Is Libertex Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with Libertex try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether Libertex is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker Libertex
Libertex is an online broker that provides access to trading CFDs on stocks, commodities, cryptocurrencies, and more. The company has been in the market for over 10 years. One of the advantages and distinctive features of the broker is its proprietary web trading platform with non-standard functionality designed for novice traders. It features a user-friendly interface, high information content, and advanced technical functionality.
| Account currency: | EUR, GBP, PLN, CHF |
|---|---|
| 🚀 Minimum deposit: | 100 EUR |
| ⚖️ Leverage: | Up to 1:30 for retail clients |
| 💱 Spread: | From 0.1 p |
| 🔧 Instruments: | 300+ CFDs on stocks, indices, commodities, metals, cryptocurrencies, ETFs, and commodities |
| 💹 Margin Call / Stop Out: | 50/50 |
Pros and cons of Libertex
👍 Advantages of trading with Libertex:
•fast registration process;
•usability of the platform. It has a user-friendly interface for trading online on a PC or laptop as well as other devices;
•more than 300+ CFDs on stocks, precious metals, oil and gas, indices, cryptocurrencies - almost all popular trading underlying assets in one platform;
•tight spreads;
•investment account providing for investing in real stocks without commission fees.
👎 Disadvantages of Libertex:
•Libertex accounts have fees subject to the underlying asset. For example, a 0.0005% fee is charged on Forex CFD.
•No proprietary technological solutions for passive investing.
•Libertex is available only in the web version and mobile app which doesn’t allow adding custom indicators and advisors. Algorithmic trading is not available.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is Libertex Regulated? Broker’s license
Regulations
Information
Libertex is regulated and supervised by the Cyprus Securities and Exchange Commission (CySEC) under license CIF No. 164/12.
👍 Advantages
- OTC Market Transparency
- Tracking and regulation of relations between participants
- Reducing the risk of fraud: the presence of a "black list" of unscrupulous brokerage companies
👎 Disadvantages
- In some cases, claims requiring moral compensation are not considered.
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by Libertex, which you can see below.
TU experts have analyzed Libertex trading conditions. The broker's fee policy is flexible, that is spreads are charged on all account types, and fees in the form of percentage of the trade amount are charged on some account types.
| Account type | Spread (minimum value) | Withdrawal commission |
| Libertex Real | From 0.1% | Yes (PayPal or Skrill – No) |
| МТ4, МТ5 Market | From 0.1% | Yes (PayPal or Skrill – No) |
| МТ5 Instant | From 0.1% | Yes (PayPal or Skrill – No) |
Brokers that are similar to Libertex
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of Libertex conditions with its closest competitors.
Comparison of Libertex with other Brokers
| Libertex | RoboForex | Pocket Option | Exness | Octa | AMarkets | |
|---|---|---|---|---|---|---|
Trading platform |
Libertex, MT5, MT4 |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MetaTrader4, MetaTrader5 |
MT4, MT5, AMarkets App |
Min deposit |
$100 |
$10 |
$5 |
$10 |
$25 |
$100 |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0.1 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0.6 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
No |
Yes |
No |
No |
No |
No |
Libertex is a reputable broker. It would be worthwhile to look at the platform as a technical solution. It will appeal to those who can not imagine their life without gadgets and are eager to keep up with the time.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
The Octa broker has tried to adapt its conditions as much as possible to the various trading strategies used by traders. However, at the moment the company is more focused on active market participants, rather than passive investors.
AMarkets is a broker that is more suitable for professional trading. Everything here is designed to accommodate trading with EAs and that is the broker’s strength. The weakness of the broker is that it won’t be easy for traders without experience to work here.
Conclusions
Libertex cannot be considered absolutely reliable. The broker operates on a license of an offshore regulator. This creates certain risks regarding security of your funds. The broker has a good reputation. However, you can work with companies with an offshore regulation only at your own risk.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.