LoyalEFX review – 5 things you should know about Loyalefx.com

LoyalEFX review – 5 things you should know about Loyalefx.com

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

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LoyalEFX is a Forex brokerage registered in the UK. It provides a web-based trading terminal, not the MetaTrader 4 trading platform and a leverage of  1:400. Furthermore, the website flaunts with a wide range of trading products, the required minimum deposit is below the industry average at $100, however, further trading conditions remain undisclosed.

LoyalEFX regulation & safety of funds

The brokerage claims to be owned by a UK-based company which claims to be regulated the UK, however, no further corporate information is presented, not even the name of the company. We remind readers that brokerages operating on the territory of the country have to abide by strict rules imposed by the Financial Conduct Authority respectively. Upon running a check through the online registry of the FCA we did not find any relevant information regarding the broker brand on the website of the British financial watchdog.  This means the brokerage is providing financial services without proper authorization. On top of this, even going through the terms and conditions of the broker we found no information regarding the company which renders the website basically anonymous. We highlight the danger in doing business with such a website since the people behind it do not answer to any authority and have no reason to uphold the client agreement. It is safe to say that there is tremendous risk on any transactions interested traders may conclude with the brokerage and we deeply recommend they look elsewhere for viable trading options.

Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.

LoyalEFX trading software

 The MetaTrader 4 trading platform is not supported which is something we always consider a disadvantage since the MT4 is among the foremost trading terminals in Forex trading at the moment, close to 80 percent of users prefer it. The platform provides an advanced charting package, lots of technical indicators, extensive back-testing environment and a variety of Expert Advisors (EAs). Instead, there is supposedly a web-based trading terminal available, however, upon opening it we come across a dashboard which leaves us lacking in any relevant information regarding the potential trading conditions. Furthermore, the website in question does not provide any mention of the spread offered by the brokerage which is the most crucial aspect of Forex trading. We only learn that the minimum deposit is surprisingly low at only $100 – as opposed to the industry average of $250 – however, having in mind the regulatory uncertainty surrounding the brokerage such a low minimum deposit should not be considered an advantage but only an attractive way to entice traders to deposit funds. All this further supports our view that LoyalEFX is involved in foul play and we always recommend to readers not to risk it and steer clear from such offers.

LoyalEFX deposit/withdrawal methods and fees

We cannot be sure that payment methods are supported. Usually in Forex trading, the standard Visa and MasterCard, as well as e-wallets such as WebMoney, Skrill or Neteller are provided by brokerages.

We did not find any stated withdrawal fees either, however, dealing with unregulated brokerage we may never be sure whether they wont charge unexpected fees once the clients have deposited their funds.  There are also withdrawal conditions pertaining to accounts that have taken advantage of the bonus promotion. A trader has to achieve a certain trading volume in order to be eligible for withdrawal which is purposefully excessive in order to impede any trader from actually receiving his money.Legitimate brokerages which are regulated in Europe do not offer such promotions and even if they do, the information regarding potential withdrawal requirements is always presented straight-forward on the website, not hidden away in the terms and conditions.

Such website are also the reason 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?

Even though the forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. Here is a quick overview of how it is done:

Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Cashless PayGroup where registration will require you to give your address, 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 angle here is pretty blunt – traders have a limited time period for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back.

It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And with the case Btcoinpro – they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.

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. 

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
Loyal EFX
Broker Rating
1.11star1stargraygraygray

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5 Comments

  1. They convince d me to pay 3600 Rs and the very next day I asked for withdrawal , which they cannot help me…They only loot money. I have raised the issue with cybercrime and home noone else gets fooled

    Worse scam.. Beware All..

    1. Loyaefx is a fraud company and their target is Indian customers. They will transact on your fund for sometime and once you reach 500-1000 dollars they will do some gymic and make zero of your deposit… Beware before getting cheated and we are 3 friends cheated by this company

      1. There was the quick response from the company LoyalEFX and team stating that the issues arise due to technical issues and assured that the problem will be resolved within 2 days. Have cleared the technical issues happened to my friends also getting resolved. Thanks Loyalefx team

  2. Dear sir,

    I’m m.p.balaji, I newly opened the trading account at your company loyalefx, in the name of my wife Mrs.Padmaja banu.b through your office, one mr.karthik on 20.10.2020, he called & explained me and the same day I opened the account to operate & deposited 150 usd and in 1 hour another person from accounts called me & gave me training how to trade & operate the account. Then they said from next day onwards a coordinator will call me and advice me to trade.

    But from next day no one has responded my wazzup, & today I called in wazzup no, they are not picking my call. The wazzup no they called me to get my address details, I called them in +44-7520665254.

    Hence I request you to kindly help me the procedure to withdraw the money of 150usd which I have made payment through online.

    The payment details sent through bhartipay reciept also attached.

    Kindly advice what is the withdraw formality, I can send my wife padmaja account holder bank details if you want to send back my money.

    Kindly response ASAP, I’m in afraid whether I’m dealt with right person from company or I’m cheated?

    Thanking you, Yours faithfully,
    Mpbalaji /padmaja banu.

  3. Very very FRAUD, FRAUD, FRAUD, Very very cheating company loyal efx, previously
    I gave bad comment about them, but again they called me & pleased me to trade, but they lost my money wantedly, later only I came to know about these type of companies, however if my review is useful for others, pls don’t get cheated by loyal efx. Completely cheating cheating cheating is the only target for them.

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