Local Bank

Overview

Local Bank (Local Financial Pty Ltd) was once a New York-based financial institution with a history spanning over 120 years. However, its website is currently down, raising concerns about its reliability and stability. Moreover, there are no current regulatory authorizations in place, leaving customers uncertain about the safety of their funds and transactions. The lack of regulation raises red flags, and potential customers are advised to exercise caution and explore alternative banking options with more transparent and secure services.

Its website in 2022:

Regulation

Local Bank (Local Financial Pty Ltd) faced significant regulatory issues as its licenses came under scrutiny. The Australian Securities and Investments Commission (ASIC) revoked the bank's authorization, raising concerns about its compliance with regulatory standards and consumer protection measures. Additionally, the National Futures Association (NFA) declared Local Bank as unauthorized, further adding to the uncertainty surrounding the bank's operations and raising red flags about its legitimacy and reliability. These regulatory actions cast doubt on the bank's ability to adhere to financial regulations, potentially impacting customer trust and confidence in its services.

Services

Local Bank operates with a focus on three core businesses: banking, financing, and investments, providing a variety of financial services to its customers.

1. Banking Business:

The bank offers a comprehensive range of banking services designed to meet the diverse needs of its clients. This includes convenient online and mobile banking platforms, allowing customers to manage their accounts, make transactions, and access financial information with ease. Additionally, Local Bank provides credit card services, enabling users to make purchases and manage their spending. The bank also boasts an extensive ATM network, ensuring accessibility for customers to withdraw cash and perform basic banking tasks conveniently.

1. Financing Business:

In the financing sector, Local Bank provides a selection of lending options to assist individuals and businesses in achieving their financial goals. This includes personal loans, offering financial support for various purposes, such as emergencies or personal projects. Home equity credit lines are also available, allowing homeowners to leverage the equity in their properties for other financial needs. Moreover, the bank offers mortgage loans, enabling customers to secure funding for purchasing or refinancing their homes.

1. Investment Business:

Local Bank's investment services cater to individuals seeking opportunities to grow their wealth and secure their financial future. The bank offers various investment products, including stocks, giving customers the chance to participate in the equity market and potentially earn returns through capital appreciation. Bonds are available for those seeking more stable and predictable income streams. Furthermore, Local Bank provides mutual funds, allowing customers to diversify their investments across a range of assets managed by professionals. Additionally, the bank offers insurance services, providing protection and coverage against unforeseen events. Annuities are available to those looking for a guaranteed income stream during retirement. Lastly, the bank provides retirement plans, empowering customers to save and invest for a financially secure retirement.

Account Types

Local Bank offers customers two primary banking tools: the checking account and the savings account, providing them with essential financial management options.

1. Checking Account:

   The checking account is designed to facilitate day-to-day financial transactions and payments. Customers can easily deposit and withdraw funds from this account using various methods, including online banking, mobile banking, and through the bank's network of ATMs. Additionally, the checking account often comes with a debit card, allowing account holders to make purchases and access cash conveniently. This account type provides a detailed record of transactions, making it an essential tool for managing everyday expenses.

2. Savings Account:

   The savings account serves as a secure and interest-bearing option for customers to save and grow their money. Account holders can deposit their funds into the savings account, where it earns interest over time. The interest rate may vary depending on market conditions and the account balance. This account is ideal for individuals who want to set aside money for future needs, emergencies, or long-term financial goals. Moreover, the savings account often provides account holders with access to online and mobile banking features, enabling them to monitor their savings and make necessary transfers.

Trading Platform:

Local Bank's trading platform is powered by the computer trading software MT5, which has received mixed feedback from users. Some customers have experienced occasional technical issues, such as slow loading times and system crashes, affecting their trading activities. However, others have found the platform to be suitable for their needs, appreciating its wide range of features and trading options.

For customers using Apple phones and Android phones, finding and downloading MT5 from the APP store has been a straightforward process for some, while others have faced minor difficulties. Once downloaded, logging into the server and selecting the LocalFinancial option has been relatively straightforward for most users.

Overall, while some users have encountered challenges with the trading platform, it has still managed to serve the trading needs of many customers satisfactorily. Local Bank continues to assess and improve its trading platform based on user feedback to enhance the overall trading experience for its clientele.

Market Instruments for Local Bank's Trading Platform:

1. Equities (Stocks): Local Bank's trading platform allows customers to trade a wide range of equities from various stock exchanges. Customers can buy and sell shares of publicly listed companies, giving them the opportunity to invest in businesses they believe in and potentially benefit from capital appreciation and dividends.

2. Fixed-Income Securities (Bonds): The platform offers access to a selection of fixed-income securities, including government bonds, corporate bonds, and municipal bonds. Customers can invest in bonds to receive regular interest payments and the return of the principal amount upon maturity.

3. Exchange-Traded Funds (ETFs): Local Bank provides customers with access to a diverse range of Exchange-Traded Funds, offering exposure to various asset classes, industries, and regions. ETFs are a popular choice for investors seeking diversification within a single investment vehicle.

4. Mutual Funds: The platform offers a comprehensive selection of mutual funds managed by reputable fund managers. Customers can choose from different mutual fund categories, catering to various risk profiles and investment objectives.

5. Commodities: Local Bank allows customers to trade various commodities such as gold, silver, oil, and agricultural products. Trading commodities provides an opportunity to diversify investment portfolios and hedge against inflation or economic uncertainties.

6. Foreign Exchange (Forex): The trading platform offers forex trading services, allowing customers to trade major currency pairs and take advantage of exchange rate fluctuations in the global foreign exchange market.

7. Options and Futures: The platform includes options and futures contracts for customers who seek advanced trading strategies and risk management tools.

8. Retirement Plans: In addition to traditional investment instruments, Local Bank's trading platform offers retirement plans, such as Individual Retirement Accounts (IRAs), allowing customers to save for their retirement and benefit from potential tax advantages.

9. Annuities: The trading platform also provides access to annuities, offering customers a stream of regular income payments during retirement.

10. Insurance Products: Local Bank offers various insurance products, including life insurance and other protection plans, to help customers safeguard their financial future.

Through this array of market instruments, Local Bank's trading platform aims to cater to the diverse investment preferences and financial goals of its customers, providing them with a comprehensive and accessible suite of financial instruments to build and manage their investment portfolios.

Leverage

Customers on Local Bank's trading platform have the option to select the leverage level that suits their trading strategy and risk tolerance. For example, currency pairs in the forex market might have leverage ratios of up to 1:100, while equities and ETFs may have different leverage ratios, such as 1:10 or 1:20.

It is important to note that leverage can amplify potential gains but also increases exposure to market fluctuations, potentially leading to significant losses. Therefore, customers are advised to use leverage carefully and consider their financial capabilities and risk appetite before utilizing higher leverage levels.

Local Bank's maximum trading leverage reflects the broker's commitment to providing customers with enhanced trading opportunities while maintaining a focus on prudent risk management and financial security. Traders can access leverage responsibly on the platform, with the support of Local Bank's comprehensive customer service and risk management measures.

Spreads and Commissions

Local Bank's fee structure is designed to cater to a diverse range of customers, offering both competitive spreads and commissions across its various trading instruments. This transparent fee structure aims to provide clients with clear insight into their trading costs, enabling them to make informed trading decisions.

1. Equities (Stocks): For trading equities, Local Bank charges a commission of 0.1% per trade. The exact spread varies based on market conditions and liquidity.

2. Fixed-Income Securities (Bonds): Trading of fixed-income securities attracts a commission of 0.05% of the trade value. Spreads for bonds are determined by market conditions.

3. Exchange-Traded Funds (ETFs): Local Bank charges a commission of 0.1% per ETF trade. As with equities, the exact spread varies depending on market conditions and the specific ETF being traded.

4. Mutual Funds: For mutual funds, Local Bank imposes a 0.5% upfront fee, along with an annual management fee of 1.5%.

5. Commodities: Commodities trading involves a flat commission of 0.1% per trade, with spreads determined by market conditions.

6. Foreign Exchange (Forex): Forex trading at Local Bank features highly competitive spreads starting from as low as 0.5 pips for major currency pairs. No additional commission is charged on Forex trades.

7. Options and Futures: For options and futures, Local Bank charges a flat fee of $2 per contract, with no additional spreads.

8. Retirement Plans: There are no commissions on trades made within retirement accounts, but an annual management fee of 0.75% applies.

9. Annuities: For annuities, Local Bank charges an annual management fee of 1.25%, with no additional spreads or commissions.

10. Insurance Products: Insurance products come with varying premium rates and charges, depending on the type and coverage of the insurance policy.

Please note that the above commissions and spreads are subject to change based on market conditions and Local Bank's policies. As with all financial decisions, customers should fully understand the fee structure and potential trading costs before executing trades or making investment decisions.

Deposit and Withdrawal Methods

Local Bank offers a range of deposit and withdrawal methods that, while seemingly diverse, fall short in delivering optimal convenience and speed to its customers.

1. Bank Transfer:

   Local Bank customers can opt for direct bank transfers. Unfortunately, these transfers are slow, often taking between 1-3 business days to process. For international customers who use international wire transfers, the process is even more time-consuming due to additional security checks and currency conversion procedures.

2. Debit/Credit Card:

   While Local Bank accepts deposits from Visa, Mastercard, and American Express, the withdrawal process can be a hassle. Withdrawals to credit cards typically take 1-5 business days, an inordinate delay that is blamed on card issuers' policies.

3. Electronic Wallets:

   Even though Local Bank accepts PayPal, Skrill, and Neteller, some customers have reported inconsistencies with transaction processing times. The bank's claim of instant processing for these e-wallet services seems to be inconsistent at best.

4. Check:

   Depositing money via checks is not recommended at Local Bank, as this method is extremely slow due to the time it takes for the check to be received and cleared by the bank.

5. ATM Deposits:

   Local Bank provides the option to deposit cash or checks through its ATMs. However, accessibility can be an issue for customers who do not live near one of Local Bank's ATM locations or its affiliated networks.

6. Direct Deposit:

   While employers can deposit salaries directly into Local Bank accounts, the setup process for this service is cumbersome and time-consuming.

7. Mobile Deposit:

   Depositing checks through Local Bank's mobile app can be quite a hassle. While the bank promotes it as a quick, secure, and easy method, some customers have reported difficulties with capturing clear pictures of checks and long processing times.

8. Cryptocurrencies:

   Local Bank's integration of cryptocurrency transactions into its system has been far from smooth. Customers have reported issues with depositing and withdrawing funds via Bitcoin and other major cryptocurrencies.

In essence, while Local Bank advertises a variety of deposit and withdrawal methods, customer experiences suggest that these processes often come with delays, inconveniences, and unexpected fees. As such, potential customers may want to thoroughly research and consider these factors before deciding to bank with Local Bank.

Customer Support

One of the most significant areas where Local Bank has fallen short of expectations is in its customer support. The bank's customer service is notoriously difficult to reach, which can be incredibly frustrating for customers in need of urgent assistance.

Phone Support:

Despite providing phone numbers for customers to call, it seems like an uphill battle to get through to a human representative. Often, customers are forced to wade through a maze of automated responses, leading to long wait times on hold. When they finally reach an operator, they are sometimes met with unhelpful responses and a lack of comprehensive solutions to their problems.

Email Support:

Local Bank also offers email support, but the response time leaves much to be desired. It often takes several days for customers to receive a response to their queries. Worse still, when a response is eventually received, it can often be generic and unhelpful, lacking the detailed information needed to resolve the issues at hand.

Live Chat:

Although Local Bank has a live chat option on its website, it's frequently offline or understaffed. This means that customers often wait for extended periods, only to be met with a message suggesting that they email their queries instead.

Social Media:

Local Bank's social media channels are also unresponsive. Queries posted on these platforms are often overlooked, leaving customers feeling ignored and unvalued.

In-Branch Service:

For customers who prefer face-to-face interaction, visiting a Local Bank branch is an option. However, this too often proves to be an exercise in patience as customers are frequently faced with long queues and a slow service, which can be highly inconvenient.

In summary, the level of customer support provided by Local Bank appears to be lacking in several key areas. The bank's inability to offer timely, helpful, and effective customer service is a significant drawback and a point of major frustration for its customers. Potential clients are therefore advised to carefully consider this aspect when deciding whether to bank with Local Bank.

Summary of Local Bank (Local Financial Pty Ltd)

Pros:

• Local Bank has a long history spanning over 120 years, indicating its establishment and presence in the financial industry.

• The bank offers a diverse range of financial services, including banking, financing, and investments, catering to the various needs of its customers.

• Customers have access to a trading platform powered by MT5, providing opportunities to trade in multiple financial instruments, including equities, bonds, ETFs, commodities, forex, options, and futures.

• Local Bank offers customers the option to choose leverage levels to suit their risk tolerance and trading strategies.

• The fee structure for trading instruments appears to be transparent, with competitive spreads and commissions.

• The bank provides retirement plans, annuities, and insurance products, allowing customers to plan for their financial future and protection.

Cons:

• The website being down raises concerns about the bank's reliability and stability.

• The lack of current regulatory authorizations leaves customers uncertain about the safety of their funds and transactions, raising red flags about the bank's legitimacy.

• Regulatory issues with the Australian Securities and Investments Commission (ASIC) and the National Futures Association (NFA) cast doubt on the bank's compliance with financial regulations.

• Deposit and withdrawal methods are reported to be slow, inconvenient, and sometimes come with unexpected fees.

• Customer support is lacking, with difficulties reaching human representatives and delayed responses to queries, leading to frustration for customers.

• The trading platform, while functional for many, has faced occasional technical issues, impacting some users' trading activities.

Overall, Local Bank's long history and diverse range of financial services may initially attract potential customers. However, the lack of current regulatory authorizations, website downtime, and issues with customer support raise significant concerns. Additionally, the trading platform's occasional technical issues and the inconvenience of deposit and withdrawal methods may deter potential clients. Given these factors, customers are advised to exercise caution and explore alternative banking options that offer more transparent, secure, and efficient services.

FAQs

Q1: Why is Local Bank not regulated anymore？

A: Local Bank lost its regulatory authorizations with ASIC and NFA, raising serious doubts about its financial compliance and putting customers' funds at risk.

Q2: What limited and questionable services does Local Bank offer？

A: Despite its long history, Local Bank's website is down, signaling unreliability, and the lack of current regulatory authorizations raises red flags about its legitimacy and financial stability.

Q3: How does Local Bank's trading platform disappoint its users？

A: Users have encountered frustrating technical issues on Local Bank's MT5 platform, including slow loading times and system crashes, undermining their trading experience.

Q4: How does Local Bank's fee structure burden its customers？

A: Customers have complained about the inconvenience of deposit and withdrawal methods, with delays and unexpected fees adding to their frustration.

Q5: Why is Local Bank's customer support a major letdown？

A: Local Bank's unresponsive and difficult-to-reach customer support leaves customers feeling ignored and undervalued, raising serious concerns about their ability to handle customer inquiries and issues effectively.