Libertex review 2020
Libertex is a broker that belongs to Indication Investments Ltd. and is based in Cyprus. The provider has been active in the trading sector since 1997. In recent years, however, the trading offer has been significantly expanded. Therefore Libertex is now becoming more and more interesting for the international market. Trading is only possible with US dollars. However, the website itself states that deposits can be made in all currencies. The conversion into US dollars is then done directly. So far, this could be one of the reasons why traders have not yet become further involved with the broker.
In our test, we naturally wanted to know what the security of the broker looks like, what trading conditions are available and how the trading offer performs in the Forex Broker comparison. For this purpose we took a close look at the website and also looked at the trading platforms. Here the offer of the broker can really be seen. A demo account is also offered.
In addition, our Libertex experience shows that the broker offers some interesting training and education opportunities for traders and several trading platforms. On the broker’s website you can find a lot of information.
Our Libertex experience shows that it is a serious broker. The Libertex test shows that the broker has more than 20 years of experience, but has some weaknesses. For example, it is only possible to trade in dollars.
Fear of a dubious appearance is not a problem for Libertex necessary. The broker is regulated quite normally via the CySEC and also has a range of options for effective money management. Interesting is the question, why he has not been noticed so far. This is probably mainly due to the fact that Libertex is only just beginning to become more internationally known.
The regulation by the CySEC is quite typical in the field of Forex brokers, as many of the providers are based in Cyprus. Over the years, the Financial Services Authority has become a serious point of contact for questions about security among brokers. If you have any questions or problems, it is also a good idea to call on Libertex support and clarify any difficulties directly with the staff.
Trading via the Libertex platform
Libertex is a platform that is still quite unknown in some countries and specializes in trading Forex and CFDs. However, the broker itself is not new to the market. He is part of Indication Investments Ltd. and has been active in the field of trading for 20 years. Libertex was founded in 1997. So far Libertex is active worldwide, but is not yet as well known in some countries like Germany for example as other brokers. This should change in the future.
For the trade itself the broker offers more than 150 assets and different platforms. Trading with currencies is particularly popular. There is a variety of classic and exotic currencies as well as the possibility to invest in crypto currencies. This is not yet possible with many other brokers. In addition, traders have the option to choose to trade oil and gas, metals, stocks or indices or to go into agriculture.
Information about the cost of trading is hard to find. The broker offers an excellent overview of the current prices, here you can also find more information about the multipliers that are offered. However, the total prices for the trade itself are only visible internally. This makes it difficult for traders to get an idea of the prices themselves without logging in immediately.
The broker is very well positioned in terms of trading platforms. But here, too, we found in our test that the information content still has room for improvement. After all, anyone who wants to find out about the trading platforms on the website will have problems finding the right information here. Therefore it is necessary to search a little more. In the General Terms and Conditions, investors will find at least a first overview of the individual platforms from which they can choose. The broker Libertex has chosen real classics here and added further variants:
- MetaTrader 4 is particularly popular with traders and is often the first choice. A simple and clear trading platform with many features can be found here.
- The MetaTrader 5 is the follow-up version, but is available as a single variant and will probably not replace the MT4. It is an interesting variant especially for experienced traders.
- Rumus is a rather less known trading platform.
- StartFX is used by not so many brokers, but it is still a good solution for beginners.
- Libertex is the broker’s own platform.
In addition to that there is also a mobile solution. Simply starting trading from the road also requires the best mobile solutions. At Libertex, traders can get the right version for iOS and for Android free of charge. The chart display is very clear and leads directly to buy or sell. With a few clicks the positions are opened or closed. There are also simple colour solutions in red and black. So everything remains very clear.
Libertex: 0 points spread – commissions instead
Libertex has the special feature that the broker generally avoids spreads. The provider earns his money by the fact that the trader has to pay a certain fee (commission) to the broker for each trade. According to our experience with Libertex, the amount of the fee is expressed as a percentage and varies depending on the underlying instrument traded. In our test for the DAX, for example, the commission was 0.036%. If the German benchmark index is therefore quoted at 10,000 points, the commission for trading a DAX CFD is €3.60. At a price of 13,000 points, the commission increases to €4.68. In the following we have listed the commissions for other popular underlyings:
- Dow Jones Index: 0.037%.
- S&P 500 Index: 0.04 %
- Euro Stoxx 50 Index: 0.067 %
- Currency pair Euro / US Dollar: 0.011 %.
- Bitcoin: 0,91 %.
Overall, Libertex’s fees are a very interesting fee model. It is true that other brokers also charge commissions in some cases. However, in this case there is usually a (low) variable spread. Libertex, on the other hand, has the special feature that there are no spreads at all. However, the commissions for this are higher than with many other brokers. Whether Libertex’s fee model is therefore favourable for you depends primarily on the strategy you are trading. In any case, we find it positive that Libertex sets itself apart from the other brokers with its “0 point spread” policy.
The level of leverage at Libertex depends on the underlying instrument traded
For our Libertex test we also looked at the levers offered by the broker. Leverage plays a very important role in CFD trading, because it determines how much capital you actually need to have in your trading account to trade a certain underlying asset.
We will illustrate this with a small example:
We would like to trade with the DAX and find out in our trading platform that the German leading index is quoted at 12,000 points. Due to the leverage, however, we do not need €12,000 on our trading account to trade the DAX as a CFD. In fact, with a leverage of 1 : 20, 600 € is already sufficient. As you can see, the leverage in CFD trading is indeed very important. At Libertex, the amount of leverage depends on the traded underlying asset:
- Forex: Up to 1 : 30
- Indices: Up to 1 : 20
- Individual shares: 1 : 5
- Commodities and precious metals: Up to 1 : 10
- Crypto currencies: 1 : 2
as you can see, Libertex gives you the highest leverage when trading currencies and stock indices. Overall, we have found that the leverage shown should be more than sufficient for most traders. We therefore assess the trading conditions of Libertex as good. However, we would like to see commissions reduced slightly.
At Libertex the spread is 0 points, but commissions are payable on each trade
For example, the commission for the DAX is 0.036
The height of the levers is completely sufficient for most traders
- At Libertex the spread is 0 points
- but commissions are payable on each trade
- For example
- the commission for the DAX is 0.036
- The height of the levers is completely sufficient for most traders
From demo account to further education at Libertex
The Libertex broker acts as a provider for whom the education and training of traders is particularly important. Numerous brokers have begun to integrate an academy into their range of services. This means that both beginners and advanced traders can obtain information on trading itself, strategies and money management. This is a particularly important basis. When investing in CFDs and Forex, the trader takes a high risk. These are highly speculative products that are on the market. The risk of losses is high. This makes it all the more important to get into the subject matter, learn from scratch how trading works and only then start trading.
Libertex has decided to give traders the opportunity to become active with a demo account. The demo account is a voluntary facility of the broker. It allows full access to the trading platform and trading itself. Those who wish can place trades and then see in which direction they develop. The advantage is that there is no risk of loss.
With the demo account, which has a balance of 50,000 USD at Libertex, traders can start trading at their leisure. However, the 50,000 USD is split. The web version has a balance of 45,000 USD and the mobile version 5,000 USD. The demo account has an unlimited duration. This information is of course important for all those who want to test their strategies without losing any money.
Registration with Libertex – little effort
At Libertex we found it very positive that the registration can be completed within a very short time. Traders can easily register and only need an email address and password. All further data can be added later. This way, however, it is possible to get started and the demo account can be tested at your leisure. Who is convinced then, which pays in money for the trade with real money.
What is the structure of continuing education?
In addition to the demo account, which allows traders to test their own strategies, there are other opportunities for further education at Libertex. However, the Academy is only available in English. So if you’re interested in further training at Libertex, you may well find what you’re looking for here. So far, a German version is not available. The broker works primarily with videos. The individual lessons are dedicated to one topic. That means there are videos on trading in general, on the possibilities for sound money management and on the multiplier. Traders learn more about the different analysis variants and can also learn about the technology of the platforms.
The educational area is further extended by the glossary. The glossary contains a compilation of the various terms used in Forex and CFD trading. If you are unsure about a term, you can simply look it up quickly and have the summary at a glance.
Does Libertex offer security for the trade?
For the trade itself, Libertex also provides collateral that can be claimed by the trader. The broker has decided to supplement the positions with stop loss or take profit if they are chosen. With stop loss, traders have the option of specifying up to what amount they would accept a loss. When this level is reached, the position is closed. The loss is there, but the advantage is that you cannot lose more money. The second option is Take Profit. Here the trader specifies the profit at which the position should be closed. The idea behind this is that every increase of a position can also lead to a decrease. It is of course possible to use both variants. However, it should be remembered that a commission must be paid for using the variants. This of course reduces the return a trader makes.
Especially because CFDs and also Forex are very risky products, it is very important to have a solid money management from the beginning and thus protect your own assets. The amount of the commission can be taken from the further information on the respective trading product.
7. payment methods: Libertex offers free deposits
When testing the trading conditions, we had already mentioned that many brokers also charge fees for deposits and withdrawals. Often these depend on the payment method chosen. According to our Libertex experience, the following payment options are available from the broker:
- Bank wire transfers
- Credit card payments (MasterCard and Visa)
- Payment service provider (immediate transfer)
- Online Wallets (Neteller and Skrill)
As you can see, at Libertex you can use many different payment methods. The following applies to deposits: Libertex itself does not charge any fees for deposits (except Skrill: 1.9%). However, you should make sure that you are not charged by your own bank when making a transfer, for example. For this reason, it is advisable to obtain information from your bank in advance.
On the other hand, Libertex charges the following fees for withdrawals: for bank transfers the broker charges 0.5% of the amount (minimum two euros and maximum ten euros). However, if the payment is made to the credit card clearing account, Libertex charges Libertex one euro. It becomes more expensive when using Neteller: here the fee is 1% of the amount paid out. There is no minimum deposit for transfers. With the other payment methods, on the other hand, you must have at least ten euros paid out.
All in all, it is a pity that Libertex does not offer the possibility of withdrawing money free of charge. However, the fees (especially when using credit cards) are within reasonable limits. Moreover, it has been shown that the transactions are fast. Bank transfers take the longest time – as with other brokers. All in all, we can therefore rate the broker as “good” with regard to payment methods.
How can I contact support at Libertex?
Another important point when comparing brokers as well as when testing from a broker is the question of how support can be reached. We must point out that Libertex only provides support in English. This means that the answers of the staff are always in English. So if you would like to make a quick phone call for support, you should only do so if you speak and understand English yourself. It should also be considered that the employees are not native speakers. It is quite possible that the answers are not so easy to understand.
A second option is to contact them via live chat. However, the chat itself has special opening hours. Traders can only reach someone here from 9am to 6pm during the week. In our test, however, we had to find out that the accessibility via live chat is rather straightforward. Several times during the opening hours we were told that we should contact someone by email because the chat is not available at the moment. This is of course especially annoying, because the feedback by mail takes a little longer. So there is definitely room for improvement here. But the three different ways of contacting us are a very good basis.
Conclusion about the CFD broker Libertex: Good broker with an interesting fee model and self-developed platform
Within the scope of this test, we took a close look at the broker Libertex. We found that the broker has a versatile and large trading offer. We were particularly surprised by Libertex’s fee model: the broker generally dispenses with spreads. However, commissions are charged for this. Whether this model is favourable for you depends primarily on your own strategy. We also liked the broker’s proprietary trading platform. In our experience, this is suitable for both beginners and advanced traders. There are numerous useful functions available for technical analysis. We are also pleased with Libertex’s customer support and training services. All in all, the broker is therefore a highly recommended provider.
If you would like to try out CFD trading yourself, you can use Libertex’s free demo account. On this account you can trade with virtual capital and get to know trading without risk.
Strengths and weaknesses:
- No spreads - but commissions
- No costs for deposits
- Very extensive range of tradable underlyings (mainly currencies and indices)
- Easy to use
- self-developed trading platform
- Helpful training (videos and articles)
- Good customer support (also by telephone)
- Demo account with real-time quotes to train CFD trading
- No free payouts
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.