LegacyFX Review – is LegacyFX.com scam or a good forex broker?

Beware! This is an offshore broker! Your investment may be at risk.

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Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

LegacyFX.com offers four account types, based on initial deposit.

The spreads are relatively high by today’s’ standards, while the leverage is average. We couldn’t find any information on the commission structure for the ECN account at the time of writing of this review. No matter how low they go the conditions would probably still not be competitive in comparison to other brokers.

Islamic (swap free) accounts are also being offered.

Regulation

The company which owns LegacyFX  is A.N All New Investments LTD. It is registered in Cyprus, but does not claim affiliation with the Cyprus Securities and Exchange Commission (CySEC). This is quite troubling, as a lack of regulation does not guarantee the clients’ interest. Financial regulators are state institutions which serve to protect clients from shady practices (which are not at all rare in the financial services industry). CySEC is often preferred by Forex brokers, as the country’s licensing system offers access to the entire EU market. That regulation however requires minimum holdings of EUR 730 000, by the company.

A broker who is licensed under CySEC also takes part in the local compensation scheme, meaning the company sets apart a portion of its profits, together with other similar firms, hence forming a pool, which then serves to compensate clients in the event one of the companies goes bankrupt. This is common practice in many jurisdictions and other financial sectors. A fully licensed broker in Cyprus (like FXTM, FXPro or EasyMarkets) offers their clients such a guarantee of up to EUR 20,000 of their trading accounts.

LegacyFX states the company is regulated, but does not mention any regulatory agency.

Legal Documents?

The “Legal Informations” section of their website does not contain anything at the time of writing. All of the little green fields lead you back to the same page, with now legal documents attached. This may be a temporary technical issue or a bigger problem – not having any documents at all. At this point in time we can not assure you that you would be able to withdraw your money, after depositing at LegacyFX,

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Platforms

Legacy FX offers the time-tested MetaTrader4 as well as Sirix, which has both desktop and web versions. While you may be familiar with MT4, so we will take a closer look at Sirix:

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The platform feels familiar, with the watch list on the left, and list of current positions at the bottom. There is also a menu on the right containing a social trading feed, which can be interchanged with a news feed. The feeling is pleasant, although I few things feel quite off. For example the stop-loss and take-profit levels are not visible on the chart, let alone adjustable by dragging. The social trading feed is probably one of the more unique features, which some clients may find useful.

Deposit and withdraw

The funding methods offered by LegacyFX are few:

• Credit /Debit Card
• Bank Wire

The website lists other options as well. That being said we are not sure which options are true, as some of the links in that part of the site are broken.

Support

At the time of writing of this review, there is no live chat functionality on the website. The support is limited to phone and an e-mail form.

Conclusion

We would not recommend trading with LegacyFX, as the firm operating it is currently unregulated. As we mentioned above, this does not ensure any protection to the client, in case the broker goes under or simply decides to not allow withdraws. On top of that the trading conditions are below the industry standard. This may all change in the future if LegacyFX changes owners or applies for proper regulation. However, at this point in time we simply can not recommend them.