page title icon Lux Trading Firm Review – Rules, Pros & Cons (2022)

Overview

Lux Trading Firm is a prop trading company that allows trading in a wide array of financial instruments and offers massive amounts of capital to consistent, careful traders. 

Thanks to their variety of tradable assets, quick scaling and available capital, Lux Trading ranks very highly on my Best Prop Trading Firms for 2022

Lux Trading Funded Trader Program Highlights

Highlights – Trade equities, forex, crypto, bonds, more
– Quick scaling — just five stages from $15K to $2.5 million
– 65% profit split begins with second stage of evaluation
– 6% profit target, 4% max relative drawdown
– No time limit for completing evaluation
– Get 10x initial balance when you pass evaluation
– Fees are fully refunded after passing evaluation
Sign up link Start trading with Lux Trading today

Pros

  • Earn money while you’re being evaluated — In Step 2 of your evaluation, Lux gives you real capital and lets you keep 65% of the profits. 
  • Huge capital leaps every time you advance  — Make 6% on your Stage 2 account and receive 10x your starting capital. After that, make 10% profit and your account size will double. (Minimum trading day requirements apply.)
  • Lots of tradable assets — With Lux you can trade stocks, bonds, CFDs, and other instruments in addition to forex.
  • Attainable profit targets — During your two-step evaluation process, you only need to hit a 6% profit target to advance. 
  • Access to a risk management desk — Lux has a risk management desk that’s singular purpose is to help you navigate trading parameters and teach you risk management. 
  • Great trader support — Industry-leading, fast, reliable customer support team is available 24/7 via chat. 
  • Excellent reputation — Lux Trading Firm is highly regarded and has funded traders in more than 49 countries.
  • No time limits — Take as long as you need to hit your profit targets, you won’t be up against a clock. 

Cons

  • Refundable fees are pretty high — Lux refunds its fees after you pass Step 1 of their two-step evaluation, but you’ll be on the hook for some higher-than-average fees if you don’t pass.
  • A lot of required trading days — Lux is looking for patient, consistent traders, so they require someone to meet their profit targets over 29 trading days each for the first two stages.
  • Strict trading parameters — Lux has a 4% maximum relative drawdown, which means you won’t be taking on a lot of risk. Since it’s a relative drawdown, it changes according to your account balance, so you have to be careful. Fortunately, Lux has a great risk management desk to help you keep in line with the parameters.
  • Stop-loss — You must always have a stop-loss in place with any position you take. If you forget, you won’t lose your account, but your position will be automatically closed and you won’t receive any of the profits.

Who should sign up with Lux Trading Firm?

Lux Trading Firm has an ideal trader in mind—one who has a proven trading strategy that nets consistent profits without assuming substantial risk. If you fit this mold, Lux will give you a lot of money. A lot. But they expect their traders to be very careful with their capital.

Traders who would like to trade more than the typical forex offered by most prop firms can also find a welcoming home at Lux Trading. Lux allows the trading of any security offered by their broker, Global Prime. That includes stocks, bonds, forex, commodities, and other financial instruments. 

Lux is also a great choice for traders who want to be trading with a highly regarded prop firm that offers verified live accounts with real capital. After the first evaluation, there is nothing simulated about your account with Lux. You’re a real trader trading in the real world.

Who should NOT sign up with Lux Trading Firm?

Boom or bust traders should look elsewhere. It will be difficult to survive the minimum trading days requirements with only one or two big trades. You have to hit your profit target over 29 trading days with a consistent, measured approach, while employing the required stop-losses and minding the 4% drawdown parameters. 

Lux Trading has said it straight out on TrustPilot: “We do not look for gamblers or high-risk traders.” 

All things considered . . .

Lux Trading is about as close to the prop trading firms of old as you’re going to find. They’re old school. They give out real capital. They are eager to reward successful traders who play by the Lux trading rules. Sign up and succeed with Lux, and you’ll be on your way to an extremely rewarding career. 

Lux Trading Basics

Lux Trading origin story

Lux Trading was founded by asset managers who were looking to diversify their portfolio and find nontraditional trading and investment opportunities. In the 1990s, they decided to recruit talented retail traders to join the firm, and have been giving traders such opportunities ever since. In January 2021, they extended that opportunity to the general public by opening up a prop firm open to anyone.

They’ve grown in leaps and bounds since then, and they currently have funded traders operating in 49 countries.

The founders are still in the asset management business and if you really excel as a trader, Lux Trading Firm offers a promotion all the way up to Fund Manager, which comes with $10 million to manage.

How does Lux Trading Firm work?

Lux does things a little differently than a typical prop trading firm like FTMO. They have a two-step evaluation process, but for the second step you are already trading real cash and keeping real profits.

When you sign up, you choose between three capital levels, $5,000, $10,000 or $15,000. You are initially given a demo account with this balance. If you meet a 6% profit target over 29 trading days and stay above the 4% maximum relative drawdown, you move on to Step 2 of the evaluation. Your reward for passing Step 1 is a full refund of your initial fee. 

The maximum relative drawdown is calculated by taking 4% of the highest value your account has reached and subtracting that from your maximum account value. So if you profit $800 on a $10,000 account, your maximum drawdown is 4% of $10,800 or $432. So the value of your account cannot dip below $10,368.

For Step 2 of the evaluation you’re given the balance that you chose in real capital and unleashed upon the real market. The profit target, maximum drawdown, and minimum trading days are all the same for the second step. Now, however, you get to keep 65% of your profits. 

Meet your objectives on the second step of evaluation and you are very suddenly in the big time, trading at the Professional Level. At this point Lux will give you 10x your initial balance. So if you chose a $15,000 account, you are now trading $150,000. That’s pretty incredible. 

Accounts at the Professional Level have slightly different rules than those at the evaluation levels. At the Professional Level, you can move up to higher levels of capital by meeting a 10% profit target in 49 trading days and staying above the 4% relative drawdown. The drawdown is calculated a little differently, as it resets to the initial balance level at the beginning of each month if you make profit withdrawals. The profit split remains at 65% for all stages of the Professional Level.

Should you meet those objectives, your account size is doubled, or more. With the $15,000 account, you can scale up from $15,000 to $150,000 once you pass both stages of the evaluation, and the next level is $500,000. After that? $1 million. That’s $15,000 in dummy dollars up to $1 million of real capital in just five steps.

You can scale up all the way to $2.5 million, and if you continue to prove the reliability of your trading style, you can advance to Fund Manager. Fund Managers get no less than $10 million to manage.

During any stage of the process if you violate the maximum drawdown, you can purchase an account reset for £250. The reset will put you back two stages, but you won’t have to start over from the beginning. 

How much does Lux Trading Firm cost?

Lux Trading offers three different account sizes. All fees are one-time only and you have as long as you need to hit profit objectives. 

Account SizeRefundable One-time Fee
$5,000£299
$10,000£399
$15,000£499

All fees refundable after successful completion of Stage 1 evaluation.

My Assessment

I grade prop trading firms according to my assessment of the following seven factors. You can read how Lux Trading compares to other prop firms in my Best Prop Firms of 2022 article.

Profit splits – 8/10

At a 65% profit split, Lux Trading is about middle of the pack when compared to other prop firms. One popular competitor, FTMO, has an 80% profit split or higher, but FTMO uses demo accounts for its traders. Lux uses real trading capital. Lux also funds its traders after just one stage of evaluation. Considering those two factors, 65% seems pretty generous.

Scaling opportunities – 9/10

I’m going to go ahead and coin a phrase: The Lux Leap. Nobody scales you up in bigger increments than Lux Trading. From the second stage of your evaluation to your first stage in Professional Level, Lux gives you 10x your account size. Ten times!

From there on, every time you meet your profit target, they will double your account or more. Here’s the scaling if you sign up for the $15,000 account:

StageAccount size
Stage 1 – Evaluation $15,000 (demo)
Stage 2 – Advanced Evaluation$15,000 (real capital)
Stage 3 – Professional Level$150,000
Stage 4 – Professional Level$200,000
Stage 5 – Professional Level$500,000
Stage 6 – Professional Level$1,000,000
Stage 7 – Expert Level$2,500,000
Stage 8 – Fund Manager$10 million

You won’t find another proprietary trading firm that scales in such large leaps. 

I didn’t give them a full 10/10 because one of the reasons they have enough confidence in their traders to give them so much money is that they require 29 trading days to pass the first two stages and 49 trading days to advance through the remaining stages. For swing traders, only 15 days are required during your evaluation and 25 days once you’re at the professional level.

Lux will give you huge chunks of change, but they want to make sure your trading strategies are legitimate and replicable before they do so.

Trade parameters/profit targets – 8/10

The profit target of 6% is very obtainable, especially since Lux gives you unlimited time to get there. Most prop firms that give you unlimited time also charge you by the month, but this isn’t the case with Lux. 

Lux wants steady, consistent traders, and they understand that those types of traders need time to reach their profit targets.

The trade parameters are also designed to reward the most patient traders. A 4% maximum relative drawdown doesn’t give you a whole lot of room to speculate. I wish they were a little less strict in that regard, but I understand where they’re coming from. 

Affordability/value – 8/10

Lux Trading’s one-time fees are on the high end of the spectrum when compared to other prop trading firms. Those fees are, however, fully refundable after you pass your evaluation. Lux also doesn’t charge monthly fees, which is rare for a prop firm that gives you unlimited time to meet your profit target.

Educational resources/trader support – 8/10

Considering the type of trader Lux hopes to attract, it is no surprise that they prioritize risk management in their trader education program. Lux offers every trader access to their risk management desk. The risk management desk helps traders negotiate the maximum relative drawdown, use of leverage, and other trading parameters. They offer individual reviews of your trading style to make sure you can minimize your risk while maximizing profits.

Beyond the risk management desk, most of Lux’s educational resources come from third parties. The phenomenal research and analytics provided by Trading Central is offered free to Lux traders and can be integrated with most trading platforms. 

Tradable assets – 10/10

As I’ve mentioned elsewhere, Lux provides an array of tradable assets that is well beyond a select group of forex pairs offered by some prop firms. If forex trading is your forte, you can certainly do that with Lux, but you can also trade stocks, CFDs, commodities, metals, and more. 

Trustworthiness – 10/10

The people behind Lux Trading have been in the asset management and trading business forever. Lux is well funded and has a proven track record of making all profit payments. 

No firm is as transparent as Lux when it comes to your trading record and whether or not your trades are being executed in the real market. Lux has partnered with KPMG so that funded traders can receive audited, certified trading records. Lux also has ample documentation to prove their affiliation with Global Prime, one of the most trusted forex brokers in the world.

My overall rating – 8.7/10

Lux gets very high marks for its scaling program, trustworthiness, and number of tradable assets. I wish they would loosen their trading parameters a bit, but Lux is very clear that they value consistency over all else. If you’re a steady, patient trader who wants to grow your capital in leaps and bounds, head to Lux Trading

What Others Are Saying

TrustPilot

With nearly 250 reviews, Lux Trading Firm has an “excellent” rating with 4.7/5 stars. That’s a pretty good sample size and 86% of reviewers gave Lux Trading Firm a full five stars. 

The few very negative reviews I read mostly took issue with how blunt Lux’s customer service can be. They will not hesitate to tell you to trade elsewhere if you don’t want to abide by their trading parameters. Apparently, there are some traders out there that aren’t used to that level of honesty.

The good reviews all cited that same customer service department for their attentiveness and prompt replies. Some were pleased with the available trading platforms. Just about everyone loved the scaling plan.

Google Business

FIve out of five stars! Unfortunately, only two traders have voiced their opinion with Google Business. 

Facebook

Lux doesn’t offer a rating service on their Facebook page, but they do have over 2,000 likes and followers, if you value such metrics. 

Overall

Like with most prop firms, TrustPilot holds the bulk of Lux’s reviews, and those are overwhelmingly positive. Traders love their customer service, scaling opportunities, and available trading platforms.

Frequently Asked Questions

Is Lux Trading Firm legit?

Yes, absolutely. Lux Trading firm is a legitimate prop trading firm with an established track record of paying out many successful traders. 

Does Lux Trading Firm offer discounts or promo codes?

Not often. You can sign up with them here. In the event of a discount or promo code, I will update this link.

Can anyone join Lux Trading Firm? Can Americans join Lux Trading Firm?

Yes, anyone can join Lux Trading, including Americans, so long as you are over the age of 18.

How do you pass the Lux Trading Firm evaluation?

Lux has a two-stage evaluation process. The first stage is a demo account, and the second stage comes with real capital and a 65% profit split.

To pass Stage 1, you have to hit a 6% profit target without violating the maximum relative drawdown of 4%. There’s also a minimum of 29 trading days with a minimum of 29 trades, but there’s no time limit — you can take as long as you want to hit your profit target. 

The maximum relative drawdown is a moving target, so you have to be careful. It is calculated by taking 4% of your account’s maximum value and subtracting that amount from the maximum account value. To use the same example as before, if you profit $800 on a $10,000 account, your maximum drawdown is 4% of $10,800 or $432. So your account cannot dip below $10,368.

You also have to have a stop-loss in place for all orders, and the stop-loss must be within the 4% drawdown limit. If you execute a trade without a stop-loss, the position will be automatically closed. 

Stage 2 has the exact same rules regarding minimum trading days (29), profit target (6%) and maximum relative drawdown (4%). The only difference is that you are now trading with real money and will be making real profits. 

What can I trade with Lux Trading Firm?

Lux offers a wide variety of tradable assets, much more than the average prop firm, which is just designed for forex traders. Lux also offers equities, CFDs, commodities, metals, and more. Lux allows you to trade anything that their broker Global Prime trades. 

What types of accounts does Lux Trading Firm offer?

Lux offers three different accounts based on initial starting balance. You can choose between $5K, $10K and $15K. Once you pass the two-stage evaluation, you get 10x the amount you chose. 

Does Lux Trading offer swap-free accounts?

Yes, Lux Trading offers swap-free accounts through their brokerage, Global Prime. Contact Lux Trading customer support for more details.

Is Lux Trading Firm regulated?

No. Like almost all other prop firms, Lux Trading avoids the distinction of being a broker/dealer and therefore is not regulated like typical financial service companies. 

If I violate the trading objectives does Lux give me a second chance?

Yes, Lux offers an account reset option for £250. Depending on where you are in the program, you may have to reset two stages below your previous stage.

How can I contact Lux Trading Firm?

Lux can be reached via chat on their website, via email at info@luxtradingfirm.com, or phone at +44 20 7193 9534, and their office is at 160 City Road in London, just around the corner from the Three Crowns Pub.

My Lux Trading Review Summarized in Exactly Forty Words

For consistent traders, Lux Trading will open up their wallet and provide as much capital as you can manage. You can earn money while you are evaluated and begin your path towards $2.5 million in capital, if you start today.

Further Reading

More full prop trading firm reviews: FTMO, Fidelcrest, Topstep Futures, Blufx, The 5%ers.

Best of’s: Best Prop Firms of 2022, Best Prop Firms for Stocks, Best Prop Firms for Beginners

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