LumineTrade Review: 5 Red Flags to Know Before You Invest

In 2022/23, the FCA logged 25,690 reports of unauthorised business and issued 1,716 alerts about unauthorised firms, including warnings against unregulated brokers like LumineTrade.

While the platform offers various account types and trading services, many users report difficulties accessing their funds and receiving adequate support.

Let’s break down a review of LumineTrade and explore more about similar scam brokers.

Key Factors:

• Unregulated: LumineTrade operates without regulatory oversight.
• Regulatory Alerts: FCA, ASIC, and others have issued warnings against the broker.
• Withdrawal Problems: Users report significant issues accessing funds.
• Negative Feedback: Most reviews are negative, with positive ones being questionable.
• Potential Scam: The lack of regulation and complaints suggest a high scam risk.

What is LumineTrade

LumineTrade is an unregulated offshore broker offering trading in forex, cryptocurrencies, and other assets.

The broker operates under UIT Solutions Ltd, registered in the Marshall Islands, a region known for its weak financial oversight.

The Financial Conduct Authority (FCA) has flagged LumineTrade as a clone firm, fraudulently claiming to be associated with legitimate firms like CoinShares Capital Markets (UK) Limited and Lumin Wealth Limited.

According to the FCA, LumineTrade uses fake addresses, including 10 Finsbury Square and 69 Old Broad Street in London, along with fraudulent email addresses, and operates multiple scam websites.

When choosing a broker, consider factors such as regulation, trading conditions, available markets, and customer support. A reputable broker should be transparent about its fees and services.

The first thing you should check before investing online is whether the company is regulated by a top-tier regulator. Regulation helps protect investors and ensures a level of oversight and accountability.

Is LumineTrade Licensed by a Major Regulator?

LumineTrade is not licensed by any top-tier regulator, and investing with companies not authorized by your local regulator is risky.

In case of a dispute, you may not be able to seek assistance or legal recourse from your local authorities, leaving you with limited options.

LumineTrade has received alerts from 5 regulators, indicating compliance issues or ongoing disputes.

• Financial and Consumer Services Commission (FCNB): Warned about fraudulent activities.
• Autorité des Marchés Financiers (AMF): Stated LumineTrade is not authorized to offer services in Québec.
• Dutch Authority for the Financial Markets (AFM): Blacklisted LumineTrade for unauthorized activities.
• Alberta Securities Commission (ASC): Placed LumineTrade on its investment caution list.
• Australian Securities and Investments Commission (ASIC): Added the broker to its investor alert list.

The best way to protect your investments is to avoid dealing with unregulated companies. For your safety, we recommend engaging with firms that are licensed by top tier regulators such as the Financial Conduct Authority.

LumineTrade Account Types

Basic Account

The Basic account offers essential tools for beginner traders with limited leverage and basic support.

Minimum Deposit: $250
Leverage: Up to 1:10

Gold Account

The Gold account provides enhanced features for more serious traders, including portfolio management and live trading webinars.

Minimum Deposit: $25,000
Leverage: Up to 1:50

Platinum Account

The Platinum account delivers advanced trading tools, personalized analyst sessions, and market insights for experienced traders.

Minimum Deposit: $100,000
Leverage: Up to 1:100

VIP Account

The VIP account offers comprehensive services, including unlimited broker access, top-tier analysis, and exclusive VIP benefits for high-level traders.

Minimum Deposit: $500,000
Leverage: Up to 1:200

Customer Reviews

At the time of writing, LumineTrade has mostly negative reviews across platforms, with many positive ones appearing questionable, possibly to boost its reputation.

Despite this, the majority of user reviews report being scammed, facing withdrawal issues, and experiencing poor customer service.

Review.io Investor Reviews

Reviews.io: At the time of writing, LumineTrade has a rating of 2.7/5 based on 120 reviews on Reviews.io.

ProductReview Customer Reviews

The broker holds a 1.0/5 rating from 10 reviews on ProductReview, reflecting extremely negative feedback.

TrustPilot Traders Reviews

A banner on the page informs users that the company has received regulatory attention, with a link to the FCA warning for further details.

On TrustPilot, the overall rating for the broker has been deactivated, and only individual reviews are visible.

SiteJabber Client Reviews

The broker has received a 3.0/5 rating from 32 reviews on SiteJabber, with mixed user feedback.

HelloPeter User Reviews

On HelloPeter, the broker holds a score of 3.62/5 based on 13 reviews.

Final Thoughts

LumineTrade is an unregulated broker flagged by multiple regulators, including the FCA and ASIC, for potential fraudulent activities. Users consistently report difficulties with withdrawals, and many are unable to retrieve their funds.

While the broker offers trading in instruments like forex and cryptocurrencies, the lack of regulation, numerous warnings, and negative reviews raise significant concerns about its legitimacy.

The risks associated with unregulated brokers like LumineTrade make it critical for investors to seek out regulated platforms for greater security and protection.

Warning Signs of Unregulated Companies

When dealing with an unregulated or offshore-regulated company, you should be aware of the associated risks. Some legitimate companies are still unregulated but in the process of getting a license, and some others may choose to operate unlicensed for diverse reasons without being scams.

However, it is important to recognize the major red flags of a fraudulent investment company such as:

• Unsolicited calls and emails: Frequent and unsolicited communication, especially with high-pressure sales tactics, can be a warning sign.
• Pressure to deposit more funds: Be cautious if a company constantly urges you to invest more money, promising unrealistic returns or exclusive benefits.
• Not being able to withdraw: Difficulty or delays in withdrawing your funds, or encountering unexpected fees or ‘taxes’, is a major red flag.
• Website changing domains frequently: Frequent domain changes can indicate instability or an attempt to avoid detection by authorities.

If you are a victim of such practices, it is crucial to immediately stop depositing any more funds and report the situation to your local authorities.

Frequently Asked Questions