Legal CFD review – 5 things you should know about Legalcfd.com

Legal CFD review – 5 things you should know about Legalcfd.com

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

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Legal CFD is a Forex brokerage based in EU member-state Bulgaria. According to the brokerage clients there is a required minimum deposit of $250 which is about the industry average and a wide range of trading products available for clients.

Legal CFD regulation & safety of funds

On the brokerage’s website we read that the company behind the brokerage is registered in Bulgaria with the name FTM Consulting EOOD. Bulgaria is a member-state of the EU and the ESMA guidelines are in full force for brokerages operating on the territory of the country.

Furthermore, brokerages in Bulgaria have to be licensed by the local Financial Supervision Commission. However, going through the website and brokerage’s terms and conditions we find no mention of a license.  After checking with the online registry of the regulatory agency – we can safely conclude that Legal CFD does not fall under any regulatory oversight. Another troubling aspect of the brokerage is the fact we do not have access through a demo account to the purported trading platform. We view this as a serious problem because traders cannot get acquainted with the trading conditions of Legal CFD.

Such irregularities are the usual “tell” of a scammer. With no regulatory oversight we can’t be certain about the company behind the operation and whether it will fulfill its obligation towards clients. Furthermore, the lack of a demo account for the trading platform, as well any sort of more detailed information regarding the trading conditions of the brokerage highly inclines us to question the legitimacy of the Bulgarian brokerage.

We did find a list of all the Crypto CFDs the brokerage presumably offers – they include Cardano, Ark, Bitcoin Cash, Binance Coin , Bancor, Bitcoin, Dash, EOS, Ethereum Classic, Ethereum and many others. The selection is quite impressive, however, without a test-drive of the platform we cannot be sure whether the brokerage does in fact offer such a wide array of financial instruments.

We urge traders to exclude such risk in trading by only associating with brokers regulated by prestigious regulatory agencies, such as the FCA and CySec, which require compliance with a number of strict rules that give significant assurance for the security of the clients funds.

The segregation of accounts is among the rules which are especially important in the trading world, because it drastically lowers the risk of possible commingling.

Another is the participation in a compensatory scheme by which the client’s losses will be covered in the unlikely case the broker goes bankrupt or attempts to swindle traders.

Legal CFD deposit/withdrawal methods and fees

We find no information regarding the payment methods available on the website of the brokerage. Such a lack of clarity is quite common for unregulated brokerage in Forex trading. However, we did find quite a few troubling provisions in the terms and conditions of the brokerage. First of, and perhaps most troubling, Legal CFD openly states that they offer clients so-called MAM accounts that are automatically controlled by the brokerage and clients cannot withdraw from them for the first six months. This is quite a provision and a certain red flag for the brokerage.

Furthermore, we find a minimum withdrawal amount of $100. Such a provision should not figure among the terms and conditions of a legitimate brokerage.

Legal CFD does not explicitly state it charges any withdrawal fees but, nonetheless, we did find the following in the terms as well. It reads “LegalCFD reserves the right to charge clients for incidental banking-related fees.”

That is why we advise traders to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.

How does the scam work?

Information is a pretty solid criteria for judging a brokers legitimacy. Scammers would not share much of their information, because precisely there inconsistencies and irregularities may appear which expose the whole set-up. A good example is this very broker and the misleading information it gave regarding its regulatory status.

After informing themselves for the brokers trading conditions – traders should be well-versed in the way of the scam:

Through clicking an ad with promises for fast money, you will be redirected to a website such as  Bitcoin Evolution or Crypto Revolt where registration will require you to give your email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.

After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.

Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back.

What to do when scammed?

As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.

You may contact your bank or credit card provider and file a chargeback. Furthermore, due to the high instances of fraud – both Visa and MasterCard have decided to sidestep scammers as best they can in forex trading. The first thing we have seen so far is that MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half with their peer Visa expected to follow suit in December.

If, however, you have provided the broker with your credit card details, immediately cancel your credit card.

If you have given information regarding your online banking pass – you should switch it asap!

Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!

Rich Snippet Data
Review Date
Reviewed Broker
Legal CFD
Broker Rating
1.51star1stargraygraygray

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21 Comments

  1. has anyone had problems with withdrawls

    1. WDs are difficult if not impossible to get – I have been requesting since November – to no avail – but did in face get my initial 250 EUR refunded recently. The named business as ‘operating’ the brand name ftm consulting, Bulgaria, may have ‘gone into liquidation’ and their name has just been removed from the main web page today.
      There are various named individuals – KM, JR, PD – involved so far

    2. I am trying now so we will see

      1. Still no funds and their website says you can have the withdrawal in 1 working day! What a scam! I also had an individual of KM and PT, one is apparently security and one the account manager but no contact since the withdrawal after I made it clear I wanted the funds.

    3. Yes I have!! Been trying to contact them for many weeks with very few replies with excuses like the account manager has moved on. Worst thing is I don’t know what to do next, anyone got any help?

  2. I have been trying to get hold of them for many weeks now looking into getting a withdrawal aswell. I finally said received a response after a very blunt message this is what I receive ‘Hi Elliot, I have just made some enquiries for you and I have been informed that the UK department is currently being reallocated . This means that we do not have any Account managers handling UK clients for the next week. Once the Australian and Far East accounts have been scheduled, the UK accounts will be re allocated. our apologies for this , but the Account managers are currenly working differnt hours in this respect and this is causing delays.’ I find this very odd how this happens just as I’m trying to withdraw. Any know any action I can take against them if they continue to not allow me to withdraw?

  3. I think they are the same people as cryptobanc.net. Cheater and scammer of the worst kind. They pretend to be friends and maybe pay them. WhatsApp and they are happy to give you their private phone number and try to make you a “golden trade”. 15% brokerfees even if they have said they profit directly from the profits. Even if you pay, you will not get any money. The worst of them was “Danny Crane” and had an American slang.
    No matter what they tell you: Do not believe them and do not pay a penny anymore. They tricked me that way.
    Could it be the “site operator FTM Consulting” is in cahoots with them because cryptobanc.net has the same company? I reported the manager to the police. And what do you want? Maybe we can somehow join forces.

  4. total scam. chargeback with your cc company immediately if you gave those fraudsters money

    1. Hi Guys,

      I opened a Trading account with LegalCFD and along with my personal Broker the account has grown quite well Trading in Bitcoin. I am attempting to withdraw funds but the Legal Department of LegalCFD are reluctant to approve this until the comment referenced using my name AIKMAN is rescinded.

      LegalCFD are suggesting I placed this comment with is entirely false. Are you able to assist me so that I can get my funds back by either removing this remark, changing the name or inserting the post that I have attempted to place on your website.
      My comments aim to refute this remark as NOT being connected to me and having been made by a person unknown to me. I am simply looking for your website to assist me with posting my comment so I can LegalCFD to release my funds. Can you please assist me asap.

      1. Did you get your money?

  5. they are scam artists in israel in tel aviv. i have their address and my lawyer has alerted local authorities which are now closing in on them.yes they are the same scammers from cryptobanc. The bulgarian address is just to confuse authorities

  6. I haven’t got my money back yet. They keep stalling. Definitely a scam and a very well done one. I hope they do get shut down asap. It’s just disgusting.

    1. I think I’ve just been caught too 🙁

  7. Don’t Deal with a person called Phil. I have been watching the trades and looking at the receipts of the trades and they say open at usd-aus 68.543 and close at 73.5. they are only open for 5 minutes and they do not reach that level. also wont give withdrawls either.

  8. Stay aware from LegalCFD – they tried to access my computer – I refused. I have contacted my bank after they withdrew money without consent for being signed – I have no way of getting my money. I will be going to the media and expose these SCAMMERS! DO NOT GIVE THEM A COPY OF YOUR LICENCE OR BANKCARD – THEY KEEP ASKING FOR THESE (for us to receive refund) – I have been advised not to give them these details. Legally all they have to do is refund back into the same account that the illegally drew money out of. I HOPE THE AUTHORITIES CLOSE THESE SCAMMERS DOWN – Also they don’t tell you (Australian people) that they are dealing in American dollars – you think you’re dealing $500 but in fact it is $720 American! BEWARE!!!! BEWARE BEWARE

  9. Faye i have been scammed to the tune of USD 44k which i put in and also about US 81k in profit. Total US 125k. these guys need to be shutdown. I wonder whether A current affair will do a story.

    I dealt with a guy called Dylan Grey. ASIC are looking into it and found that all his emails from home have a foreign address. Not UK as they state
    Only came to light when i tried to withdraw some money from the account

    1. Dylan is the same bloke I Deal with.. is he in the UK or elsewhere.. I swear I will find him one day.. have now been blocked from phone calls and the prick won’t answer emails.. how have you gone since..

      Happy to talk further

      Facebook me.. Andrew Redston Australia

      Thanks

  10. LegalCFD are unlicensed and are fraudulently using our name and company Reg No when asked to back up there claims. CFD ACCOUNTANCY 08976957 have nothing to do with these scammers. A poor woman has alerted us to this today – the matter is now with the police!

  11. LegalCFD are using my works name and company registration number CFD ACCOUNTANCY 08976957. We have nothing to do with these fraudsters! Please don’t waste your money and avoid them at all costs!

  12. LegalCFD are illegally trying to associate them selves with a Legitimate company in the UK, they have never and will never be associated with CFD Accountancy, and we have proof they are trying to make out they represent our company. If you have had dealings with LegalCFD and have proof they have used our name or any other please report it to Action Against Fraud with as much information as possible, and let us all unite to bring the scum down. They are not only happy to relieve you all of your hard earned money, but also destroy company name and reputations, that have take years to build up.

  13. A massive scam which I’m disappointed with since it was advertised on a local news site with reference to how great it was!

    I’ve been threatened, verbally abused and they matched my deposit with a ‘free bonus’ I didn’t ask for refusing to let me do any withdrawals even without that bonus now that I’ve made money trading myself unless I deposit more for ‘money laundering’ reasons.

    If anyone has have any luck making withdrawals I’d love to hear from them if only to get my initial deposit back.

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