Is LiteForex Regulated in India? Is it Legit? - TU Expert review
A license is crucial for a broker, providing the legal framework for its operations and confirming compliance with established financial oversight regulations in each country. In light of this, many traders in India wonder, “Is LiteForex operating legally in India? Is it legitimate?”
TU experts have investigated all aspects of LiteForex operations and are prepared to answer questions regarding the broker's regulation and legality of operation in India.
Short summary about the broker LiteForex
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 1:500 |
| 💱 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 LiteForex
👍 Advantages of trading with LiteForex:
•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 LiteForex:
•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:
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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.
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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.
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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.
Is LiteForex 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
Brokerage fees
Traders Union analytics analyzed LiteForex (LiteFinance) offer and trading conditions for explicit and hidden commissions. The main commissions — spread and commission on an ECN account — from US$5 per 1 lot. There are no commissions for depositing and withdrawing from an account as LiteForex (LiteFinance) pays it to your trading account.
| Account type | Spread (minimum value) | Withdrawal commission |
| Classic | From $18 | No |
| ECN | From $0 | No |
Brokers that are similar to LiteForex
In addition to LiteForex, also other brokers from this jurisdiction have the license of India. LiteForex 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 LiteForex with other Brokers
| LiteForex | RoboForex | Pocket Option | Exness | Deriv | Tickmill | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, MT5, MultiTerminal, Sirix Webtrader |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
Deriv bot, Deriv MT5, Derivix, Deriv Trader, SmartTrader |
MT4, MT5, Tickmill Mobile App |
Min deposit |
$10 |
$10 |
$5 |
$10 |
$5 |
$100 |
Leverage |
From 1:1 |
From 1:1 |
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 |
No |
1.00%% |
No |
Spread |
From 0.5 points |
From 0 points |
From 1.2 point |
From 1 point |
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, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
$30 |
Cent accounts |
Yes |
Yes |
No |
No |
No |
No |
Is it safe to trade with LiteForex in India?
LiteForex 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. LiteForex 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.
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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.
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.