LiteForex Review

Is LiteForex Safe?

LiteForex was founded in 2005, is headquartered in the Marshall Islands, and is regulated in accordance with Marshall Islands Business Corporation Act.  Note that Lite Forex does have CySEC-regulation, but this does not apply to South African clients.  See below for its registration:

• LiteForex Investments Limited is registered in the Marshall Islands under the registration number: 63888. The Company’s address: Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960.

LiteForex insures all clients’ funds through the Investor Compensation Fund.  It offers negative balance protection on all accounts, converting losses to a zero balance so that the client is never indebted to the Company.

Trading conditions

LiteForex offers two live accounts – the Classic and ECN, and an unlimited demo account.  Variable spreads start at 2.0 pips on the commission-free Classic Account, and a 10 USD commission is charged on major pairs for the ECN Account – though spreads can get down to 0 pips. LiteForex is also a Market Execution broker, offering full support for the industry-standard MetaTrader4 and MetaTrader5 platforms. It allows hedging and scalping, and offers an excellent copy trading service.

Liteforex also offers Islamic Swap-Free accounts; however, it does not consider swaps when a position is carried over to the next day. 

Classic Account

The Classic Account was designed for experienced traders.  Its variable spreads average at 2.0 pips and leverage is high, at 500:1.  Classic Accounts only allow base currencies to be denominated in USD, EUR, and MBT.  The minimum deposit on this account is 50 USD, and transactions start at 0.01 lots.  Support is offered for both the MT4 and MT5 trading platforms, Stop Out levels are at 20%, and no interest is charged on surplus funds.  Commissions only apply to cryptocurrency trading, at 12 USD per lot. 

ECN Account

LiteForex offers an ECN, which means there is no dealing desk or conflict of interest. The account offers an interest rate of 2.5% on surplus funds and unlimited transactions. The trading account provides access to the best prices on the market, and variable spreads start at 0.00 pips with no re-quotes.  Leverage is up to 500:1, the minimum deposit is 50 USD, and LiteForex charges 10 USD/lot per side.  Traders can make use of the MT4 and MT5 platforms on this account. 

Demo Account

LiteForex demo accounts provide the opportunity for traders to trade virtual money under real market conditions.  Demo accounts are free of charge and allow beginner traders to refine trading strategies using MetaTrader platforms.  Traders receive real quotes from liquidity providers and have access to all trading instruments.  

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Spreads and Commissions

Fees for the Classic Account are included in the spreads, which start at around 2.0 pips.  The ECN Account boasts variable spreads that average at 0.00 pips, but it charges a commission of 10 USD/lot per side on major pairs and 30 USD/lot per side on minor trading pairs. 

Deposits and Withdrawals

LiteForex does not charge fees for deposits or withdrawals, but accounts are only denominated in USD, EUR, or MDT. In line with the Anti-Money Laundering Directive, Liteforex operates a “return to source” policy, meaning that withdrawals must be made via the same method and into the same account as the original deposit.

LiteForex offers an automatic withdrawal feature that enables traders to withdraw funds up to $100 per day within 24 hours, which is available on Skrill, Perfect Money, and Neteller. Withdrawal charges are specific to the provider.  Note that withdrawal requests are processed manually by the Financial Department during its working hours and are processed within one working day of the date of submission.  Bank wire transfers can take up to five working days to be processed, depending on the sender’s and beneficiary’s banks’ operation speed.

 See below for a list of methods:

• Visa/Mastercard
• Neteller
• Skrill
• Bank Wire Transfer
• Local Bank Transfer
• Centre Pay
• Perfect Money
• Bitcoin

Bonus Structure

LiteForex provides its clients with withdrawable Forex bonuses.  At the time of writing this review, current promotions include a 100% Forex deposit bonus. Follow the LiteForex news or stay in touch with its support team to find out more about bonuses and promotions.

LiteForex for Beginners

LiteForex offers a limited selection of educational materials for beginner traders, but their extensive analysis section covers fundamental and technical analyses across a range of currency pairs. A bonus is that one does not have to be a LiteForex Trading client to access this material.

Educational Material

LiteForex’s educational suite includes archived webinars, a glossary of terms, and an extensive blog with topics for beginners and experienced traders alike.

Analysis Materials

LiteForex provides up-to-date reviews and forecasts for all market instruments.  Its fundamental analysis consists of daily news on significant political and economic events that impact the world markets. In-house analysts and traders produce all forex fundamental analytical reports.  LiteForex also provides its clients with a free high-quality analysis prepared by an independent Company, Claws&Horns.

Customer Support

LiteForex offers customer support 24/5 via email, telephone, and live chat.  One has to register an account to access the service. For the purposes of this review, we found the customer support to be slow and sometimes unresponsive. 

Trading Platforms

LiteForex offers support for the MetaTrader platforms – MT4 and MT5.  Developed in 2005 and 2010 respectively, these systems have become the leading platforms for online forex and CFD trading. They come with multiple chart types, including line, candlestick, and bars.

MetaTrader 4

MT4 is still the most popular platform on the market. Its beginner-friendly elements, such as a copy trading system and automated Expert Advisor apps, come in handy for less-experienced traders. Advanced traders can take advantage of complex analytics and charting tools. Moreover, they can design their own trading indicators using the proprietary MQL4 programming language.

MetaTrader 5

LiteForex offers support for the MT5 platform, the latest iteration of the industry standard MetaTrader.  It offers 30 technical indicators, 24 analytical objects, 21 timeframes, and an unlimited number of charts.  The application also supports both netting and hedging systems and includes all the tools and features necessary for trading: Market Depth, trading operations, and history monitoring. 

Mobile Apps

MetaTrader is freely available on both Android and IOS mobile phones and tablets.  The advantage of using the MetaTrader platform is the cross-device and multi-broker functionality, making it easier to change broker or use multiple brokers.  All applications and their contents are supported in more than eight languages and are regularly updated.

Evaluation Method

We value transparency and openness in the way we review the partners. To bring transparency to the forefront, we have published our review process that includes a detailed breakdown of how we review LiteForex’s product offering. Central to that process is the evaluation of the broker’s reliability, the platform offering of the broker, and the trading conditions offered to clients, which are summarised in this review. Each one of these is graded, and an overall score is calculated and assigned to the broker.

LiteForex’s Risk Warning

Trading Forex is risky, and each broker is required to detail how risky the trading of Forex CFDs is to clients. LiteForex would like you to know that:  Trading on financial markets carries risks. Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, CFDs may not be suitable for all investors because you may lose all your invested capital. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and taking into account your investment objectives and level of experience. Click here for our full Risk Disclosure.

Overview

Overall, Liteforex is a legitimate broker with a good range of tradeable forex and CFD assets, in addition to support for both the MT4 and MT5 platforms.  Although it is CySEC regulated for its international clientele, Australian traders are not offered this protection.   

Trading conditions are competitive on one of its live accounts, and beginner traders will benefit from its copy-trading system and unlimited demo account.  Education is limited, but an up-to-date fundamental and technical analysis across a range of currency pairs is offered daily.