LIBERTEX is the name of the trading terminal of the financial company Indication Investments Ltd. The firm is regulated and supervised by the Cyprus Securities and Exchange Commission (CySEC) under license number 164/12. The company has been operating since 1997 as a global broker and currently it has clients from more than 110 countries, the company claims. The website shows that Libertex has won over 30 prestigious awards over the world.
The Libertex product portfolio consists of over 50 currency pairs, 5 precious metals, 5 energy products, 18 indices, 40 cryptocurrencies, 6 agriculture products and more than 120 shares.
The company offers quite unusual trading conditions. All instruments have a fixed spread equal to zero at the expense of the commission, which is calculated as a percentage of the traded amount. For example, the minimum commission for the EUR/USD pair is 0.011% of the traded amount and if you open 100,000 EUR/USD, you will be charged EUR11. The minimum initial deposit amount is EUR100, after which you can add at least EUR10 to your account.
Customers can trade through the MetaTrader 4 (MT4) terminal as well as the company’s own platform – Libertex. MetaTrader 4 is the world’s most popular professional trading platform and you can operate with over 43 currency pairs and over 100 trading tools. The terminal is compatible with trading robots (expert advisors) that are available from the local library or from the MT4 community. All orders are filled without the intervention of a dealer – No Dealing Desk (NDD). Please note that the spread for the instruments in the MT4 account is not zero. The company recommends its Libertex platform if you prefer simplicity and convenience. You will get access to over 200 trading assets with zero spreads. One of the features is that the stop out level is set to 100% and you will lose as much as the required margin.
The Client Agreement document shows that the company will execute the client orders on its own account basis. Under this model of execution, the company is a counterparty against the client in each Transaction and executes the client order as a principal to principal against the client, i.e. the company is itself the Execution Venue. This means Libertex is a market maker and the associated conflict of interest exists – the company wins when you lose.
The same document reveals that the Company applies a Negative Balance Protection Policy pursuant to which, you may not lose more than the amount deposited in your account. In the event that a position is closed at such a price causing your equality to fall below zero, the company shall waive its right to receive the balance from you. This means you will never owe money to this company.
It is also written that placing a stop loss order will not necessarily limit losses to the intended amounts, because market conditions may make it impossible to execute such an order at the stipulated price and the company bears no responsibility whatsoever. In other words, stop loss orders are not guaranteed. In addition, the company says about the slippage: negative and positive slippage applies to pending orders. They are executed at the declared price by the client, or best available price in the market. They are subject to slippage.
Overall, this is a strictly regulated financial company that meets the latest requirements by the European Securities and Markets Authority (ESMA). You can trade via the MT4 terminal (with spreads) or via the Libertex platform (zero spreads). Retail clients are covered by negative balance protection.