Is LiteFinance Legal in Philippines? 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 Philippines often ask “Is LiteFinance 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 LiteFinance is legal in Philippines and whether you can work with this broker.
Short summary about the broker LiteFinance
The LiteForex (LiteFinance) broker is a high-tech company that constantly offers innovative solutions for active and passive trading. The LiteForex group of companies was incorporated in 2005, and it has risen through the ranks to become a market leader. Today, LiteForex (LiteFinance) is an online ECN broker with unique technical solutions for transferring transactions to the interbank and directly to liquidity providers. Social Trading is a mechanism for automatic copying of other traders’ transactions (see, SocialTrading platform) and other advantages for comfortable and efficient trading. LiteForex Broker is one of the largest and leading brokers in Malaysia.
| 💰 Account currency: | USD, EUR, CHF, MBT |
| 🚀 Minimum deposit: | $50 USA |
| ⚖️ Leverage: | Up to 1:1000 |
| 💱 Spread: | Classic — from 1.8 pips, ECN — from 0 pips |
| 🔧 Instruments: | Currencies, assets of stock and commodity markets, cryptocurrencies |
| 💹 Margin Call / Stop Out: | 100% / 20% |
Pros and cons of LiteFinance
👍 Advantages of trading with LiteFinance:
•Correspondence to the A-Book model, STP (straight-through processing) and ECN technologies for processing client orders and pin spreads with instant market execution with minimal slippage in both directions;
•Own trading platform for personal accounts that was designed for novice traders with the ability to copy transactions, analyze market sentiment, etc.;
•Several types of affiliate programs with a multi-level system and cashback;
•Automatic reimbursement of commissions paid when replenishing and withdrawing money.
👎 Disadvantages of LiteFinance:
•No cent accounts, which are often of interest to novice traders;
•Supplement of additional indicators is not provided in the trading platform of your personal account; algorithmic trading and testing are not provided;
•There is no information on how the risk level is assigned to traders from the social trading rating;
•Complex verification procedure.
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
CYSEC
The Cyprus Securities and Exchange Commission (CySec) is the financial regulator authority of Cyprus. The regulator has the power to audit companies and issue licenses to conduct financial activities in the territory of the country.
Cyprus is an EU member and therefore the CySec license also allows companies to operate in the entire territory of the EU. Furthermore, the document issued by the regulator is considered reliable beyond the borders of the EU countries.
SVG FSA
The SVG FSA is the government regulator of St. Vincent and the Grenadines subordinated to the Parliament. It was established in 2012 with the purpose of merging regulatory functions within one organization. The regulator supervises the following sectors: commercial banks, insurance market, investment funds and credit unions, self-regulated organizations.
The SVG FSA provides broker registration, but is not involved in their regulation. It means that during registration, brokers do not undergo inspection to confirm that they “meet the requirements” and are not regulated once they are registered. The SVG FSA is an offshore regulator, but reliable brokers can also work under its supervision. Before choosing a broker, registered with the SVG FSA, we recommend that you read the company review and user feedback about the company.
Is LiteFinance legal in Philippines? Broker’s license
Security (Protection for Investors)
LiteFinance guarantees the confidentiality of personal data and security during transactions. Data encryption protocol (HTTPS — hypertext transfer protocol) is used when transferring data between the client’s computer and the broker's server, thereby preventing the interception of the client's personal data.
👍 Advantages
- Segregated accounts
- Reliable data transmission security system
- Working in the European legal field
👎 Disadvantages
- Difficulties for private traders to communicate with the regulator
Brokers that are similar to LiteFinance
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 LiteFinance with similar brokers.
Comparison of LiteFinance with other Brokers
| LiteFinance | Eightcap | XM Group | RoboForex | TeleTrade | NPBFX | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, MT5, MultiTerminal, Sirix Webtrader |
MT4, MT5, TradingView |
MT4, MT5, MobileTrading, XM App |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
MT4, MT5 |
MT4 |
Min deposit |
$10 |
$100 |
$5 |
$10 |
$10 |
$10 |
Leverage |
From 1:1 |
From 1:30 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:200 |
Trust management |
Yes |
No |
No |
No |
No |
No |
Accrual of % on the balance |
7.00%% |
No |
No |
10.00%% |
1.00%% |
No |
Spread |
From 0.5 points |
From 0 points |
From 0.8 points |
From 0 points |
From 0.2 points |
From 0.4 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, Instant Execution |
Market Execution |
Instant Execution, Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
Yes |
No |
No |
Yes |
Yes |
No |
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.
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.
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.
TeleTrade is a broker for traders who value the variety of trading instruments and trade using their PC or a mobile app. The company is a good broker both for beginners and experienced traders.
NPBFX is a universal broker providing services on off-exchange financial markets. Trading conditions are suitable for traders with any level of knowledge and opportunities. Investors have access to ZuluTrade social trading.
Conclusions
Traders Union showed that LiteFinance is indeed very reliable and legal in Philippines. 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 Philippines for beginners?
Novice traders need to consider the brokers with licenses issued in Philippines 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.