Is LCG Group Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with LCG Group try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether LCG Group is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker LCG Group
The LCG broker is an international intermediary that started its business in 1996. Traders who have opened an account with LCG have access to 9 groups of trading assets, including: Forex, spot metals, stocks, indices, ETFs, CFDs, stock options, bonds, interest rates, and commodities. The minimum deposit requirements make trading with LCG affordable, and the use of innovations and high-quality service make it comfortable.
| 💰 Account currency: | USD, GBP, EUR, and CHF |
|---|---|
| 🚀 Minimum deposit: | 10$ |
| ⚖️ Leverage: | Dynamic, up to 1:500 |
| 💱 Spread: | From 0 pips |
| 🔧 Instruments: | Currency pairs, indices, spot metals, stocks, commodities, CFDs, exchange traded options, ETFs, bonds and interest rates |
| 💹 Margin Call / Stop Out: | No data |
Pros and cons of LCG Group
👍 Advantages of trading with LCG Group:
•Low minimum deposit requirements.
•A wide range of trading instruments.
•An information section with training and analytical materials.
•Round-the-clock support service.
•No commission for funding the deposit and withdrawal of capital.
•The possibility to trade from different devices such as a PC, tablet, or smartphone.
•The presence of Islamic accounts.
👎 Disadvantages of LCG Group:
•The company does not provide offers for passive earnings such as copying services or bonus programs.
•The broker does not serve clients from certain countries.
•Customer support doesn’t work on weekends.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
-
A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
-
In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
-
A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is LCG Group Regulated? Broker’s license
Security (Protection for Investors)
The LCG broker is licensed and supervised by the SCB (Securities Commission of the Bahamas), license number: SIA-F194. The country of incorporation is the Commonwealth of the Bahamas, registration number 200271. LCG’s subsidiaries are also registered and licensed. LCG Limited is regulated by the FCA (UK Financial Conduct Authority), license number 182110. LCG Limited is also regulated by the FCA, and the registration countries are England and Wales, registration number 3218125.
The finances of the broker’s clients are kept in accounts with European financial institutions, therefore, in case of unforeseen circumstances, LCG clients can recover their funds because the broker does not have access to them and cannot use this money for personal purposes.
👍 Advantages
- The broker uses segregated accounts to store clients’ funds
- The company’s activities are licensed and regulated
👎 Disadvantages
- LCG does not cooperate with independent bodies to resolve disputes between the company and its clients
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by LCG Group, which you can see below.
Traders Union’s analysts checked LCG for trading and non-trading commissions, their size, and the presence of hidden fees. The size of the spread may differ for different assets, but the broker indicates the minimum values as 0.8 pips for the Classic account and 0 pips for ECN. The broker does not provide data on the non-trading commissions for maintaining an account, its deactivation, or the absence of trading activity. There is no fee for funding the account or withdrawal of earnings, the exception is the funding of the deposit through a credit card, in which case the trader pays a commission in the amount of 2% of the transfer amount.
| Account type | Spread (minimum value) | Withdrawal commission |
| Classic | From $8 | No |
| ECN | From $0 | No |
Brokers that are similar to LCG Group
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of LCG Group conditions with its closest competitors.
Comparison of LCG Group with other Brokers
| LCG Group | RoboForex | Pocket Option | Exness | XM Group | Deriv | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, LCG Trader |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5, MobileTrading, XM App |
Deriv bot, Deriv MT5, Derivix, Deriv Trader, SmartTrader |
Min deposit |
$10 |
$10 |
$5 |
$10 |
$5 |
$5 |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
1.00%% |
Spread |
From 0.1 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0.6 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
No |
Yes |
No |
No |
Yes |
No |
LCG is a broker for beginners and professional traders who prefer trading and managing their own funds independently.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
XM Broker is a broker for professional trading. Trading conditions correspond to the average market; there are technical advantages that distinguish XM Broker from its competitors.
Deriv is a broker for beginners and professional traders who prefer to make trades on their own, as well as use auxiliary programs for more efficient trading.
Conclusions
LCG Group is a quite reliable broker for trading. LCG Group operates on the license of a reliable jurisdiction and its operation is regularly monitored. However, the company does not offer the best trading conditions compared to competitors. You can choose this broker and not worry about the safety of your funds, but there are better options in terms of trading conditions.
- Is AximTrade Regulated? Is it safe?
- Is Spreadex Regulated? Is it safe?
- Is Varchev Regulated? Is it safe?
- Is TopstepTrader Regulated? Is it safe?
- Is FXTM Regulated? Is it safe?
- Is Fidelity Regulated? Is it safe?
- Is Gerchik&Co Regulated? Is it safe?
- Is Skilling Regulated? Is it safe?
- Is Hantec Markets Regulated? Is it safe?
- Is Core Liquidity Markets Regulated? Is it safe?
- Is WForex Regulated? Is it safe?
- Is UFX Regulated? Is it safe?
- Is BlackStone Futures Regulated? Is it safe?
- Is NS Broker Regulated? Is it safe?
- Is NAGA Regulated? Is it safe?
- Is 1Market Regulated? Is it safe?
- Is ATC BROKERS Regulated? Is it safe?
- Is TigerWit Regulated? Is it safe?
- Is SmartFX Regulated? Is it safe?
- Is JustForex Regulated? Is it safe?
- Is CMTrading Regulated? Is it safe?
- Is FP Markets Regulated? Is it safe?
- Is Questrade Regulated? Is it safe?
- Is Trading 212 Regulated? Is it safe?
- Is TFI Markets Ltd Regulated? Is it safe?
- Is Trade360 Regulated? Is it safe?
- Is VT Markets Regulated? Is it safe?
- Is InstaForex Regulated? Is it safe?
- Is Trade Nation Regulated? Is it safe?
- Is PaxForex Regulated? Is it safe?
FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
Related Articles
Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.