LegacyFX is a shady broker which uses deceptive tactics. Choosing a forex broker can be challenging. After all, the market is filled with numerous options. However some forex brokers aren’t trustworthy. They use malicious marketing strategies to lure people into their traps. In my LegacyFx review, I’ve discussed one such broker. I’ve focused on every aspect of this broker to ensure you make an informed decision and don’t fall into their traps. Let’s start.
Unlike most legacyfx.com reviews you’ll find online, we are actually going to show you the truth. If you like what you read here, then please share it online and help spread awareness with this Legacy FX Signals review.
Weak Governing Laws
LegacyFx operates from Post Office Box 1276, Port Vila, in Govant Building on Kumul Highway in the Republic of Vanuatu. The association of the same address with numerous other brokers raises many eyebrows. The list of companies having the same address is as below.
Multiple financial organizations are operating from the same address as that of LegacyFx. It is practically impossible that several companies of the same industry are operating from the same place. The weak governing laws of the region are responsible for this awkward situation. The second most probable reason for this situation is the address allocated as a virtual address to many brokers of the same region.
The address of a company has significant importance. It is the indicator of the location, registration, and regulation status of the broker. A false address or a broker operating from a virtual address is not reliable at all. The governing laws for a broker are the pillar of strength to traders. If the company is operating in a strong financial region like the USA, the UK, it is clear that the funds of traders are in safe hands.
In a matter of serious concern, LegacyFx operates from the Republic of Vanuatu. But it is regulated under the laws of Saint Vincent and Grenadines. The screenshot stating the governing laws from the terms and conditions of the broker is as below.
It is strange to see the 2 areas which are geographically apart from one other holding the resemblance to LegacyFx. The Republic of Vanuatu lacks strict rules and regulations for forex brokers. Such a region is ideal for shady brokers which earn by scamming traders.
The money of traders is illegally used in criminal activities going on in the region. My LegacyFx review advises traders to avoid dealing with brokers which are from these regions. You can’t put trust in the registration or the regulation of these brokers as the regulatory authorities aren’t reliable.
Saint Vincent and the Grenadines is also a weakly governed developing place for forex brokers. The Financial Supervision Authority does not control their operations.They don’t perform audits on their transactions, they don’t deposit money in segregated accounts in secured banks. Another important thing to note is that in both of the cases, the regions of association of LegacyFx are offshore places that are already under the lens of various regulatory watchdogs for their inferior supervision on the financial institutions dwelling in their regions.
This reason alone should be enough to stay away from LegacyFx. They are obviously a horrible choice.
No Service in the US!
LegacyFx cannot provide its services to traders in the USA. This is another blow to the high claims of the broker about its services and ethical operations. US does not allow any offshore broker to steal money from its traders. The highly strong laws are helpful in the financial regulation of the region. The association of banks for holding the funds of the account holders, proper schematic administrative audits of the brokers, and the compensation to traders in case of the bankruptcy of the firm make the region the strongest place for ethical trading.
If LegacyFx claims to be in operation for a long time and is into ethical trading services only then why the company isn’t present in the US. The mismatch of information in the address and the governing laws is enough for traders to smell the bad practices of the broker. My LegacyFx review strongly advises traders to do detailed homework before deciding on a broker.
Suspicious Ownership of LegacyFx
LegacyFx mentions on its website about the details of AN ALL NEW INVESTMENTS (VA) Limited. It emerges as the owner of LegacyFx. Their website confirms that it is a Cyprus based company. The different owners with different trading names hint that the owner is into a couple of other businesses. But it is not true in the case of LegacyFx. The details of the AN ALL NEW INVESTMENTS (VA) Limited reveal that it is also a broker firm but it does not mention any details about LegacyFx on its website.
The next prominent shock to traders is the domain registration dates of both of the companies. The domain of LegacyFx has been in use since 2004 and the domain of the owner AN ALL NEW INVESTMENTS (VA) Limited is in operation since 2016 only. It is not practically possible that an owner came into existence after its business. Looks silly, but how is it possible that a parent is younger than the child? The snapshot of the dates about the registration of the domains is as below.
It is not only an issue about the region and the address but of the actual relationship between the owner and LegacyFx. Up till now, I have not started with the services provided by them and there is so much confusion about the basics of the company. The addresses, the locations, the ownership indicate that something is wrong.
No Information on The Team
The broker does not mention any details about the team responsible for the operations of the company. There are no details about the organizational structure, the leading executives, the team, and their experiences. In such a situation, it is more difficult for traders to believe in the claims of the broker.
Regulated brokers never skip any information about the team. They are well-aware of the fact that traders look for the management in case of any issues. The experienced names from the brokerage multiply the reputation of the broker and they do not face any problems in generating clients. The hiding of information about the team hints that there is no such good team with LegacyFx.
High Minimum Deposit
After a reality check of the withdrawal conditions, let me provide clarity on the deposit conditions of the broker. The minimum deposit limit is set to as high as $500.
The company mentions on the website that it uses a couple of methods as deposit channels. In reality, they only accept deposits through credit/debit cards. More shockingly, there are no details about other payment partners like bank wire transfers and the e-wallet payments.
It is well-known that secure payment partners like Skrill work only with regulated brokers. Skrill works under an “anti-scam” policy in which they don’t work with offshore unregulated brokers. It tries to protect traders against the fraudulent activities of the brokers which aim to exhort money from traders.
High Withdrawal Fee
LegacyFx charges $50 as the account closure fee. It is a very high amount as compared to other regulated brokers. The high fee set by the broker is an indicator of their weak customer-centric policies.
The minimum withdrawal limit is also set as high as $50. Traders cannot withdraw less than $50 from their trading accounts and the same amount is set as the fee. This minimum withdrawal extends to $200 in case of bank wire transfers along with the fee. The minimum withdrawal plus the withdrawal fee combines to be $250. So overall, in any case, the broker has the option to keep $50 from a single trading account of the investor. Just imagine the amount which the broker is collecting illegally from traders on an annual basis. The point to note here is that LegacyFx does not mention these things clearly and tries to manipulate traders.
A regulated broker never steals money from traders. There is no need to charge money from traders when they are already closing the account or want to withdraw their funds.
The response time of the broker to credit the funds in the accounts of traders is as high as 1 week. Such a long duration hampers the plans of traders. The broker should make withdrawals a smooth process but not as a cobweb of high fees and delayed executions. It is a pure case of exploitation.
There are no details about the maintenance fee, processing fee, and other charges of the broker. Regulated brokers provide full details about the charges and the fee associated with the transactions and the live trading accounts. They try to hide the details which hint at their greedy and fishy policies. My LegacyFx review advises traders to specifically check the deposit and withdrawal conditions before investing with the broker.
No Bank Details
LegacyFx claims to provide the details about the banks associated with their payment partners.
However, there are no details about the same. It seems like LegacyFx doesn’t have any corporate bank accounts. They are keeping the funds of traders in personal accounts.
LegacyFx Trading Accounts
The live trading accounts of the broker are full of redundant services. Let me share a detailed description of the live trading accounts of LegacyFx.
- Silver Account: The silver account of LegacyFx requires a minimum initial investment of $500. It is 10 times higher than the minimum deposit of regulated brokers. The spread is set to 1.6 pips and the leverage ratio is up to 200:1. Both the spread and the leverage ratio fail to attract the attention of traders as the ideal spread is 0 pips. The leverage ratio is not good as many regulated brokers provide leverage as low as 20:1 and 50:1. The vague services like education, economic calendar are also available in this account. Experienced traders already know that these are the basic services of the trading platform. The technical analysis and market analysis reports are of no use to the beginners as they hardly understand these details. A strong customer support instead of these services is enough to serve the purpose. There is no specific mention of the popular Meat Trader 5 platform in the silver account.
- Gold Account: The gold account of the company requires $5,000 as a minimum initial investment. It is 10 times higher than the money required in the silver account of the company. The leverage ratio offered in the gold account is the same as that of the silver account. The spread is set to 1 pip which is still very far from the ideal spread. The service list of the gold account includes services of Meta Trader 5 as a trading platform by LegacyFx. There is no need to extend the list of services by adding dispensable services to professional traders. It is only done to justify the high initial deposit of the account. Sadly, the broker fails to serve traders in its gold account as well.
- Platinum Account: The platinum account of the company requires $25,000 as a minimum initial investment. It is 5 times higher than the deposit required in the gold account of the company. Needless to say that $ 25,000 is the high amount which most traders cannot make as profits from the trading but it is appalling to learn that it is set as a minimum initial investment. There is no advantage in the leverage ratio of the account and the spread is set as 0.6 pips. The spread of the account is higher than the ideal spread. What is more distressing is that there is the inclusion of services like fuzzy services like the Analysis insights, MetaTrader 5 Mobile applications, 1 on 1 support, which is essential in any basic live trading account of regulated brokers.
- VIP Account: LegacyFx does not mention any details about the VIP trading account and it is kept as a customized account. The minimum initial investment is set to as high as $50,000.
It is clear from the above details that the live trading accounts of the broker are full of nonsensical services. All of these services belong to the trading platform, not the accounts. The high minimum deposit requiring live trading accounts with no fruitful services are of no benefit to traders. The inclusion of the services which are already provided by another subject is a clear hint of the non-availability of the valuable services to traders. Apart from this list of murky services, the spread and the leverage ratio are not competitive. There is no availability of the lowest spread in any of the accounts of the broker and the leverage ratio is high. In any case, LegacyFx’s trading accounts are not beneficial to traders.
No PAMM Accounts
The Percent Allocation Management Module or the PAMM accounts are best known as the passive income source to the professional traders. PAMM accounts have minimum risks. The investor does not need to trade and only has to invest money. This money along with the money of the actual trader is helpful in the trade’s execution. The actual trader has additional money and the investor enjoys a percent of the total profits.
The trader can thus work with a large number of assets. The operations of the PAMM account give a real-time view of the trading platform. The PAMM accounts are a form of auto trading which is best utilized with the help of an ethical broker. There is no such provision of PAMM Accounts to the traders of LegacyFx.
Absence of Social Trading
LegacyFx does not provide social trading to its customers. Social trading refers to a platform provided by brokers where all traders can share their trading ideas. The beginners in trading can learn from the established profitable trades of experienced traders. The social platform allows traders to avail the benefits of a trading community and to learn while watching others.
Limited Customer Support:
While writing this LegacyFx review, I found that they have horrible customer support There are no dedicated phone numbers for regional linguistic support to traders. There are several email IDs but there is no clarity on the reliable support on the email. The email ID is very slow in responding. There is no provision of a dedicated Skype number to help customers.
A broker is as good as its services only. There is no alternative to a strong and dedicated technical support team to traders. The quality of support to traders cannot go beyond the set standards for the quickness, reliability, and genuinely correctness. Sadly, LegacyFx fails to understand the value of providing strong customer support to traders. Maybe LegacyFx doesn’t want to hear the complaints of their customers and that’s why their customer support is nearly non-existent.
Social media Accounts
The links to the social media accounts of LegacyFx are not functional. The link to their twitter account leads to a non-existing account. The snapshot of the twitter account is as below.
The Instagram account of LegacyFx only has 6 posts. It shows their approach in handling social media accounts.
LegacyFx underestimates social media. The broker does not even try to give quality content to social media users. The posts are not regularly on social media platforms. It is the best tool for brokerage firms to stay connected with existing and expectant customers. The company can update traders about the various services and the advantages of dealing with them. There is a sure loss of good business with a lethargic approach to social media.
The website of LegacyFx is www.legacyfx.com/
The quality of their website is below average. It lacks good quality content and information about the company. Aesthetic design with full attention to the details about the services is essential for the website of a forex broker. The resultant should be a clear and informative web page. Designs and creativity should not hinder the information. The links on the website should lead to active pages. The first interface between the visitor and the company shouldn’t be confusing. LegacyFx can certainly do better than their existing website.
LegacyFX is Not Recommended!
LegacyFx creates a mirage on the services by hiding important information. There is no clarity on the address, registration, and the headquarters of the broker which are from weak governance area. The trading conditions of the broker are below the standard level, lack basic essential services, and the live trading accounts require high deposits with feeble services.This review (LegacyFX) was originally published at The Skeptic Tank. To read the full review, go to – www.skeptictank.org/legacyfx-review/