In the dynamic world of forex trading, choosing the right broker can be a pivotal decision for both novice and seasoned traders. LiteFinance, formerly known as LiteForex, stands out as a notable player in this competitive market.
This article embarks on a close look at LiteFinance review, helping you figure out if it’s the right choice for you.
LiteFinance: Overview
Established: 2005
Headquarters: Cyprus
Trading Platforms: MetaTrader 4, MetaTrader 5, cTrader
Mobile Trading: Yes
Minimum Deposit: $10
Account Types: ECN, Classic, Cent
LiteFinance, formerly known as LiteForex, is an established online ECN broker that has been active in the market since 2005. Offering a range of services in currency, commodity, and stock markets, LiteFinance provides its clients access to various trading assets, including major currency pairs, precious metals, oil, stock indexes, and cryptocurrencies. The broker is known for its adoption of ECN technology, ensuring direct trades to liquidity traders without broker intervention, which is advantageous for instant execution and the absence of requotes.
Regulation and Registration
Liteforex (Europe) LTD is a Cyprus Investment Firm, registered under the number HE230122. It is regulated by the Cyprus Securities and Exchange Commission (CySEC) with license number 093/08, in line with the Markets in Financial Instruments Directive (MiFID). Furthermore, the funds of its retail clients are insured by the Investor Compensation Fund, subject to eligibility criteria.
Account Types of LiteFinance
ECN Account
- Minimum Deposit: $50
- Spread: Floating, from 0.0 points
- Commission: From $0.25 per lot
- Maximum Leverage: 1:1000 – 1:1
CLASSIC Account
- Minimum Deposit: $50
- Spread: Floating, from 1.8 points
- Commission: None
- Maximum Leverage: 1:1000 – 1:1
CENT Account
- Minimum Deposit: $10
- Spread: Floating, from 3 points
- Commission: None
- Maximum Leverage: 1:200 – 1:1
Deposit and Withdrawal
LiteFinance provides a range of deposit and withdrawal options with varying minimum amounts and commission fees. Bank cards, including Visa and Mastercard, can be used for deposits starting from $10 with no commission, as LiteFinance compensates for payment system deposit fees. Local deposits also have a low minimum of $1 without commission, offering a convenient option for clients using local currency. For larger transactions, bank wire transfers are available with a minimum of $100 and no commission.
Electronic payment systems like Perfect Money and Advanced Cash offer a minimum deposit of $10, also with no commission. In regions where M-Pesa is available, such as Kenya and Tanzania, users can transact with a minimum of $1, albeit with a small fixed commission.
Products in LiteFinance
LiteFinance offers a diverse range of trading instruments in the forex market. These include:
- Currency Pairs
- Commodities
- CFD NYSE
- CFD NASDAQ
- CFD EURONEXT
- CFD LONDON LSE
- CFD XETRA
- Global Stock Indexes
Trading Platform of LiteFinance
LiteFinance provides its clients with a selection of advanced trading platforms, catering to different trading needs and preferences. These platforms include:
- MetaTrader 4
- MetaTrader 5
- cTrader
Fees of LiteFinance
LiteFinance implements a fee structure for its trading services, characterized by a starting fee of $0.25 per lot. The broker offers variable spreads, which can be as low as 0.0 pips and as high as 1.8 pips. These fees and spreads are subject to variation based on the specific trading account chosen by the investor, allowing for flexibility to accommodate different trading strategies and preferences.
LiteFinance Promotions
TRADESMART Promotion: This promotion offers traders an opportunity to earn a bonus. Under this promotion, LiteFinance pledges to pay traders 50% of their total investment in real money.
ZERO Fees Promotion: This promotion reimburses traders for the fees incurred by payment systems when making a deposit. Essentially, when traders deposit funds into their LiteFinance trading account, the broker covers the associated deposit fee, crediting it back to the trader’s account.
Customer Support
- Email: [email protected]
- Skype: Liteforex.support
- Telegram: LiteFinanceSupport
- Phone Numbers: +447520644437
Pros & Cons
Pros
- Extensive range of trading instruments
- Accessible minimum deposit
- Advanced trading platforms
Cons
- High stop out level in ECN account
- High and variable spreads
- Low leverage
Pros Explained
- LiteFinance provides a vast selection of over 50 currency pairs, CFDs on indices, commodities, precious metals, and over 20 cryptocurrencies, catering to a wide range of trading preferences and strategies.
- LiteFinance’s low minimum deposit requirement, starting at just $50, makes it more accessible, especially for beginners or traders with limited capital.
- LiteFinance offers MetaTrader 4 and MetaTrader 5 to enhance the trading experience. It is renowned for its advanced charting tools, automated trading capabilities, and user-friendly interfaces, enhancing the trading experience.
Cons Explained
- High stop out level in ECN account, the 50% stop-out level in the ECN account means positions could be closed out earlier during volatile market conditions, potentially leading to significant losses.
- During major news events, spreads can widen significantly, increasing the cost of trading and affecting profitability.
- The leverage offered is lower compared to some competitors, which could limit the trading capacity and strategy options for some traders.
Is LiteFinance Worth Considering?
LiteFinance, with its diverse trading instruments and accessible platforms, is a viable option for many traders. The low minimum deposit is attractive for beginners, while advanced platforms cater to experienced traders. However, it’s crucial to consider the high stop-out level in its ECN account and variable spreads, which introduce significant risks.
Moreover, while regulated by CySEC, LiteFinance lacks oversight from more stringent authorities like the FCA or SEC, raising potential trust issues. Traders should carefully evaluate these factors against their risk tolerance and trading strategies before deciding. As well as study various forex trading broker review before making a decision.
FAQs
LiteFinance is an online ECN broker established in 2005, offering trading services in currency, commodity, and stock markets. It provides access to various assets like major currency pairs, precious metals, and cryptocurrencies.
Yes, LiteFinance was formerly known as LiteForex. The rebranding occurred, but the services and core operations remain the same under the new name.
LiteFinance is regulated by the Cyprus Securities and Exchange Commission (CySEC) and adheres to the Markets in Financial Instruments Directive (MiFID), ensuring a regulated trading environment.
LiteFinance offers three main account types included ECN, Classic, and Cent, each with different features like minimum deposit requirements, spread, and leverage options.
Yes, LiteFinance offers trading in various cryptocurrencies, providing traders with the opportunity to diversify their portfolios into the digital currency market.
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