BrokersLibertex Review

Most forex traders have fallen victim to scam brokers. It all begins with a promise of attractive returns. And before you know it, all your life’s savings are gone.

These scam forex brokers are all over the internet. The only way to protect yourself is by learning how to spot one. Read honest reviews from trusted websites. And learn how to recover your money when you lose it unfairly.

Libertex Review: In a Nutshell

In this Libertex Review, we will evaluate the trustworthiness of this broker. We will dig deep into its regulation and assess its commitment to providing the best services and fair trading conditions to its customers.

We will uncover any hidden unscrupulous methods it uses to scam unsuspecting investors and give a fair verdict.

Let’s dive right in.

Libertex Background

Libertex operates under Indication Investments Ltd and is located in Cyprus. It trades in cryptocurrencies, indices, metals, stocks, forex agricultural products, and ETFs.  It provides a MetaTrader 4 trading platform.

Libertex does not offer multiple trading accounts. You can either trade in a demo or upgrade to a live account – either a retail account or a professional account. Retail account holders trade with a leverage of up to 1:30, while professional account holders get a leverage of up to 1:600.

It boasts 2.2 million clients worldwide and 30 international awards, although only two are displayed on the website.

Awards displayedOn Libertex’s Regulation

We always recommend that you pay attention to a broker’s regulation. However, proper regulation does not always mean it is safe to trade with the broker.

The recent ban of four traders – TradeATF, Magnum FX, 24option, and F1Markets, from operating in the UK is proof of this. Although CySEC regulates the four brokers, they still went ahead with their scammy operations.

Let’s get back to Libertex.

Libertex is licensed by CySEC. License number 164/12.

Libertex CySEC licenseDoes this regulation give you the green light to sign up with the company? Not too fast. We dig deeper in this Libertex review.

The Red Flags that Make us Doubt Libertex

1) Juicy Incentives

You should be careful when dealing with any broker who uses incentives to attract investors. Such a broker intends to entice unwary and inexperienced investors. And once it gets hold of the investors’ money, it will use all possible means to ensure that they lose it.

Libertex uses a commission-only trading model. To attract and trap new investors, it offers a 50% commission discount for all new traders, which is too good a deal.

2) Risky Leverage Level

Most investors are attracted to the amount of leverage a broker offers. And so, the possibility of earning huge profits with the 1:600 leverage is a huge attraction. But the unpredictability of CFDs means that the chance of making an equally huge loss is extremely high, a fact that inexperienced investors overlook.

This broker takes advantage of investors’ desire to make large profits by enticing them with a massive leverage ratio to make an investment. The investors then lose it under unfair trading conditions, as we will see later in this Libertex review.

3) Zero Spreads

A commission-based trading model also means that Libertex offers zero spreads on its products. This may appear as a benefit to inexperienced investors, but it’s not.

Zero spread means you do not get the chance to minimize service payment for the broker. You could end up losing more than you invested.

4) Confusing Company Structure

A quick search on the internet and you will find the website (Libertex Group). It has a similar appearance to websiteIt is important to note that Libertex Group, which is part of Libertex, is restricted from operating in several countries.

Libertex restrictionsThe European Union is included in this list. But on its website, states that it can only provide services under Libertex, which is authorized to serve the EU region, and in South Africa, under Libertex Pty.

Where Libertex can operateThis complex structure is intentionally created to confuse traders. And given that offers a 100% bonus on the deposit, most traders are likely to fall victim to this dirty game and open an account on the wrong website.

Welcome bonusIf Libertex had its customers’ interests at heart, it would make it easy to differentiate between the two sites.

Does Libertex Have a Good Reputation?

We always aim to collect customer testimonials from reputable review websites, such as Trustpilot and Forex Peace Army.

This customer reveals that once the broker uses the initial 50% commission discount to trick you into opening a live account, the commission after that becomes too expensive. And the broker will also use unfair trading conditions to ensure that you never make profits.

Libertex scam

Don't invest

Bad companyIf you are an experienced trader who can make profits, Libertex will do all it can to frustrate your efforts.

Libertex doesn't let you make huge profits

Poor customer serviceThis customer on Forex Peace Army gives an account of how they tried to make a withdrawal from the account more than nine times and got frustrated each time.

Withdrawal problemsAlthough it claims to have 700 employees, Libertex’s customer support is weak, according to most complaints. And a look at its customer support page proves this. There is only one phone number, an e-mail address, and a contact form to reach out to the staff.

Libertex Review Conclusion: Can You Trust this Broker?

Here is our unbiased verdict: You cannot trust Libertex.

It may have proper regulation from a reputable body, but the trading platform it provides to its customers is not in their best interest. First, the leverage is too high, and zero spreads are not intended to benefit the client.

Libertex will use all methods to ensure that you lose when you trade. And in case you make profits, any attempt to withdraw your funds will take a frustrating turn.

It has also deliberately created a company structure that makes it easy for clients to mess up and trade with the wrong company.

Always research a broker before making an investment, even if it seems to have proper regulation. And in case you have lost your money unfairly, schedule a free consultation with us, and we will help you out.