Libertex is an online forex and CFD broker that is part of a larger organization – Forex Club Group. Within this group, the company that operates Libertex is Indication Investments Ltd. Libertex itself has a registration with the Cyprus regulator CySEC. The various brokers of the Forex Club Group fall under the jurisdiction of many different regulators and also operate in many countries.
Fine Against Libertex for Too-High Leverage
On June 1st, 2020, CySEC issued a fine against Libertex and its parent company Indication Investments Ltd. The broker had to pay €160,000 to the regulator. CySEC stated that the fine was for vastly exceeding the mandated leverage limit. All brokers subject to ESMA rules may offer leverage of only 1:30, while Libertex was offering 1:500. Inflated leverage is one of the most common infractions by forex and CFD brokers. Fellow CySEC registered broker TradeFW currently offers 1:100.
Trading With Libertex
Traders getting started with Libertex face a fairly standard minimum deposit of $250. There aren’t any spreads when trading with the broker. Instead, they charge commissions on trades, making it difficult to compare them directly with other brokers.
Libertex’s Custom Trading Platform
Instead of offering MetaTrader 4 like most other online brokers, Libertex has developed its own platform. It’s available for desktop computers and mobile devices. They heavily simplified the platform to make it appealing for new traders. The interface is very barebones, featuring few options to make buying and selling easy to do. There are some technical indicators, but nothing compared to MetaTrader 4.
Don’t Let a Licensed Broker Push You Around
In conclusion, even regulated brokers can take actions against their clients’ best interests, as shown by Libertex’s CySEC fine. If the broker you trade with has done anything that has unfairly lost you money, contact us today to find out what we can do to get your refund started.