Picking a reliable broker is the first step toward profitable currency exchange trading. However, the proliferation of brokerage firms has made identifying a trustworthy broker even more complicated. This piece discusses a scam broker, LoyalFXMarket, and the methods it uses to mislead its victims into making profitable transactions so it can make off with ill-gotten money.
LoyalFXMarket- A Quick Overview
LoyalFXMarket (https://loyalfxmarkets.com/) is a forex and CFD broker based in the United Kingdom. The broker claims to have been operational since 2012. There are five asset classes that you can trade, including forex, stocks, indices, commodities, and cryptocurrencies. While the company provides access to industry-standard trading platforms, such as MetaTrader4 (MT4) and MetaTrader5 (MT5). Clients can signup for different account types per their trading preferences. Though the broker pretends to offer educational resources, you can only access a downloadable e-book with a brief explanation of some trading concepts and terminologies. The same goes for the technical and fundamental analysis section. While the company offers customer support via telephone and email, clients can also reach the broker on social networking platforms like Facebook, Instagram, LinkedIn, and Youtube.
Is LoyalFXMarket Regulated?
No! LoyalFXMarket is neither regulated in the UK nor registered anywhere else. The company is based in the UK, and the country's legislation requires all brokers to be regulated by the Financial Conduct Authority. However, we searched the FCA register to confirm its regulatory status but found no matching results except for a warning issued by the FCA.
According to the FCA, the company was found guilty of providing unauthorized services to UK residents. The regulator warned investors to stay away from it.
Is LoyalFXMarket Legit?
No! LoyalFXMarket is not a legitimate firm. Besides missing regulations, it has been blacklisted by the FCA, which indicates that clients' funds aren't safe with the company.
How Scam Brokers Like LoyalFXMarket Work?
Unlicensed brokers' fraudulent methods are well-documented; they all follow almost the same strategy to defraud clients. Soon after you signup with the company, a telemarketing agent approaches you pretending to be your account manager. First, they explain how good they are and then ask you for a deposit. Even if you refuse them, they'll go to the last mile unless you either deposit some funds with them or report them to the authorities.
Even those who deposit funds with them receive a pathetic response from scammers. They either stop communicating with clients or block their access to their accounts, leaving them to regret their decision. Some scam companies are even accused of manipulating their platforms. For instance, they first allow your profits to grow and then suddenly, you start losing your money. One thing is pervasive with all scam brokers; they never process your payments.
Forex fraud occurs when con artists pose as reputable forex brokers to dupe unsuspecting investors out of their money. Con artists often use a legitimate forex broker's name and identification number to commit fraud. Furthermore, some fake brokers also use similar-looking websites to deceive investors into sending them money. Therefore, you must remain vigilant and should always confirm a broker's regulation status before trading. Checking the broker's reputation with independent review platforms like BrokersView can also help you assess whether the broker is worth your investment.