Libertex, which is short for Liberty Exchange, is a web-based trading platform that was launched in the middle of 2015. It is owned and operated by Indications Investments Ltd and Forex Club International Ltd (depending on whether you are in Europe or elsewhere), which are members of the popular Russian-based Forex Club group.
While Libertex was only launched in 2015, the history of the Forex Club group stretches all the way back to 1997. The group operates via its subsidiaries regulated in Russia, Belarus, and Cyprus; there is also a unit registered in the St. Vincent & the Grenadines. While the group started out primarily within the Commonwealth of Independent States, which comprises some of the former entities in the Soviet Union, it has since expanded far from its humble beginnings. It launched its European Union business two years and currently covers 27 countries with clients from 120 countries. It has approximately 2.2 million customers worldwide, served by 700 employees.
Online since: 2015
Max Leverange: 1:500
Minimum Deposit: $250
Currencies: USD, AUD, NZD, RUB, CAD, EUR, GBP, Yuan
Mobile: Android, iOS
Countries: Accept all countries except USA & Canada.
- Easy to use and intuitive trading platform
- CySEC – regulated
- Supported by FX Club
- Lack of detailed information on website.
invest Binary Rating:
Forex Club International Ltd, which covers Libertex’s non-European clients, is registered in the St. Vincent & the Grenadines but is not covered by any notable financial regulatory agency.
Indications Investments Ltd is regulated by the Cyprus Securities and Exchange Commission (“CySEC”), license number 164/12. It obtained said license in January 2012. While admittedly the CySEC isn’t the most stringent financial authority in the world and definitely attracts more than its fair share of shady forex and binary options brokers, it has cleaned up its act in recent years and is getting progressively stricter. Further, in a world where the majority of forex and binary options brokers are completely unregulated, being CySEC regulated is seen as a vital component of establishing credibility. Companies like CySEC because of a favorable tax regime on the island, plus as a member of the EU, being CySEC regulated allows firms to offer their services across the European Economic Area.
All Cypriot Investment Firms are required to have a minimum of EUR730k in capital, which is equal to the EUR730k minimum set out by the Markets in Financial Directive Law that governs EEA regulation of investment firms in the European Economic Area. CySEC also operates an Investment Compensation Fund (funded by payments from licensed investment firms) for compensating traders if a broker goes bust and is unable to pay back its clients. The fund currently stands at over EUR17.5 million with each trader entitled to a maximum compensation of EUR20k. However to date the conditions that investors can use to claim from the fund are still a mystery and the fund has rarely been used.
In addition to CySEC, Libertex is also certified by The Financial Commission (“Finacom”). Finacom is not a governmental regulatory body but an independent international service that guarantees honest and timely resolution of any disputes between traders and brokers. It is what is known as an External Dispute Resolution organization. Traders can file complaints against member brokers with the commission, and the commission is required to respond within 10 business days. For disputes with monetary values under $250, one member of the Dispute Resolution Committee will hear the complaint; for any amount over $250, three members of the Commission will hear the complaint.
All clients of FinaCom members are protected by a Compensation Fund which functions as an insurance policy. Depending on whether the broker is an ‘A-category’ or ‘B-category’ member, the Fund will cover its members up to $20,000 or $5,000 per client member. While Libertex is classified by FinaCom as a ‘Technology Provider’, meaning that FinaCom only certifies it in the areas of system security, system capacity, pricing and execution policy, reporting and record keeping, and business continuity plans, Forex Club itself, as a dealer, is an A-category member. Hence, when using the Libertex platform, traders can file complaints through Finacom against Forex Club.
The Libertex trading platform is primarily web-based although mobile applications for both iOS and Android are also available. No download is required to use the web platform. The interface is simple, with a list of assets and their prices in a column on the left with the price chart next to it. In addition to the 6 different asset classes, traders can also select ‘Popular’, ‘Top Rising’, and ‘Top Falling’ assets.
From the chart interface, traders will be able to select the expiry times, which range from 1 minute up to 1 month.
The chart also allows for various charting options from the:
- Basic line chart to bars
- Hollow candlesticks
- Area charts
- Heiken Ashi.
A simple favorite option also allows traders to designate certain assets, expiry times, and chart types as their saved favorites. At the bottom of the chart is a scrolling ‘News and Forecasts’ feed, sourced from Trading Central and FxWire Pro.
Overall, the Libertex trading platform has a user-friendly, clean, and intuitive interface that will appeal to both new and experienced traders alike.
The Libertex platform also allows for leveraged trading, which means that depending on the leverage ratio, the notional amount of the contract can far exceed the trader’s trade amount. For example, with a leverage ratio of 100:1, a trader need only put up $1,000 to trade a notional amount of $100,000. Depending on the financial instrument, Libertex allows leverage ratios (which it refers to as a multiplier) of up to 500 (although is only for FX Major pairs with expiry times of under a minute). The shorter the expiry time, the higher the maximum leverage ratio, and vice versa.
Leverage is a powerful tool, amplifying both risk and reward, and should be used with caution. This is particularly true when it comes to Libertex because Libertex does not offer negative balance protection to its clients. Negative balance protection means that the maximum loss a trader can incur is his or her deposited amount. For example, if a trader has $10,000 in his account and makes a losing trade with a notional value of $20,000, the account will now be negative $10,000. If negative balance protection is implemented, the trader will only lose $10,000; without this protection, however, he is liable for the additional $10,000 on top of the $10,000 loss in the account.
Through the trading platform, clients can trade on over 150 different asset types in 6 different asset classes:
- Oil and Gas
Libertex currently offers both real trading accounts and demo trading accounts. The minimum amount required to open a trading account is $10, however, it is recommended that traders deposit a minimum of $100. That is because the total sum of open trades cannot exceed 10% of account balance. And since the minimum trading amount is $10, traders would need a minimum of $100 in order to maintain an open position.
The demo account is free and comes with $50,000 in virtual credits, split between $5,000 on the mobile platform and $45,000 on the web platform. The interface, trading conditions and assets on the demo account are exactly the same as the real trading account.
Video: How to Trade Forex
The education section on the official Libertex website is rather lacking and consists of a series of 31 video lessons, each less than 2 minutes in length, plus a simple glossary and FAQ section. This is unfortunate as its competitors typically have much more extensive educational sections such as an active blog, tutorials, and far more in-depth videos.
Deposits and Withdrawals
The minimum deposit amount is $10. Libertex states that customers can deposit money in any currency and it will be automatically converted into US dollars. Payment methods available are Visa, MasterCard, bank transfer, QIWI, Yandex, and WebMoney; however the company states that the payment method options depend on local rules and regulations. Not much other information is provided.
Libertex charges a commission which it refers to as a ‘trading fee’ on each transaction that traders perform using its platform. The trading fee is charged on every $1,000 invested and depends on the asset and multiplier. For example, if the trading fee for silver is $0.01, you will pay $0.01 on every $1,000 invested, assuming a multiplier of 1x. The multiplier will apply to the trading fee so if you have a multiplier of 10x, the applicable trading fee will be $0.10.
Libertex also charges inactivity fees, and if a client attempts to withdraw funds from an inactive account (no trading activity for 180 days), Libertex will charge a fee totaling 2% of the withdrawal amount. The inactivity fees amount to $5/month, however no inactivity fees will be charged if the account balance is over $10,000.
Libertex also charges ‘withdrawal commissions’ for withdrawal of funds, however, the amounts are unspecified.
Customer support options appear to be highly limited, with only live chat options provided. Libertex does not appear to provide any customer support email, telephone numbers, or web form.
Bonuses and Promotions
Libertex does mention offering bonuses and promotions in their Terms and Conditions, noting that all bonuses will be deposited in a client’s Bonus Account. Libertex only publishes the terms of these bonuses on each trader’s personal account management portal, however, it does not that Bonus Accounts cannot be used for performing trading operations.
While this layout makes it very easy to use the Libertex trading platform, it is not conducive for people who would like to find out more about Libertex prior to signing up. We also note that while site navigation is not an issue, as a whole, the Libertex website provides very little information regarding its policies, the company itself, and its terms and conditions when compared to its competitors. This is a definite negative.
Libertex is an easy to use trading platform that is supported by FX Club, a leading global forex broker. Its European operations are CySEC regulated and there appear to be no significant complaints regarding the platform. While the trading platform itself has great functionality, the website itself is lacking in information, particularly in terms of detailing their fees and commissions.
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