Libertex review: trading CFDs and investing in stocks

Catering to a diverse range of traders, Libertex merges the worlds of leveraged products and traditional investing. It offers access to CFDs and commission-free stocks  (market spreads apply) all under one roof. To determine if it delivers on its promise, we will evaluate its platform’s functionality, trading costs, account options, and overall instrument diversity.

Libertex: overview and company background

• Established history: Founded in 2012, Libertex has over 10 years of experience in the online trading industry. This longevity is a significant mark of stability on the market.
• Regulation: The platform is operated by Indication Investments Ltd., a Cyprus Investment Firm (CIF) regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 164/12.
• What this means for you: CySEC is a reputable regulator within the European Union. This regulation enforces strict standards, including:
  • Segregation of client funds: Your money is held in separate accounts from the company’s operational funds, ensuring its protection in the unlikely event of company insolvency.
  • Financial compliance: Adherence to the Markets in Financial Instruments Directive (MiFID II), ensuring transparency and fair trading practices.
  • Investor compensation: Eligibility for the Investor Compensation Fund (ICF), which provides an additional safety net.

Libertex as a trading platform: terminals and accounts

For the end-user, Libertex offers a modern and smooth trading experience.

Key features for traders:

• All-in-one application: Trade a wide range of assets from a single, unified platform.
• Demo account: A fully-featured demo account loaded with EUR 50,000 in virtual funds, allowing practice and strategy testing.
• Free education: Comprehensive access to educational materials.

Libertex: trading instrument

Libertex provides access to over 1000 CFDs (Contracts for Difference) across multiple asset classes:

• Stocks CFDs: Trade on popular companies like GameStop, AMC, and other leading corporations.
• Cryptocurrencies CFDs: Bitcoin, Ethereum, Dogecoin, Shiba Inu, and more.
• Forex (currencies) CFDs: Major, minor, and exotic pairs like EUR/USD.
• Indices CFDs: DAX, US DJ 30, and other major global indices.
• Commodities CFDs: Oil (Brent, WTI), Gold, Silver, and other metals.
• ETFs and bonds CFDs: For diversified portfolio trading.
• Options CFDs: One of the most recently added underlying assets on the platform.

Libertex: platforms and accounts

Libertex offers various ways to trade, including its proprietary platform, the app, and the industry-standard MetaTrader suite.

1. The Libertex proprietary platform

• Focus: User-friendliness.
• Execution: Market execution.
• Costs: Tight spreads with commissions from 0% (other fees may apply), depending on the underlying asset.
• Minimum trade: €20 (or equivalent).
• Leverage: Up to 1:30 for retail clients (as per CySEC regulations).
• Unique tools:
  • Trade from the chart: Place orders directly on the price chart.
  • Dividends section  (for Invest Account): See which stocks are about to pay dividends.

2. MetaTrader 4 (MT4) and MetaTrader 5 (MT5)

• Focus: Advanced charting and algorithmic trading.
• Execution: Market execution.
• Costs: Tight spreads, with commissions starting at 0%  (other fees may apply), depending on the underlying asset.
• Minimum trade: 0.01 lots.
• Features: Full support for hedging, automated trading, and a massive library of custom indicators and scripts.

Account management and fees (CFD trading)

• Inactivity fee: €10/month after 180 days of inactivity (for accounts with a balance of less than EUR5000).
• Maintenance fee: €10/month if an account balance is not withdrawn within two months of account termination.
• Deposits: Generally free via PayPal, Skrill, and cards.
• Withdrawals: Most e-wallets are free; card withdrawals cost €1, and bank transfers have a 0.5% fee (min €2, max €10).

Margin requirements (for Retail Clients):

• Forex (majors) CFDs: 3.33% margin (1:30 leverage)
• Gold CFDs: 5% margin (1:20 leverage)
• CFDs on stocks and ETFs: 20% margin (1:5 leverage)
• Cryptocurrencies CFDs: 50% margin (1:2 leverage)

Libertex: deposits and withdrawals

Funding your account (deposits):

• Multiple free options: Deposits are free via most methods, including e-wallets, credit/debit cards, and various banking solutions.
• Instant processing: The vast majority of deposit methods are processed instantly, allowing you to start trading immediately.
• Wide range of methods: Options include:
  • eWallets (e.g., PayPal)
  • Credit/debit cards (Visa, Mastercard)
  • SEPA and international bank wires (Free, but take 3-5 days)
  • Various regional banking solutions

Withdrawing your funds:

• Transparent fee structure: All applicable fees are clearly displayed before you confirm any withdrawal.
• Fast eWallet withdrawals: Most e-wallet withdrawals are free and processed within 24 hours.
• Low fees for other methods:
  • Credit/debit card: A small €1 fee applies.
  • Bank wire: A fee of 0.5% is charged (minimum €2, maximum €10).
• Processing times: Withdrawal speed varies by method and depends on the payment method provider, from instant for some e-wallets to 3-5 days for bank wires.

Libertex invest – commission-free stock investing

This is a separate service from CFD trading and involves buying real stocks.

How it works and the catch:

• Real ownership: You are buying the actual underlying share, making you a registered shareholder entitled to dividends.
• Zero commission: Libertex does not charge a commission fee per trade for investment in real shares. Market spreads apply.

Suitability: Libertex Invest is best for long-term “buy-and-hold” investors who want a commission-free way to build a portfolio of real stocks. It is not designed for active, short-term stock trading.

Important note: While commissions are 0%, market spread (the difference between the buy and sell price) still applies. Other potential fees include American Depositary Receipt (ADR) custody fees and regulatory fees like TAF and SEC fees on sales, which are standard across the industry.Risk warning: Libertex is required to display the warning that 84% of retail investor accounts lose money when trading CFDs with this provider. CFDs are complex instruments with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Libertex: regulatory bodies

Libertex operates under the regulatory oversight of the Cyprus Securities and Exchange Commission (CySEC), a respected financial authority within the European Union. The platform is run by Indication Investments Ltd., a Cyprus Investment Firm (CIF) with license number 164/12, granted on January 31, 2012. The company is registered under number 290930 and operates from its official address at 10 Agiou Athanasiou, Ksenos building, Floors 6 and 7, 4105, Limassol, Cyprus. This CySEC regulation is a cornerstone of its legitimacy, mandating strict compliance with the European MiFID II directive, which ensures a high standard of client fund protection, transparent operations, and ethical business practices.

Its CySEC license permits it to provide key investment services, including the reception, transmission, and execution of client orders, as well as dealing on its own account across a wide range of financial instruments such as stocks and CFDs. Furthermore, the license includes crucial ancillary services like the safekeeping and administration of financial instruments and the provision of investment research. Clients can verify this information directly on the official CySEC register using the license number, and they are served through the approved domains, primarily libertex.com.

Libertex: final review

For the trader: Libertex is a robust and highly accessible broker, particularly well-suited for all traders. Its proprietary platform is a standout feature, offering an intuitive and smooth trading experience that significantly lowers the entry barrier compared to more complex platforms. The integration with MetaTrader 4 and MetaTrader 5 is a crucial addition, ensuring that the platform doesn’t hit a ceiling as traders become more advanced and demand professional charting and automated trading capabilities. The extensive educational resources, demo account, and analytical tools provide exceptional value for those looking to learn and refine their strategies.

While the proprietary platform is optimized for standard trade sizes starting at €20, traders seeking micro-lot flexibility have seamless access to full MetaTrader integration. This structure ensures the core platform remains streamlined while catering to diverse strategies. Libertex is further distinguished by its strong CySEC regulation, providing a user-friendly trading environment.

For the investor: The “Libertex Invest” service is a compelling offering for long-term, buy-and-hold investors. The ability to purchase real stocks with zero commission is a powerful draw. While it’s important to understand that market spreads apply. It provides a straightforward path to real stock ownership and dividend collection.

The bottom line:
Libertex is a serious and feature-rich broker that excels in user experience and education. It is an excellent choice for:

• Investors seeking a commission-free avenue for long-term stock investing.
• Any trader who values a well-regulated, established broker.

While professional scalpers and those requiring the absolute lowest raw spreads might look to specialized ECN brokers, Libertex offers a comprehensive and elaborated package for the vast majority of retail traders and investors. Its main limitations are clearly defined (minimum trade size, proprietary platform’s advanced charting), but its strengths—usability, education, regulation, and the MT4/5 —make it a highly recommendable option.

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.