Lykke is a semi-decentralized company launched in 2015, which aims to implement cryptocurrency trading, alongside a forex brokerage, and provides a platform which allows start-ups to dole out new tokens. Lykke’s mother company is based in Switzerland and has two other subsidiaries. One of the subsidiaries is registered in the UK and is at the moment, in the process of getting an FCA license, as a Multilateral Trading Facility (MTF). The third subsidiary is registered in Vanuatu and has the substantially more comfortable perspetive to get Vanuatu Financial Services License.
Lykke allows traders to Exchange crypto and fiat currencies for one another, and also offers margin trading on different instruments, which include major currency pairs and BTC/USD.
According to the information on its website, Lykke demand that new traders undergo different account verification stages, in line with its Know-Your-Client (KYC) process. New traders are required to submit some documents so that Lykke’s compliance team will review and make a decision on the verification within five working days, although might take longer than that sometimes.
Lykke trading platform can only be accessed via a mobile app with a very basic charting, which supports the Android and iOS platforms. However, the company will have to change this as soon as possible if it is to attract serious traders. When compared to traditional Forex platforms like MetaTrader (MT4), Lykke’s platform is not in any way impressive.
Lykke will also have to improve the platform’s functionality dramatically if it is to get patronage from expert traders. On the other hand, the platform gives a great opportunity to access the world of forex trading and has a wide selection of pairs to trade including fiat/crypto pairs and crypto/crypto.
On Lykke’s demo platform, the spread starts from 0.3 pips on EUR/USD fiat currency pair. While this seems impressive, we do not know for sure if the real accounts will have such conditions. Lykke does not charge any fee on deposits and withdrawals.
Deposits and Withdrawals
The deposits and withdrawal methods at Lykke include Credit/Debit Card, Bank transfer, Cryptocurrency transfer (currently only Bitcoin and Ethereum are available). The one important thing to note is that transactions on Credit/Debit Card are only available for your USD wallet. If you have a card denominated in another currency, you will still be able to make the transfer, but your money will be converted to USD.
Is Lykke Safe?
As said earlier, Lykke is a Swiss company developing a global blockchain-powered marketplace and has implemented a first-of-its-kind agent-based algorithm for setting prices, offering liquidity to sellers, and reducing volatility. Apart from its poor standard mobile-based platform, we can say Lykke is a safe company to trade with, as it is on its way to getting an FCA regulation, and moreover, it is run by a renown veteran in the Forex industry.