Lux Trading Firm is a London-based prop firm. The intellectual dream child of a trading veteran with 30 years of experience under his belt, the prop firm was founded in 2021 and gets stronger by the year. The team behind Lux Trading Firm is well versed in portfolio management, diverse strategies, and financial investment in all market conditions. Lux Trading Firm is certainly not the biggest or best-known funding firm by any means.
Where it lacks size and reach however it makes up for in its warmth and usability. One of the few prop firms with an internal blog exploring a suite of relevant themes and the first one yet to have a direct line on their website and offer contact by telephone. A small but friendly and approachable prop firm with a funding challenge not to ignore.
What are proprietary trading firms?
The prop firm industry grows bigger by the day which means traders seeking leverage can be discerning in their choices. A brief background on proprietary trading: prop firms are financial platforms that offer traders the opportunity of accessing accounts funded with the firm's capital. Sometimes, the funded accounts can be as great as $2 million. The profits earned in a funded account are shared between the prop firm and the trader, with the trader receiving the majority of the profits and the prop firm assuming the risk of losses.Before they can receive funding, traders need to show evidence of their skills and ability to trade profitably. This means prop firms will have a “challenge” or series of tests through which traders have to hit profit targets under risk management and time restraints. Prop firms vary in terms of the entry fees for the challenges, associated rules, and account sizes. Lux Trading Firm is one of these prop firms. The purpose of this review is to see how their funding works, and whether Lux Trading Firm compares favorably to its competitors.
Lux Trading Firm Challenge review
There are a host of trading programs available through Lux Trading Firm. Applicants can choose between 7 stages, 6 stage5 stages, with accounts starting at $5K, $10K, and $15K. Lux Trading Firm stands out in that there are multiple trading platforms on offer. Traders can choose between three different platforms: Trader Evolution, TradingView, and MetaTrader. Moreover, there is a free trial option whereby users can test the challenge for seven days before deciding whether to pursue the program. Again, this is an unusual feature for a prop firm.
Lux Trading Firm also presents an alternative avenue toward funding. The Lux Elite Traders Club. By choosing this option, traders can raise their success rate from 1% to 20% or more with more flexible rules and optional resets. Elite Traders also have a personal mentor and access to a customizable Risk Desk for improved trading. Like most prop firms, Lux Trading Firm has its inbuilt dashboard for monitoring and analytics.
Let’s talk about the good stuff …
Lux Trading Firm neither swept us away nor failed to pique our interest. They have a glowing reputation on customer review platforms such as TrustPilot (although the reviewers could have had a vested interest in Lux). Moreover, the friendly support and flexible timings make it an attractive prop firm. To ensure we are giving a fair evaluation of the platform, we will assess the metrics of Lux Trading Firm on an individual basis.
Lux Trading Firm’s website could do with polishing, but what it lacks in elegance and clean UX design, it makes up for with some promising offers. Traders who successfully demonstrate their ability to implement successful strategies will be funded with up to $2.5 million. The profits will be shared between the trader and Lux Trading Firm, with a generous 75% split in the trader’s favor.
... and the bad
Any trader interested in seeking funding through the Lux Trading Firm programs would be well advised to read carefully through the platform's trading rules. Each account size and type will have a different set of associated rules and metrics. The rules are too lengthy to describe in any detail here, however, for the purpose of this review, we will give you a brief overview of some of the profit targets and drawdown limits.
Lux Trading Firm imposes tough risk management measures. The maximum relative drawdown is 4% for the Evaluation and Advanced stages of the Lux programs. Additionally, the stop-loss has to be within the 4% drawdown limit and must not exceed the maximum allowance of risk capital. While there is no time limit, traders do have to hit a minimum number of active trading days (29 for evaluation and advanced accounts and 49 for professional accounts). There is an exception for swing traders. Lux does have a reasonable scaling plan: once funded, every time the trader hits a 10% profit target their account will double in size (until the cap of $2.5 million).
|TrustPilot||Lux Trading Firm TrustPilot Customer Reviews, Feedback and Complaints|
|Trustpilot||On Trustpilot, Lux Trading Firm has currently 418 number of reviews with a TrustScore (the overall measurement of reviewer satisfaction) of 4.50/5.00. Reviewers embracing Lux Trading Firm most frequently mention No time limit and fast scaling on evaluations, and
Rules and the steps to get to bigger account values are clear. Lux Trading Firm also has a fast and reliable support team that will provide you with all the necessary information you require from them or if you are unsure of anything.|
Lux Trading Firm firm's reply behavior to negative reviews is up to the standard having replied to 93% negative reviews with a response time to their negative reviews in less than 1 days.
TrustPilot Reviews' Key takeaway