LiteForex: A Broker For Clients in Emerging Markets

March 12, 2021
Brokers
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Established in 2005, LiteForex quickly grew past the confines of the Marshall Islands to become a global broker. The broker offers 58 forex, 42 stock, 8 commodities and more than 10 crypto options that you can trade in. Moreover, the broker has no deposit or withdrawal fees and it also offers plenty of e-wallet and crypto options for using your own funds. The broker also offers customer support in more than 10 languages like English, Italian, Polish, Swahili, Urdu and Indonesian. If you’re a trader from Tanzania, Pakistan or South Africa or from another emerging economy, you should definitely check this platform out if you like trading in crypto or forex.

On the other hand, if you are someone who wants to trade other assets to diversify your portfolio and also value quality educational resources, coupled with a dedicated free account manager to help you when needed, then definitely check out Capital.com. Besides award-winning custumer service and a great fee structure, they also offer hundreds of stocks, ETF’s and bonds which means that if you trade in these assets you should definitely check out the platform.

We analyzed hundreds of data points relevant to the costs, benefits and features of trading with LiteForex and scored our findings on a 10-point scale across 10 distinct categories.
Fees 3
Signup Process 7
Minimum Deposit 2
Ease of Use 7
Deposit & Withdrawal Options 10
Customer Support 9
Asset Classes 7
Referral Program 2
Demo Account & Educational Resources 8
Safety & Regulation 6
Total 61

LiteForex Introduction

Launched in 2005 and headquartered in the Marshall Islands, LiteForex quickly introduced the art of trading to individuals in emerging markets like Tanzania, Pakistan and South Africa. The broker has since carved a niche of being a no-nonsense broker in many emerging markets, much in the same way as IQ Option. You can open an account with the broker if you reside in:

  • Australia
  • China
  • Denmark
  • Germany
  • Hong Kong
  • Kuwait
  • India
  • Indonesia
  • Thailand
  • France
  • Luxembourg
  • Portugal
  • Poland
  • Qatar
  • Saudia Arabia
  • South Africa
  • Tanzania

Pros & Cons

Pros

  • Good crypto options
  • Many forex options
  • Plenty of deposit and withdrawal options
  • Good customer service

Cons

  • Expensive forex spreads
  • Limited commodity options
  • Not regulated by a tier-1 regulator

LiteForex Account Types

Classic Account

The classic account type is tailored for novice to intermediate traders looking to use the LiteForex platform, the account type has floating spreads but no commissions to facilitate trading.

ECN Account

This account type is tailored for professional traders with options such as unlimited orders and social trading options whereby, you can interact with other traders to gain more knowledge before making decisions and replicate the strategies of the most profitable traders on the platform. The ECN account also boasts lower spreads than the Classic account but charges commissions when you trade.

We will focus more on the Classic Account throughout this LiteForex review as it caters to a wider audience.

Here’s a breakdown of our 10 scoring categories, each scored out of 10 for a total of 100 points.

#1 LiteForex Fees

LiteForex has a no commission structure for the Classic Account, the commissions are just built into the spreads of the account. The commission for major forex pairs though is $10 per lot for the ECN Account, the commission for minor pairs is $20 per lot and $30 per lot for the exotic pairs.

LiteForex Deposit & Withdrawal Fees

The broker does not charge any deposit or withdrawal fees, which bodes well for users because often, brokers have fees attached to withdrawal of funds, which can be annoying for users as they have to pay to withdraw their own money.

LiteForex Inactivity Fees

The broker does not charge any inactivity fee which is a good sign for users looking to try out the platform. Often brokers have inactivity fees of $10 or $20 associated after a couple of months of inactivity. However, we recommend that if you do not enjoy a trading platform it is better to withdraw your funds rather than to just leave them there.

LiteForex Forex Spreads

One of the specialties of LiteForex is the diverse variety that it offers for forex traders. Let’s decouple some of the spreads that the broker offers to see what kind of value they provide.

Forex PairClassic Account SpreadsECN Account
Spreads
AUD/USD4.31.7
EUR/USD3.50.9
CAD/JPY16.74.1
EUR/AUD10.73.2
NZD/USD18.52.2
GBP/CHF106.4
EUR/RUB635176.8

Quality of Spreads On The Classic Account

These forex spreads are generally quite expensive compared to other brokers. For instance, the EUR/USD is offered below 1 pip or 2 pips from most brokers like Tickmill or easyMarkets. If you are someone looking for exotic, or intricate pairs not offered by most brokers, do check out CMC Markets. The latter offers a USD/RUB spread of just 1.6 pips, which is extremely good value, especially compared to very expensive rates for the Ruble like the EUR/RUB spread at LiteForex that is a staggering 635 pips.

Quality of Spreads On The ECN Account

The ECN Account already has a hefty commission associated with it, with a minimum fee of $10 per lot and that coupled with the expensive spreads, makes it quite expensive compared to other brokers. The spreads for the ECN are more expensive than the likes of no commission brokers like Capital.com

The fact that forex is a huge part of LiteForex’s armoury and the spreads are quite expensive means that the brokers only scores a 3 over here.

LiteForex Fees Score: 3/10

#2 LiteForex Signup Process

The appication process with LiteForex is completely online and only takes a few minutes to complete. However, the verification of your account can take upto 2 days. Some commonly required documents may include:

  • ID Documents such as a valid International Passport, National ID card or Driver’s Licence in order to verify your identity.
  • Proof of residence document showing your name and address, which could be any electric bill or credit card statement.

The fact that it may take the broker a couple of days to open your account means that the broker loses a few points in this dimension.

LiteForex Signup Process Score: 7/10

#3 LiteForex Minimum Initial Deposit

The minimum initial deposit required to open an account is $2,000 which can be quite high for beginners or individuals looking to try out the platform. The fact that you have to invest $2,000 to get started can be a hassle especially if you just want to test out the platform. This makes the broker score is a paltry 2 in this dimension, so it’s safe to say that it has some pretty poor performance here. If you want to start trading for less, you can get started with FXTM or IronFX as these brokers have no minimum initial deposit requirements and have good demo accounts and educational resources to get you started.

LiteForex Minimum Initial Deposit Score: 2/10

#4 LiteForex Ease of Use

The LiteForex platform is available on the web, desktop android and iOs. In this section, we will decipher the usability of the broker on these platforms to see if it is suited for your needs and requirements.

LiteForex Mobile Applications

The android application is very intuitive and has a very uncluttered interface due to which it has very positive reviews on playstore with an average rating of 4.4 stars, with mainly positive reviews about the platform and the quick speed at which the app works.

The apple iOs application, though, has a few negative comments about compatibility issues and despite having a decent interface the application has a rating of just 3.1 stars.

LiteForex Web & Desktop Platform

LiteForex doesn’t have its own proprietary trading software, so the web and desktop platform uses the MetaTrader 4 and MetaTrader 5 platforms. The Meta Trader 5 platforms have a good interface as you can see below. The charting tools are really good and as you can see in the picture below, not only the past trends are shown, the variability associated with those trends is also illustrated in the form of box and whisker illustrations. The Meta Trader platforms are also quite helpful in-terms of customizability and can help you in building the kind of dashboards that you want to build.

LiteForex Interface

The platform loses a couple of points in our scoring of this dimension due to the issues with its application for Apple users.

LiteForex Ease of Use Score: 7/10

#5 Deposit & Withdrawal Options

The broker offers plenty of deposit and withdrawal options to cover you wherever you live. The options with which you can deposit or withdraw your funds include:

  • Debit & credit cards that include Visa & Mastercard
  • Bank Transfers
  • Electronic Transfers
  • Cryptocurrency (yes, this is not a typo you can actually deposit and withdraw funds via crypto)

Some of the electronic transfer options at your disposal include:

  • AliPay
  • AdvCash
  • Africa Mobile Money
  • Boleto Bancario
  • Mpaisa Kenya
  • Mpaisa Tanzania
  • Skrill
  • Neteller
  • Paypal
  • Perfect Money
  • Web Money
  • Yandex Dengi
  • QIWI

Cryptos with which you can use your funds include:

  • Bitcoin
  • Etheruem
  • Litecoin
  • Monero

The vast number of options offered by the broker means that it scores a perfect 10 because you can use your funds almost through any platform that you want to use.

LiteForex Deposit & Withdrawal Options Score: 10/10

#6 Customer Support

Let’s decouple the customer support options that are at your disposal and the effeicacy of those options. You can get customer support via:

  • Email at [email protected]
  • Phone at +996508036060
  • Live Chat

Moreover, customer support is available in several languages like:

  • English
  • Polish
  • French
  • Thai
  • Swahili
  • Spanish
  • Italian
  • Urdu
  • Swahili
  • Hindi
  • Korean

The fact that the broker offers support in so many languages means that the broker caters to the needs of a myriad of users in their preferred language. The broker only loses a point because it does not offer a dedicated account manager.

LiteForex Customer Support Score: 9/10

#7 Asset Classes

Let’s decouple the asset classes offered by LiteForex to see what’s on offer.

Asset ClassOptions
Stocks42
Forex58
Crypto10 +
Commodities8
Stock Indices11

LiteForex covers most asset types but it does not offer a whole lot of variety for a broker that has a high minimum initial deposit requirement and potentially targets experienced brokers but it has a good option set for most asset classes for you to choose from. Let’s go further into detail regarding the options within each class.

Stocks

Some of the commonly traded stocks on the platform include:

  • Apple
  • CAT
  • Cisco
  • Ebay
  • Facebook
  • Home Depot
  • Intel
  • Microsoft
  • Netflix
  • Nvidia
  • Paypal
  • Tesla
  • Google

The list above shows some good mix of tech and ecommerce firms that you can invest in. With the tech industry rapidly evolving you can look for future projects that the tech giants of the world are investing into and invest in their future and yours too.

Forex

With an offering of 58 forex pairs the broker already offers more pairs than many brokers. Som of the pairs that you can trade in are

  • USD/EUR
  • USD/GBP
  • GBP/EUR
  • GBP/NZD
  • AUD/USD
  • AUD/NZD
  • USD/MXN
  • GBP/CHF
  • USD/RUB
  • USD/JPY
  • CAD/JPY
  • CAD/GBP
  • NZD/CHF

The broker offers most major pairs offered by many brokers like USD/EUR, GBP/EUR and AUD/USD. Moreover, the broker also offers decent choices by offering niche pairs like USD/MXN and USD/MXN pairs.

Crypto & Commodity Options

The crypto menu includes:

  • Bitcoin
  • ETP
  • Litecoin
  • Ethereum
  • Proton
  • Monero
  • Neo
  • OMG Coin
  • Zcash

The crypto options offered are much more than most brokers that just offer the 3 or 4 options. However, if you are a crypto enthusiast LiteForex has you covered in building a crypto portfolio.

Some of the commodity options offered by the broker include:

  • Silver
  • Gold
  • Palladium
  • Crude Oil
  • Brent Oil

If you like trading in oil or metals there are some basic varieties that the broker offers for you. The broker loses a couple of points because it does not offer bonds.

LiteForex Asset Classes Score: 7/10

#8 Referral Program

LiteForex encourages you to use the platform with your friends and there is a $50 reward for you for referring a friend to use the platform. This is a good option for you to get started using the platform with your friends. In order to gain the referral reward you need to refer your friend, your friend needs to initially deposits at least $250 for you to get the reward.

However, if you are someone looking for brokers with good referral programs, do have a look at CMC Markets that offers rewards up to $250 for referring friends to the platform. LiteForex has a decent referral program but only scores a 2 here as there are brokers like CMC Markets that are offering much more in rewards.

LiteForex Referral Program Score: 2/10

#9 Demo Account & Educational Resources

Demo Account

The broker offers an unlimited demo account. You can trade an unlimited amount of paper money that you want to trade-in as the broker has no limits to the amount of paper money that you can trade into enhancing your skills.

Educational Resources

The broker offers extensive educational resources for forex traders compared to other resources. The broker offers:

  • Webinars
  • Forex courses
  • Seminars

The forex courses are a great way of learning how the forex industry works and getting yourself started with trading forex. Moreover, the wenbinars and seminars are a good way of getting involved with what is going inthe trends of the market. The broker though loses a couple of points because it lacks extensive training courses for other assets.

LiteForex Demo Account & Educational Resources Score: 8/10

#10 Safety & Regulation

The broker is only regulated by the authorities in the Marshall Islands. The fact that it is not regulated by a tier-1 broker means that it is not subject to some of the strict regulations that other contemporary brokers are subject to. However, the broker is still regulated which subjects it to a particular set of code and conduct rules that it needs to follow. The broker loses a few points because it is not regulated by a tier-1 broker, but still manages an above-average score thanks to the regulation it does have.

LiteForex Safety & Regulation Score: 6/10

While researching 100+ of the world’s top brokers, we’ve noticed what works and what doesn’t from the customer’s point of view. That’s why our final test for any broker is to compare it to Capital.com, which scores 91/100 points across the 10 categories mentioned in this review.

LiteForex vs. Capital.com

There are a few dimensions where LiteForex can learn from Capital.com and improve.

More Asset Options

Capital.com gives you many more options by offering more assets such as bonds, more than 20 commodities and 1,700 stocks from all around the world that can help you building diversified platforms.

Customer Support

Capital.com has one of the best customer support cycles as it gives you a dedicated account manager who keeps a record of your transactions and guides you on your journey towards becoming a pro trader.

Comprehensive Educational Resources

Capital.com has a lot of educational resources to train any kind of trader looking to deal in any kind of asset. Often brokers offer a few basic educational resources for traders but Capital.com does a good job in this regard and it is with you in helping you learn to trade savvily and efficiently. Some of the resources offered are as below:

  • Tutorial videos on using the platform
  • Educational videos on trading different assets
  • Webinars
  • Educational articles

The resources offered to teach you everything from learning how the platform works to educational videos and webinars. Capital.com also offers asset trading training guides.

Training Guides

  • CFD training guides
  • Commodities training guides
  • Indices trading guides
  • Trading psychology guides
  • Shares trading guides
  • Forex trading guides

Capital.com has you covered if you want to start trading an asset that you have not traded before. They also offer 5 courses that are aimed at training beginners and refreshing the knowledge of experienced traders.

Capital.com Online Courses

  • Introduction to financial markets
  • ABC of derivatives
  • Financial instruments
  • Derivatives and risks of trading
  • What are leverage and margin

The online courses are designed for beginners but anyone can benefit from them in learning the basics and good practices and knowledge of the industry.

So what are you waiting for signup today for Capital.com if you value good educational resources, customer support and a diverse asset portfolio

Related: If you want to learn more about this broker, you can read this excellent review of Capital.com.

In Summary

LiteForex has a good interface that makes trading enjoyable and insightful. Moreover, the broker also offers some innovative options for deposit and withdrawal of funds such as the option to deposit or withdraw your funds using crypto and some localized e-wallets such as MPesa which is quite unique. The broker also offers a diverse range of asset classes and plenty of options in forex and crypto, so if you trade these classes you should definitely consider this platform for your trading journey.

However, if you are a beginner who wants quality educational resources and amazing customer service, coupled with one of the broadest set of tradeable assets, then definitely check out Capital.com. The platform offers hundreds of stocks, bonds and ETFs that you can trade, something that LiteForex does not offer. Sign up now to enjoy Capital.com like hundreds of our satisfied readers.

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