LegacyFX Review (2022): Trade With LegacyFX at Your Own Risk
Smart investors know how to play by the rules. They only deal with genuine, registered brokerage firms and always do their due diligence before investing their hard-earned cash.
Unfortunately, crooked brokers are also smart. They employ all manner of tricks to lure unsuspecting investors, relieving them of their money, sometimes in unclear circumstances but more often using highly sophisticated forex scams.
If you have been trading forex, indices or crypto with LegacyFX, lost money, and would like to lodge a formal complaint, we are here for you. Book a free consultation soonest, and our highly experienced experts will be on hand to assist you in recovering your funds.
Now, let’s unpack the unvarnished truth about LegacyFX:
An Unbiased LegacyFX Review
Since its inception in 2017, LegacyFX has established itself as a trustworthy broker by offering its global clientele an extensive array of excellent services. Spurred by the desire to enhance financial transparency and client protection, the brokerage firm boasts multiple regulatory authorizations, inspiring great confidence in its service offering.
But that’s not all. LegacyFX ticks many boxes. It:
- Empowers its customers through educational resources (videos and e-books)
- Offers high-end trading tools, analysis, and regular market research.
- Provides investors with suitable trading conditions and opportunities for long-term investment.
LegacyFX appears to be above board. But is this the entire picture or just one half of the story? Let’s explore its corporate identity, service offering, and regulatory status next.
LegacyFX’s Corporate Identity
LegacyFx is the property of A.N. Allnew investments Ltd, a Cyprus Investment Firm. The parent company boasts authorization and regulation from (CySEC), Cyprus Securities and Exchange Commission. Its License No. is 344/17, and the head office is located in Cyprus.
LegacyFX’s Service Offering
LegaxyFX offers traders the opportunity to trade in a wide range of financial assets. These include indices, commodities (CFD), metals, cryptocurrencies, currency pairs, and stocks.
The broker has 3 primary account types; Silver, Gold, and Platinum, with $500 as the minimum amount to open a trading account. The trading conditions are conducive, offering tight spreads starting from only 0.6 pips.
An Islamic account serves clients who prefer not to trade on interest-bearing accounts. The trading platform is the renowned and user-friendly MetaTrader 5 platform, which includes a desktop trading platform and a web version that’s easily accessed via any browser.
While LegacyFX sports an international clientele, it doesn’t offer its services to citizens of certain countries like the USA, Canada, North Korea, British Columbia, and Israel.
Who Regulates LegacyFX?
LegacyFX boasts multiple licensing. It has full authorization from reputable international regulators like CySEC, the UK’s Financial Conduct Authority, FCA, and Germany’s BaFin, Federal Financial Supervisory Authority. The broker is also GDPR compliant.
The Vanuatu Financial Services Commission (VFSC) and the National Bank of the Republic of Belarus (NBRB) also regulate All New Investment Limited. VFSC is an offshore broker. Such brokers are not strong regulators as they cannot enforce strict regulations.
So, is LegacyFX a genuine forex broker? Let’s delve in deeper; the devil is always in the details.
Is It Safe to Trade With LegacyFX?
Since LegacyFX is a licensed broker, it means that the company complies with the strict regulatory requirements of its regulators. These include segregating company funds from clients’ funds, placing them in leading EU banks, and protecting client investments by having negative balance protection.
But with online trading, you can never be too careful. Your money’s security depends on your due diligence. As such, you need to ascertain that your capital is secure and well-protected by the oversight authorities. That’s why the presence of an offshore regulator amongst LegacyFx’s regulators raises eyebrows.
The types of accounts or services you can access from LegacyFX vary based on which regulating entity is applicable. CySEC regulates the EU entity, whereas the international entity falls under Vanuatu. In the EU, the maximum leverage limit is 30:1 following ESMA rules, but clients outside Europe get up to 200:1 leverage on the Vanuatu site.
Trading conditions in offshore territories are very different, while the laws and regulations are not that strict. In such a situation, you cannot be completely sure that your investment is safe. Besides, when the regulating entity is outside your jurisdiction, you have no legal recourse if your funds get compromised.
Signs That Legacyfx Might Not Be as Transparent as It Claims
1. Poor Customer Reviews
According to reviews from bonafide LegacyFX customers on Forex Peace Army, a reputable broker review website:
- LegacyFX staff entice or coerce traders to invest their money then scam them.
- The account managers place trades without applying any stop loss and keep requesting for additional funds to boost your account.
- LegacyFX is a deposit game; the more you deposit, the more the managers earn.
- The account managers manipulate market analyses, pressure you to make trades, eventually getting you into bad trades.
- The spreads are incredibly high, at times up to 70 – 80 pips.
Similar complaints can be found at Trustpilot, a reputable consumer review platform, as shown below:
In a nutshell, the reviews portray LegacyFX as a dishonest broker out to get your money.
2. Average Broker Rating
WikiFX, an inquiry platform that provides information on regulatory licensing and credit evaluation on listed brokers, rates LegacyFX at 5.65/10. This average rating doesn’t inspire much trust in the broker. A closer look shows that the brokerage gets a 0 in risk management.
3. Other Notable Red Flags
Other noteworthy red flags include:
- The minimum withdrawal amount is ridiculously high at $100.
- Fund withdrawals can be a challenge.
- Reported incidences of no responses to customer emails, messages, and calls.
- The broker’s license to operate in the UK is temporary.
LegacyFX Review Conclusion: The Verdict
So, should you entrust your investment funds to LegacyFX? It’s better to err on the side of caution. The negative reviews highlighted above show that many customers are dissatisfied with the broker’s modus operandi while the offshore regulation doesn’t inspire confidence in the company.
Don’t take risks with your money; this could be a regulated scam hiding behind a fake veneer of credibility.
If you have lost money to LegacyFX, talk to us. We are trusted professionals who can help you recover your funds.