LiteForex vs Forex.com
If you are reading this article, you’re likely having trouble deciding whether LiteForex or Forex.com is the better Forex trading platform for you. While both platforms generally provide positive user experiences, there are some essential differences to note.
In this LiteForex vs Forex.com review, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:
|Feature||LiteForex (visit site)||Forex.com (visit site)|
|Headquarter:||Marshall Islands||United Kingdom|
|None||FCA, IIROC, FSA, ASIC, CFTC, NFA, CIMA|
Type of Broker:
|Market Maker,ECN/STP||Market Maker|
U.S. Clients Allowed:
|50 to open an account, 10 afterwards||£50 or a currency equivalent|
Commissions / Spreads:
|Spreads, Commission||Both, asset dependent|
Features and Platforms
LiteForex became the first broker to offer cent accounts with a minimum deposit of $1 back in 2005 and continues to earn the trust of traders today. It presents traders with the core MT4/MT5 trading platforms, a proprietary social trading platform, VPS hosting, and an auto-withdrawal service. LiteForex also maintains quality research and introductory educational content. Forex.com is one of the largest MT4 brokers per active servers, but only the out-of-the-box MT4 trading platform is available. The recent addition of its SMART Signals service complements the Performance Analytics tool, quality research, and education.
|Type of Platform:||MetaTrader 4, MetaTrader 5, Web-based||MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based|
Guaranteed Stop Loss:
Guaranteed Limit Orders:
Interest on Margin:
The 56 currency pairs at LiteForex represent an average selection. Traders also get 16 cryptocurrency pairs, but only six commodities, placing them near the bottom in this category. Completing the available markets are 47 equity CFDs and nine index CFDs. Forex.com presents clients with 84 currency pairs, placing it in the Top 20, but only eight cryptocurrencies. Traders also have access to 33 commodities, 18 index CFDs, and 220+ equity CFDs. While LiteForex maintains an asset selection suitable for beginner traders, Forex.com also caters to more advanced needs. It is also a prime destination for pure Forex traders.
Typical Spreads and Fees
With a commission-free spread of 1.8 pips or $18 per 1.0 standard lot, LiteForex maintains an expensive cost structure. The commission-based alternative commences with a 0.0 pips mark-up, but the commissions range between $10 and $30 per lot. Forex.com counters with an average commission-free cost of 1.1 pips or $11, while the DMA account shows a minimum spread of 0.1 pips for a fee of $6 per lot. High-volume traders can lower it to $2. Swap rates on leveraged overnight positions and third-party payment processor costs apply at both. Forex.com presents a better overall pricing environment.
Security and Trust
LiteForex is an unregulated broker operating out of St.Vincent and the Grenadines, where the FSA publicly does not regulate brokers. Unfortunately, LiteForex does not take additional steps to ensure the security of its clients, leaving traders to rely on its 15+ years as a broker with a clean record. While Forex.com remains a member of US publicly-listed StoneX, home to a history of regulatory fines, non-US clients will trade with the UK unit operating under the oversight of the UK FCA. Forex.com may also redirect non-EU clients to the international division of CityIndex, also a StoneX company.
LiteForex vs Forex.com – Verdict
As an unregulated broker, LiteForex stood the test of time with more than 15 years of experience. It offers traders the MT4/MT5 trading platforms but fails to present any of the required third-party plugins. Competitive research is available, but the pricing environment is high. The asset selection suffices for beginner traders. VPS hosting and an auto-withdrawal service add value, but the overall trading environment fails to compete on the high-end. LiteForex also pays 2.5% annually in the ECN account and developed a social trading platform. Bonuses and promotions contribute to its success. Forex.com remains an excellent destination for Forex traders, particularly for high-volume traders in its DMA account. Besides the core MT4 trading platform, also without plugins, the Web Trading alternative suits manual traders. Forex.com also offers quality education for beginner traders. The SMART Signals service and the Performance Analytics tool present the best value-added services.
Does LiteForex or Forex.com offer lower pricing?
Forex.com presents overall lower pricing in its commission-based and commission-free accounts. LiteForex costs are more than twice as high on average. It does pay 2.5% annually to ECN accounts versus 1.0% at Forex.com for DMA clients.
Which is the more reliable broker?
Forex.com, founded in 1999, has more history compared to LiteForex, founded in 2005. The former remains regulated versus the unregulated structure at the latter, but Forex.com owner StoneX has multi-million regulatory fines. Overall, both are equally reliable.
Which is better, LiteForex or Forex.com?
While LiteForex maintains a generous bonus system, the trading environment at Forex.com is better due to lower costs and a broader selection of assets.
What are the minimum deposits for these brokers?
The minimum deposit at LiteForex is $50 for both account options. Forex.com demands $100 for its commission-free account and recommends $2,500 for its DMA alternative.