LiteFinance Review

Here is a review of LiteFinance, the offshore brand of the forex brokerage that also operates the Liteforex brand. Following the enactment of new regulatory protocols in 2018 by the European Securities and Markets Authority (ESMA), many existing EU brokers were forced to spin off their non-EU clientele into offshore branches. Find out why trading with LiteFinance is fast becoming attractive for traders.

I. Background and Company Overview of LiteFinance

The LiteFinance brand was a child of circumstance, emerging as the offshore branch of the LF Group after ESMA's new margin requirements meant that many clients could not afford to keep trading with the EU-licensed brand, Liteforex.

The company commenced operations in 2005 and now maintains a global and EU-specific brand. But why is LiteFinance becoming so popular among traders?

• LiteFinance offers a lower barrier for entry with its $50 minimum account size.
• A unique calculator has been developed to select traders to follow on the in-house copy trading platform.

II. Trading Platforms and Tools

The only trading platforms available on LiteFinance are the MT4 and MT5. Both come with web-based and desktop clients, as well as mobile apps. Versions are available for Windows OS and Mac OS.

Other tools available to LiteFinance's clients to enhance their trading experience include:

• Access to a copy trading platform.
• A specialized tool in the form of a profit calculator, which allows the trader to put in an investment amount and the investment term. The calculation's result automatically presents professional traders whose performances over the period in question matches the trader's expected profit. This is a unique tool which is the first of its kind in the world of copy trading.
• Analytical materials from Claws & Horns, an independent agency.
• A Fibonacci calculator.
• A trader's calculator which basically serves as a tool to calculate various trade parameters such as rollover fees, spread, commission payable (ECN accounts only) and margin required.

III. Account Types and Spreads

At LiteFinance, traders can choose from a variety of accounts, which come with different contract specifications.

1. ECN
2. Classic
3. Cent
4. Safe Deposit

The ECN account can earn the trader 2.5% interest per annum by putting in funds and doing nothing. With a $50 minimum deposit, traders can send their orders directly to the liquidity providers. No stop or limit levels exist, and scalping/news trading is allowed. Maximum leverage is set at 1:1000. Traders can get spreads from as low 0.0 pips, but commissions are paid from $0.25 per lot on both sides.

The Classic account also comes with a $50 minimum deposit and accounts can be held in USD or Euros. Contract specs are the same with the ECN account, with the difference being the maximum number of contracts that can be traded (300 lots) versus that of the ECN account (500 lots). Maximum leverage is set at 1:1000.

The Cent account is ideal for new traders transitioning from demo to live accounts with minimum risk. The minimum deposit amount is $10. The leverage provided is at most 1:200.

Safe Deposit Account functions like a bank's fixed deposit but pays out 20% per annum to traders who keep their funds with the brokerage without withdrawals for up to a year.

IV. Contract Specifications

The contract specifications on LiteFinance differ from one account type to the other.

• The spread is lowest on the ECN account (0.0 pips), and highest on the Cent account (3 points). The Classic account presents 1.8 pips as its lowest spread.
• Leverage on ECN and Classic accounts are 1:1000 (maximum) and 1:200 on the Cent account.
• Swap-free conditions are available for all account types as an alternative for Muslim traders.
• Maximum lot size on the Cent account is 1 micro lot.
• Minimum and maximum trade sizes for all accounts is 0.01 and 100 lots respectively, with increments of 0.01 lots.
• Stop out level for the Cent account is 50%, but stands at 20% for ECN and Classic accounts.

V. Security and Regulation

The LiteFinance brand is owned and operated by the LF Group of Companies. This brand is the global brand of the company, which also owns the more popularly known Liteforex (Europe) brand that operates from Cyprus. LiteFinance is incorporated in the island of St. Vincent & Grenadines.

Due to regulatory restrictions, residents of Israel, Japan, Russia and USA are unable to open accounts with LiteFinance. The same goes for residents of the European Economic Area (EEA), who are instead permitted to trade with the Liteforex brand which is registered and licensed in Europe.

VI. Customer Support and Education

How can you reach customer support on LiteFinance? Here are the available channels:

• Telegram: @liteforex
• Facebook: LiteFinanceBroker
• Twitter: Litefinanceeng
• Email: clients@litefinance.com
• Skype: liteforex.support
• Phone: +447520644437

Customer support on LiteFinance is available 24/5, shutting down for the week on Friday at 23:59 pm (GMT + 2).

Conclusion

LiteFinance is one of the forex brokers of choice for those who want to use performance metrics as the basis of selecting traders to follow on the copy trading platform.