Is LiteFinance Regulated in India? Is it Legit? - TU Expert review
LiteFinance is a regulated Forex broker supervised by financial authorities in. The broker adheres to the standards established by its regulators, ensuring a secure and transparent trading environment. LiteFinance countries of regulation:
| Regulator | Full name | Country |
|---|---|---|
| CySec | Cyprus Securities and Exchange Commission | Cyprus |
| FSC (Mauritius) | Financial Services Commission of Mauritius | Mauritius |
| SVG FSA | Financial Services Authority of St. Vincent and the Grenadines | St. Vincent and the Grenadines |
Is LiteFinance regulated in India? 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
Is LiteFinance regulated in India? Broker’s license
LiteFinance regulation review
| Regulator | Country | Regulation level | Investor Protection Fund |
|---|---|---|---|
|
CySec
|
Cyprus | Tier-1 | Up to €20,000 |
|
FSC (Mauritius)
|
Mauritius | Tier-3 | No specific fund |
|
SVG FSA
|
St. Vincent and the Grenadines | Tier-3 | No specific fund |
Understanding Forex Regulation Levels
When choosing a Forex broker, their regulatory framework plays a pivotal role in ensuring trust and security. Below is an overview of the different regulatory tiers:
-
Tier-1 Regulators:
These authorities are globally recognized for their strict oversight and high compliance standards. They prioritize trader safety, financial transparency, and overall market stability. Notable examples include the FCA in the United Kingdom and ASIC in Australia. -
Tier-2 Regulators:
While not as stringent as Tier-1, these regulators enforce solid compliance protocols that provide traders with a fair degree of security and reliability. -
Tier-3 Regulators:
Often limited to simple registration processes, Tier-3 regulators operate in jurisdictions with minimal oversight. Brokers under Tier-3 regulation face fewer compliance demands, offering traders less protection.
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.
Why is it important for a broker to have the license in India?
A financial license is the key document for any broker. It confirms that the company complies with the requirements of the financial regulator and observes the law. It is important for traders to choose a broker registered their jurisdiction for the following reasons:
-
Any claim is filed at the place of the broker’s registration. Accordingly, in case any dispute arises, it will be easier for the trader to file a claim.
-
A license issued in India guarantees that the broker operates in compliance with the laws of this country and reports to the local regulatory authorities.
-
Traders can claim compensation under the government programs of deposit guarantees in case the broker experiences financial problems.
It is also possible to choose a broker that is not regulated in India. In that case, however, the company must have a license from a reliable regulator, for example of an EU country, the UK, USA, Australia, etc.
Brokers that are similar to LiteFinance
In addition to LiteFinance, also other brokers from this jurisdiction have the license of India. LiteFinance has many competitors, and before you start working with this broker, you need to compare it to other companies. TU analysts have prepared a comparison of brokers that operate in the India market and have a license of this or another reliable jurisdiction.
Comparison of LiteFinance with other Brokers
| LiteFinance | Eightcap | XM Group | RoboForex | Kama Capital | InstaForex | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, MT5, MultiTerminal, Sirix Webtrader |
MT4, MT5, TradingView |
MT4, MT5, MobileTrading, XM App |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
MetaTrader5 |
MT4, MultiTerminal, MobileTrading, MT5, WebTrader |
Min deposit |
$10 |
$100 |
$5 |
$10 |
No |
$1 |
Leverage |
From 1:1 |
From 1:30 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
Yes |
No |
No |
No |
No |
Yes |
Accrual of % on the balance |
7.00%% |
No |
No |
10.00%% |
No |
No |
Spread |
From 0.5 points |
From 0 points |
From 0.8 points |
From 0 points |
From 0 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 |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Instant Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
Yes |
No |
No |
Yes |
Yes |
Yes |
Is it safe to trade with LiteFinance in India?
LiteFinance is not regulated in India. The company does not hold a financial license, which could raise certain security-related questions. Nevertheless, the company has a good reputation and has proven its reliability to traders. LiteFinance offers attractive conditions; many traders in India have chosen to work with this broker. However, be aware of the risks when working with such companies.
FAQ
How do I check a broker’s license?
Brokers should provide their license on their official website. It is also recommended to check it on the official website of the financial regulatory authority.
Does a broker need to have an official representative office in India?
Yes. According to the rules of India, brokers must have an office in India. This is a mandatory condition for obtaining the license.
Can the license issued by India be considered reliable protection against fraud?
Yes. The rules of the financial regulator of India are very strict, which makes obtaining a license in this jurisdiction extremely difficult for scammers.
What kind of information should a broker provide for traders?
On their official websites, brokers must provide the name of the managing company, r egistration certificate, legal address and internal regulatory documents.
Related Articles
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.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.