Lux Trading Firm Legit?

Lux Trading Firm, with its headquarters in the UK, benefits from the country’s reputation for strict regulatory standards, enhancing its trustworthiness. The firm also operates additional offices in Montenegro and Dubai. However, it’s important to note that Lux Trading Firm is not a Forex Trading Broker and does not possess the regulatory license typically associated with brokerage operations. Therefore, it’s crucial for individuals to fully comprehend all the risks involved in engaging with a firm that operates outside the traditional brokerage framework.

Is Lux Trading Firm Scam?

After reviewing the official website of Lux Trading Firm, we found no clear indications suggesting that the company is a scam. However, it’s important to note that Prop Trading Firms, like Lux Trading Firm, typically fall under minimal regulation by financial authorities. This lack of regulatory oversight makes it challenging to definitively assess the legitimacy or potential risks associated with the firm.

It’s advisable to thoroughly educate yourself about Proprietary Trading and understand the associated risks before proceeding. Choosing a company with a solid reputation and a long-standing operational history can offer more stability in their proposals. Although you’re not directly investing substantial amounts of money but rather paying subscription fees, this approach typically entails lower potential losses compared to engaging in trading with your own funds in the real market.

Lux Trading Firm Evaluation Rules

A critical aspect of our Lux Trading Firm Review centers on understanding the structure and conditions of their evaluation challenge. This involves examining what specific tests or criteria you need to fulfill to qualify for a Funded Trading Account and become a Proprietary Trader. Additionally, it’s important to consider the costs involved for a trader to participate in this process, which typically includes a Registration Fee. This assessment is key to comprehending the pathway to becoming a trader with Lux Trading Firm.

The primary objective of the Evaluation at Lux Trading Firm is to demonstrate your trading skills. The Evaluation process is split into two phases, each with profit targets that vary depending on the size of the account you select.
Generally, the rules in Phase 1 are more stringent, focusing on assessing your initial trading capabilities. Phase 2, on the other hand, offers somewhat more relaxed conditions, particularly concerning drawdown limits. This phase is designed to evaluate the long-term sustainability and consistency of your trading activities.
Lux Trading Firm presents two distinct evaluation programs for its traders: the Two-Step Evaluation Program, which involves a more comprehensive assessment process, and the One-Step Evaluation Program, designed for a quicker evaluation

Account Balance and Registration Fee

To begin with Lux Trading Firm, you must first choose the trading platform, account type, and balance size that you wish to qualify for. The conditions of the challenge vary slightly based on the selected account size. This choice also influences the registration fee, which is required to participate in the challenge. Importantly, Lux Trading Firm offers a refund of this fee once you achieve the status of a Funded Trader. For a clearer understanding of how these fees vary, refer to our Registration Fee comparison table provided below.

Lux Trading Firm provides two evaluation programs – a One-Step Evaluation Program and a Two-Step Evaluation Program
The Two-Step Evaluation Program offered by Lux Trading Firm includes a scaling plan for accounts. In this program, traders are tasked with achieving a profit target of 10% to progress their accounts to the next stage of growth. This scaling can continue up to a maximum capital limit of $10,000,000.
Lux Trading Firm provides several balance options which include $25,000, $50,000, $100,000, or $200,000.

Fees	Lux Trading Firm	FTMO	The Funded Trader
Minimum Account Size	$25,000	$10,000	$50,000
Fee	£149	€155	$289
Maximum Account Size	$200,000	$200,000	$400,000
Fee	£599	€1 080	$1,869
Reset or Test Retake	Yes	Yes	Yes
Is Fee Refundable?	Yes	Yes	Yes

Profit Target

In the first stage of the program, traders’ objective is to achieve a 6% profit target, with a maximum drawdown limit also set at 6%. This stage offers the flexibility to hold trades over the weekend and allows traders to trade in any style they prefer. They can trade a variety of forex pairs and commodities, and there’s no time restriction on how long you have to reach this target.

Once the progress to being funded with professional live trading capital, the parameters change slightly: traders are then required to meet a 10% profit target while adhering to a 6% drawdown limit.

Maximum Loss

The maximum loss parameter sets the limit on the total loss a trader can incur before the account is considered violated. Based on our research, for all account sizes, this maximum loss is set at 5%, which adjusts to 4% once the account is funded.

To ensure a clear understanding, all predefined rules must be adhered to throughout the challenge stage. If these rules are violated, your test will be canceled. In such a case, you would have the option to restart the challenge, but this requires paying an additional reset fee to participate again from the beginning.

Minimum Trading Period

The minimum trading days requirement is the specified period you must trade for before you can successfully complete an evaluation phase or request a withdrawal. For the evaluation stage, there’s a requirement of at least 29 trading days (or 15 calendar days for swing traders). However, in the Advanced stage, there are no limitations on the minimum number of trading days.

See the detailed table with Lux Trading Firm Evaluation conditions based on Account Size:

Free Trial

Lux Trading Firm provides a free trial opportunity for its community, enabling potential traders to get acquainted with their platform and understand the trading rules. This trial also offers a firsthand experience of what trading with Lux Trading Firm entails. Based on our research, not many Prop Firms offer a Free Trial hence can be considered an advantage

Lux Trading Firm Funded Account

After successfully passing the evaluation, a trader will have their Funded Account established, which usually takes a few business days to activate. It’s important to note that the conditions and balance of the funded account will match those of the account for which you qualified in your test. If you wish to upgrade to a higher-grade account, you will need to undergo the test process again from the start for the specific Account Balance you desire to trade with.

Profit Split

By successfully completing both the Evaluation and Advanced stages, traders are granted a live funded account, also known as the Professional account. This account comes with the advantage of having no profit target requirements for withdrawals. The only stipulation is adhering to the 4% maximum loss rule.

Traders can expect their first payout 30 calendar days from the date of their first position in the funded account, with a profit split of 75% based on the profits earned in the live funded account. It’s also important to note that all subsequent payouts are processed monthly, maintaining the same 75% profit split based on the profits generated in the funded account.

Payout and Withdrawals

Lux Trading Firm’s withdrawal methods are designed for flexibility and convenience, catering to the needs of traders. Those using the Professional Accounts are entitled to a 75% share of the profits, provided they have achieved a net profit for the current month, taking into account the High-Water Mark. The profit calculations are conducted during the first weekend following the month’s end, with payouts for these accounts typically processed in the week immediately after this calculation.

Withdrawal Method

Traders at Lux Trading Firm have the option to receive their funds through various methods for added convenience. One option is Direct Bank Transfer, accommodating transfers to bank accounts in the UK, EU, and internationally. Alternatively, traders can opt for payments via Wise-wallet, a digital wallet service recognized for its efficiency. Additionally, for those who prefer dealing in digital currencies, Lux Trading Firm also facilitates withdrawals in various cryptocurrencies.

Account Conditions

When examining Account Conditions, it’s essential to assess the diversity of account options, available Trading Platforms, Instruments, and associated Costs. Checking the Leverage levels and specific Trading conditions is also vital, as some Brokers may limit certain strategies or practices in Funded accounts, leading to potential account loss and the requirement to retake the evaluation test. A detailed overview of these factors is outlined below:

Trading Instruments

Lux Trading Firm provides an extensive range of trading instruments, including forex pairs, commodities, indices, bonds, and shares. These offerings cater to the preferences of the majority of Forex Traders, making the firm’s selection generally favorable. However, for traders who have a specific interest in other instruments like Stocks or Futures, it may be advisable to explore alternative Proprietary Trading Firms that align more closely with their trading preferences.

Commission

Lux Trading Firm stands out with its commission offerings, suggesting competitive conditions. The firm charges a commission of only $4 per lot per round for Forex trades and $0.02 for Shares. These rates are notably lower than the industry average, making the firm’s pricing structure quite favorable for traders.

Lux Trading Firm Leverage

Lux Trading Firm offers a leverage of up to 1:30 for all trading instruments, applicable in both the Challenge stages and once you become a Funded trader.

Lux Trading Firm Platform

Lux Trading Firm provides traders with the choice of two trading platforms. The first option is the Lux Trader trading platform, which benefits from Direct Market Access through a pool of Liquidity Providers. The second option available to traders is MetaTrader 5, which operates with Ox Securities as the broker.

Trading Conditions

Our research indicates that Lux Trading Firm offers two types of account conditions. They provide Swap Accounts, which are well-suited for swing trading, and swap-free accounts, which are available in all challenges. The swap-free option is particularly beneficial for traders who prefer to avoid incurring overnight charges.

Lux Trading Firm allows for a range of popular trading conditions, including News Trading, Swing Trading, EA Trading, and Weekend Holding. Additionally, traders have the advantage of using Copy Trading from another Lux Trading Firm account, which is particularly beneficial for those employing diverse strategies. However, it’s important to note that there are certain restrictions; practices such as High-Frequency Trading, Latency Trading, and Arbitrage are not permitted.

Lux Trading Firm Promotions

Lux Trading Firm currently offers a discount coupon for new customers. Lux Trading Firm coupon code “forexpropreviews” provides a 5% OFF discount for those who are signing up for the first time.

Lux Trading Firm Alternative Brokers

In summary, Lux Trading Firm presents traders with a diverse selection of market instruments, sophisticated trading platforms, and adaptable leverage choices. Their account evaluation program includes a refund option and offers traders a substantial share of the profits. The firm is efficient in processing withdrawals and provides comprehensive customer support, alongside valuable educational resources and mentorship programs.

It’s advisable to compare Lux Trading Firm’s offerings with other Proprietary Trading Firms, as some may offer conditions more suited to specific trader needs, like a broader range of instruments or different trading platforms. Despite this, Lux Trading Firm has unique advantages. For a better understanding, we’ve prepared a comparison of Lux Trading Firm with other firms, summarized in the table below: