Libertex Review 2024

Trust

Libertex Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker. This allows us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about Libertex:

• Indication Investments Ltd is authorized and regulated in Cyprus by the Cyprus Securities and Exchange Commission (CySEC) with CIF License number 164/12. We rate CySEC as a Tier-1 regulator.

We have summarized the most essential aspects of Libertex in terms of regulation in the table below:

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities because it allows them to serve clients worldwide. However, licenses obtained by regulators in different jurisdictions do not always entail the same degree of protection. Some regulators mandate compliance with the strictest financial frameworks, whereas others are less rigid. That is why traders need to familiarize themselves with mechanisms ensured by the entity they want to open an account with beforehand.

Here is what you need to be looking for in a broker in terms of regulatory mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. Libertex ensures the segregation of client funds.
• Negative balance protection. This mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. This is especially important in volatile markets. Libertex ensures negative balance protection.
• Compensation scheme. Libertex is a member of the Investor Compensation Fund (“ICF”), a compensation scheme that protects retail traders against the broker’s liabilities in the unlikely event that the company becomes insolvent.
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. Retail clients with Libertex can opt for a maximum leverage of up to 1:30.

Is Libertex Safe to Trade With?

Having operated for over a decade, Libertex Europe has become one of the well- established brands in the European trading industry. It is also a member of the Libertex Group with over 26 years of experience in global trading.

Libertex also complies with all essential requirements, such as ensuring segregation of client funds and negative balance protection, and it also has issued a ‘best execution policy.’ All of this means that Libertex is indeed a reputable broker.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focus on how long the broker has been in business, how big the company is, and how transparent it is in terms of readily available information.

Libertex is, as a whole, very transparent. It has an exhaustive list of key trading and investing documents, including its client agreement, best execution policy, client categorization, and more. The broker publishes yearly execution statements where traders can inform themselves about Libertex’s execution standards.

I also appreciated that Libertex displays its risk banner at the top of its website. While less reputable brokers usually bury such potentially discouraging information — like the fact that north of 75% of traders end up losing money — at the bottom of their websites, Libertex is not afraid to put it somewhere clearly visible.

In summary, my research indicates that Libertex can be regarded as having a good level of trust and stability due to the following factors:

• Regulated and authorized by a top-tier body
• Adhering to all essential regulatory requirements
• Very transparent about trading risks

Fees

Libertex’s Trading Fees

Information about the costs and fees can be found on the Company’s website at ‘Specification’ page.

Libertex’s Spreads

I tested Libertex’s spreads during the most actively traded times – the London open at 8:00 a.m. GMT and just after the U.S. open at 2:45 p.m. GMT. The test was conducted on the 27th of September 2023. The results are shown in the table below:

When broken down by asset class and compared to industry averages, Libertex charges low spreads on CFDs with underlying assets such as FX pairs, commodities, share, indices, and cryptocurrencies.

Libertex’s Swap Rates

A swap fee is a trader’s cost for holding an open position overnight. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full contract (100,000 units) of the base currency.

The recorded swap charges are average-to-high compared to the broader industry.

Libertex’s Commissions

Libertex charges a 6€ round-turn commission per traded lot (100,000 units) on MetaTrader 4&5. This commission rate meets the industry average. When trading on the Libertex platform, there is a 0.005% commission per traded volume. I calculated that this fixed commission amounts to about 5€ per traded lot, which is lower than the industry average.

Commissions don’t apply when you’re trading CFDs on energies, indices or select shares.

Libertex’s Non-Trading Fees

Libertex does not charge deposits. Additionally, there is a wide range of withdrawal options, some of which are also fee-free. The broker charges 10€ monthly on inactive accounts with a balance under 5,000 EUR. The inactivity fee is applied after 180 calendar days of no account activity. It is charged each month until activity resumes or the account balance drops to zero.

Are Libertex’s Fees Competitive?

Yes, Libertex’s combination of low floating spreads on instruments across most asset types and low-to-average commissions, when applicable, is extremely favorable. It is suitable for high-frequency/high-volume trading in the short-term and longer-term day and position trading.

Accounts Comparison

I have compiled the table below to help you better understand the difference between trading on MetaTrader 4&5 or the Libertex platform in terms of trading costs. It illustrates the spreads and commissions I have recorded on the EUR/USD pair on the three platforms. The table shows how much you will have to pay to trade 1 full lot (100,000 units) on the EUR/USD when the pip value of the pair is approximately EUR 9.39.

To calculate the cost of such a full-sized trade, I used this formula:

Spread x pip value+commission

*These numbers are illustrative and subject to change

My tests indicate that to trade a full-sized EURUSD position currently costs between 6-7€. This is comparatively lower than the €10 industry average.

Platforms and Tools

The Libertex platform has over 100 analytical tools, but it lacks industry-standard features like one-click trading and an alert setting option. However, it excels in other areas, namely, in the information presented to traders. As a high-frequency trader, I found this useful for trading volatile markets.

As shown above, the Libertex platform displays the most important trading information, such as the latest news and technical indicators data, for each trading underlying asset. This can be used by traders to assess the underlying market bias and the market’s next likely direction.

Libertex does not offer VPS hosting on MetaTrader 4 & 5. MetaTrader 5 is also more suitable for implementing complex trading strategies like scalping because it affords one-click trading. It also has a wider selection of timeframes, thus allowing traders a more intricate outlook into price action behavior.

Libertex has also developed a highly practical mobile app, which can be used to trade CFDs or invest in real stocks and generate dividends from them. The app affords easy access to global capital markets.

Libertex’s Web Trader Platform

General Ease of Use

The good thing about the Libertex platform is that it does not have a complicated learning curve. Its layout is pretty standard. There is a watch list of selected instruments on the left side of the screen, a charts window in the middle, and account info and settings on the right side.

The platform is very user-friendly making it easy to navigate. For instance, when you open the option CFDs list, you can quite easily discern the put/call prices, the daily percentage change, market conviction, and price change (again in percentage) over the month and year.

Charts

I have always considered a platform’s chart screen its most important asset. Successful technical analysis is predicated on examining even minute price action behavior changes with ease. That is why I attribute such great importance to a platform’s chart window and assess how clearly price action is illustrated.

It is vitally important for a chart to be as clear and informative as possible. Additionally, a good chart should be supplemented by a broad range of technical indicators, drawing tools, and other such instruments to accommodate technical analysis.

My overall impression of Libertex’s chart screen is prevailingly positive. It’s easy to navigate, making it quite suitable for conducting probing technical analysis.

I have broken down the available analytical tools and chart configurations below:

• 43 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, Bill Williams indicators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next.
• 50+ drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels. The Libertex platform also supports trend lines, channels, pitchforks, and more.
• 10 timeframes. The Libertex platform allows multi-timeframe analysis of price action behavior. The greater the number of timeframes, the more intricate examinations that can be carried out across the short-term and long-term. One minor drawback is that the lowest timeframe has a 1-minute period. The lack of lower timeframes makes it more difficult to implement scalping trading strategies.
• 6 chart types. Price action can be represented as a line, bars, area, or several types of candlesticks. This diversity makes it possible to examine potential trading opportunities from different angles.

Orders

I have broken down the available order types on the Libertex Web Trader below:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order actually gets filled.
• Limit orders. A limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction.

My Key Takeaways After Testing Libertex on the Libertex Web Platform

I gave the Libertex platform a trial run, executing several intraday positions and one swing trade. I was left with a positive impression of the platform’s interface despite its lack of some key features like one-click trading. In fact, Libertex’s easy-to-use design was the first thing that stood out to me after I opened the platform.

As I have already pointed out, as a high-frequency trader, I have always appreciated versatile platforms that offer the freedom I need to examine even minor changes in price action. In my estimation, the Libertex platform is most suited for beginner chart artists who trade on intraday setups, such as breakouts and breakdowns from important support and resistance levels. The platform is also a fit for those into longer-term swing, day, and position trading.

Libertex’s Mobile App

Libertex’s mobile app affords traders quick and easy access to the market on the go. It is very useful when you have to check the performance of your running positions and, if necessary, make adjustments. The market is volatile and ever-changing, so staying on top of the latest developments with the intuitive and user-friendly Libertex mobile app is always a good idea. It can be used for trading CFDs and for investing in real stocks.

You can use the app to place market, limit, and stop orders, as well as to adjust the exposure of your open trades. The app is highly customizable, though it lacks any technical indicators or drawing tools. This, however, is not a major issue since conducting technical analysis on small-resolution devices is ill-advised in the first place.

My professional advice is to carry out your technical analyses on wide-screen desktop or web trader platforms.

My Key Takeaways After Testing Libertex on the Libertex Mobile App

As a trader who has never particularly enjoyed using mobile apps because of their limited applicability, I have to say that Libertex’s own application is as good as mobile apps get. Despite the inherent problem of presenting complex and bulky information on a small-screened device, the app does a great job of retaining the flexibility and practicality of its desktop version.

I usually refrain from over-relying on mobile apps because they do not accommodate complex technical analysis. However, Libertex’s app still manages to deliver a comprehensive understanding of price action behavior. I used the app for several days and found it very convenient.

Tradable Instruments

What I consider very useful is that some of the available instruments are denominated in different currencies. For instance, you can trade CFD pairs such as XAUUSD (Gold vs. US Dollar) or XAUEUR (Gold vs. Euro). Traders can avoid paying conversion fees when trading with instruments denominated in their account currency.

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the price of the underlying asset without physical delivery. For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars. One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What CFDs Can You Trade with Libertex?

I have broken down the available underlying assets by asset class:

• 49 Currency Pairs
  • Majors (7), Crosses (23), Exotic (19)
• 18 Commodities
  • Metals (6), Energy (6), Agriculture (6)
• 121 Shares
  • Retail (31), Finance (17), Healthcare (13), Tech (28), Other (32)
• 32 Indices
  • North America (11), Europe (14), Asia (4), Other (3)
• 79 Cryptocurrencies
  • Major and Minor
• 10 ETFs
  • North America, Europe, Asia
• 18 Options
  • Commodities (3), Share CFDs (10), Indices (3), Cryptocurrencies (2)

Compared to the broader industry, Libertex has an average amount of CFDs on FX pairs and shares; and a high number of CFDs on commodities, indices, and cryptocurrencies. I am also happy to see that since my last year’s review of the broker, Libertex has more than doubled the amount of CFD options on display. Traders are thus granted access to multiple markets with varying levels of underlying volatility.

Forex	Commodities
EURUSD | GBPJPY | EURCHF | CADJPY | USDTRY | GBPSEK	Crude Oil | Gold | Silver | Palladium | Wheat | Corn | Sugar | Coffee

Share CFDs	Indices
Apple | Tesla | Facebook | Boeing | Ryanair | Spotify | McDonald’s | Nike	Dow Jones 30 | Russell 200 | UK 100 | Germany 40 | France 40 | Japan 225

ETFs	Option CFDs
iShares MSCI Germany ETF | iShares China Large-Cap ETF | SPDR S&P 500 ETF Trust	Gold | Bitcoin | DAX 40 | Nasdaq 100 | Moderna | Boeing | Facebook | Crude Oil

Cryptocurrencies

Bitcoin | Ethereum | Litecoin | Thor | Dash | THETA | IOTA | Polkadot

My Key Takeaways After Exploring Libertex’s Tradable Underlying Assets

One of the first things I noticed about Libertex’s offering was the availability of CFD options. Even though they are not your classic European-style options, they still afford you a certain degree of flexibility when managing volatility over time. I have always appreciated brokers that allow me to exploit various trading opportunities in different ways.

I thus assessed that Libertex’s offering of 18 option CFDs can be used by longer-term swing and day traders seeking to trade on bigger-sized trends. They can execute positions lasting several weeks or more. Libertex also offers multiple high-yield/risk assets that can be used to speculate in the short term. For instance, high-frequency traders can try to catch intraday price movements like breakouts or breakdowns.

Traders can also benefit greatly from the fact that when intraday trading, they will not have to pay any rollover fees, and if they trade, say, energies, they won’t have to pay any fixed commissions, either. This leaves the spread, which (say, on crude oil) meets the industry average.

Maximum Leverage by Asset Class

The maximum available leverage for retail clients varies across different asset classes, which is why I have broken it down by type:

Customer Support

The easiest way to get in touch with Libertex is by calling the number listed below. Please note that you have to enter the Cyprus country code (+357) and that international calling fees may apply. German customers can also call a local number as shown below. Libertex does not appear to offer a call-back option.

Customer Support Test

When we test a broker’s customer support team, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I called Libertex’s support team on the 27th of September around 13:20 CET. At first, the line was busy, but my second attempt, about 10 minutes later, at getting in touch with them was successful. I inquired into Libertex’s commission and execution policies. The agent was polite and and was able to answer most of my questions, at least up to the point allowed by regulation restrictions.

Deposit and Withdrawal

Libertex Deposit Methods

Libertex Withdrawal Methods

Withdrawal requests are processed from the Client Portal. Most requests will be processed on the same business day, though transaction times may vary. Libertex does not charge commission fees for deposits, though there are various banking fees applied depending on the chosen withdrawal method. However, traders using PayPal or Skrill can withdraw funds without having to pay any such fees.

Account Types and Terms

Notably, the USD is not available as a base currency option. Hence, trading instruments denominated in greenbacks are liable for a conversion fee.

Why is Choosing the Right Account Type Important?

Your account should reflect your goals, needs, and ambitions on the market. You should take into consideration several factors, such as whether the account type has a minimum deposit requirement, its spreads and commissions, the execution method, and more.

What Account Types Does Libertex Offer?

I have broken down Libertex’s account types below:

Libertex has a minimum deposit requirement of EUR 100, making its accounts quite accessible to all kinds of traders. The combination of industry-average commissions, where applicable, and generally low spreads is suitable for the implementation of high-frequency and longer-term trading. Precision trading is also made possible by the fact that Libertex does not have minimum distance requirements, except for the MetaTrader 5 account. Minimum distance refers to the difference between an instrument’s market price and the price at which a trade gets executed.

Libertex’s Execution Method

The broker operates without a dealing desk, and orders are executed automatically.

In my experience, this is better suited for day trading and position trading strategies where volume is important. But it is less so for intraday trading strategies, such as scalping, where precise order filling is more important.

What is CFD Leverage?

The leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of the leverage. The leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

Libertex Account Opening Process

I have summarized the account creation process with Libertex, which is indeed quite straightforward. You can go at your own pace, though realistically you can be done with everything within an hour. Just follow these easy steps:

• Step 1. Click the ‘Sign Up’ button at the top-right corner of the main page.
• Step 2. Fill in your email address and choose a password
• Step 3. Confirm your account by opening the confirmational email sent to you.
• Step 4. Log in to the client portal, go to ‘My Accounts’, and fill in your personal information.
• Step 5. Upload proof of address and proof of ID to verify your account.
• Step 6. Fund your account.

Why is a Demo Account Important?

Libertex offers demo accounts that introduce traders to the broker’s services and allow them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account for yourself alongside your live CFD account.

Libertex’s Restricted Countries

Libertex Europe provides investment services to clients from the European Economic Area and Switzerland.

Research

Research Tools

I have broken down Libertex’s various types of research materials below:

Market Overviews

Available on the Libertex platform, the market overview feature allows traders to be up to date with the current market news.

What I appreciate about this is the Market overview option allows you to diversify your trading options.

News

Libertex publishes market overview of various instruments. They are supported by a general economic overview, the current technical outlook, a chart, and a brief fundamental analysis. I found the materials easy to grasp and written in a clearly discernible way. This type of content lets traders know where a particular market is likely to head next and why.

Libertex’s news and signals are reasonably sophisticated, though the broker does not incorporate any similar third-party tools. Even though this is not a major issue, I still would have expected a broker from the rank of Libertex to afford its clients an alternative source of information. In trading, it is important to gain as many perspectives as possible to understand general market behavior.

Economic Calendar

The economic calendar serves as the most basic research tool. It informs traders of upcoming economic releases that are likely to cause upsurges in market volatility. This creates potential trading opportunities. The economic calendar shows how the market is likely to react to specific events. I appreciated that Libertex’s calendar allows you to download historical data.

Market Reviews

These articles are quite detailed and provide a very well-researched overview of current economic trends and market developments. This type of content does not outline direct trading opportunities as it is rather intended to highlight the major factors that are likely

to cause such opportunities in the near and mid-term future. The only drawback is that this highly practical content is only published once or twice a year. It is available from the website.

Financial News

This news screener, which is also available from the Libertex platform, is a lot more practical and direct, informing the reader of recent tests and breakouts/breakdowns of and from major support & resistance levels.

Blog

Libertex’s blog contains multiple educational written articles. These do not have a particularly coherent structure and are instead intended to provide the reader with a more abstract picture of market trends and economic developments.

My Key Takeaways from Exploring Libertex’s Research Materials

I think that Libertex’s research content is overall highly practical. They can be beneficial to both beginners and advanced traders, though this is less so for the latter.

Nevertheless, I found Libertex’s idea to integrate multiple educational materials and market sentiment tools on the Libertex platform very useful. I used one of its news bulletins to read about a recent reversal from a major resistance level on the EURUSD, which helped me make informative trading decisions. In summation, Libertex’s content is a great attribute to its other services in that it can be useful to both high-frequency intraday traders and longer-term swing, day, and position traders.

Education

Under the ‘Education’ section of the website, Libertex has published 9 lessons for beginners. These have little practical use since most lessons show you how to use the platforms and not how to actually trade. Traders cannot use this type of content to learn about technical or fundamental analysis or the peculiarities of trading psychology. Each lesson comprises 1 or 2 images and 3 or 4 barebone paragraphs.

Libertex also has about a dozen articles in the blog section. These can be of some use to beginners, though they, too, are pretty basic and do not delve deep enough into the subject matter. For instance, you can read about what option CFDs are, but you would not really learn how to use them to trade in practice.

The Bottom Line

Libertex Europe is headquartered in Cyprus, and it also has a representative office in Germany that is registered with BaFin. The CySEC-regulated broker was founded in 2012, and in the decade since its establishment, Libertex has grown into one of the most popular names in the European trading industry. The broker offers over 300 CFD underlying assets and over 300 real stocks to invest in.

Undoubtedly, Libertex’s standout feature is its pricing mechanism. The broker charges low-to-average commissions compared to the broader industry (from 0.0003%). CFDs in some asset classes like energies, indices, and shares can be traded commission- free. Libertex also charges very low floating spreads starting from 0.1 pips.

Libertex has developed a highly customizable and user-friendly web trader platform and mobile app. It additionally incorporates the beginner-friendly MetaTrader 4 & 5 platforms, However, there are no third-party tools.

What I found lacking are supporting tools and content. The broker offers diverse and mostly practical educational materials developed in-house, but the lack of third-party content from sources like Autochartist deprives traders of alternative perspectives. Libertex also has almost no educational content.

Despite these shortcomings, Libertex’s choice of platforms and low trading fees can be beneficial to both beginners and seasoned traders. They can implement high- frequency trading strategies in the short-term or longer-term swing and day trading strategies.

FAQ