Pros & cons of LiteForex broker

LiteForex Fact sheet

LiteForex operates under a Cyprus Securities and Exchange Commission (CySEC) license. In addition to these regulations, the broker has a number of security measures in place to protect client funds. LiteForex is a part of the investor compensation fund and all client funds are kept in segregated bank accounts, preventing the broker from using client money for their own purposes. Furthermore, to prevent a trader from losing more than their account balance, the broker offers negative balance protection.

There are two account types offered by LiteForex, called ECN and Classic accounts. Along with this, they offer a free demo account. The difference between the two account types lies in the spreads being charged and other details. The maximum leverage is the same for both accounts and is capped at 1:30 for Forex major pairs, while for other instruments and minor pairs, the leverage is lowered to 1:20. The spreads for EUR/USD start from 2.3 pips on the Classic account, which is very expensive. For ECN accounts, spreads are considerably lower, starting at 0.3 pips for EUR/USD major currency pairs. However, there are commissions of $5 per side per lot on major Forex pairs when trading with ECN accounts, and for cross pairs, it is $10 per side per lot. These commissions are expensive, as many brokers only charge $3.5 per side per lot. Forex minor pair commissions jump to $15 per side per lot, which is also very high. For metals, the commission on the ECN account is $10 per lot per side, meaning all these commissions have to be multiplied by two to get a full picture of the commission for each position. As long as the strategy the trader employs is not a long-term strategy, the ECN account offers much better trading terms. Since the minimum deposit is $50 for both account types, the decision is up to a trader on which one is more suited for them. There is also a social trading network available for both account types. 

Comparing LiteForex fees with other brokers

As we have seen above the LiteForex fees seem a bit high, to further clarify the picture let’s compare it with other popular brokers on the market.

LiteForex fees compared to Interactive Brokers fees

*Inactivity fee was eliminated by IB in 2021, it used to be $20/m

LiteForex fees compared to CM Trading fees

LiteForex fees compared to plus500 fees

LiteForex fees compared to XM fees

LiteForex fees compared to AvaTrade fees

LiteForex fees compared to Capital.com fees

LiteForex provides MetaTrader 4 (MT4) and MetaTrader 5 (MT5) as the main trading platforms. These platforms are among the most advanced trading software in the world, providing many inbuilt indicators and the ability to install custom indicators and automated trading systems called Expert Advisors (EAs). LiteForex also offers social trading capabilities, and MT5 has inbuilt plugins for this purpose. Additionally, mobile trading is also offered through the MT5 Android app. 

The broker provides learning materials for beginners that can be found in the “For Beginners” section of the website. The study materials provided by LiteForex include:

• Forex glossary - Trading terms explanations for newbies
• Forex books - includes professional Forex literature
• Tutorials and trading strategies - includes tutorials on various terms and topics and trading strategies offered by veteran traders.

Where LiteForex excels is in the trading tools offered for free by the broker. The tools include an economic calendar, technical and fundamental Forex analysis, analytical materials from Clawthorne (an independent trading agency), economic news, a currency calculator, and currency rates. All these tools are useful when trading and provide some assistance to traders, increasing their potential accuracy when making trading decisions. LiteForex also offers a Fibonacci calculator, which can further assist traders in defining better entry and exit points. 

It is possible to access LiteForex live chat in a demo mode and get answers to all your questions. They are polite and know what their broker has to offer. Additionally, the website is multilingual together with the live chat which is available 24/5 in 22 languages. Live chat provides the ability to connect to LiteForex’s different departments, including partnership and financial departments, together with general customer support. Traders can also connect with the broker directly via phone call. Email and leaving message options are also available. With all this combined, LiteForex offers excellent customer support services. 

LiteForex is a regulated broker offering Forex pairs as its main trading product. The broker has a social trading platform and offers ECN technology which is available together with automated withdrawals, making the trading process very comfortable and streamlined. But the broker has high spreads and commissions and may not be suitable for traders who prefer low trading fees and commissions. ECN accounts offer much more value in trading terms with low spreads, but still, the commissions are higher than with other popular brokers. LiteForex has a very good education center with advanced Forex trading educational materials and books.

Additionally, the broker also offers advanced trading tools to assist their traders. The website is multilingual, and customer support is available 24/5 via live chat, which is also multilingual.