Legacy FX Review

Review

Legacy FX is the brand name of a Vanuatu registered company by the name of AN ALL NEW INVESTMENTS (VA) LTD. This broker has been active since 2017, though the website copyright mentions 2015, which leads us to believe that the brokerage operated for several years without regulation. LegacyFX offers a nice selection of assets, is regulated and is part of a rare breed of brokers who only offers the MT5 trading platform.

This broker claims that transparency is one of its main objectives together with the protection of its clients. LegacyFX also touts education as a pillar of its offerings. Reading the “Why Trade With Us” section shows a marketing effort geared towards new traders, though little is available for those who are already familiar with the markets.

LegacyFX Homepage

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Regulation and Security

AN ALL NEW INVESTMENTS (VA) LTD, the owner and operator of LeagcyFX is authorized and regulated by the Vanuatu Financial Services Commission under the license number 14579 since April 13, 2017. According to the broker’s website, client funds remain segregated from company funds. LegacyFX does not participate in an investor compensation fund as far as we could tell from this LegacyFX review. It does comply with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AML/CTF Act) which is a positive. Overall, LegacyFX appears to be a trustworthy broker, though it would be hard for us to conclude that they go above and beyond the reliability of other brokers as they seem to claim.

Vanuatu Company Registration

Dealer license

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Fees

LegacyFX earns its income primarily from spreads and commissions on stocks. It also appears to be a market maker which means that clients’ losses result in profits for the brokerage. This broker does offer swap free accounts to all its traders which means that swap rates are not passed on to traders. This is rather odd as those charges exist on all trades held overnight and if they are not applied to trader’s accounts it either means that the broker is covering them, which would be a nice service offered, or that no real trading occurs, which would indicate questionable practices. No details are provided in regards to fees charged for deposits or withdrawals. LegacyFX will charge an account closure fee of $/€/£50 which seems unnecessary and is not the industry standard.

The LegacyFX website states that the company reserves the right to apply swap rates if they suspect traders abuse their offer of 0 swap rates. No other information is provided as to what constitutes abuse.

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What Can I Trade

Legacy FX is the brand name of a Vanuatu registered company by the name of AN ALL NEW INVESTMENTS (VA) LTD. This broker has been active since 2017, though the website copyright mentions 2015, which leads us to believe that the brokerage operated for several years without regulation. LegacyFX offers a nice selection of assets, is regulated and is part of a rare breed of brokers who only offers the MT5 trading platform.

This broker claims that transparency is one of its main objectives together with the protection of its clients. LegacyFX also touts education as a pillar of its offerings. Reading the “Why Trade With Us” section shows a marketing effort geared towards new traders, though little is available for those who are already familiar with the markets.

LegacyFX Homepage

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Account Types

LegacyFX offers three different account types: Silver, Gold and Platinum. The Silver account is available from a minimum deposit of $500 and spreads start as low as 1.6 pips. The Gold account starts from a minimum deposit of $5,000 and traders get spreads from as low as 1.0 pips. The Platinum account starts from a minimum deposit of $25,000 and in return spreads are lowered to 0.6 pips. Maximum leverage on all accounts is 1:200 and account features are basically the same. The main difference being access to a direct line for Gold and Platinum accounts which is something most traders don’t require. Islamic Accounts are available.

When it comes to spreads, the minimum spread listed on the spreads page is 0.6 pips. Unfortunately, this spread is available to Platinum account traders only. Offering a 0.6 pip but demanding a $25,000 minimum deposit is rather extreme, and traders are certainly able to find more competitive conditions with other brokers. Since this broker is geared towards new retail traders, the Silver account applies which means spreads start at 1.6 pips which is on the high-end of the spectrum, though certainly on-par with some other retail brokers.

LegacyFX account types

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Trading Platforms

Perhaps the biggest surprise we encountered in our LegacyFX review is the fact that this brokerage offers only the MetaTrader 5 platform. They only offer the MT5 trading platform which will make this broker a difficult choice for established traders, as this platform is missing several key features. While it is the successor of the popular MT4 trading platform, MT5 does not allow hedging and is currently incompatible with MT4’s EAs, which will make it difficult for traders who have used that popular platform until now. On the other hand, new traders who have no allegiance to MT4 or any other platforms will have no trouble beginning their trading careers with MT5, which many brokers perceive to be the wave of the future.

LegacyFX doesn’t offer the usual marketing materials associated with the MT5 trading platform and limits this section to a simple page on their website with download links to either desktop or mobile versions. A web terminal is also available.

MT5 signup page

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Unique Features

LegacyFX is a relatively no-frills Forex broker whose most unique feature is offering only MT5 as a platform option.

Signals

This page contains the following three sections: Live Signals, Daily Market Trends and Weekly market trends. Live Signals loaded and comes with a “Trade” button which presumably leads to the web terminal so traders can execute the trade. An option for notifications is also available. A nice idea, but it could use a bit more development, which we hope will be coming in the near future. Daily and weekly market trends unfortunately had no results returned.

LegacyFX signals

Company Information

  • Headquarter : Cyprus
  • Regulation : Vanuatu Financial Services Commission

Account Information

  • Type of Broker : Market Maker
  • U.S. Clients Allowed :
  • Minimum Deposit : $500
  • Maximum Leverage : 1:200
  • Commissions / Spreads : Commission + Spread
  • Account 1 : Silver
  • Account 2 : Gold
  • Account 3 : Platinum
  • Demo Account :
  • Islamic Account :
  • Segregated Account :
  • Managed Accounts :
  • Institutional Accounts :
  • Deposit Options :
  • Withdrawal Options :

Instruments Traded

  • ETFs :
  • CFDs :
  • Commodities :
  • Metals :
  • Stocks :
  • Oil :
  • Gold :
  • Binary Options :
  • Indices :

Trading Platforms

  • Type of Platform : MetaTrader 5
    • Platform Languages :
      • English
    • OS Compatibility :
      • Mac
      • Windows
      • Linux
      • Mobile
      • Web
      • iPhone
      • iPad
  • Trading Signals :
  • Market Analysis :
  • Chart Trading :
  • Guaranteed Stop Loss :
  • One-click Execution :
  • Mobile Trading :

Customer Support

    • Website Languages :
      • English
      • Spanish
      • Arabic
      • German
      • Russian
  • Support Hours : 24/5
  • E-mail Support :
  • Chat :

Pros and Cons

  • Choice of Accounts & Platforms
  • Spreads Are Not Low

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Research and Education

As mentioned above, we will take a closer look at Technical Analysis and Daily Market Reports which were listed under “Trading Tools” as well as the educational section which was proudly advertised by LegacyFX.

Education is divided into the following categories: Video Library, Advanced Courses, eBooks and Glossary. LeagcyFX stated “We believe in education” and they have created a solid base with some nice ideas, though a lack of deep substance makes these resources more suitable for new traders.

Technical Analysis

At first glance this appear like a solid section which has the following five categories: Daily Analysis Video, Commodities Charts, Indices Charts, Stocks Charts and Currencies Charts. All five categories should have video from the LeagcyFX experts. 

LegacyFX videos

Market Reports

This is the best developed part of the LegacyFX research. Roughly 20 trades are crammed into a tight space, but all relevant information for a trade has been included. The presentation is a bit scattered and makes it a bit awkward to read. Traders willing to overlook this design flaw will find some useful market information.

LegacyFX market reports

Video Library

At the time of this LegacyFX review, only two videos were found on the video library page. LegacyFX claims that their “Video on Demand” section is the “Best introduction to Forex trading”. Clicking on either of the two choices plays one short video and while there are more available, they are all locked, presumably because trading account is required (though this is not specified on the broker’s website).

LegacyFX video offerings

eBooks

11 eBooks are listed which cover various topics. They cannot be downloaded which is disappointing and a bit strange. The Forex ebooks can be viewed online.

LegacyFX ebooks

Glossary

A glossary is available which covers basic terminology and at the end this is the most valuable education tool provided by LegacyFX. It can be navigated easier than other sections provided, but it would be nice to have an alphabetic navigation bar so that traders can at least click on the first letter of what they are searching for rather than having to scroll down the list; on the other hand the list is rather limited so scrolling may be the least of the problems here. We hope that the glossary will be expanded in the future to include more Forex-related terms.

LegacyFX glossary

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Customer Support

Support is available 24/5 and clients can either send an e-mail or call support. This offering is in-line with the industry standard.


LegacyFX contact page

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Bonuses and Promotions

At the time of this review, no bonuses or promotions were offered by LegacyFX which is not uncommon for a regulated broker.

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Opening an Account

Opening an account is done at LegacyFX as it is with any other broker through an online form. This should take only a few moments to complete. LegacyFX states that it is in compliance with AML regulations which means that personal information such as copies of ID and proof of residence will be asked for unless they skip the KYC part.

Open account page

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Deposits and Withdrawals

 

The minimum deposit for a LegacyFX account is $500, while there is a maximum deposit of $10,000 with credit/debit cards. The minimum withdrawal is $200 while the same maximum applies. LegacyFX further states that withdrawals to credit cards can only be in the amount of the deposit while the remainder will be wired to the client’s bank account. Credit/debit card payments are handled in the back-office, which is normal. Clicking on “Bank Wire Transfers” leads to another log-in screen while clicking on “Alternative payment methods” returns the bank wire information. LegacyFX charges $40 per request on top of what banks will charge.

Several other methods are listed as payment options, but few details have been provided. LegacyFX makes no mention of processing time or fees included.

This is the Deposits/Withdrawal Page:

LegacyFX banking details

Other options are listed on the website, but no information is publicly made available:

Other banking options

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FAQ

Where is LegacyFX based?

LegacyFX is headquartered in Port Vila, Vanuatu.

 

How does LegacyFX make money?

LegacyFX makes most of it money from spreads in currency pairs, commissions charged on stock trades and from client losses in accounts as this broker is a market maker and acts as the direct counter-party to traders. 

 

How can I deposit into a LegacyFX account?

LegacyFX offers credit/debit card deposits as well as wire transfers. Other methods are listed, but no information has been provided.

 

What is the minimum lot size at LegacyFX?

LegacyFX has a minimum lot size requirement of 0.01 standard lots.

 

When does a margin call take place at LegacyFX?

LegacyFX failed to provide any information in regards to this category.

Is LegacyFX regulated?

AN ALL NEW INVESTMENTS (VA) LTD, the owner and operator of LeagcyFX is authorized and regulated by the Vanuatu Financial Services Commission under the license number 14579 since April 2017.

 

What is the maximum leverage offered by LegacyFX?

LegacyFX offers a maximum leverage of 1:200 in all accounts.

 

How do I open an account with LegacyFX?

LegacyFX has an online application form which is standard operating procedure.

 

Does LegacyFX offer the MetaTrader Trading Platform?

LegacyFX only offer the MT5 trading platform.

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Summary

LegacyFX is a regulated broker based in Vanuatu and at first glance comes across as a new broker with potential. Transparency and education are touted as cornerstones of its operation and neither are implemented. When it comes to education, there are several solid ideas which have not been implemented as well as they could be, but the potential is clearly there.

The biggest positive is the asset selection where this broker has done a good job of offering a wide range of assets. The availability of swap free accounts for all traders is unusual and could be interesting for traders worldwide. LegacyFX only provides the MT5 trading platform to traders. Spreads are relatively high with 1.6 pips in Silver accounts which require a $500 minimum deposit; this is where most potential new traders could be convinced to open an account.

Overall, LegacyFX appears to be a stable, no-frills broker, that is working on improvement and has some interesting things to offer traders. While some adjustments are needed on the broker side, patient traders looking for asset diversity may find what they need with LegacyFX.

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User Reviews

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1 User Reviews
ryno

I initiated my deposit refund on the 2019-09-25 and im still waiting for it. the customer service is not good at all!

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