LiteForex is an entry level forex broker which was established in 2005. They offer their clients the ability to trade in 56 currency pairs, precious metals, oil, CFDs, and crypto currencies.
Three account types are available: ECN, Classic and Cent. The entry level cent account will appeal to beginners and smaller investors due to the low deposit and the fact that it allows micro lot trading.
They don’t provide a web trading platform as such. Their web portal lets you administer your account, add and remove funds, create new sub accounts, and manage copy trading (see below).
To trade with the broker you will need to download the MetaTrader package and install it on your PC desktop. They support both MT4 and MT5. They also offer trading apps for several different mobile devices.
A wide array of funding choices are available including bank, credit card, Skrill, WebMoney, and crypto currencies.
Key Features of LiteForex
- “Cent” trading accounts available with lowest deposits of ten dollars.
- Leverage up to 500 times.
- ECN or dealing desk execution
- Fixed spreads from 3 pips are available on dealing desk accounts.
- ECN spreads as low as 0.5 pips plus commission
- Trailing stops can be used.
- News trading and scalping are allowed
- Trade via MetaTrader software – there isn’t a web interface.
- Copy trading is available.
- Bonuses of up to 100% are available but there are minimum “trading activity” requirements.
This is the starter account, which you can open with a minimum deposit of $10. It’s available in four major currencies. This account is suitable for extremely small scale trading activities. The lot size on the cent account is $1000 per trade contract. The maximum leverage on cent accounts is 1:200.
The next level up is the Classic account which uses standard lot sizing. The minimum deposit here is $50, and the maximum leverage is 1:500. The minimum trade size is 1 micro lot – or $1000.
Trades on both the Cent and Classic accounts are executed through LiteForex’s dealing desk. This means they are your market maker. These account types both provide instant execution and fixed spreads from 3 pips upwards.
Although with fixed spreads you have some peace of mind that your spreads won’t widen during high volatility – it means your trades might be stopped by “requotes”.
Requotes Requoting happens when your quoted price changes between the time your quote is offered and the time your trade is received for execution. Usually this happens in fast markets that are adjusting to new information. For example, because of news announcements or technical conditions.
With a requote, the broker can’t (or won’t) execute the trade at the quoted price and therefore needs to offer you a new price or requote. This doesn’t happen with variable spread accounts because the spread usually just widens to compensate for the higher volatility – or less predictable pricing environment.
Tip When choosing your account type, you’ll need to weigh-up if your strategy will require a lot of trading during economic announcements or during other volatile periods.
If so it’s probably better to go for a variable spread account (see below). Otherwise you’ll just be hampered by requoting. The other option is to place limit orders instead of market orders.
With the ECN accounts, trades are executed via their main liquidity providers through an ECN system. ECN accounts allow access to the social trading platform, and they have a minimum deposit of $50.
In most other respects they’re the same other than the minimum balances, maximum leverage and the interest rate. The typical spread for the ECN account is 0.5 pips plus commission.
LiteForex doesn’t offer segregated accounts as standard. With non segregated accounts – all of the above – your funds are at risk if the company goes bankrupt or is subjected to a force majeure.
In order to isolate your funds from the company’s balance sheet and keep them out of harms way you’ll need to opt for the segregated account and have a nominated custodian. This is worth it if you have a big trading account.
Social – Using LiteForex’s Copy Trader
If you plan to use LiteForex as an investment platform – rather than for trading, their copy trading platform is what you’ll be interested in. A new social copy trading system is now available and replaces their old PAMM account.
Copy trade is an automatic trade copying service that lets you invest your money with one or more experienced traders. Unlike regular PAMM you can do this on a per trade level rather than committing a chunk of capital.
LiteForex’s social trading system has an easy setup and lets you start investing with funds as low as $10 per trader.
This can all be managed through your account panel on the main website.
Research and analytics: LiteForex’s economic news feed is provided through the website fxstreet. They do have their own in-house analysts who provide daily market opinions and commentary – mostly on technical aspects but also a little on fundamentals.
In the “tools” section, they also have a couple of calculators. The trading calculator lets you run “what if” scenarios. Using the extended mode, you can see profit potential, required margin and fees.
There’s also a Fibonacci calculator that works out retracement levels. While most charting software will do this for you – it is sometimes handy to have the calculator to hand.
Help and Support: There is live support system on LiteForex through the chat system. There’s offline help via email tickets.
Using Robots and EAs
LiteForex will allow you to use 3rd party robots and expert advisors (EAs) provided they run through the MetaTrader terminal. Unfortunately you can’t connect your account to ZuluTrade or any other signal platform that we’re aware of.
If you’re going to use automated software, you can also opt for a VPS service. VPS, or Virtual Private Servers costs $20 per month. This lets you run your software – hands-free -on a remote server. Essential if you’re running an automated program trading strategy.
Bonuses & Competitions
Right now, LiteForex has several different bonuses to choose from. A welcome bonus of up to 100% is offered to new clients. The bonus is given on all deposits over $100 but there are conditions.
Note: To release the bonus and turn it into real equity you’ll need to do a lot of trading to satisfy the minimum volume requirements. Up until that point, your bonus can’t be withdrawn or used for trading.
Keep an eye out for trading competitions too. These change from time to time, but they often have some substantial prizes up for grabs.
Is This A Good Broker?
The account types and services offered by LiteForex don’t really distinguish it that much from other forex brokers out there. There is up to a 100% deposit bonus, but to achieve that you’ll need satisfy their minimum trade volumes which are quite high.
The main point in favor of LiteForex I think is their social trading. It’s simple, provides comprehensive performance data, and lets you get started with very small investment amounts – just $10.
Liteforex’s is regulated by CySec.