LiteForex vs CMC Markets - 2023 Comparison | FX Australia
AuthorBy Björn Michels
Updated: August 29, 2022

Trading with a reputable online broker is a crucial factor for success in the international markets. At FX Australia, we help you find the broker that suits your trading needs.

Each year we spend thousands of hours testing brokers by opening accounts, testing their platforms, and rating them according to a set of over 200 metrics. We deposit real money with the brokers to ensure that the products and user experience they advertise are consistent with reality.

We have found that the best way for traders to choose a broker is to compare brokers side-by-side. The comparison tool below allows you to compare two brokers based on their ratings and features.

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Overall Rating
Min. Deposit
Regulation
Trading Desk Type
Trading Instruments
Forex Pairs
Crypto Pairs
Pros
Cons
Regulation
Trading Conditions
Trading Platforms
Deposit & Withdrawal
Education & Research
Assets Available
Customer Service
% Lose with this broker
Leverage
Spread
Hedging
Scalping
Account Types
Islamic Account
Trading Platforms
Funding Methods
Trading Commission
1110.503.87/ 5 USD 50CySEC Regulated BrokersFinancial Services Authority – St. Vincent & the GrenadinesMarket MakerCommodities, Cryptocurrencies, Stock CFDs, Forex, Indices5666
  • Great platform choice
  • Fast and free withdrawals
  • Copy trading accounts
  • Wide spreads
  • High commission
Read Review 1110.503.5/ 5 1110.503.5/ 5 11110.54.5/ 5 11110.54.5/ 5 1110.503.5/ 5 111104/ 5 111104/ 5 81%500:10.10 pips Cent, ECN, Standard MT4, MT5advcash, Neteller, PerfectMoney, Skrill, WebMoney, Visa, Mastercard, Bitcoin10 USD / lot - ECN Account
11110.54.53/ 5 AUD 5ASIC Regulated Forex BrokersFCA Regulated BrokersBest Forex Brokers in SingaporeFMA Regulated Forex BrokersBundesanstalt für FinanzdienstleistungsaufsichtMarket MakerCommodities, Cryptocurrencies, Stock CFDs, ETFs, Forex, Indices35012
  • Well regulated
  • Tight spreads
  • Good for beginners
  • Excellent education
  • Excellent market analysis
  • No swap-free account option
Read Review 111115/ 5 111115/ 5 11110.54.5/ 5 111104/ 5 111115/ 5 11110.54.5/ 5 111003/ 5 76%30:10.70 pips CFD Account, FX Active MT4, CMCmarketsBank Transfer, POLi, Visa, Maestro, Mastercard, Paypal0.005%

How do CMC Markets and LiteForex stack up against each other?

The Radar Chart below highlights how the brokers stack up against each other across various metrics. The highest score a broker can receive in each area is 5.

CMC Markets

LiteForex

At FX Australia, we help traders find the broker that suits their trading needs. In many cases, the best way to achieve this is to compare brokers side-by-side.

To compare CMC Markets and LiteForex, we used the same factors we use when reviewing brokers: The trust and regulation of the broker, the trading platform, the costs and trading conditions, and the level of education and market analysis available at the broker.

Does CMC Markets or LiteForex have a better trust and regulation rating?

Trust and regulation are some of the most important factors to consider when choosing a Forex broker. Trust in the Forex trading business is almost entirely founded upon regulation. We spend many hours evaluating the safety of each broker by delving into their fine print and confirming each one of their regulatory licences on the online registers. The more top-tier authorities a broker is regulated by, the higher its trust rating.

In our comparison, we found that CMC Markets holds three Tier 1 and two Tier 2 licences, and LiteForex holds no Tier 1 and one Tier 2 licences.

 

Can I trust CMC Markets?

Yes as CMC Markets was founded in 1989 and is regulated by ASIC, MAS, BaFin, FCA and FMA.

 

Can I trust LiteForex?

Yes as LiteForex was founded in 2005 and is regulated by CySEC and FSA-St-Vincent.

 

Based on these findings, CMC Markets earned a higher trust rating than LiteForex.

Does CMC Markets or LiteForex have lower costs?

Another important aspect we consider when comparing brokers is the cost of trading. When evaluating trading costs, we always consider the minimum deposit required to open an account and the ongoing trading costs, including the spreads and commissions. When calculating trading costs, we measure the cost to trade one lot of EUR/USD using the broker’s account with the lowest minimum deposit. The cost includes both the spread and any commission charged. 

Not all brokers publish their trading costs, so we often open accounts and trade on their platforms to verify the spreads and commissions. Based on our reviews, we found that CMC Markets has overall lower trading costs than LiteForex. 

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Broker
Trading Conditions
Base Currencies
EURUSD (Standard)
Commission
Trading Cost (Standard)
EURUSD (Best)
GBPUSD (Best)
USDJPY (Best)
LiteForex
1110.503.5/ 5
AUD, EUR, GBP, NZD, USD, CHF, CAD
1.90 pips
USD 0
USD 19
0.20 pips
0.20 pips
0.10 pips
CMC Markets
111115/ 5
AUD, USD
0.70 pips
USD 0
USD 7
0.70 pips
0.90 pips
0.70 pips

 

Does CMC Markets or LiteForex offer a better choice of trading platforms?

Traders want Forex brokers to offer them a choice of trading platforms, so we give brokers who offer multiple platforms higher ratings. Trading platforms we consider include MetaTrader4, MetaTrader5, cTrader and proprietary mobile and web-based platforms. 

In this case, CMC Markets offers support for MT4 and CMCmarkets and LiteForex offers support for MT4 and MT5. 

Do the brokers offer copy trading?

Copy trading is a great option for beginner traders who can’t trade full-time or lack experience with Forex trading. In this case LiteForex offer copy trading and CMC Markets does not.

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Broker
Platform Choice
Copy Trading
Platforms
LiteForex
11110.54.5/ 5
CMC Markets
11110.54.5/ 5
CMCmarkets

 

Which broker offers a better choice of trading instruments?

A variety of CFD instruments – and a large range of CFDs for each instrument category allow traders more opportunities for profitable trading. The best brokers will have thousands of CFDs to trade, covering all these instrument categories. We found that CMC Markets offers a greater range and depth of instruments to trade than LiteForex. CMC Markets offers 350 Forex pairs to trade and LiteForex offers 56 Forex pairs to trade.

Toplist Forex Pairs

And what about Cryptocurrencies?

In this case, LiteForex offers 66 cryptocurrencies while CMC Markets offers 12 cryptocurrencies. So if you want to trade cryptocurrencies, we advise trading with LiteForex.

Which broker offers better deposit and withdrawal processes?

Although brokers may have reasonable trading fees, many traders are caught out by the high non-trading fees charged by some brokers, including deposits and withdrawals. Traders want to be able to deposit and withdraw funds quickly and cheaply. Most brokers have multiple funding methods with zero fees for making deposits, but some brokers make it more expensive and take longer to process withdrawals. 

We rate brokers more highly that process withdrawals within 24 hours by multiple withdrawal methods and without charging processing fees. We found that neither CMC Markets nor LiteForex charges a withdrawal fee. Overall, LiteForex has better deposit and withdrawal processes than CMC Markets. 

Which broker offers better educational support?

We often find that brokers offer very little in the way of educational materials, forcing traders to use other third-party sites or self-educate elsewhere. Beginner traders need well-structured, well-presented materials in multiple formats to get a good start at trading. More experienced traders also benefit from webinars led by experts in the field and advanced trading strategy sections with new trading ideas. 

CMC Markets has better educational support than LiteForex. Both CMC Markets and LiteForex offer educational support for more experienced traders.

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Broker
Beginner Course
Advanced Course
Well Structured Education
Education Quality
Webinars
LiteForex
Medium
CMC Markets
High

 

Which broker offers better market analysis materials?

To successfully predict the price movements of an instrument, traders will need access to frequent market research and analysis. We find that research and market analysis are always better when they are produced in-house and updated frequently. Third-party resources don’t show the same expertise in trading ideas, so we place a strong emphasis on frequent in-house updates. Some brokers also often offer interactive webinars where traders can learn from experts in the field. 

We found that CMC Markets offers better research analysis than LiteForex and that CMC Markets offer frequent webinars and LiteForex does not.

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Broker
Economic Calendar
Autochartist
Trading Central
Trading View
Free VPS
LiteForex
CMC Markets

 

Our overall Verdict on CMC Markets

Founded in 1989, CMC Markets is a well-known Forex and CFD broker with a high trust rating and a strong presence in Australia. It has local ASIC regulation, and a local Australian office and offers accounts denominated in AUD.

CMC Markets offers two live accounts with no minimum deposit requirements - a low-cost commission-free account with spreads starting at 0.7 pips on the EUR/USD and a commission-based account with spreads of 0.1 pip and commissions of 0.005% (which amounts to 50 USD per lot traded), which is extremely high.

Trading is offered on both MT4 and its powerful, innovative proprietary platform that features numerous technical and fundamental analysis tools.  CMC Markets also offers excellent education and market analysis materials to get new traders started, and although customer service is offered 24/5, it does not provide a live chat feature, which is a serious oversight by this broker.

Our overall Verdict on LiteForex

With excellent copy trading functionality and a range of accounts with low minimum deposits, including a micro-trading account, Liteforex appeals to beginner traders familiar with the Metatrader platforms.  However, traders should note that Liteforex's trading costs are higher than other similar brokers.  

LiteForex offers two live account options, both with a low minimum deposit of 50 USD, making them accessible to beginner traders.  The ECN Account has tight spreads (starting at 0 pips on the EUR/USD) but this is in exchange for a commission of between 10 to 30 USD per lot traded.  The Classic Accounts is commission-free, but spreads are wider than other similar brokers, starting at 1.9 pips on the EUR/USD.   

In addition to the MetaTrader 4 and Metatrader 5 platforms, LiteForex also offers a user-friendly proprietary copy trading platform.  The automated copy-trading system allows traders to duplicate the best trades, trade independently, share information, and communicate with their signal providers.  It also offers VPS hosting at a cost of 15 USD per month in addition to free independent market news and analysis from third-party provider, Claws & Horns.  

Although not the best in the industry, LiteForex's education and market analysis materials are comprehensive and regularly updated, and appeal to both beginners and more experienced traders.  

Apart from the high trading costs, other drawbacks are that LiteForex charges high withdrawal fees.  Additionally, its Australian clients will be trading under the LiteForex subsidiary registered in Saint Vincent and the Grenadines, which provides virtually no regulatory oversight.  

Which broker has the highest overall rating?

CMC Markets has an overall rating of 4.53 and LiteForex has an overall rating of 3.87. For more detail please read our reviews of CMC Markets and LiteForex.

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