|Journal status: |
- Full listing profile: LiteForex broker profile
Is LiteForex safe?
- Investor protection: Cyprus Investor Compensation Fund (ICF)
- Regulation: CySEC Cyprus
- Registration: ...
- Publicly traded: no
- Segregated account: yes
- Guaranteed Stop Loss: no
- Negative Balance Protection: yes
Is LiteForex trusted?
- Information transparency: sufficient
- Customer service: prompt, helpful
- LiteForex website: highly detailed, updated
- LiteForex popularity (by visitor count): top visited
How LiteForex works
Market execution of orders with no requotes
No Stop & Limit levels
Scalping and news trading allowed
Trades are delivered directly to liquidity providers
Negative Balance Protection
An electronic communication network (ECN) implies that every Forex participant’s order will be matched to a contra-side order with the ECN-broker or with its contactors – liquidity traders whose role is played by big international banks - without any participation of a dealing center. LiteForex, a company with high liquidity, offers these technologies in ECN accounts and thus affords its clients transparent market conditions, under which orders are executed at the best market price with no delays, slippage or re-quotes.
An electronic communication network (ECN) has a number of undisputable advantages:
Trades are sent directly to liquidity providers
No broker's intervention
No conflict of interests
No limits on trading strategies
Client – individual or juridical entity, registered in the Client's Profile, conducting conversion arbitrage operations with the Company at the quotes provided by the Company.
Arbitrage transaction – an operation which consists in buying assets on one market and at the same time selling its counterpart on another market. It locks the difference in the value of these assets on different markets. It’s evident that the portfolio value remains roughly the same regardless of the further market movements, as the counter transactions cover each other. Next, as soon as the change in the price difference turns in Client’s favor, the counter arbitrage transaction is conducted in order to fix the profit. A transaction consisting only in buying (selling) financial assets on one market without selling (buying) them on another market can also be regarded as an arbitrage transaction, provided that there is a considerable price gap between the quotes of these interconnected markets at the moment of opening or closing the transaction.
Market Execution – Type of order execution when the Company makes a decision concerning the execution price without preliminary agreement with the Client. Sending a market order in this mode implies accepting beforehand a price at which the order will be executed.
6.1. When conducting trading operations, “Market Execution” quoting mechanism is applied, regardless of the Client's account type.