LiteForex is an online trading site which claims to offer online trading to clients, but all we found was mere forex trading of a substandard level. The firm is not at all safe to trade and has very limited licenses that fail to assure its authenticity. The broker’s website has a very complex design, and amateurs will face huge difficulty understanding every feature and its services.
The broker has very limited research sections, and the educational content is of lower quality than degradation. The demo account is limited to less than 30 days, and the customer service is falsely pretended as 24/7 everywhere but fails to do so.
LiteForex Scam or Safe?
LiteForex is a complete scam broker and does not provide clear information about the services. The firm licenses from specific financial authorities but they are not enough to ensure complete safety. The process for registering a company at the home nation is easy and doesn’t require much verification. The steps include applying for a license at the nation’s online portal, which is a publicly open & painless procedure. The whole idea is. Pay the meagre processing fee and get your firm registered.
Further, the broker doesn’t work with the EU regulations, or the MiFID, or ICF. Investors Compensation Fund (ICF). These regulatory authorities ensure that none of the clients is exposed to any fraudulent broker or activity and provides up to 20,000 euros insurance to every user account if the situation arises.
Overall, the safety of LiteForex is not at all serious because of the incomplete regulations. The customers are suggested to do their research before trading with this broker. We suggest that the traders should take their financials elsewhere.
Account Types:
The broker offers three trading accounts. The ECN, the classic and a demo account. This means that the broker offers two accounts in total. The ECN and the claimed-Classic. One thing to be noted about ECN brokers is that they always have third party liquidity providers. After a point of time, these brokers start acting as the broker to the provider and not the trader.
The broker’s account types are minuscule, and they don’t offer efficient services that a trader requires for the trading. Nonetheless, all the accounts clearly fail to fulfil the client requirements and have little or no offering as compared to other similar trading sites. The cost of trading one single round is very much higher than the average cost per round offered by the industry’s top brokers.
The number of base currencies is less than 5, and the client will, for sure. Face difficulty in deposits and withdrawals. The clients can also trade via a demo trading account, but the account is offered only for 30 days.
Trading Platform:
The broker forces the use of the MT4 to its clients, despite the fact that MT5 is already rolled out on the streets. Such older platforms have worthless indicators that fail to provide real indicators and trading tools that help trader access the market in a profitable manner while prohibiting them from making better profits.
There are limited signals, indicators, timeframes, charts, and technical analysers for users, and the results from the available tools might give inaccurate outcomes or predictions.
Markets and Products:
The broker has a very limited range of tradable instruments, and it limits the profit potential. The site fails to give a clear picture of tradable instruments that it offers CFDs on and not actual possession of assets. It marks the total end of trust and transparency on the trading site for all the new users.
Apart from it, there is no clear information on the leverage which is different for different countries. For example, the US’s SEC doesn’t allow brokers to provide more than 1:30 margin on trading, but if the site clearly does not follow any of that.
Account Opening:
The account opening process is confusing and fails to clear the intent of the information.The broker doesn’t explain the process anywhere on the website, and the clients need to provide details without understanding the further process of verification.
The processing time for verifying accounts is much longer than other top trading brokers, and the user needs to wait for more than multiple days. It can discourage professional users and waste newcomers time which would have been used for practice and learning.
Commissions and Fee:
The broker charges a very high commission and variable spreads. These spreads change as soon as the market does, in accordance with the broker. It looks like several hidden charges are not mentioned on the site.
We discovered some of the top hidden charges were inactivity penalty, withdrawal charge, overnight swap fee, and other additional costs, none of which were clearly mentioned on the broker’s website.
Deposit and Withdrawal:
The firm offers very limited payment methods, and none of them is known to us. At the same time, the broker also adds several hidden charges and fee for withdrawals. It has to be noted that the processing time is long, with deposits taking more than four day and withdrawals taking up to several days.
The delay in payments can be irritating for traders, and the process is not very clear and is highly challenging. There are several limitations for withdrawals on the amount, number of transactions, and more.
Research:
The trading site offers limited research material for analysis, disregarding what kind of analysis the trader wants. That can be the major setback as the research content is useful for analysing the market and making better trading decisions. The tools enhance clients’ skill-based knowledge, and due to its absence, the free demo account for testing site service is also of no use.
Education:
The broker’s educational material is of low quality and can be discovered from anywhere on the internet. The broker should offer a good range of valuable educational content that can help the newcomers learn the market dynamics.
Customer Service:
The broker’s customer service is pathetic, and the executives fail to clear client doubts. The firm boasts 24/7 customer service everywhere. But no calls were answered, and the email response took extended time than usual. The normal response time was longer than multiple days which gets frustrating for an average trader. The live chat is partnered by a trading bot that gives impertinent responses on every question.
Conclusion
Overall, LiteForex the firm is not safe to trade and has limited licenses that can’t assure its authenticity. The trading tools and services offered by Tickmill are not up to the mark. Valuable customers can get much better options than T1Markets, ETFinance, PrimeFin, and Brokereo, which provides a wide range of trading instruments through core types of accounts and trading platforms. The charges are quite low. Most importantly, all these brokers are the safest ventures for traders and investors to trade as the leading financial institutions regulate them.
