LegacyFX review and test for investors – Scam or not?
- LegacyFX review and test for investors – Scam or not?
- What is LegacyFX? – The broker presented
- Test and review of the Legacy FX trading platform
(4.5 / 5)
FCA, BaFin, CySEC
VIP EU Mastercard
When it comes to finding the right broker to partner with, you will have to go through the process of weighing their pros and cons. You will also need to find out if they’re trustworthy enough for you to invest your hard-earned money in them. Most importantly, you have to know if the services they offer meet your standards, and you can rest assured that you will not encounter any problems in your trading journey with the broker you choose.
With that said, you might want to consider LegacyFX. With the amount of experience they have in the trading scene, this broker will surely provide the services that most traders need. They may look like your typical multi-asset trading specialist, but they have a couple of tricks up their sleeve.
In this review, you will find information about the products and services they offer. We will also be talking about the pros and cons of this particular broker to help you deduce whether this broker is right for you.
What is LegacyFX? – The broker presented
LegacyFX has been around since 2012, but they only rebranded their company and started offering their services all over the world in the year 2017. This doesn’t mean they only set foot in the trading scene in 2017. They are proud of all the professional years of experience that they have in the financial market, which helped them earn the title of being one of the most well-known and trusted brokers.
Their parent company is A.N. All New Investments Ltd., and their main office is located at Q Tower, 5th floor, Ioanni Konylaki 47, 6042, Larnaca, Cyprus.
(Risk warning: Your capital can be at risk)
Is LegacyFX regulated? – Regulation and financial security
LegacyFX is known to value transparency, and building trust with their clients is at the top of their priority list. This broker is fully regulated in different states like:
- Cyprus – CySEC
- Germany – BaFin
- United Kingdom – FCA
LegacyFX’s clients can rest assured that their funds are safe and secure. They make sure that the company’s funds are separated from client funds. This is to ensure that they won’t accidentally use the client’s money for company purposes.
Trading conditions – What can Legacy FX offer for clients?
The great thing about LegacyFX is that they offer fractional pips. Fractional pips allow you to trade smaller price movements. This could result in tighter spreads and more precise trades. Aside from this, LegacyFX does not charge a commission for trading all asset classes except stocks. Instead, this company earns from the spread of the traded asset.
For all account types, their margin call level is at 80%, while their stop-out level is 30%. The spreads of all asset classes vary depending on the product you’re trading, the type and tier of your account.
Foreign exchange (Forex)
As a broker specializing in forex, you can expect to see major, minor, and exotic pairs on their platform. With no added commissions, minimal fees, and leverage varying from 1:20 and 1:200, you can rest assured that you will be able to trade confidently and consistently.
Since they do not offer leverage above 1:200, it is safer for traders who are just starting out and would blindly choose higher leverage. You can trade this asset at any time from Monday to Friday and find opportunities within this timeframe.
For small traders, the minimum number of lots that you can trade with is 0.10 lots, while bigger traders are capped out at 1,000 lots per pair. The margin requirement for trading forex using LegacyFX is 0.5% for both minor and major pairs, while it is at 1% to 5% when trading exotic pairs. Below is a list of all minor, major, and exotic pairs available on LegacyFX’s platform.
To gain exposure to a particular country’s market, you would have to trade indices. As CFDs, you are given the option to trade according to your market sentiment. Whether you are bullish or bearish, you can go long or short, respectively.
LegacyFX offers maximum leverage of 1:100 and a margin requirement of 1% for major indices. For minor indices, the margin requirement is 1% to 5%, while leverage is 1:20 to 1:100. For both classifications, the minimum lot size per trade is just one, while the maximum lots per asset are 10,000.
Here is a list of all both major and minor indices that you trade with LegacyFX:
Additionally, LegacyFX also offers financial indices such as USDX or the Dollar Index and USVIX or the Volatility Index. The margin requirements for both of these is 1% with a leverage of 1:100. The minimum lot size for USDX is 0.10, and for USVIX, it’s 1.
As a safe-haven asset, gold and silver are used as passive investments that appreciate over time. Some traders prefer trading these metals as a hedge against market volatility and uncertainty. Trading these as CFDs allows traders and investors alike to purchase metals without having to hold them physically. This also allows the use of leverage and margin to increase the number of purchasable metals.
Margin requirements of metals offered on LegacyFX range from 1% to 5%, while usable leverage is from 1:20 up to 1:100. This allows the client to use more than 500% of their equity. Keep in mind that with higher leverage, there also comes a higher risk of losing money.
The minimum number of lots that you could buy is just 0.10 lots, while the maximum could go up to 100,000 when you are trading gold. LegacyFX offers the said metals and many more. Below is a list of all tradeable metals with LegacyFX:
The commodities offered by LegacyFX are CFDs that have the leverage of 1:20 and 1:100 depending on the asset you’re trading. You can invest in both energy and agricultural commodities with a margin requirement of 1% and 5%. Again, this depends on the commodity you’re dealing with.
It’s important to note that the minimum lots for both energy and agricultural commodities start at 0.10 except for the soft commodity known as sugar. The minimum lots for this is 1. You will find a complete list of the commodities found on LegacyFX:
- NGAS or Natural Gas
- WTI or West Texas Intermediate
Cryptocurrency is gaining more and more popularity nowadays, especially Bitcoin. If you’re looking to invest in Bitcoin, Litecoin, Ethereum, and Ripple, LegacyFX has got you covered. The fixed leverage for trading crypto is 1:5, and the margin requirement is 20%.
Since the crypto available on LegacyFX are CFDs, you are not limited to a specific asset. Here are some popular CFD cryptocurrencies:
- ETH/USD or Ethereum against US dollar
- BTC/ETH or Bitcoin against Ethereum
- BTC/USD or Bitcoin against US dollar
- XRP/USD or Ripple against US dollar
- BCH/USD or Bitcoin Cash against US dollar
- LTC/USD or Litecoin against US dollar
LegacyFX offers a dozen global equities from Germany, the USA, Switzerland, Netherland, Belgium, Spain, France, Norway, and the United Kingdom. You can also find ETF or exchange-traded fund stocks on their platform. Considering the number of stocks available on LegacyFX, traders definitely have the opportunity to diversify their portfolio.
This asset has a fixed leverage of 1:5 and a margin requirement of 20%. You can take a look at their complete list of tradable stocks on their website.
(Risk warning: Your capital can be at risk)
Test and review of the Legacy FX trading platform
LegacyFX clients get access to the MetaTrader 5 or MT5 platform. This is the updated successor of the MetaTrader 4 or MT4 software. The great thing about the MT5 is that it supports trading cryptocurrency, and it comes with new features that cater to this asset.
This platform comes with more than 80 graphical tools and indicators that any trader would find helpful. It also comes with a built-in economic calendar that gives traders updates on data and other important economic events.
These are available on both Windows and IOS desktops. If downloading the software isn’t ideal for you, MetaTrader 5also has a web platform. You can easily access this by going to their webpage and logging into your account.
The MetaTrader 5 platform is also available on mobile devices. Their app features One-click trading. This basically allows the trader to open a position with just one tap on the mobile app. You can download this app on the Google Play Store or Apple App Store.
The MetaTrader 5 platform is great for professional or advanced traders. Newbie traders, however, are recommended to practice trading on a demo account. It takes less than ten minutes to open up a demo account. This comes equipped with a virtual fund of $10,000, and you can access the MT5 platform for one month.
LegacyFX’s account types
LegacyFX has eight account types clients could choose from. These are Standard, Bronze, Silver, Gold, Platinum, Premium, VIP, and Islamic account. To register for any of these live accounts, you will need to sign up via their website and fill up all the necessary information and submit all the required documents. You’ll also be able to choose your preferred currency: USD, EUR, or GBP.
Signing up to any account type is completely free, and there are no additional fees. However, the minimum initial deposit varies.
- Silver account ($500 minimum deposit):The Silver account is ideal for beginners because it’s their most basic account. You won’t have full access to LegacyFX’s offerings, but the services that come with the standard version are good enough for basic traders. The only problem is standard account owners are not eligible to trade stocks on LegacyFX’s platform.
- Gold account ($5,000 minimum deposit): Again, all the perks that come with this account are listed above, along with some bonuses. You’ll gain access to premium ideas, personal success goal, a VIP EU Mastercard, and their direct dealing desk.
- Platinum account ($25,000 minimum deposit): To gain access to all that LegacyFX has to offer to their clients, you will have to sign up for their premium account.
LegacyFX deposit and withdrawal
In the event that your account incurs a negative balance, LegacyFX will zero it out back to 0.00. Keep in mind that this is not immediate, though. The negative amount will continue to reflect on your account for a while.
Funding your account:
LegacyFX accepts deposits via bank wire transfer, Mastercard and Visa credit card, Neteller, Skrill, VLoad, and Bitcoin. This broker won’t charge you any fees for deposits, but the minimum deposit is 500 USD. They accept EUR, USD, and GBP currencies. However, VLoad only takes EUR and USD.
You can withdraw your earnings the same way you fund your account. There are no restrictions when it comes to withdrawing, except if you choose to cash out via wire transfer. The minimum withdrawal should be no less than 150 USD. It might take a while for your funds to reflect on your account. It’s best to wait up to five to seven business days after your withdrawal request has been approved.
You won’t be charged a closure fee, however, it’s worth noting that you might incur a fee according to their terms and conditions.
Learn to trade with LegacyFX
This company has so many educational tools to choose from. Whether you’re just starting out as a trader or you’re a well-seasoned professional, LegacyFX has additional knowledge that can prove to be helpful to you.
- Video Library: They have a video library with tutorials on foreign exchange and social trading. These videos help you understand technical analysis, emotional trading, pips and how to calculate them, long or short trading, and how to sell currency pairs. There are also tutorial videos on how to use and maximize the tools available on the MetaTrader 5 platform.
- Educational courses: LegacyFX offers a beginner course that’s useful to traders who are still new to the trading scene. It contains important information that beginners need to fully understand how the market works. This course will also help you decide on which trading strategy best suits you or the asset you are thinking of trading. They also have advanced courses that tackle their trading tools, CFDs and Stocks, and more advanced and technical trading strategies. These advanced strategies can help you find new opportunities or methods to maximize your profit.
- Free eBooks: Anyone can peruse through their extensive eBook collection. You don’t even need to create an account to learn from LegacyFX. Their eBooks tackle a wide range of topics about the trading market, capital management. You can learn about basic and advanced technical analysis, market analysis, global trading, and the different terms that are used in the trading world. They also have informative books on beginner strategies and even trading psychology.
- Glossary: To make things easier for their clients or would-be investors, they have a glossary containing all the terms and their definitions. This will help traders navigate their way smoothly through the trading world.
LegacyFX has a wide range of both basic and advanced tools. Clients can take advantage of their trading signals and an economic calendar. They also provide market analysis and the latest market news. Their pivot calculator will help you compute pivot points on exchange rates. Their deal size calculator can help you manage your money better. Their Fibonacci calculator offers in-depth and technical analysis.
If you have any questions, their website has a built-in chat system that will directly connect you to one of their customer representatives. They’re prompt to reply, and they answer queries accurately. Their website also operates in different languages, including Arabic, Spanish, German, and Russian.
You also have the option to contact them through their telephone number. They operate on Mondays to Fridays from 8:00 AM to 12:00 midnight (GMT +3). If you prefer not to talk over the phone, you can email them containing your concerns. They have a separate email for complaints, compliance, support, dealing, and queries regarding their affiliate programs.
Accepted and Forbidden countries on LegacyFX
Legacy FX accepts clients from all over the world except Korea, Yemen, Iran, and the United States.
Conclusion of the review: Is Legacy FX a scam? – No, it is legit
All in all, this company has the potential to be one of the best brokers out there. They’re dependable, and you can rest assured that your investments are in good hands.
Despite the fact that this company is relatively new to the forex trading scene, LegacyFX and their service is on par with most of the famous and credible brokers that have been around longer than them. Not only do they offer so many educational references for beginners, but they also have tools that even the most professional traders would find helpful. No matter what kind of trader you are, newbie or well-seasoned, you will definitely feel important with LegacyFX.
The downside to this particular broker is their deposit requirements. Compared to other companies, LegacyFX’s minimum deposit for any of their accounts are very high, starting at $500 and reaching up to more than $50,000. For most individual traders, $500 is already too risky.
If you prefer taking risks and investing in brokers with higher leverage that ranges from 1:300 up to 1:1000, this is not the broker for you.
Frequently asked questions:
(Risk warning: Your capital can be at risk)
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