LegacyFx is the brand name of the company A.N. Allnew Investments Ltd. It was founded in 2017 and is registered as a Cyprus Investment Firm (CIF). A.N. Allnew Investments Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under the license number 344/17. Client funds are kept in segregated European bank accounts and cannot be used for company purposes. In addition, the company applies a Negative Balance Protection policy and welcomes long-term investment strategies. It does not charge any swaps on long-term positions providing decent conditions for long-term investment.
There are no commissions while you trade forex and LegacyFX earns from a mark-up embedded in the spread. Trading assets include currency pairs (15 major ones, 14 minor ones and 12 exotic ones), indices (7 major ones and 5 minor ones), commodities (agriculture and energy products), 5 precious metals, 4 cryptocurrencies and lots of global shares.
There are three types of accounts that differ mainly in the initial deposit sum and the offered spread. The Silver account requires USD500 to open and the minimum spread for the EUR/USD pair is 1.6 pips. You must invest at least USD5,000 to open the Gold account and will receive spreads as low as 1 pip. The Platinum account spreads start at 0.6 pips at the expense of an investment of USD25,000. The company also offers swap-free accounts, which have the same properties as ordinary ones, only no interest rate swap is charged when transferring a position for the next day. You can fund your account by bank transfer, credit, or debit card, Klarna, iDeal, Qiwi, Trustly, Skrill, Neteller and several others.
Customers can trade through the latest version of MetaTrader terminal – MT5. MT5 is the widely used trading platform, chosen by many investors worldwide for trading different kinds of assets. MT5 is fully customizable and easy to use with many new and improved properties. You can use the One-Click-Trading feature and it will take less than a second to place a trade. The terminal shows the depth of market, which includes the available volumes at the current price levels. Numerous technical indicators, graphical tools and expert advisors are included so that the technical analysis can be done at the highest level of accuracy. The timing of entering and exiting the market will be determined precisely. The platform is also available as a web version that grants access to market without the need to download and install any additional software, and as a mobile app for iOS and Android devices.
The Client Agreement document shows that the company is a market maker. It is written: ” being a Market Maker, we are the client’s immediate counterpart in relation to any Transaction and/or Contract entered into by a client via our Online Trading Facility.” This is not such a bad thing because the company is strictly regulated but leads to a conflict of interest. LegacyFX is not obliged to transmit each client deal to some liquidity provider. Instead, it can keep it without hedging it, as it is a counterparty, taking on the entire risk of loss. So, the company will benefit when you lose, but when you win, it loses.
The same document reveals that even though the foreign currencies, commodities and indices markets are liquid as compared with other financial and exchange markets, the market conditions might at times render the execution of an Order or of a ‘limit’ on an Order (either ‘Stop Loss’ or ‘Take Profit’) at a stipulated price impossible. Accordingly, even though the extent of the losses could be subjected to an agreed upon limit, the risk of incurring losses could be higher, and that loss could occur in a relatively short period of time. This means stop loss orders are not guaranteed and all orders are subject to slippage.
It is also written that LegacyFX follows a ‘no negative balance’ policy which confirms the claim that you cannot lose more than your invested capital.
Overall, LegacyFX is a CySEC-regulated brokerage company that offers a variety of assets through the popular MT5 terminal. Retail clients are covered by negative balance protection. However, trading conditions are not so competitive, and you must invest USD25,000 to receive decent spread.