LoyalEFX presents itself as an online broker. The company offers trading services for different types of assets (forex, stocks and cryptocurrency). It would seem that everything on the site is simple and straightforward, but there is always a "but". For a relatively short period of time the broker managed to get a reputation for fraud among traders in many countries. In this review let's dot all the i's and cross all the t's and see the reason for the negative attitude to LoyalEFX-broker in the online trading environment.
Let's start from the beginning. The website, which should be the company's business card, its functional page on the Internet, in fact it's not. Every few seconds, a video update on the main page automatically interrupts any user action, the loading of each page takes up to 15 seconds, regardless of the speed of the Internet offered by your provider. It is all extremely inconvenient and very annoying, but it could be left unnoticed, if the content, i.e. the information on the official website corresponded to reality, was honest.
Types of trading accounts offered by LoyalEFX
Not everything is smooth with the information on trading accounts on the site.
There is no direct and detailed information about the set of accounts, for example. It would seem that the data on the packages are indicated graphically and all the main positions seem to be marked.
It is possible to see the name of the package and the cost of the "admission ticket", i.e. the price of opening each account. The broker offers a minimum sitting threshold of $150, and the highest is $50,000.
However, there is no clear description, no details. One gets the impression that the scammer has chosen such an approach deliberately in order not to "overload" inexperienced traders with details, enticing them with simplicity. As a result, the novice user does not understand what he is getting into and, as a result, is often left cheated and without money.
For example, what is the difference between the cheapest and the most expensive accounts? If the initial capital of $50,000 is paid, the premium (extended) possibilities are available for the trader. What the broker promises exactly:
- daily full-fledged analysis;
- client support;
- еhe services of a separate, personal account manager;
- аccess to the Trade Center.
Doubtful advantages for such an amount of money. As if the rest of the traders wouldn't have access to an advisor or trading operations.
Information about nothing. Already everything becomes similar to deception, because, in fact, the user is left in ignorance of what exactly he can count on, opening one or another account.
LoyalEFX Trading conditions
LoyalEFX emphasizes the fact that it's not using a dealing center, so it's an STP broker. In fact, most brokers are STP. This information can only attract the attention of a beginner, not an experienced trader.
We go further, trying to find out on what trading conditions broker LoyalEFX offers to work. Again the same picture: no information.
Probably the calculation that incomplete information "will catch" those users, who decided to start trading for the first time.
The only thing the broker mentions on his website is that:
- spread reductions are allowed up to 0.0. In fact, this is hard to believe.
- the broker has a leverage of 1:400.
It is possible that the scaling of conditions occurs according to account types. And it means that it's not clear how much should be invested for the result to meet the trader's expectations and bring him profit.
There is a separate item on LoyalEFX broker's website about the possibility of using mobile trading. In fact, every broker has this option and it is not an advantage which distinguishes it from hundreds of competitors.
Looking ahead, we would like to emphasize that such a vague description of the conditions, lack of not only details, but also of basic data, will hardly be interesting even for beginners. However, regardless of the experience in trading, every phrase of the broker should already cause fear that investing in such a "classified" broker will not bring a penny but only disappointment.
The website has no information about when the broker began offering its services to traders. It may be a week or a year, or much longer. Therefore, using the service WhoIs, you should first check when the domain of the site has been registered, where the broker offers its services.
Is LoyalEFX working legally? As a rule, the mentioning of licenses should be indicated on the broker's website in the "About Us" section. If the company has nothing to hide, the screenshot of such a document will be clear. Otherwise, the user will see a fuzzy photo with a blurry seal. This is what scammers do, who are not interested in the user seeing the identification number of the license, as well as the data of the regulator who checked the broker.
Unreadable documents (often they are faked, PhotoShop) are usually shown by the brokers who have something to hide. Some brokers do not think it is necessary to mention any licenses at all. Exactly like in the case of LoyalEFX swindler.
According to the broker's information, the company operates within the Seychelles FSA.
However, we decided not to take "our word for it" and to make a deeper analysis and run the name LoyalEFX through different regulatory bodies and find out if the company is really regulated.
We started by checking the website of the FCA (UK) regulator, because the website address is listed exactly in London.
As we didn't get any information, we checked LoyalEFX on the websites of other regulators - ASIC (Australia), CySEC (Cyprus), BaFin (Germany), CONSOB (Italy)...
The search showed that there is no information about LoyalEFX broker's licensing. So, the question: does the company have the license? The answer is unambiguous: NO. The scammer LoyalEFX doesn't have the main document.
LoyalEFX reviews online
There aren't many reviews about the broker's activity on the Internet. Nevertheless, the majority of messages from traders about the experience of cooperation with the company are presented in a negative way.
As a rule, all victims of LoyalEFX scammer, as well as similar swindlers, complain about the lack of feedback after depositing.
It is profitable for swindlers as well, because they receive more commission payments from the initial deposit.
And even in this case, it often happens when a swindler receives an initial deposit from a trader and disappears for a long time, but after a while, as if nothing had happened, offers to participate in the auction again, promising the "gold treasure".
If the trader believes and invests the money again, he will still fail to make any profit. Often it becomes impossible to withdraw even what is in the account.
LoyalEFX scammers usually use 3 methods in this case:
- persuade to take their time and continue trading for the sake of larger earnings;
- the program simply zeroes the account;
- the account is blocked without any explanation.
Practice shows that this is usually the end for the trader on this platform. And the broker is already "processing" new traders who will become a source of cash flows for him.
Safety and security of funds with LoyalEFX
The broker assures its website visitors that the company guarantees first class protection to each of its clients.
In fact the safety of trade operations with the broker leaves much to be desired. Э
The most obvious problem - the total lack of information from the broker.
For example, the information about the account, which is located under the Trading drop-down menu and in other sections.
The broker offers the trader to take advantage of any of the three active options:
- “Start Trading” button (login to the platform),
- “Live Account” button (duplicates the functions of the first button),
- “Demo Account” button (switch to the registration page).
On each page of the asset class has no lists, only an inarticulate description.
In general, the entire service is literally made up of similar problems. There is not only a lack of information, but also a lack of consistency in the data provided. There is an impression that one has to deal with amateurs. To such scam artists not only money, but also time one does not want to give.
It is possible that everything was done intentionally. That is, such an approach can be explained by the fact that the broker is interested in hiding the true information and also deliberately misleads users by deceiving them for money.
Indicating that it has offices in the UK and the U.S., the broker, traditionally, does not give full addresses. Moreover, working with the representatives of different countries, LoyalEFX does not offer its services to the residents of the specified states.
The broker claims that the parent company is regulated by the regulator in the Seychelles. Unfortunately, it was impossible to check the documentary data about this company as well. The only information on the Internet is that it repeatedly appears in the cases on accusations of fraud, violation of FCA rules and SPAM with deliberately false praise.
Despite the presence of active advertising, both the parent company and the broker itself are sure participants of "blacklists" among traders.
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LoyalEFX is a typical representative of companies-merchants in the field of online trading, a common swindler. Only if his competitors hide behind a spectacular presentation - quality informative websites, for example, LoyalEFX broker is unable to do even that.
Don't contact LoyalEFX broker, don't give your personal and financial data to this dishonest platform, if you want to save your money and nerves.