Is Libertex Legal in South Africa? Is it Safe?
Reliability is the key criterion for choosing any broker. If you have doubts about the reliability of a company, it is not recommended to work with it. Traders from South Africa often ask “Is Libertex safe? Does the company operate legally in the territory of the country, can it be trusted?" Traders Union analysts have prepared a detailed analysis, where we will see whether Libertex is legal in South Africa and whether you can work with this broker.
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: | USD |
| 🚀 Minimum deposit: | 100$ |
| ⚖️ Leverage: | 1:1000 |
| 💱 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.
What information should a broker disclose?
Only the broker that discloses all legal information can be considered reliable. You need to take notice of this factor when choosing the company.
The official website of the broker should contain the following information:
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The name of the legal entity.
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Country of registration.
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Number of the registration certificate.
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Legal address, factual addresses of the offices of the broker.
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License to conduct financial activity.
The information must be published either in a special section on the website of the broker or in the disclaimer. Make sure to check it.
The official website of the broker must also provide internal regulatory documents. Before you start working with a company, review Terms of Use, Privacy Policy, Disclaimer, Risks Notice, and other documents.
Broker regulation: No license
Unfortunately, Libertex does not hold a financial license. It is a great disadvantage for the company, as it does not comply with the regulatory requirements and cannot provide any guarantees of its own reliability. It will be extremely difficult for the clients of the company to defend their rights in case of illegal actions of the organization.
Nonetheless, in some cases even reliable and honest brokers can operate without the license. Before choosing a broker, it is important to read an independent review of the company and honest feedback of the broker’s clients in the country. Nevertheless, you need to treat the companies with no license for financial activity with increased caution, and, maybe, consider other brokers with a license from the country.
Is Libertex legal in South Africa? Broker’s license
Regulations
Information
Libertex.org is operated by Forex Club International LLC, a company registered in St. Vincent and the Grenadines (Registration No. 1277 LLC 2021).
👍 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.
Brokers that are similar to Libertex
In addition to license and reliability, you also need to take notice of the trading conditions of brokers. This is important both for beginners and experienced traders, as the demands of the clients with different experience differ. Traders Union analysts have prepared a comparison table of Libertex with similar brokers.
Comparison of Libertex with other Brokers
| Libertex | Bybit | Eightcap | XM Group | Exness | LiteFinance | |
|---|---|---|---|---|---|---|
Trading platform |
Libertex, MT5, MT4 |
MetaTrader5 |
MT4, MT5, TradingView |
MT4, MT5, MobileTrading, XM App |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5, MultiTerminal, Sirix Webtrader |
Min deposit |
$100 |
No |
$100 |
$5 |
$10 |
$10 |
Leverage |
From 1:0 |
From 1:1 |
From 1:30 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
Yes |
Accrual of % on the balance |
No |
No |
No |
No |
No |
7.00%% |
Spread |
From 0.1 points |
From 0 points |
From 0 points |
From 0.8 points |
From 0 points |
From 0.5 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution, Instant Execution |
Market Execution |
Market Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
No |
No |
No |
No |
Yes |
Yes |
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.
Overall. Bybit offers seamless Forex integration with crypto infrastructure, automatic leverage allocation, and MT5 support with Expert Advisors. The platform is suitable for users familiar with trading basics, as well as beginners and algorithmic traders.
Eightcap has favorable working conditions due to a large choice of instruments, tight spreads, high leverage, and no withdrawal fees. Integration with popular trading platforms and basic deposit/withdrawal options greatly facilitates work with the broker and reduces the entry threshold. In addition to comfortable conditions and low financial costs, traders get free educational materials and special services for technical analysis. A relative disadvantage is the absence of opportunities for passive income. Also, the broker works only with CFDs, so other groups of trading instruments are not available.
XM Broker is a broker for professional trading. Trading conditions correspond to the average market; there are technical advantages that distinguish XM Broker from its competitors.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
LiteForex (LiteFinance) is more in demand by traders who already have basic trading skills like professional traders and those who are interested in passive investing.
Conclusions
Traders Union showed that Libertex is indeed very reliable and legal in South Africa. The company holds all necessary licenses to conduct financial activity; it complies with all key requirements of the regulator. Legality of the broker’s operation in the country is one of the key criteria for choosing the company for trading. It is important to take this into consideration, as well as the trading conditions. In this case, we can say that the broker meets all the reliability requirements.
FAQ
Can I work with a broker who does not hold the license?
Trading with a broker without the license involves high risks. The license guarantees that the company performs its obligations. Working with a broker without the license creates a risk of manipulations with quotes, failure to pay, and other schemes.
Where can I complain if a broker with a license violated its obligations?
If a broker allows a violation of the conditions, you can appeal to the authority that issued the license and to the court.
How do I choose the best broker in South Africa for beginners?
Novice traders need to consider the brokers with licenses issued in South Africa or other European Union countries, availability of a demo account or cent account, the level of commissions and fees and minimum deposit, as well as educational materials.
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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.