LiteFinance Review 2022 - Verified Customer Reviews

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4.2
User Rating
4.4
(17)
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LiteFinance Review

Updated May 04, 2022
4.2
Score breakdown
Pricing: 4
Regulation: 5
Popularity: 3.5
User Rating: 4.4 (17)

LiteFinance overall score rank: 7 out of 53

LiteFinance broker review

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 85% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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 Licence & Regulation Client Money Protection Deposit Compensation Scheme Negative Balance Protection
LiteFinance Global LLC (SVG) N/A ✔️
segregated client money
Liteforex (Europe) Limited Cyprus CySEC Licence ✔️
up to €20,000
✔️

Entity/Regulation

  • International customers: LiteFinance Global LLC (trading as LiteFinance) will be the counterparty for International customers. This entity, with registered address at First Floor, First St Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines, is incorporated in St. Vincent & the Grenadines as a Limited Liability Company with registration number 931 LLC 2021.

  • 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

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

  • LiteFinance also complies with the client money handling rules and employs strict policies and procedures regarding the maintenance and operation of these accounts. LiteFinance 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 LiteFinance Group, there is a default Negative Balance Protection mechanism in place, for the sake of no negative balance. With NBP, LiteFinance 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
✔️LiteFinance Copytrading
30:1 Europe

500:1 Rest of World

Account types and currencies

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

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

  • LiteFinance also offers PAMM accounts alternatives for money managers.

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

Financial instruments

Trading with LiteFinance can be done via the Metatrader 4 and Metatrader 5, available on desktop terminal and mobile versions. LiteFinance 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 - 19 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

LiteFinance 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), LiteFinance 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

LiteFinance 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. LiteFinance 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. LiteFinance does not charge any fees for deposits.

  • Withdrawals fees - Same policy applies for withdrawals. LiteFinance does not charge clients for withdrawals. However some e-payment options carry fees and they are not covered by LiteFinance. 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 LiteFinance Investments Limited (MH) deposit and withdrawals dedicated page and the LiteFinance (Europe) Limited deposit and withdrawals.

  • Inactivity fee - LiteFinance 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), LiteFinance 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 LiteFinance trading accounts, compared to other Forex brokers. Also weighing down on the unpopularity of LiteFinance, the lack of appropriate and stronger regulation for the LiteFinance Investments Limited entity, based on the Marshall Islands, to protect customers.

On the positive side LiteFinance 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 LiteFinance 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 LiteFinance policy of no fees on deposits or withdrawals.

  • Forex education - LiteFinance also gets extra popularity points for their good range of Forex education materials, available through the Trader's Tools tab. LiteFinance 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 LiteFinance) 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 LiteFinance it's easy and can be done via the website. The minimum deposit requirement to open a LiteFinance 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 - LiteFinance multi language customer support service is available 24 hours, 5 days a week, in 17 languages. LiteFinance support is available via phone call, email and also live chat, available directly from their website.

Broker Profile

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

The LiteFinance 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.

LiteFinance 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, LiteFinance 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.

LiteFinance is a brand of LiteFinance 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 LiteFinance 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, LiteFinance'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 LiteFinance on the top 20 brokers for popularity with traders opening an account in 2020.


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LiteFinance User reviews

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4.4
(17 reviews)

LiteFinance user rating score rank: 6 out of 53

LiteFinance Account types user rating

LiteFinance Products

Forex
Cryptocurrencies
Indices
Metals
Bitcoin
Oil/Energies
Shares/Equities