Loyalty Fx Markets Review – Why Should you Avoid this Broker?

Loyalty Fx Markets Review

The fact that there are thousands of online brokers in the market offering their trading services should be a good thing. It should make it easy for you to find a competitive and professional platform for your trading needs, but this is not the case. Why? It is because not all of these companies are genuine. Scams are common across the internet and these fraudsters have invaded this space as well. One of the most widely used tactics is to create websites of fake brokerages and luring people to invest their money. You can check out this Loyalty Fx Markets review to see how this is done.

These scammers are well-aware of how to attract people to their offerings and they deliberately present a professional front to put their potential victims at ease. Therefore, most people don’t realize that they are making a mistake and find out only when it is too late. This is certainly not something you want to happen to you, which means you have to be on your guard. You can accomplish this by knowing just how these fraudsters operate. You can check out Loyalty Fx Markets to do so because they are portrayed as a highly successful brokerage, which is operating globally.

They are offering a comprehensive selection of trading assets, along with the renowned MT5 trading platform and some very competitive trading conditions. As this is what most traders seek, it comes off as a good deal. But, when you start peeling away the layers, you will find just how Loyalty Fx Markets is misleading people. Some of the prominent issues you will see are mentioned as follows:

It has been blacklisted in the UK

It is understood that you need to know the corporate background of any broker before signing up, along with their licensing and regulation. When you check out the Loyalty Fx Markets website, you will see that they have given an address in London, UK. As a matter of fact, there is also a contact number available with a UK country code. Of course, this gives you all indications that the broker is based in the UK and is licensed to operate there.

In order to operate in the United Kingdom, a broker would need a license from the Financial Conduct Authority (FCA), which is the regulatory authority in the region. However, you can check their online register and not find Loyalty Fx Markets listed there at all. This means that the broker is either lying about its office location, or providing its services illegally. It appears to be the latter situation because this has prompted the FCA to issue a warning against the broker.

That’s right; Loyalty Fx Markets has been blacklisted by the FCA and this is all the proof anyone needs that the broker is a scam and not to be trusted at any cost.

It has excessive leverage ratios

Checking the trading conditions of a broker is a must before you sign up because this has an impact on your trading performance. You need to do the same with Loyalty Fx Markets and when you do, it will reveal further issues with the brokerage. Similar to many of the unregulated brokers in the market, this one also attempts to lure people to its platform by offering them excessively high leverage ratios.

Some might see this as a good sign because ratios as high as 1:800 means that you can make much higher profits. However, it is important to note that your losses can be just as high, which makes this very risky. This is the top reason why most regulated jurisdictions have imposed a cap on the level of leverage that can be offered to traders. This is also applicable to the UK, where Loyalty Fx Markets claims to have an office. Hence, this is more proof that they are not legally operating from the UK because they are also contradicting FCA’s policies.

It has unattractive spreads

Similar to leverage, the spreads charged by a broker will also affect your performance. Therefore, this is another aspect of the trading conditions that should be factored into your decision. There is a demo account available at Loyalty Fx Markets and you can use it for testing the kind of spreads you will find here. Unfortunately, you are in for disappointment because they are charging 1.7 pips for the EUR/USD pair. This is very unfavorable for traders and it is not something that can be considered attractive.

It does not have any legal documentation

It has already been established that the trading conditions offered by Loyalty Fx Markets are unattractive and things get much worse. When you scour their website, you will not find any legal documentation available anywhere, which is a major red flag. This is because the purpose of this legal documentation, such as Terms and Conditions, Privacy Policy and Client Agreement are all meant to establish the relationship between the broker and its clients.

These dictate what rules you have to comply with, the policies that are applicable and other relevant conditions. The fact that Loyalty Fx Markets has no such documentation available is worrisome because it means that you are blindly expected to agree with anything they might ask you to do. This just provides the broker with an opportunity to exploit you, which is exactly what scam brokers want.

It does not give option of chargeback

The payment methods supported by a broker are also important because they tell you whether you can file for a chargeback and get your money back in case of a problem. The problem with Loyalty Fx Markets is that it is misleading its clients. They have logos of Visa and MasterCard displayed on their website, which indicates that they support these cards that give you the option of chargeback. However, the only payment method supported on the platform is wire transfer, which means you will not be able to get your money back in case something goes awry.

Ending Thoughts

Put all of these problems together and you will understand why Loyalty Fx Markets is a broker to avoid.