Beware! LegoMarket is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
LegoMarket is an anonymous offshore broker somewhat linked to many other entities using one and the same logo, which is quite annoying. Worse though, legomarket.co doesn’t even have a menu- there are only a few clickable links on the entire website. The registration page is also broken, which alone is a solid reason to close the LegoMarket’s website as soon as you’ve opened it. Find out the rest about this broker in the full LegoMarket review.
LegoMarket REGULATION AND SAFETY OF FUNDS
LegoMarket is a shady broker with a website to be ashamed of. It’s so bad that there isn’t even a menu, as already mentioned in the Intro. Other than that, there is no address, contact number, company name or any other useful information this entity gives about itself. It’s a solid scam sign when a Forex broker withholds critical information to the public, so beware. We researched several financial authorities registers, but as expected, we couldn’t find anything about them. Your funds are not safe if you make a deposit with LegoMarket because it’s an unlicensed and unregulated Forex broker, which isn’t reliable to trade with.
Recently we reviewed a shady broker that’s supposedly a LegoMarket Introducing Broker- Panthera Trade. The same company runs it, and it’s also using precisely the same logo, which instantly raises the alarm. We suspect LegoMarket is a fraudulent entity, but even if we are wrong, you need only a minute spent on their website to reject their offers.
The EU (mostly CySEC regulated) and the British (FCA regulated) brokers are the best for the traders. Europe is a safe place for the stringent financial rules which are laid out as customer protection measures. The list includes minimum capital requirements of 730 000 EUR; clients’ account segregation; personnel qualification standards and daily trading reports that the brokers have to provide. Most importantly, there are deposit insurance funds the brokers are part of, inaugurated to protect the clients’ money. If you trade with CySEC brokers, you can claim up to 20 000 EUR in compensation, while the clients of FCA brokers are guaranteed of even up to 85 000 GBP per client. Each EU member state is compelled to create and further operate similar insurance funds, which are considered the last resort for the traders if a Forex broker fails to meet its financial obligations.
LegoMarket TRADING SOFTWARE
Very annoyingly, just as in the case with Panthera Trade, we couldn’t register due to some unknown error to us. We scraped the assumption it’s a temporary issue, so it’s yet another warning sign clearly showing LegoMarket is an unreliable broker.
LegoMarket offers MetaTrader4 to its customers; MetaTrader5 is not available for trading. They lean on the most popular Forex trading software, preferred by the seasoned traders for its reliability and ease of use. Metatrader comes with sophisticated trading tools and features such as Expert Advisors, Algo trading, Complex Indicators and Strategy Testers, as an example. There is also a marketplace fit into the platform with more than 10 000 apps available at the time of writing.
The spreads are allegedly starting from 0.4 pips, but we cannot confirm this statement as valid. We downloaded the Lego Market MT4 modification but could only create a demo account. The spread is the price traders have to pay to open a position on the market, and the lower Buy/Sell difference makes trading more affordable while improving the profit potential. The industry standard is 1 pip and below, and there are plenty of legit brokers on the markets, so it’s not worth wasting your time with shady entities such as LegoMarket.
LegoMarket claims to provide a maximum leverage of 1:1000, which is a level that’s really dangerous to use. The leverage is a powerful tool allowing the traders to increase their positions, but it immensely boosts the risk. 1:1000 can destroy your account in seconds because the margin call level with such a ratio is no more than 10 pips from the opening price. LegoMarket is an illegal broker, so a Negative Balance Protection shouldn’t be expected, meaning your balance might as well go below zero in times of higher volatility. The EU regulated brokers are bound to keep your balance positive, and in case it goes negative, they have to bring it back to zero for free. 1:1000 isn’t an option, despite the claims that it has tremendous profit potential.
EU, UK and Australia (from 2021) forced a leverage cap on the market- 1:30 as a customer protection measure while Canada and the US agreed on 1:50. The leverage risks aside, brokers offering higher ratios are not recommended due to the absence of adequate regulation and customer protections. The Swiss brokers are an exception as there aren’t leverage restrictions imposed, but Switzerland has its own way to protect the traders- a license there cost 20 mln. Swiss Francs (roughly $22.6 mln. at the time).
LegoMarket DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit is said to be $5. The funding methods are supposedly Credit/Debit cards, Wire Transfers, PerfectMoney, Skrill, Neteller and Bitcoin, but we cannot confirm all of these are available. It’s best to fund trading accounts via bank cards for traders can file a chargeback within 540 days from the deposit date. Wires and Bitcoin payments are final and non-refundable, so we do not recommend these funding methods.
Warning! No Terms and Conditions available, or other similar legal documents to serve as a contract between both parties. The absence confirms LegoMarket is an illegal broker, but also leave the traders unaware of essential conditions. There isn’t a single piece of information about minimum withdrawal requirements, withdrawal fees, request processing time, inactivity fees, other fees applicable, or bonuses.
Overall, LegoMarket is a shady broker with the poor website, no address, no phone, no legal documents, and no possibility of registration. Stay safe, avoid LegoMarket and trade with legit brokers only.
HOW DOES THE SCAM WORK
A group of scammers usually operates many scam brokers, scam websites and call centres. Sometimes they simply rely on the quantity, by creating as many brokers and websites as possible. Then they would be waiting for traders and investors with little or no experience to bite. Nowadays, it’s cheap to create a fraudulent website, and it looks like a profitable strategy, as the scammers carry on doing it.
Internet and social media are bustling with scammers. They approach people on Facebook, Instagram, Telegram; you name it. The social media is flooded with fraudulent pages of brokers, signal providers and traders, showing lush lifestyle, cars, yachts, celebrities etc. The scammers usually give free advice or a tryout, and before you know it, they will be asking for a deposit. They’ll show you pictures of their trading accounts displaying huge profits and Bitcoin earnings, and if you have no FX experience, you might easily believe in your eyes. The scammers also post tons of positive comments and reviews about their phony brokers all over the Internet, so you should remain wary. Always look for more information before sending any money to a broker.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
It’s crucial not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. They ask for an advanced payment, but do nothing to help you recover your losses and simply pocket the money you’ve sent!
Share online your experience; it’s important to protect others, as well. Be responsible!