LiteForex Review
- Regulatory Authority: Unregulated, pseudo regulation from RAFMM
- Instruments: Forex and Commodities primarily, but there are a limited number of Stocks that one can trade.
- Leverage: Up 1000:1 depending on account type.
- Unique Features: Demo Account availability and 5% Yearly interest provided minimum trading requirements are met.
- Minimum Deposit: The required minimum deposit depends on the type of account opened and range from $1 all the way up to $1000 dollars.
The Platform
LiteForex is operated by the same group that operates InstaForex and therefore the platform is very similar. Your only option is to use the LiteForex version of MetaTrader 4. This won’t be of annoyance to many who are fans of the MetaTrader platform and to be honest I have played around with the LiteForex MetaTrader platform and it appears to work pretty much as one would expect. Though I was unable to get Expert Advisors which had been programmed with a fixed stop loss to work properly. Apart from this I couldn’t see much noticeable difference between the MetaTrader platform offered by LiteForex and those of its rivals. LiteForex offers no way for an individual to trade while on the move as it offers no mobile trading platforms which is something of a disappointment and means you have to be tied to your computer and the internet while you have an option position. It also denies you the opportunity to trade on news while you are on the move. When it comes to LiteForex’s offering there is nothing particularly special.
Special Features
When it comes to special features again there is nothing remarkable to mention about LiteForex in fact the special features are pretty much the same as it’s sister site InstaForex. Firstly, LiteForex offers potential clients the possibility of opening a demo account. This allows you to download the LiteForex version of MetaTrader and fiddle around with the client with a play balance of 50,000 Euros and makes for a perfectly functional demo account (apart from the problem mentioned with Expert Advisors), even if MetaTrader might be bewildering to the beginner trader. It is common place now to offer demo accounts to potential traders, so this can’t really be regarded as that much of a unique feature.The second feature that some might find interesting is the 5% Interest offered on funds deposited with LiteForex. But this is nowhere as good as it sounds as it requires that the individual carries out a large amount of trading with the company, meaning there making it all back in spreads. So all in all, the LiteForex experience isn’t particularly special.
Spreads
I recently investigated the spreads at both LiteForex and InstaForex and they were exactly the same. Surprisingly enough the spreads offered at both companies were not all that bad beating a number of CySec regulated competitors. Although this is pretty much meaningless as customers of LiteForex and InstaForex have often complained that profitable positions get closed or cancelled for no particular reason. They also both have no scalping rules which are interpreted in a pretty dubious way according to a number of reports. So even if the spreads offered by LiteForex do not appear that awful you have to take account for these particular factors as well. Which appears to make LiteForex simply a no go.
Customer Service
LiteForex has a lot of different customer service numbers and ways to contact the company. In just the same way that InstaForex does. This gives people the impression that LiteForex takes customer services very seriously, however many people have responded that the customer service staff can be particularly unhelpful when it comes to helping those who have run into problems with the service. Though representatives from LiteForex and InstaForex are often seen on various forums attempting to resolve problems that clients have brought out to the open. However these representatives often don’t solve the problem at hand and the customer remains dissatisfied. LiteForex also has a number of regional offices listed on the website however it is difficult to know whether these offices are genuine or merely virtual offices.
Regulation
To some who visit the LiteForex it appears that the company is properly regulated as it displays links to various bodies that look like they could provide regulation. However, the first of these is the RAFMM which is an industry body created in part by LiteForex and InstaForex, this body provides no regulation though it claims to help resolve disputes between the companies who are members and their customers. However the RAFMM always appears to rule in favor of the companies and never the customers who believe they are wronged. The second is a consumer rights watchdog which aims to help consumers fight for their rights. However this doesn’t change the fact that Contracts for Difference are not regulated in anyway in Russia therefore those who choose to open an account with LiteForex won’t be protected by any kind of financial regulation. This should be a huge warning sign to anyone considering opening an account with LiteForex.
Overall, I would recommend that anyone who is considering an account with LiteForex avoids doing so and researches further finding themselves a better Forex provider.
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