LiteForex is a Russian forex broker that offers mediocre trading conditions but tries to compensate with numerous bonuses, promotions and contests. I trust it you are smarter than that but if you are interested nonetheless, be my guest and read on.
What platforms does LiteForex support?
The broker offers the industry most popular platform – Metatrader 4 (MT4). Thousands of traders all over the world choose MT4 because of its super intuitive and user-friendly navigation, and tools to enhance transacting for brokers of all size and skills.
MT4 features a great built-in charting package, technical analysis tools and custom indicators (MT4 users can download and/or create their own custom indicators), automated trading strategies and expert advisors, back-testing options, etc.
MT5 is a newer version of the Metatrader platform and has the following features:
- Increased work speed
- Enhanced security and data encryption
- Advanced technical analysis tools
- Buy Stop Limit and Sell Stop Limit deferred orders
- Detailed intrinsic reports of operations
Both MT4 and MT5 are available as mobile device applications.
How much money do I need to start trading with LiteForex?
The requirement for initial deposit at LiteForex is $50 and you can choose between four account types: LiteForex, RealForex, Floating Spread and STP:
|Minimum contract size||$100||$1,000||$100||$10,000|
Accounts can be funded via credit/debit card (any card that you can think of, as of that matter), bank wire and a gazillion of online wallets. It’s almost as if LiteForex wants to be 100% sure it will get your money – hm…
Is my money safe with LiteForex?
According to its website, LiteForex is an “official and full member of Russian Association of Financial Markets Members (RAFMM)”. Sadly, in a country where there is no forex legislation whatsoever, this membership is as good as bringing sunscreen to Sweden in the winter – in theory it might protect you from the sun but in reality it is just another useless item in your luggage. I’d go ahead and mark the broker as unregulated.
LiteForex’s trading conditions – spread, order execution and slippage
Spread: Fore the LiteForex, RealForex and STP account types, the broker offers fixed spreads of 3 pips on EUR/USD, GBP/USD and USD/JPY. Floating Spread account spreads supposedly start from 0 pips.
To get an idea about the average fixed spreads on the market, take a look at the ones of FXOpen: 2 pips on EUR/USD, 3 pips on GBP/USD and 2 pips on USD/JPY, and the ones of ICM Capital: 1.6 pips on EUR/USD, 2.7 pips on GBP/USD, and 1.9 pips on USD/JPY*.
* Spread comparison data fed by ForexBrokerz.com
Execution: LiteForex’s execution is a bit slow and slippage & re-quotes are common; LiteForex comments on this on community message boards are pretty much the same – “That’s not possible, our logs don’t show any signs of problems with execution”. Uh-um. Sure.
Bonuses and the Multirebate program
Bonuses, Refer-a-Friend program, demo contests, regional contests – LiteForex has it all. There’s nothing wrong with rewarding your loyal customers but that’s a bit over the top.
Furthermore, the broker offers the so-called Multirebate program that promises the traders 1.5 pips of each trade ($15 per lot) back. Now, I haven’t been in the forex game that long but back when I was still actively playing poker, I would stay away from any site that offered rakeback (that’s the poker equivalent of rebate). These were usually the sites with the worst gaming conditions and/or they were just playing dirty offering something the industry generally frowns upon to attract more customers.
I’m guessing the same principle applies to forex trading – if you have nothing else to offer, give them bonuses and rebates. Truth is, though, no matter how much money LiteForex gives me back, that won’t change the fact that it’s not regulated, has high spreads and offers ridiculously high leverage.
With its sucky trading conditions, fishy regulation and overall impression that I get, LiteForex is definitely not amongst my favorite brokers. There’s plenty of other brokers out there, so my advice is – stay away from this one.
Lite Forex – Ratings and reviews