Today, we want to introduce you to another well-known scam broker, RoyalsFX. Due to the poor operation of the website, we were unable to find the exact date when the company was established. However, we still collected some valuable information to prove that you must keep your funds away from them.
RoyalsFX is a foreign exchange and CFD broker operating outside of Switzerland. They offer five account types but did not disclose any trading conditions. To make matters worse, the brokerage firm has not obtained a license to provide financial services in any regulated market.
Nevertheless, there are some assumed benefits of using RoyalsFX, and we will start with them. We will not let you tire of lengthy and tedious analyses. Instead, we will simply point out a few of the worst “red flags” and tell you the verdict.
RoyalsFX’s trading platform
The only positive feature the broker has is the advanced trading platform. RoyalsFX provides trading on MetaTrader4 (MT4). This is one of the best trading solutions on the market.
It has numerous market indicators, advanced charting tools, user-friendly interfaces, and even customizable trading robots that allow algorithmic trading sessions. All of these make MT4 the platform of choice for professional and beginner traders.
However, we could also assume that the company only claims to have MT4 while offering some random proprietary trading platform instead.
Unregulated and unlicensed service
RoyalsFX’s website does not provide too many details about the entities behind the brand.
The only information we can find that can help us determine the broker’s legitimacy is the Swiss address and the reference to Estonian governing law in the terms and conditions.
However, there is no mention of licenses and no mention of financial regulation. To make matters worse, we could not find any names for the company that operates the brand and owns the website.
This means that RoyalsFX’s services and website are basically anonymous. No matter which company behind the brand is, they have no right to provide financial and investment services.
Doing business with unregulated brokers is risky, and investing with anonymous brokers basically means throwing your money in the trash bin.
Blocklisted by FINMA
We also found that the Swiss Financial Market Supervisory Authority (FINMA) has issued a warning to RoyalsFX, which is another major red flag for the broker.
Undisclosed trading conditions
As mentioned at the beginning, RoyalsFX did not disclose any trading conditions, such as reference spreads, leverage ratios provided, extensions, and transfer fees. These are obvious signs of trouble and are usually “told” to scammers.
Higher than average spreads
When we tested the broker’s MT4 network in the demo mode, we found that the benchmark EUR/USD spread was around 1.8 points, higher than the industry average.
High initial deposit
In addition to all the negative factors listed above, RoyalsFX requires an initial investment of $1,000, significantly higher than most brokers’ initial investment. If you make a deposit mistake, you may not get any money back.
RoyalsFX’s withdrawal policy
Mentioning withdrawal policies does not even make sense, as that is never going to happen. Whether your profit is $5,000 or $25,00,0, the withdrawal procedure will “la” and won’t receive your payment. Of course, they won’t reply to your emails or phone calls anymore.
They will just vanish (Well, it’s not only for RoyalsFX-It’s generally how the scammer brokers work). So, don’t put yourself in this nightmare, don’t invest with them.
Final thoughts about RoyalsFX
Overall, this unregulated broker is basically anonymous and has probably participated in the scam.
There still is a decent amount of honest brokers that you can enjoy trading with. You can check our forex broker list and read their detailed reviews and analysis.
However, please note that trading via a regulated brokerage firm does not guarantee your financial stability and continuous profits.
Forex is a highly fluctuating industry, bringing high chances of risks to your funds. Thus, measure the risks, manage your money, think twice, and join the industry later.