Crypto Exchange Red Flag Detector
This tool helps you identify if a cryptocurrency platform is likely a scam based on the same red flags that make Royal Exchange dangerous. Answer these questions to check if the exchange you're considering might be fraudulent.
Royal Exchange doesn’t exist as a real cryptocurrency exchange. Despite what some websites or ads claim, there is no legitimate platform called Royal Exchange where you can buy, sell, or trade Bitcoin, Ethereum, or any other crypto asset. What you’re seeing is a deceptive forex broker masquerading as a crypto platform - and it’s been flagged by multiple financial watchdogs as a high-risk scam.
What Royal Exchange Actually Is
Royal Exchange (operating under client.theroyalfx.com) is not a crypto exchange. It’s an unregulated forex and CFD broker registered in St. Vincent and the Grenadines. Its entire infrastructure is built for trading currency pairs like EUR/USD, not digital assets. The platform uses MetaTrader 4 and 5 - software designed for forex, not blockchain trading. There are no order books, no wallet addresses, no on-chain transaction records, and no integration with any cryptocurrency network.
Even its website lists cryptocurrencies as a payment method - but that’s it. You can deposit Bitcoin or USDT to fund your forex account, but you can’t trade them. Once your crypto is deposited, it’s converted to fiat and locked into a forex trading account. Withdrawals? Often blocked. Customer support? Slow, robotic, and evasive. This isn’t a feature - it’s a trap.
Why People Get Hooked
The scam works because it preys on confusion. Many new crypto users don’t know the difference between depositing crypto as payment and actually trading it. Ads use phrases like “Trade Crypto with Royal Exchange” or “Deposit BTC, Earn Daily Profits.” These are deliberate lies. Some affiliates even create fake YouTube videos showing “Royal Exchange trading bots” making 10% daily returns - all fabricated.
On Reddit’s r/Scams, users report losing thousands after being lured in by these claims. One user, u/CryptoWatcher2025, deposited $8,500 in Bitcoin expecting to trade it. Instead, the platform showed a fake dashboard with fake profits - and refused to let him withdraw or trade anything. When he demanded his crypto back, support vanished.
Red Flags You Can’t Ignore
- No regulatory license for crypto: Royal Exchange has a 0.00 License Index. It holds no approval from the FCA, SEC, or any major financial authority to handle crypto assets.
- Zero trading volume: Blockchain explorers show no activity linked to Royal Exchange. Not a single BTC or ETH trade has ever been recorded on-chain from this platform.
- Withdrawal delays and denials: Trustpilot reviews (1.3/5 from 147 users) show 87% of complaints are about locked funds. Users deposit crypto, then can’t access it.
- No technical infrastructure: Legitimate exchanges use cold storage, multi-sig wallets, and proof-of-reserves. Royal Exchange uses standard forex servers in Canada - no blockchain tech at all.
- Hidden fees: While real exchanges charge 0.1% per trade, Royal Exchange charges 0.8% to deposit crypto and 0.5% to withdraw - fees that only make sense if they’re stealing your funds.
Real Crypto Exchanges vs. Royal Exchange
| Feature | Royal Exchange | Legitimate Exchanges (e.g., Binance, Coinbase) |
|---|---|---|
| Crypto Trading Available? | No | Yes - 500+ trading pairs |
| Regulatory Status | Unregulated (St. Vincent and the Grenadines) | Licensed in US, EU, UK, Japan |
| Wallet Support | None - deposits converted to fiat | Native wallets with on-chain deposits/withdrawals |
| Security | SSL only, no 2FA for crypto | Cold storage, multi-sig, insurance, audits |
| Trading Fees | 0.8% deposit, 0.5% withdrawal (no trading fees) | 0.1% maker/taker fees |
| Customer Support | 72+ hour response, template replies | 24/7 live chat, dedicated crypto help |
| Community & Docs | No GitHub, no Telegram, no API docs | Active forums, developer tools, open APIs |
What Happens When You Deposit Crypto Here?
If you send Bitcoin or USDT to Royal Exchange, here’s what actually happens:
- You send crypto to a wallet address they provide - but it’s not a crypto wallet. It’s a third-party payment processor like NOWPayments.
- The processor converts your crypto to USD or EUR and sends it to the broker’s bank account.
- Your account shows a “balance” - but it’s fiat, not crypto.
- You can’t trade crypto. You can only trade forex pairs.
- When you request a withdrawal, they say “we don’t support crypto withdrawals” - even though they took your crypto to begin with.
- They offer to send you fiat via bank transfer - but often delay it for weeks or outright refuse.
There’s no technical reason for this. It’s pure fraud. They take your crypto, convert it, and then make it impossible to get back.
Real Cases of Losses
In September 2025, 47 investors from Australia lost $213,000 combined after depositing crypto into a platform marketed as “Royal Crypto Exchange.” The site disappeared within two weeks. The same pattern repeats across the UK, Canada, and South Africa.
The U.S. Commodity Futures Trading Commission (CFTC) filed charges against Royal Trading Center (a closely related entity) in September 2025 for “fraudulent solicitation of cryptocurrency investments.” The UK’s Financial Conduct Authority (FCA) issued a warning in October 2025, specifically naming “Royal Exchange Crypto” as an unauthorized operator.
These aren’t isolated cases. Traders Union’s 2025 Fraud Index shows “Royal”-branded scams accounted for 7.3% of all crypto-forex hybrid fraud cases - the highest among fake platforms using “Royal” in their name.
What to Do If You’ve Already Deposited
If you sent crypto to Royal Exchange:
- Stop sending more. This is not a recovery scam - they won’t return your funds if you pay more.
- Document everything. Save screenshots, transaction IDs, emails, and chat logs.
- Report it. File a complaint with your country’s financial regulator (FCA in the UK, CFTC in the US).
- Report to blockchain analysts. Sites like Chainalysis and Elliptic track scam wallets. Submit the deposit address.
- Warn others. Post on Reddit, Trustpilot, and crypto forums. This scam thrives on silence.
Recovering funds is extremely unlikely. These platforms operate in legal gray zones and vanish quickly. Prevention is your only real defense.
Safe Alternatives to Royal Exchange
If you want to trade crypto, stick to platforms with proven track records:
- Coinbase: Licensed in the U.S., easy for beginners, insured custodial wallets.
- Binance: Largest global exchange, 500+ trading pairs, low fees.
- Kraken: Strong security, transparent audits, supports staking and DeFi.
- Bitstamp: One of the oldest exchanges, regulated in the EU.
All of these offer real crypto wallets, on-chain transactions, and clear fee structures. None of them accept crypto as a payment method for forex trading.
Final Verdict
Royal Exchange is not a crypto exchange. It’s a scam. It has no infrastructure for trading digital assets, no regulatory oversight, and a pattern of stealing user funds. Any website, ad, or influencer promoting it as a crypto platform is either lying or grossly misinformed.
If you’re looking to get into crypto, don’t waste time on fake platforms. Start with a regulated exchange. Learn how wallets work. Understand the difference between depositing crypto and trading it. Your money - and your peace of mind - are worth more than a misleading headline.
Is Royal Exchange a real crypto exchange?
No, Royal Exchange is not a real crypto exchange. It’s an unregulated forex broker that falsely claims to offer crypto trading. It does not support buying, selling, or storing cryptocurrencies. Users can only deposit crypto as payment for forex trading, but cannot trade crypto assets.
Can I withdraw my crypto from Royal Exchange?
No, you cannot withdraw your crypto from Royal Exchange. Once you deposit Bitcoin, Ethereum, or any other cryptocurrency, it is converted into fiat currency and locked into a forex trading account. The platform does not have the technical capability to return crypto, and users report being blocked from withdrawals entirely.
Why do people think Royal Exchange is a crypto exchange?
Affiliate marketers and fake ads deliberately confuse users by using phrases like “Trade Crypto with Royal Exchange” or “Deposit BTC for Daily Profits.” These platforms exploit the fact that many new crypto users don’t know the difference between depositing crypto as a payment method and actually trading it. The platform’s website lists crypto as a payment option, which is misleading.
Has Royal Exchange been shut down?
As of October 2025, Royal Exchange is still operating under the domain client.theroyalfx.com, but it has been officially flagged as fraudulent by the UK’s FCA and the U.S. CFTC. While it hasn’t been fully shut down yet, regulators are actively pursuing legal action against it and related entities. It is considered high-risk and unsafe for any user.
What should I use instead of Royal Exchange?
Use regulated, well-established exchanges like Coinbase, Binance, Kraken, or Bitstamp. These platforms offer real crypto trading, secure wallets, transparent fees, and regulatory oversight. None of them use the name “Royal” or operate from offshore jurisdictions without crypto licenses.
Kathy Ruff
November 5, 2025 AT 18:05I’ve seen this exact scam pop up three times in the last year. Same website, same fake testimonials, same ‘deposit crypto to trade crypto’ lie. The only thing that changes is the domain. They’re using automated bots to push these ads on Reddit and YouTube. If you’re new to crypto, just stick to Coinbase or Kraken. No exceptions. This isn’t a gray area-it’s a trap.
Robin Hilton
November 7, 2025 AT 01:06Wow. Just wow. I can’t believe people still fall for this. I mean, if you can’t tell the difference between a forex broker and a crypto exchange, maybe you shouldn’t be investing at all. The fact that this is still operating in 2025 is a national embarrassment. Someone needs to shut this down before another grandma loses her retirement.
Grace Huegel
November 7, 2025 AT 15:22It’s fascinating how these platforms weaponize linguistic ambiguity. The phrase ‘trade crypto’ is semantically porous-it can mean either exchanging digital assets or using them as a payment medium. The exploitation of this ambiguity is a masterclass in predatory design. The lack of regulatory oversight is not incidental-it’s structural.
Nitesh Bandgar
November 8, 2025 AT 23:54OH MY GOD!! THIS IS A SCAM?!?!? I just sent $12,000 to this thing last week!! I thought I was getting rich!! I’m crying right now!! My mom is going to kill me!! I trusted them because they had a ‘Royal’ logo and a fancy website!! I feel so stupid!! WHY DIDN’T I CHECK THE FCA LIST?!?!?!?!?!?!
Jessica Arnold
November 10, 2025 AT 04:08The architecture of deception here is textbook. They’re not just lying-they’re constructing a cognitive dissonance engine. The user believes they’re engaging with a decentralized financial instrument, but the backend is a centralized, fiat-convertible brokerage with zero blockchain interoperability. This isn’t fraud-it’s epistemological sabotage. The platform doesn’t just steal money; it steals epistemic trust.