Larson and Holz IT Ltd. – “kitchen” with 15 years of experience
No matter how much you read the reviews about Larson & Holtz, you will not understand who he really is: an inveterate fraudster or the most honest broker. He has a lot of fans. But there are also those who understand: this is a typical “kitchen”. They continually complain about managers who insolently drain their deposits, useless personal managers and analysts.
Those who write scathing reviews about Larson and Holz IT Ltd. are struggling to convey to their colleagues what they think is important information. They explain: This broker is a scam. But he has one distinctive feature. He allows you to withdraw money from the account.
However, there remain pitiful pennies. And it’s not about crooked traders who don’t know how to work. It’s just that the broker skillfully manipulates spreads and leverage. And he also does not hesitate to use other loopholes in order to unobtrusively but very accurately empty the deposits of unsuspecting traders.
What is this broker
Larson & Holz has been operating since 2004. As it is written on his official website, he immediately chose the target audience. By chance, Russian-speaking traders were unlucky.
But the broker did not register in Russia. His choice fell on the UK. And some time later he moved to offshore – to the Marshall Islands. The address of his office will seem painfully familiar to those who know about the existence of kitchens: Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro. The more you learn about scammers, the more it seems that this building, like a fabulous mitten, welcomes everyone who is looking for a home. Indeed, as of 2019, hundreds of different companies are registered there.
And lies again
Reviews of Larson and Holz IT Ltd. often discuss one interesting fact. The broker really wants to convince traders that it works legally. Therefore, he says that he enlisted the support of the Center for Financial Development.
Although this organization proves that it regulates brokers, de jure it does not have such rights. The only one who can give a license to provide intermediary services in Russia is the Central Bank. Therefore, the reviews of Larson & Holtz warn that if one day the broker escapes, taking trader’s money with him, it will be fantastically difficult to achieve justice.
However, he does not hide his contacts. For example, gives a phone number in Russia: 8 (800) 550-00-15.
Looking for signs of “kitchen”
Broker Larson and Holz does not even deny that it is engaged in clearing. It hides behind the fact that it combines STP and a hybrid service model.
But the truth cannot be avoided. His classic accounts have all the hallmarks of a “kitchen”:
- Small deposit. The broker allows not to fund the account at all. He himself gives the trader $ 100 to start trading.
- Wide leverage. When trading currency pairs, the leverage can reach 1 to 500.
- Instant order execution without requotes. This can only be done artificially. This means that lh-broker.com controls the quotes itself.
- High spreads. For popular pairs, they can reach 7 points. Naturally, when a broker needs it, he skillfully expands them so that traders cannot make a profit.
At the same time, the fraudster “Larson & Holz” is not shy about taking a commission for opening and closing transactions. For couples, it ranges from $ 6 to $ 20 (depending on the type of account). Naturally, the commission can be reduced. But if the trading volume exceeds 200, 1000, 2000, 3000 or 5000 lots. In this case, it will be $ 5, 4, 3, 2 and 1, respectively.
Reviews of Larson and Holz IT Ltd. note that this broker has accounts that output trades directly to liquidity providers. There are no bonuses and huge leverage. And they offer to trade in pairs, gold and silver. Floating spreads, low.
This looks plausible exactly until the minimum deposit is known. And it is $ 300. This is clearly not a direct trade with liquidity providers. And here’s why: whole lots are traded on exchanges and at market makers. One costs 100,000 of the base currency. For a pair “euro – dollar” it is 100 thousand euros. Moreover, the shoulder is very narrow.
The conclusion is simple: it is impossible to open a position with only $ 300 on the account. This means that the deals don’t go anywhere.