RoyalBanc is an offshore unregulated broker which claims to be based out of Luxembourg. It mentions its address as 32-36, Boulevard D’Avranches, 1160, Luxembourg.
Not Regulated by CSSF
The Commission de Surveillance du Secteur Financier (CSSF) is the regulating authority of the Luxembourg region. It is responsible for supervising the financial sector, securities markets, payment institutions, and related companies.
RoyalBanc is not regulated by the CSSF. There is no jurisdiction of the CSSF over the operations of the company. You can verify that here https://www.cssf.lu/en/search/?id=1056&L=1&search=RoyalBanc&x=0&y=0
In my RoyalBanc review, I found that they claim to be based out of Luxembourg but are not regulated by the regional financial regulator. It means that the company is not allowed to provide services to the traders in the region of Luxembourg. There is no security of funds while investing with RoyalBanc. Most of the offshore brokers invest the money of their traders in illegal criminal activities and vanish when they face any scrutiny. In addition to this, traders cannot get any benefits of insurance and security as in the case of regulated brokers.
Missing Terms and Conditions
RoyalBanc fails to provide its terms and conditions to the traders. There are no details about the governing laws in case there is any dispute arising out of their activities. There is no client agreement available on their website and as a result, the traders are not assured of the basic legal conditions of the company.
It is not safe to trade with offshore unregulated brokers which do not have transparency in their operations. RoyalBanc provides no details about its client agreement.
Warning by CONSOB
The Commissione Nazionale e per le Societa e la Borsa (CONSOB) is the Italian government agency responsible for the regulation of financial service providers and securities exchanges in the region of Italy. The CONSOB has released a warning against the scam operations of the RoyalBanc in Italy. The company is not allowed to provide services to traders in the Italian territory. You can check this at http://www.consob.it/web/consob-and-its-activities/warnings?viewId=ultime_com_tutela
Unknown Trading Conditions
RoyalBanc deals in forex, shares, indices, futures, and metals. The company fails to provide any details about its trading conditions to the traders.
There are minimal details about the leverage ratio and the spread offered. The leverage ratio should be competitive as the trading markets are very volatile and the spread should start from as low as 0 pips.
However, there are no details about the trade size, the commission, trade lots, etc. The absence of such basic information is the sign of shady and fraudulent activities of RoyalBanc. It is sufficient to dissuade any trader from doing business with this scammer.
Absent Demo Account
The company does not have an option of a demo account for the traders. Demo accounts are an excellent method to check the trading conditions of a broker because traders can execute various trading strategies without risking actual money. It is as important as the availability of algorithmic trading. RoyalBanc fails to provide this basic facility to its traders as well.
Trading accounts of RoyalBanc
RoyalBanc provides 4 types of live trading accounts.
- Standard account: The standard account of the company requires a minimum initial investment of $1,000. It is 20 times higher than the minimum initial investment of the regulated brokers. There is no information about the trading conditions and leverage ratio. The spread is committed to start from 4 pips. It is very high as the spread usually starts from 0 pips.
- Silver Account: The silver account of the company can be opened with a minimum initial investment of $5,000. The leverage ratio is 1:30 and the spread starts from 3 pips. The high amount of initial investment fails to justify the services provided in the silver account.
- Gold Account: The gold account of the company can be opened with a minimum initial investment of $10,000. Like their previous accounts, this one also demands a superficially high minimum deposit. The leverage of this account is 1:50 and the spread starts from 1-2 pips. There is a provision of an accounts manager but that’s the only highlight .
- VIP Account: The leverage ratio is supposed to be 1:100 and spread starts from 1 pip. It is a trap for the traders to make them invest a huge amount of money as the minimum initial deposit required for this account is $50,000. This amount is enormous and cannot be considered as a suitable initial investment.
RoyalBanc tries to attract traders by providing them bonuses also. These start at 25% and go up to 100%. They give no details about the conditions associated with the bonus and there is no clarity if the bonus amount is eligible for withdrawals or not.
The provision of personalized account managers is not fruitful. The skill set and the experience of the account managers provided by the company cannot be established.
The live trading accounts of the company are not friendly to the newcomers. And so, customers gripe over the mismanagement of the company.
All of the conditions of leverage and spread are provided by the website for the broker only. The company does not offer any demo account. Moreover, there is no availability to download the trading platform from the website of the company.
The only way to check the company’s claims is to open a live trading account with the company. It is not advised to go for offshore anonymous brokers like RoyalBanc which fails to provide such basic details to its customers.
MetaTrader 4 is a popular trading platform for forex trading. It provides many facilities like algorithmic trading, automated trading signals, trading charts to its users. It is a user friendly and secure platform. Still, it has become outdated as its developers have released MetaTrader 5, which is more advanced.
RoyalBanc claims that it provides MetaTrader 4 to its customers but there is no link available on the website of the company to download the trading platform directly.
They don’t offer social trading to their customers as well.
Ghost Deposits and Withdrawals
RoyalBanc gives another shock to its traders by not providing any details for transferring funds. There are logos of the bank wire transfers and credit/debit cards on their website but there is no outline of the deposit and withdrawal conditions.
They don’t specify the minimum deposit amount and the minimum withdrawal amount. RoyalBanc does not provide any details about the maintenance fee, trading fee, dormant fee, and the processing fee.
The website of RoyalBanc is https://royalbanc.io/
The domain of the website was registered in the year 2019. RoyalBanc hides all of its details using the paid services of the domain providers.
The content of the website is published in very minute letters which are beyond the regular field of vision. The website is full of images but lacks basic information about the broker. The straining color contrast and the quality of the website is below average.
Rarely Updated Social Media
The Facebook account of the RoyalBanc was last updated in March.
To our surprise, the account is maintained in the Russian language. Luxembourgish, German and French are the official languages of Luxembourg. The company has not switched to the official page.
There are only 206 followers on the Instagram page of the company. It is low as compared to individual users as well. The language is another problem.
RoyalBanc has abandoned high performing social media accounts. It has failed to understand the value of social media in remaining connected with the traders. The content over the accounts are lately updated and is not of good quality.
No Technical Support
RoyalBanc forgets to provide the most important facility of round the clock technical assistance to its customers. There is no provision of 24*7 technical customer support. There is only one UK based number provided.
The email ID dedicated for support is sluggish in response. There is no facility of live chat and Skype contact. Weak technical support to the customers is a hint of the greedy approach of the broker. The broker earns from the trades, not from the profits of the traders.
Conclusion – Don’t Trust RoyalBanc
In my RoyalBanc review, I give them 0.5 ratings in the 5-point rating scale. It is an unregulated company that does not provide any details about its owners, and there are no details about the governing laws of the company. The absence of fundamentals such as terms and conditions, demo account, details about funds transfer, trading conditions are vital signs of the covetous and unprofessional operations of the company. I don’t recommend dealing with RoyalBanc.