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LegacyFX Broker Review

Review By: Alan LittleReview Updated: 2021-01-23

Our Overall Rating

Rating4
LegacyFX Introduction
Introduction

LegacyFX is a strong broker with a lot of choice when it comes to foreign exchange pairs, commodities and much more.

This is a regulated broker, and the body overseeing it is the Vanuatu Financial Services Commission (VFSC). Its licence number with this regulator is 14579. The VFSC appears to be a legitimate regulator, but it is always advisable for individual traders to read about the broker and to come to an informed decision about whether or not it is worthy of their trust before making a deposit.

The broker also takes other steps to defend the security of client deposits. It opts, for example, to have a negative balance protection system in place, which means that the trader cannot get into a situation where they owe the broker money as a result of their account deposit being cleared out through a severe loss-making trade. It also ensures that it keeps its own funds, such as those that it uses for paying staff salaries or maintaining its servers, in a different account.

LegacyFX has also won a number of awards, the details of which it proudly displays on its website. In 2020, it won the Best Forex Broker in the Middle East award from International Business Magazine, for example. Global Brands Magazine has awarded it the title of Best New Forex Brand in the United Arab Emirates.

According to the broker’s own website, it has received a rating of around 3.5 stars on the user review website Trustpilot. This was based on just over 200 reviews.

LegacyFX Introduction 2

Commissions & Fees

Rating

LegacyFX appears to be a fairly traditional broker in terms of how it goes about making revenue. Its main focus, at least from the perspective of the trader, is on spread fees. Spreads are worked out based on the difference in value between the buy price and the sell price, and a fee based on a certain number of ‘points’ or ‘pips’ is then charged on this amount.

At LegacyFX, it appears that the spread fees can vary significantly based on a number of influencing factors. One of these is the type of account that the trader is using. If the trader is using a Silver account, for example, they are likely to see spread fees that can go to a minimum of 1.6 pips. The Gold account, however, sees minimum spreads of 1 pip. The Platinum account, which is designated as being for “experienced investors”, has minimum spreads of around 0.6 pips.

Spread fees can also vary depending on the asset class in question. During the production of this review, the reviewer found that the Silver account spread for the variable CAF/CHF trading option was 2.2. For the EUR/CAD pair, however, the equivalent was 1.8. For this reason, it is worth traders keeping a close eye on the spread fees table, and ensuring that they do not miss any changes for their preferred positions and assets.

As well as spreads, however, there is also a question of wider commissions and fees to think about. Deposits are a common area for brokers to decide to charge fees. At LegacyFX, this is not the case and there are no fees charged on deposits made. There may, however, be fees on withdrawals – and it does depend on the method chosen and the assets in question.

Finally, it’s worth remembering that swap fees – which are a very common sight at many brokers and can see traders charged a fee to keep a position open overnight – are not in play at this broker, at least not on positions that are kept open for the long haul. For traders whose strategies revolve in whole or in part around the use of long-term positions, this could be a real money-saving measure.

Platforms & Tools

Rating

Traders who are experienced when it comes to foreign exchange trading will be pleased to see that LegacyFX offers MetaTrader 5 (MT5), which is the leading platform in the forex world at the moment. It builds and improves on its predecessor, MetaTrader 4 (MT4), in a number of ways – though many brokers still haven’t upgraded, making the likes of LegacyFX the exception rather than the rule.

The benefits of MT5 are extensive, and can make all the difference when it comes to the quality of the trading experience. For traders who are more experienced and are looking for a highly technical trading experience, the presence of algorithm-based trading tools in MT5 will be beneficial.

Automated trading at this broker is done using a programming language called MQL5, which in turn permits so-called ‘Black Box Programming’. Black Box Programming permits the trader to specify a series of inputs and desired outputs, and the system then converts these into strategies for investment. This sort of ‘robo-trading’ is not a silver bullet to making profits, but it does increase the chances that traders will be able to take a more strategic approach.

Those who are not quite at the stage where they would feel comfortable with highly complex, technical and code-powered robo-trading can still benefit immensely from MT5. The service also offers three different types of chart for financial analysis, for example, while it also contains nearly 10 timeframes as well as 30 indicators for technical viewing of price charts. The ‘Market Watch’ function, meanwhile, ensures that traders can receive instant quotes that match the quoted amounts on the market.

The presence of the ‘one-click trading’ function, meanwhile, ensures that traders can have a pleasant and efficient trading experience without the need to navigate through significant layers of bureaucracy. Finally, the presence of the netting and hedging services means that traders can manage the risk involved in their trading more effectively, and keep it under consideration.

Finally, it’s important to point out that MT5 is accessible on a cross-device basis at LegacyFX. Traders can access their account and place trades via mobile if they wish, and there will be more information on that further into this LegacyFX review.

LegacyFX Platforms and tools

Markets

Overall, there are more than 200 instruments available on the market at LegacyFX. These include the major foreign exchange pairs, with commonly seen currencies such as the Japanese yen and the single European currency all well-represented. The minor and exotic pairs, meanwhile, do not appear to be represented at this broker at the moment.

While foreign exchange pairs are clearly the staples of this broker’s offer, there’s also a whole host of other asset classes to consider trading. When it comes to indices, some of the world’s most important stock exchanges are available to trade. These include the UK FTSE 100, as well as leading exchanges from the US, Japan and France.

Moving on to commodities, the range on offer here is different from that of many brokers. Brokers often tend to stick to leading commodities such as gold or metals, but LegacyFX has an emphasis on agriculture – with commodities such as wheat, cocoa and sugar all represented. Metal spot assets are, of course, available, with zinc and copper just two examples.

In a sign of its engagement with modern times, this broker also provides a variety of cryptocurrencies for trade. These include Bitcoin as well as less well-known altcoins such as Litecoin, and also the cryptocurrency XRP, which is owned and offered by the well-known firm Ripple.

Finally, those who are interested in trading stocks from Germany will be pleased to see that there is a vast selection of German equities on offer. Recognisable names such as BMW can be traded, as can less well-known names.

Customer Service

Rating

The customer service offer at this broker is good. One key challenge is that there is no clear ‘Contact us’ link in the main navigation. The contact details for the broker are, in fact, available, but they are hidden in the ‘About us’ dropdown menu. Telephone and WhatsApp links are also present at the top of the page, while there is also a telephone link and a live chat box link in a sidebar at the right of the page. There is also a full list of contact options in the footer. At the time of this review’s writing, the live chat box was functioning as expected.

Research

Rating

The research section at this broker is good. There is, for example, a page full of signals that can be triggered when certain market events take place. It’s also possible for traders to stipulate that they wish to be notified when this happens. Those who are following a fundamental analysis approach will no doubt find the detailed economic calendar to be of use, while the ‘Calculator’ page contains tools designed to help traders work out pivots and more.

The broker also has a page called ‘Technical analysis’, though this is somewhat misleading as it offers more than just technical analysis tools. It has a glossary, for example, though it does also have charts available to monitor.

Ease of Use

Rating

Overall, it’s fairly easy to use the LegacyFX website. In terms of pagination, the site is split into a series of key sections that parse information in a useful way. These sections include ‘Platforms’, ‘Instruments’, ‘Academy’ and more. The website also has a strong and clean aesthetic. When pages are loading, for example, a small animated graphic of part of the broker’s logo appears.

Traders can translate the site between a number of key languages, and this is likely to be useful for customers who are from non-English-speaking countries. The languages on offer are English, Arabic, Spanish, German and Russian: some competitor brokers offer more languages than these, but the range is still strong as a standalone set.

Perhaps one downside to the broker’s website is that its page containing a full list of assets and financial instruments to trade is not easily accessed. Most brokers offer a prominent table containing this information, and also providing information such as the exact spread (even if variable) for that instrument at that particular moment in time. There are individual pages with summaries available under the ‘Trading instruments’ section, but the full list is buried in the ‘Trading conditions’ page, which may pass many traders by.

In terms of the broker’s trading platform, MT5, ease of use is once again the hallmark. It is fully compatible with all of the major operating systems available for use, including Mac and Windows, as well as less well-known services such as Linux. There is also a wide variety of order control mechanisms available for use, such as stop orders and pending orders.

Aside from the ease with which the broker’s website and platform can be used, it’s also vital for traders to investigate how easy or otherwise it is for payments to be made to this broker – and, of course, for withdrawals to be executed. The good news is that LegacyFX has a variety of compatible payment methods. Household names such as Visa Electron and Mastercard can be used with this broker, while online wallets such as Skrill are also available. Some less-well-recognised payment methods are also on offer here at LegacyFX, such as the payment-spreading service Klarna.

In terms of the deposit process, traders are advised to consult the tabulated information on its website regarding minimum deposits, time required and fees. This is quite complex information and can vary between payment providers. Those who are making a deposit using the e-wallet Neteller, for example, have a huge range of base currencies to pick from – including currencies as diverse as the Australian dollar. Those using WebMoney, however, can only deposit in US dollars or Russian rubles.

Times for deposits can also vary. Those depositing using Klarna might find that the timeframe for depositing varies based on the country they live in, while deposits made using Skrill are made in real time no matter where in the world the trader is based.

When it comes to withdrawals, meanwhile, the same sort of complicated framework applies. Bank wire transfers can take between two and five business days to complete, though most withdrawals can be processed in around 24 hours.

Mobile Trading

Rating

The mobile trading function at LegacyFX is highly rated, and this is down in large part to the presence of the MT5 platform for mobile. First off, the service is offered in an app for Android and also for iOS – so whatever device you are using, it is likely that one of these apps will be compatible.

The main benefit of the mobile trading app is that it permits you to access financial markets and relevant data around the clock, and to use most of the advanced features and functions of MT5 within one portable service. It is possible, for example, to use the hedging and netting features integrated into MT5’s web service in this app. All of the trade order types, meanwhile, are also available here.

Final Thoughts

Overall, LegacyFX seems to be a reputable and strong broker with a wide offer for traders to consider. This broker offers a range of assets to trade, though information about the full range is hard to find. It earns money using a spread-based model, which means that there are few commissions or fees to worry about – and there are particular savings to be made on long-term swap positions, where fees are waived altogether.

One of the broker’s strongest advantages is that it offers MT5, which is the most cutting-edge version of the MetaTrader platform, with 10 timeframe options for analysis. The broker’s customer service option could be more visible, but it is still present and appears to be functional. There are plenty of research and education options, and the site is also easy to use on the whole – with just some small exceptions. And with a good mobile trading offer available to round off the service, LegacyFX is clearly a broker with plenty to offer the discerning trader.

Traders should always remember that it is up to them to verify that the broker they choose is safe and right for them. LegacyFX, as a seemingly regulated broker with a range of assets to pick from, ought to satisfy that verification process.

FAQ

See what expert traders have said about LegacyFX. For your reassurance, we have tested all platforms from customer care through to trades.

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