LoyalFXMarkets Review: A Deep Scam

LoyalFXMarkets Review
  • Regulation
  • Fund Safety
  • Customer Support
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Summary

From their website, LoyalFXMarkets claims to be located in the UK. If this were the case, then they would have to be under the supervision of the Financial Conduct Authority (FCA). This broker is a notorious liar because we did not find their name on the FCA’s database. 

It seems that LoyalFXMarkets wants us to believe that they are a reputable forex broker based in one of the world’s big financial hubs. However legit they appear, they are, in fact, a fraud. They have tried hard to mask their intentions but have failed. There is overwhelming proof that they are not what they claim to be.

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As the internet has grown, it has presented an opportunity for people to earn a living from home. One of the avenues where this has thrived is forex trading. With a computer or phone and the internet, you can start learning the basics of this lucrative industry. When a person first learns about forex trading, they’re excited. It seems like an easy way to make quick money. However, people soon realize it is not as easy as they thought.

However, as a beginner, you must not fall into the trap of scammers. These schemers prey on new traders who learned about the venture from a video they saw online or from friends. Most people who market trading as an easy undertaking have ill intentions. Some want to sell you an expensive training course or to promote a particular broker. You must be wary of such tricks.

To succeed in forex trading, one needs capital and expertise. You can trade the market like a professional or like a gambler. However it’s important to remember that gambling is an expensive guessing game. It’s also vital to find a trustworthy forex broker to facilitate trades.

While it’s great that people can now participate in online trading with relatively little capital investment, scammers have taken advantage of this trend. Commonly, they highlight the financial benefits of working in the industry. However, everyone would be doing it if it were as simple as the con artists say. Scammers lure in new investors by promising extravagant sign-up bonuses. Investors need to be on the lookout for these con artists so they can protect their money.

About Loyalfxmarkets.com

The broker is optimistic about itself and its services. It claims to be a reputable and reliable partner in online forex trading. You have the option of opening a live or demo account. On their website, they stated they got started in 2012.

When we checked their domain on whois.com, we found some inconsistencies. The website was created on 2020-09-04, updated on 2022-09-02 and will expire on 2023-09-04. This proves that they were lying about starting the business in 2012. Such a company should not be trusted, therefore.

Their products include indices, cryptocurrencies, stocks and commodities. When you invite a friend to LoyalFXMarkets, they reward you in addition to their welcome bonus. This is one of the tricks scammers use to get more people to join their schemes. They have six different account types, each with its conditions.   

They claim to have won 20 awards, have 12,000 active clients, 12,000 expert traders and nine years of experience. All these are lies. No organization would award a scam broker. Also, it is false to claim that all your traders are experts.       

Founders and Team

Every company must start from somewhere. There must be a list of founders and the vision behind the establishment. For many companies, they give a list of the people and even include their photos. This broker has, however, omitted this vital information. They have not mentioned the names of the people who run the company or those who established it.

Company leaders are the image of the company. If you see a company run by people of questionable reputation, you’re likely to stay away from them. That is why this broker has chosen anonymity. They want to avoid people identifying them as scammers in the future when the company collapses. Also, they may be operating different scam firms under different names. 

LoyalFXMarkets Contact Details

Maintaining open lines of communication with one’s broker is essential in the foreign exchange market. Since the currency market is volatile, you should have access to help around the clock. The broker is also obligated to keep you abreast of economic developments on a global scale. You can use this to your advantage while making trading decisions, and it will have a significant impact on your trade. 

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This broker has provided a physical address, phone number, email and social media platforms. However, when we clicked their social media links, they led us nowhere. It means they have given fake links. The company does not want anyone to reach them because they know most of their business activities are shady.

LoyalFXMarkets Regulation Status

In the forex trading industry, there is stiff competition. To appeal to customers, brokers offer attractive conditions like low spread and commission charges. However, one of the most critical aspects of a trader is regulation. Trading with an unregulated broker is dangerous. In case they go bankrupt, you cannot sue them. Also, scam brokers can manipulate the market, giving you fake profits you cannot withdraw.

If a financial services provider is legitimate, you can learn a lot about the firm behind it, where it is located, and what kind of licenses it holds by perusing its website. Legit brokers will also have all the necessary paperwork for you to sign. Just because something is online doesn’t mean it’s not going to deceive you in some way. Without these features, you’re likely dealing with a fraudster.

From their website, LoyalFXMarkets claims to be located in the UK. If this were the case, then they would have to be under the supervision of the Financial Conduct Authority (FCA). This broker is a notorious liar because we did not find their name on the FCA’s database.  Furthermore, the FCA issued a scam alert in November 2022, warning that the firm is providing financial services or products in the UK without their authorization. They warned people against dealing with them.

In their Terms and Conditions, under “Jurisdiction,” they have stated that their conditions are founded on Indian law. This is confusing because the broker says it is based in the UK. It proves the broker’s shady nature. It is possible that they did not write these Terms and Conditions. They probably copied from another company and edited some parts.          

Trading Conditions

A broker’s initial deposit, spread and commission are important parameters for traders. The lowest minimum deposit for this broker is $100. Although this is reasonably low, it does not mean the broker is legit. They, however, have a very high leverage of up to 1:1000.

This is beyond the FCA’s 1:30 leverage requirement. Also such a high leverage is risky because one wrong trade can wipe out your entire account. They offer a floating spread so they can keep changing it. Don’t trust them.      

Deposit and Withdrawal

They claim you can transact through credit cards, Skrill, WebMoney, Neteller, VISA and Bank transfers. However, this could just be a marketing gimmick. The moment you open an account, they’ll likely change the story.

Mostly, fraudsters recommend using cryptocurrencies so that in case you lose your money, you cannot claim a refund. The broker has not provided any evidence that people have withdrawn profit since it has no financial report.  

Trading Software

The broker claims to offer MetaTrader 5 platforms for its users. We could not, however, download their purported platform or access their demo. Without these, it is impossible to assess the reliability of their platform.  

Final Verdict

Unfortunately, the forex market is riddled with scammers like LoyalFXMarkets. They have turned a legit business into a scam to make quick money. Although they claim to have multiple awards, the fact that they have no license nullifies all their claims. For a good trading experience, always work with certified, honest forex brokers.           

 

 

 

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