Is LegacyFX Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with LegacyFX try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether LegacyFX is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker LegacyFX
LegacyFX is an international broker that has been providing financial services since 2017. LegacyFX cooperates with both beginners and professional traders, and the company's clients can trade currencies, metals, indices, and many other assets. LegacyFX offers both independent trading and opportunities to invest, trading signals, and automated trading programs. LegacyFX has received 19 awards since its inception, including “Best STP/ECN Forex Broker” (by AtoZ Markets magazine, 2020), “Best Education & Training Modules” (by the Middle East magazine, 2020), and “Fastest Growing Broker” (by Europe magazine, 2021).
| 💰 Account currency: | USD, EUR, GBP |
|---|---|
| 🚀 Minimum deposit: | $250 |
| ⚖️ Leverage: | From 1:5 up to 1:200 |
| 💱 Spread: | Floating and fixed |
| 🔧 Instruments: | Currency pairs, cryptocurrencies, stocks, indices, CFDs, precious metals, and commodities |
| 💹 Margin Call / Stop Out: | 80% / 30% |
Pros and cons of LegacyFX
👍 Advantages of trading with LegacyFX:
•The commission for the account replenishment and withdrawal of funds is paid by the broker.
•A wide range of educational materials of varying difficulty levels.
•Convenient ways to conduct financial transactions.
•Availability of investment programs, trading signals, and other auxiliary tools.
•The broker uses segregated accounts to store clients' money.
•There are several ways to contact support.
•The broker protects against a negative balance.
👎 Disadvantages of LegacyFX:
•High level of minimum deposit.
•Customer support is closed at night and on weekends.
•Stock trading is not available to Standard and Bronze account holders.LegacyFX is a broker for professional market participants and novice traders. The company also offers ways of passive earning and investing.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is LegacyFX Regulated? Broker’s license
Security (Protection for Investors)
The LegacyFX broker is under the supervision of VFSC 14579 (Vanuatu Financial Services Commission) and CySEC 344/17 (Cyprus Securities and Exchange Commission), the same body issued the company a license to provide financial services under number 14579. LegacyFX uses segregated accounts to store funds for traders.
To protect clients from scammers posing as LegacyFX employees, the site contains a blacklist of organizations, individuals, and sites that should be avoided. The broker is not responsible for the account. If the client has given access to his account to a third party, LegacyFX will not be able to regulate or block the actions of the third party.
👍 Advantages
- Client funds are held in segregated accounts
- The broker provides a list of cybercriminals and fraudulent organizations to help clients avoid being hacked
👎 Disadvantages
- LegacyFX is regulated by only one body
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by LegacyFX, which you can see below.
The trading conditions of LegacyFX have been checked by the Traders Union specialists to reveal hidden and explicit commissions for trading and non-trading operations. LegacyFX does not charge a separate fee for the execution of trades because this commission is automatically included in the spread. Maintenance of a trading account, use of the platform, and training materials are free of charge. The commission for replenishment of the deposit and withdrawal of funds is paid by the broker. Hidden charges were not identified.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | From $15 | LegacyFX undertakes the commission for deposits and withdrawals |
| Bronze | From $15 | LegacyFX undertakes the commission for deposits and withdrawals |
| Silver | From $15 | LegacyFX undertakes the commission for deposits and withdrawals |
| Gold | From $9 | LegacyFX undertakes the commission for deposits and withdrawals |
| Platinum | From $5 | LegacyFX undertakes the commission for deposits and withdrawals |
| Premium | From $5 | LegacyFX undertakes the commission for deposits and withdrawals |
| VIP | From $5 | LegacyFX undertakes the commission for deposits and withdrawals |
Brokers that are similar to LegacyFX
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of LegacyFX conditions with its closest competitors.
Comparison of LegacyFX with other Brokers
| LegacyFX | RoboForex | Pocket Option | Exness | Libertex | 4XC | |
|---|---|---|---|---|---|---|
Trading platform |
LegacyFX MT5, Web Trader MT5, Mobile Apps |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
Libertex, MT5, MT4 |
MT5, MT4, WebTrader |
Min deposit |
$250 |
$10 |
$5 |
$10 |
$100 |
$50 |
Leverage |
From 1:5 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0.1 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
ECN, Dealing Desk |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
$50 |
Cent accounts |
No |
Yes |
No |
No |
No |
No |
LegacyFX is a broker for professional market participants and novice traders. The company also offers ways of passive earning and investing.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
Libertex is a reputable broker. It would be worthwhile to look at the platform as a technical solution. It will appeal to those who can not imagine their life without gadgets and are eager to keep up with the time.
The broker is suitable for traders with a basic trading experience, who are prepared to start trading on a real account right away.
Conclusions
LegacyFX cannot be considered absolutely reliable. The broker operates on a license of an offshore regulator. This creates certain risks regarding security of your funds. The broker has a good reputation. However, you can work with companies with an offshore regulation only at your own risk.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.