Lux Trading Firm Review and Analysis
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. For 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.
Pros and Cons
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.
$15,000 - Evaluation and Advanced account, profit target $900
$10,000 - Evaluation and Advanced account, profit target $600
$5,000 – Evaluation and Advanced account, profit target $300
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).
To truly evaluate what Lux Trading Firm brings to the trading table, we decided to score each aspect of the Lux Trading Firm Challenge individually.
- Challenge difficulty: The associated rules and restrictions on Lux Trading Firm – slightly more than average – made us give them a higher rating on difficulty. Where the firm challenges contestants are with strict drawdown limits. Traders with less risk-averse strategies might be best suited to more flexible challenges.
- Customer support: Lux Trading Firm more than deserve this stellar rating: their customer service is excellent, and they are one of the only prop firms to make themselves available to contact via telephone.
- Fee: Like most funding challenges, Lux Trading Firm has a scaling price system for their programs. The prices are as follows:
$5,000 Evaluation account £299 - $10,000 Evaluation account £399 - $15,000 Evaluation account £499
- Payout scheme: Lux Trading Firm does drop the ball somewhat when it comes to paying its traders. There are limited withdrawal methods, traders can only choose between bank transfer, Wise, or being paid in cryptocurrency. Notwithstanding the above, it should be noted that there are plenty of happy Lux customers making public assurances that they have been paid promptly and in full. Many of said traders have even uploaded proof of payment such as banking app screenshots or financial receipts.
Frequently Asked Questions (FAQs):
Who is Lux Trading Firm?
Lux Trading Firm is a proprietary trading site or “prop firm” established by a team of former traders and financial analysts. They offer traders funding upon successful completion of their evaluation program.
How much funding does Lux Trading Firm offer?
Lux Trading Firm has three different evaluation programs with varying account sizes, profit targets and trading rules. Traders who pass the evaluation stand to be funded with ho to $2.5 million to be used in live accounts. Profits are shared 65:25 between trader and prop firm.
What does the Lux Trading Firm Challenge cost?
There are different prices depending on which Lux Trading Firm program in question. The account sizes are $5,000, $10,000, $15,000 and they cost £299, £399, and £499 accordingly.