LuxTradingFirm.com Review

If you are a Long-term talented Swing Trader and talented investor looking to grow, then look elsewhere at a more honest company or use your own capital to invest in stocks, indices or crypto. LUX Trading Firm is a dishonest company and does not give you what the average joe thinks he is getting, but it uses a manipulating marketing ploy to hook the bystander, dangling millions in your eye, when in actuality it is worse than if you did it yourself.
A professional trader and investor that swing trades a stock or index will typically risk between 0.1% to 0.3% per trade on a large account, sometimes up to 1% per trade.

OBSERVATION:
(1) LUX Trading Firm has non-explicit rules that make it a deceptive marketing scheme including what is written on their rules page. The average swing trader is not really getting what he/she thinks he is really getting. The swing trader will never know that you are actually managing dramatically less than 1 million dollars and the swing trader does not explicitly realize that LUX gives you only 0.3% total max risk on a 1-million-dollar account for all open trades counted together. Not only is this ridiculous, but it is not so explicit in the rules; and it is very confusing. They will only state "max risk capital on our funded accounts is 6% of the total account size" or "6% max risk capital of the total balance". The average joe will never be aware that in reality that you can only risk a maximum of 0.3% of all opens trades together of the max achieved balance. This is very deceptive!
(2) LUX is a terrible decision for talented Long-term Swing Traders and investors, and there is a better solution as it wastes their time and money. That time and money is more effective in your own pocket with a greater rate of return.
(3) LUX uses a deceptive marketing ploy: What is not told is that you can only risk a mere 0.3% or $3000 from the dangling "1 million dollars" that is supposedly offered to manage on the highest achieved balance. And you will never notice this since they never explicitly state it, but in vague words. This is the same as trading 300,000 USD and risking 1% on a trade like other prop firms. And other prop firms are more honest about it. So, it is not really 1 million dollars you are managing, but it is just a marketing ploy and calculation manipulation. You can do it yourself, because it is also the same as taking your money and diversifying your investment in US stocks with a mere $10,000, buying and holding fundamentally sound companies like APPLE, MCD, etc., for five years and re-investing dividends (but you will make more doing this yourself).
(4) LUX does not give you a courtesy warning message like other prop firms that your EA (or you) forgot to add a stop loss. And there is no courtesy email that you broke a soft rule and maybe did not realize it. And, you do not have at least 1 minute to fix the situation like honest prop firms do. You will wait an entire year or two years after finishing your challenge all to be told you made a mistake and did not realize it.
(5) For a swing trader that holds a stock for days to weeks to months, it is ridiculous that a prop firm like LUX dangles and pretends to give you a million dollars all to be expected to risk maximum only $3000 for all open trades together max. This is just a mere 0.3% max risk total of the total achieved balance. This is not only pathetic, but this is not an "industry standard", but a dishonest marketing scam that is non-explicitly stated. You are not really managing a "million" or more for that matter, but far less! The industry standard is closer to being about to losing $3000 in one trade or closing in loss of 0.3% at the stop loss hit per trade on a one-million-dollar account!

You might as well invest your own capital of $5,000 or $10,000 in the US stock market (or index) or go to a better prop firm that is honest and that gives you a maximum risk per symbol of 1.5% or a maximum risk of 5% of all open trades; and, who does not bother you if you they know that you are already a conservative swing trader. It is very dishonest of LUX Trading Firm to not explicitly say that "you cannot risk a total of 0.3% of all open trades together on the highest realized account balance", but it is non-explicit and that makes it a scam and a big-time waster for talented swing traders and investors. Not even the 24/7 customer service was helpful because they did not even realize this themselves. And no average joe reading it would realize this either. It is deceptive.


CONCLUSION:
Lux Firm's non-explicit risk of 0.3% of the highest realized account balance is not only ridiculous for any talented investor and serious swing trader but it also not a firm for talented long-term swing traders investing in stocks and indices, but scalpers who will end up losing their shirt. It is merely a marketing ploy, a scam and a waste of time. With long-term swing trading, it will take you about 2 to 3 years or more to pass LUX's Million Dollar Challenge (and they do not warn you if you make a mistake in a courtesy email (like other firms do) until the very end after your one year or two years with them. A total waste of time.). You are forced to day trade for scraps on tiny time frames, like an hourly chart. If you have $5000 - $30,000 USD of your own money to spare and you can re-invest and/or make monthly or quarterly contributions, then you are better off investing and swing trading in US stocks (or indices or crypto) yourself for 2 to 3 years. You will make more money in the end. Your compounded returns will be worth far more money even with Lux's current scaling program to 10,000,000 USD. But if you are a scalper or a short-term day trader (gambler) that trades on 1 hour timeframes and below, and that does not hold for days to weeks or months like a swing trader, then it is ok to try it, but then there are better firms that are more honest about their rules and will give you a courtesy email warning if you are not aware that you made a soft mistake caused by a malfunction or maybe even something else that could have happened.

The biggest draw of this firm is that they have a letter from Global Prime stating that you are trading w/ real money. Most of these 'prop firms' are not offering live accounts, and if you take a few minutes to think about it - it becomes obvious.

However, even if they were offering live accounts, the company has recently started to change the rules of the game at will, signalling they may be in financial trouble. The biggest clue is that those who are trading at 500k or above are now being paid less, but the smaller accounts make more. This suggests that some traders that are actually 'funded' with higher amounts of capital are costing the company big payouts. They suggest that it is because they are having trouble attracting investors with the previous cut.

However, they are now restricting trading on Feb 27 'until further notice', for both live and evaluation accounts, due to the Ukrainian war. They 'feel it is in bad taste to profit from the invasion.' In other words, they are worried it will cost them if the markets gap massively. All trades will not be counted until the ban is lifted, which we don't know when.

The whole set up is inferior to many of the other arcades that seemingly pop up everyday. I gave them 2 stars because I like the amount of markets available, and the selection of platforms. However, there are better choices out there. I am also a funded trader at the5ers, and they don't seem to be worried about making money from my trading. Neither are any other firms in the world, except this one that suddenly starts moving things around.

I suspect they are in financial trouble or something. Just a warning. I would avoid at this point, there are so many others out there.