LiteForex Review 2020 - Verified Customer Reviews

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4.2
User Rating
4.5
(13)
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LiteForex Regulators

LiteForex Review

Updated November 05, 2020
4.2
Score breakdown
Pricing: 4
Regulation: 5
Popularity: 3.5
User Rating: 4.5 (13)

LiteForex overall score rank: 7 out of 35

Liteforex broker review
KEY TAKEAWAYS

  • Accepts deposits in BTC, ETH, LTC
  • Access to Claws&Horns Analytical Data
  • Regulated in the EU
  • Low minimum deposit

Regulations and Money Protection

5.0  


Entity Name LiteForex Investments Limited (MH) Liteforex (Europe) Limited (EU)
Licence & Regulation Cyprus CySEC Licence
Client Money Protection ✔️ - segregated client money
Deposit Compensation Scheme ✔️
up to €20,000
Negative Balance Protection ✔️ ✔️

Entity/Regulation

  • International customers: LiteForex Investments Limited (trading as Liteforex) will be the counterparty for International customers. This entity, with address at Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960, is registered in the Marshall Islands with registration number 63888 and regulated in accordance with Marshall Islands Business Corporation Act.

  • European customers: Liteforex (Europe) Limited, with address at 124 Gladstonos Street, The Hawk Building, 4th floor, 3032, Limassol, is registered as a Cypriot Investment Firm (CIF) under number 230122 and is regulated by the Cyprus Securities and Exchange Commission (CySEC) under licence number 093/08.

Client Money Protection

  • Liteforex complies with the highest safety standards for client's funds. For this reason, Liteforex client's funds are kept in top-tier international banks, fully segregated from the company's funds.

  • Liteforex also complies with the client money handling rules and employs strict policies and procedures regarding the maintenance and operation of these accounts. Liteforex holds client's money separately to the company funds and does not use these funds for any operational expenses or purposes.

Deposit Compensation Scheme

Liteforex (Europe) Limited is a member of the Investor Compensation Fund (ICF), an investor compensation fund for CIF clients and its functions are regulated by the directive DI87-07 of the CySEC. If Liteforex (Europe) Limited is unable to meet its obligations, clients might be entitled to compensation (up to the value of €20,000) per claim, irrespective of the number of accounts held, currency and place of offering of the investment service (within Europe).

Negative Balance Protection

For accounts opened via any entity of the Liteforex Group, there is a default Negative Balance Protection mechanism in place, for the sake of no negative balance. With NBP, Liteforex customers are protected from any losses bigger than their original investments, in cases of extreme market volatility.

Accounts, Instruments and Platforms

Accounts Instruments Platforms Social trading Maximum Leverage
✔️Classic
✔️ECN
✔️PAMM
✔️Islamic Accounts
✔️Forex
✔️Indices
❌Stocks
❌Futures
❌ETFs
❌Bonds
✔️Commodities
✔️Cryptos
✔️MT 4
✔️MT 5
❌cTrader
❌Myfxbook
❌ZuluTrade
✔️Liteforex Copytrading
30:1 Europe

500:1 Rest of World

Account types and currencies

  • Liteforex offers three types of trading accounts; Micro, Pro and ECN. Liteforex also offers swap-free accounts for traders of Islamic belief.

  • Liteforex allows for social trading, including copy trading, via the Liteforex Copytrading account.

  • Liteforex also offers PAMM accounts alternatives for money managers.

  • Liteforex maximum leverage is 30:1 for accounts opened within Europe and up to 500:1 for accounts opened in other countries around the world.

  • Currently, Liteforex trading accounts are only available in USD, EUR, CHF, RUB and MBT.

Financial instruments

Trading with Liteforex can be done via the Metatrader 4 and Metatrader 5, available on desktop terminal and mobile versions. Liteforex offers a limited selection of 80+ assets to trade, including Forex, indices, commodities and cryptocurrencies.

  • FX market - 50+ currency pairs (including Minor and Exotic crosses).

  • Indices - 11 world indices, including CAC 40, FTSE 100 and Nikkei 225.

  • Commodities - 6 commodities CFDs available for trading; 4 metals (including Gold and Silver) and 2 energies (UK Oil and US Oil).

  • Cryptocurrencies - 16 CFDs crosses for trading, including BTC/USD, ETH/USD and XRP/USD.


Pricing

4.0  


Pricing/
Account
Classic ECN
Spread EUR/USD from 1.8 pip from 0.0 pip
Commissions (1 lot) from 10 USD
Minimum Deposit from 50 USD from 50 USD

Spreads

Liteforex trading spreads are not the most competitive in the market for the entry-level account (Classic). For the most traded pair, the EUR/USD, the spread starts at 1.8 pip (typically 2.0 pip). On the positive side, with an ECN account, the EUR/USD minimum spread is 0.0 pip (typically 0.4 pip).

To access the better trading conditions of the ECN account (lower spreads), Liteforex will charge a broker commission. With an ECN account, the standard lot commission for 1 lot (100,000 units) is 10 USD commission (5.0 USD per side/per lot). We consider this commission to be higher when compared with other top brokers.

Rollover Rates

Liteforex swap rates, as of 08-10-2020 for the EUR/USD stand at -7.43 for holding overnight a 1 lot long contract and at +1.29 for holding overnight a 1 lot short contract. Liteforex swap rate, for a long EUR/USD position, is higher compared with other brokers. On the other hand, the swap rate for holding a short position is one of the best compared with other brokers.

Deposits/Withdrawals and Other Fees

  • Deposit fees - Trading accounts can be opened in only 5 different currencies and maintained via 21 different funding methods. For European customers deposits are available only through cards, Skrill and Neteller. International customers can deposit via bank wires, cards, a great range of e-payments, including Perfectmoney, Skrill, Neteller and Qiwi and cryptocurrencies, including Bitcoin, Litecoin and Ethereum. Deposits are available almost instantly. Liteforex does not charge any fees for deposits.

  • Withdrawals fees - Same policy applies for withdrawals. Liteforex does not charge clients for withdrawals. However some e-payment options carry fees and they are not covered by Liteforex. Traders can enjoy free withdrawals and also set-up an automatic money withdrawal option from their accounts and auto-withdraw up to $100 per day automatically to their preferred deposit/withdrawal method. For more information, please visit the LiteForex Investments Limited (MH) deposit and withdrawals dedicated page and the Liteforex (Europe) Limited deposit and withdrawals.

  • Inactivity fee - Liteforex does charge a maintenance fee for accounts deemed dormant after a period of 180 days without any trading activity.

Popularity

3.5  


Forex Education Deposit Options Deposit/Withdrawals Fees Non expiring demo account Customer Support
Forex Articles
Video Reviews
Fundamental & Technical Analysis
Claws&Horns Analytical Data
Cards
Bank Wire
E-payments
Cryptocurrencies
✔️ Multi language
24/5 Support
Live Chat

With thousands of accounts opened in nearly 10 years of business and operating in more than 100 countries (according to their corporate website), Liteforex seem to have their fair market share, still the broker fails to capture the attention of more traders compared with it's peers.

This could be due to the uncompetitive trading costs of Liteforex trading accounts, compared to other Forex brokers. Also weighing down on the unpopularity of Liteforex, the lack of appropriate and stronger regulation for the LiteForex Investments Limited entity, based on the Marshall Islands, to protect customers.

On the positive side Liteforex believes in educating traders, by giving away the resources needed to improve client's trading experience and results, all available directly from their website(s).

  • Trading accounts - The Liteforex ECN account is a popular choice with traders looking to save on trading costs, with a lower spread, but the commission of $10.00 per lot traded is not competitive at all, when the majority of the market players offer lower commissions. Extra points for Liteforex policy of no fees on deposits or withdrawals.

  • Forex education - Liteforex also gets extra popularity points for their good range of Forex education materials, available through the Trader's Tools tab. Liteforex clients can brush up their knowledge with Forex articles, watch and learn with video tutorials, read and make informed decisions with Claws&Horns (in partnership with Liteforex) fundamental & technical analysis reports and use the broker's trading calculators.

Funding Methods Bank Wire, CashU, EgoPay, FasaPay, Neteller, OKPay, Perfect Money, Przelewy24, QIWI Wallet, Skrill (Moneybookers), Webmoney, Wallet One, Boleto Bancario, TBL, Pago en Efectivo, DaoPay, Fortumo, Cryptocurrencies
Support Languages Arabic, Chinese, Croatian, English, Farsi, French, German, Hungarian, Indonesian, Korean, Portuguese, Romanian, Russian, Spanish, Thai, Turkish, Vietnamese


  • Minimum deposit - Opening a trading account with Liteforex it's easy and can be done via the website. The minimum deposit requirement to open a Liteforex Classic or ECN trading account is 50 USD (or equivalent). Traders interested in becoming strategy managers can easily discover and sign-up to the broker's own Forex social world of professional trading, but, minimum deposit values for social trading accounts vary.

  • Customer support - Liteforex multi language customer support service is available 24 hours, 5 days a week, in 17 languages. Liteforex support is available via phone call, email and also live chat, available directly from their website.

Broker Profile

Founded in 2005, Liteforex is one of the leading brokerage companies uniting traders of different levels from all over the world. Liteforex is on the list of top 100 companies according to World Finance. In the year 2008 Liteforex became a member of the Russian Association of Financial Market Members (the RAFMM).

The Liteforex group of companies is composed of highly qualified specialists that they have chosen from hundreds of applicants from all over the world. The unique products they offer, along with the best conditions, helps clients realize any bold plans and ideas to enable them to achieve their own goals and make their cherished dreams come true. They aim to make the Forex market accessible, safe, easy and profitable for clients anywhere in the world.

Liteforex was among the first to create the cent accounts service with lowest deposits, as little as $1. This unprecedented step made Forex available to hundreds of thousands of clients and changed the history of the Forex market's development.

Today, Liteforex is a reputable international broker that services clients from all across the globe, offering advantageous and transparent trading conditions and a wide range of services, including cent, STP and ECN accounts. The clients have access to a variety of popular trading tools, such as CFDs, currency pairs, cross-rates, precious metals, world stock indexes, and oil.

Liteforex is a brand of Liteforex Investments Limited, registered in the Marshall Islands (registration number 63888) and regulated in accordance with Marshall Islands Business Corporation Act. The Company’s address: Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960. Brokerage services in Europe are provided by the Liteforex (Europe) Limited Company (regulated by CySEC’s licence №093/08).

Overall, on our Liteforex review the broker scores 4.2 out of 5, as the broker fails to offer adequate protection to it's customers (except in Europe) with better regulations and client's money safety mechanisms in place. Also on the negative side, Liteforex's pricing is slightly above other broker's average (especially for the Classic Account). On the plus side, the great offering of Forex educational materials could be a great resource for beginners traders helping them improving their experience and Forex knowledge.

Data supplied in partnership with CashBackForex - Forex Rebates places Liteforex on the top 20 brokers for popularity with traders opening an account in 2020.


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LiteForex user rating score rank: 5 out of 35

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