LiteForex Review: How Trusted and Reliable is this Forex Broker

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Founded back in 2005, LiteForex is a forex broker offering a wide range of currency pairs, and various CFDs (including on cryptocurrencies) on MetaTrader 4 and MetaTrader 5.

There are two companies behind the brand – LiteForex Investments Limited, which is registered offshore, and Liteforex (Europe) Ltd., which is based in Cyprus and licensed by CySEC. LiteForex, in fact, bought the Cypriot company that used to operate the Mayzus brand.

LiteForex is an old and well-established Forex broker. At the time of this review, LiteForex has been in the market for over 12 years.

LiteForex Review

Many traders shop for a broker to work with and find endless reviews on the web, and not all are genuine. There are lots of websites that specialize in broker reviews and lots of talk about brokers in various forums, social media channels, and groups. While some information comes from a real trading experience of people that have used brokers’ services, some have a hidden agenda of promoting the broker(s). Promoting a forex broker is a legitimate and normal practice, as long as it’s done in a transparent way.

As of today, there are very few websites with trusted brokers’ reviews. One of the most trusted is forexpiecearmy.com, due to its security level which filters fake reviews. Anyway, use your intuition when you read LiteForex reviews. 

Liteforex’s overall rating on the largest portal for broker reviews is good. What do LiteForex’ disgruntled traders complain about?

Alleged spread manipulation is always an issue with online trading operations, as is the apparently unfounded denial of profits from traders. Some of the clients are not happy with the execution, complaining about widening spreads and execution with slippage. A more serious issue seems to be the cancelation of profitable trades and closed accounts for reasons like hedging and arbitrage

Here are just 2 examples:

biggest scam in FOREX market!! Liteforex 680000 USD SCAMMED!!!

I made the first deposit of 50000USD on 23rd March, and then I found that the transaction conditions were not good, so I decided to withdraw the money immediately. Then I received a call from the LITEFOREX sales manager and he asked how I could continue to trade with them. They offered 70% rebate and swap free trading accounts, so I started trading. At first I lost, then I continue to deposit 50000 USD on 19th April and another 50000 USD on 27th April, a total of 150000 dollars. After that, I started to make profit by predicting the market direction correctly. So I began to make some withdrawals: 20000 USD on 4th May, 30000 USD on 9th May, and 50000 USD on 14th May. All of these withdrawals were successful, but after that all the withdrawals were rejected. From 21st May, they said they needed to check My trading accounts. During this time, I tried to communicate with LITEFOREX for multiple times, but every time they just responded perfunctorily and delayed the withdrawals.

Until 6th June 2018, they closed my accounts, as well as client backstage without informing me and without providing me any reasons! Two accounts have a total 677,303 USD balance!!
After they closed my backstage and trading accounts, they sent a letter to induce me to make a video record claiming that I used their swap free accounts to hedging with another platform for arbitrage. But I did not do this, and it was impossible to admit it. They were trying to collect this evidence from me and accuse me of violating their terms and conditions, and then they will be able to keep my money. This is really an unacceptable scam!!

From the beginning, the company was very nice and friendly, and the rebate was paid to the accounts regularly. However, all their purpose is to induce me to trade and deposit more, and later they refused to give my money back when I make profit!!

I guarantee that all my transaction was made under conditions and terms, and every holding time period was from a few hours to a few days without any platform loopholes. It’s not ethical that our profit is not given because the profit we gain by predicting correct market direction is all under regulations.

FOREX traders all over the world should see clearly the real face of LIFEFOREX and stop being victimized. We are determined to take any actions to get our money back!!
– 
danney5215, China, Jun 8, 2018

They are big scammer

I want to withdrawal all my money. Jann Hehl, my account manager called me and offer me a swap-free account without any restriction, when I not withdraw my money. Because he know that I most traded EURTRY long for days and weeks. So I do not withdraw and traded for some month. I made big profits and then Liteforex closed my account, give me my initial deposit back and steel all my profit. They wrote:

“Dear sir,
The security department of LiteForex has finished the investigation. We regretfully inform you that our counteragent has recognized your activity as aimed at the obtaining of illicit risk-free profits by the hedging of swap-free positions in LiteForex with another broker and has canceled all your trading results respectively….”.
Yes I hedged some positions, nobody tell me that is forbidden. Where stand this? I wrote them,they can charge swap for the period since it is swap-free, but to cancel ALL trades is not ok. They are big scammer.

– Stefan, Frankfurt, Germany

source: https://www.forexpeacearmy.com/forex-reviews/120/liteforex-forex-broker?page=1&per-page=10

liteforex reviews
source: forexpeacearmy.com

There seems to be a serious issue with canceled trades and closed accounts for “suspicious” trading. We hope “suspicious”, not profitable.

Is LiteForex reliable?

LiteForex is considered medium to high-risk. LiteForex is not publicly traded and does not operate a bank. LiteForex is authorized by zero tier-1 regulators (high trust), one tier-2 regulator (average trust), and zero tier-3 regulators (low trust). LiteForex is authorized by the following tier-2 regulator: The Cyprus Securities and Exchange Commission (CySEC). 

For EU traders LiteForex is a safe broker, but outside the EU the Marshall Island registration does not provide any type of regulation or protection.

Liteforex is not popular in regulated regions like the EU, UK, or AU. Vietnam and Malaysia are the leading markets for LiteForex (source ahrefs.com) and the main source of business (60-70%).

liteforex review
source: Ahrefs

LiteForex Trading Conditions

Instruments

LiteForex offers the following assets for trading: 56 currency pairs, 17 Cryptocurrencies, 4 Metals, 2 Oil assets, 11stock indices, and CFDs from NASDAQ and NYSC. 

Accounts and Spreads

LiteForex provides 2 account types for its clients. For all account types: $50 is the minimum opening balance, 100,000 is the lot size and the minimum lot is 0.01. Social copy trade is also available for all account holders. Maximum forex leverage of 1:500 is obtainable for international clients while the European clients get a maximum of 1:30. The types of accounts are:

  • ECN Account: The floating spread starts from 0.1 pips. The commission is from $5 per lot. Only the MT4 trading platform is available to account holders. An interest rate of 2.5% is paid on traders’ surplus funds.
  • Classic Account: The floating spread starts from 1.8 pips. No commissions are charged and the broker charges are embedded in the spread. Both the MT4 and MT5 trading platforms are available to account holders. No interest is paid on traders’ surplus funds.
  • Islamic Account: This account is designed for Muslim faithful who are prohibited from receiving interests by Sharia Law. This account is swap-free and also does not receive an interest in surplus funds.
  • PAMM account: It combines all the advantages of both management and investing including transparency, safety, and convenience which provide wide earning opportunities to both investors and managers. The minimum deposit is $200 and the maximum leverage is 1:200. There is no commission.

Trading Platforms

LiteForex offers its services on two of the most popular platforms among traders – MetaTrader 4 and MetaTrader 5.

The MT4 is available as the desktop version, mobile apps a web-based version, called MetaTrader 4 Web terminal. This professional, fully-featured software provides traders with everything they need: fast order execution, a variety of technical indicators, linear instruments advanced charting packages, and the ability to develop and to use Expert Advisors (EA). The platforms give access to the MQL5 market where traders can buy or sell trading tools like forex EAsforex signals, or the best MT4 and MT5 Indicators.

The MT5 was developed and marketed as an improvement on MT4 (see here our MT4 vs MT5 guide) and it is today the best forex trading platform in the world according to industry experts.

Learn how to use MT5 and how to use MT5 with step by step guidance and illustrations. 

What is more, LiteForex has launched LiteForex Social Trading, a social platform for copy trading. The service is automated and is available for ECN account holders on the MT4 trading platform. Social Trading offers four different types of copy trading that are fully customizable: full-size copying, copying a fixed size of each trade predetermined in lots, copying a predefined percentage of each trade, or copying a fixed share of duplicator’s equity defined by the copy equity/provider’s equity ratio.

Payment Methods

Deposits can be made using major credit cards and online payment programs including LiteForex Cards, Skrill, Neteller, Carte Bleue, Dankort, PostePay, Qiwi, and China Union Pay. Bank wires are also accepted.

Withdrawals are made using the same methods. An opportunity to us automatic withdrawals offers clients the possibility of 2 automatic withdrawals for the period of 24 hours for the maximum amount of $100 (or the equivalent in another currency).The 24-hour period is measured from the moment of funds deduction as a result of automatic withdrawal.

Bonuses and Promotions

LiteForex currently offers three forex bonuses to entice new account openings, deposits, and trading volume. A contest for video bloggers to create content using the LiteForex website and to promote it on YouTube has a prize pool of $1,000. The Best of the Best is a monthly demo contest worth $10,000 in real cash. In May, the LiteForex Dream Draw contest commenced, ending in May of 2021. A dream house, an SUV, and 18 gadgets comprise this $350,000 promotion. Terms and conditions apply, and traders should familiarize themselves with the rules before entering.

Video bloggers may earn $1,000 and a three-year contract to create content for LiteForex.

LiteForex also offers a $10 no deposit bonus forex, which is not really useful.

Conclusion

LiteForex is a reputable offshore broker (if we can say so), offering competitive conditions for trading in forexCFDs, and Bitcoin on the MT4 and MT5 platforms. Its main disadvantage is the lack of regulation and the high number of complaints related to trade cancelation and accounts closed.

GET A FOREX PRO ON YOUR SIDE

To trade forex and CFDs, you need a well-regulated broker, where your money is safe, one that features a user-friendly trading platform with ultra-light execution, tight spreads, and fees. Trading with a trusted forex broker is crucial for success in international currency markets.

Here’s the Overall rankings for the best online brokers who participated in our 2021 Broker Review, sorted by Overall ranking.

FAQs

Is LiteForex trusted?

LiteForex is considered medium to high-risk. LiteForex is not publicly traded and does not operate a bank. LiteForex is authorized by zero tier-1 regulators (high trust), one tier-2 regulator (average trust), and zero tier-3 regulators (low trust).

Is LiteForex a scam?

While LiteForex remains unregulated, and numerous reports of issues exist, it is not a scam.

What is the LiteForex minimum deposit?

It is $50 to open an account, and then $10 except for bank wires, where it is $100.

Is LiteForex regulated?

The Marshall Islands entity remains unregulated. A CySEC-regulated entity caters to EEA traders with a significantly less competitive environment.

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