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Libertex:

What Is a Lot in Forex

Every novice Forex trader, at the beginning of his journey in the financial markets, faces the concept of the lot. On the majority of trading platforms, the lot size should be set independently. So, what is a lot? Does its size matter? How can it affect the transaction? You will learn the answers to these and many more questions after reading this article.

What Is a Lot Size in Forex?

A lot is a unit of measurement of a product at an auction or an exchange. A lot size means a certain volume of goods, which is convenient to operate in trading.

For example, at auctions the lot is usually one item:
- a work of art
- a piece of jewelry
- an ancient artifact, etc.

At the exchange, the lot is often formed by a certain amount of goods:
- 100 barrels of oil
- 100 ounces of gold
- 100,000 currency units, etc.

As on any exchange, Forex lot is a standard unit of measurement of goods traded. Lot size differs depending on the type of asset:
- currencies
- shares
- metals
- energy resources
- cryptocurrencies, etc.

Let’s say, a lot of the EUR/USD currency pair on the Forex market is 100,000 euros, the lot of GBP/USD is 100,000 pounds, the lot of USD/JPY is 100,000 dollars, etc. In currency pairs, the lot will almost always be 100,000 units of base currency – the first one in the currency pair.

Standard Lots

A standard lot is the main unit of measurement in Forex. For currency pairs, it is 100,000 units of the base currency. Due to the use of leverage (margin trading), a trader does not need to have hundreds of thousands of dollars in his account to trade full lots on Forex.

For example, having only 1,000 dollars on the account and using the leverage of 1:200 provided by the broker, the trader can operate with 200,000 dollars. In this case, he can buy one lot of EUR/USD, GBP/USD, or any other currency pair.

Mini Lots

A mini lot is 0.1 of the standard lot. On Forex, a mini lot is equal to 10,000 units of the base currency. Mini lots have been introduced in order for traders to be able to make transactions even with capital less than $1,000. In addition, mini lots give room to maneuver: instead of opening a single deal with a full lot, a trader can open several deals with a smaller volume, and wait for a more favorable price.

Micro Lots

A micro lot is 0.01 of the standard lot. On Forex, a micro lot is equal to one thousand units of the base currency. The meaning of a micro lot is the same as the meaning of a mini lot, but a trader needs even less capital for the transaction.

Nano Lots

A nano lot is 0.001 of the standard lot. On Forex, a nano lot is equal to one hundred units of the base currency. Nano lots are practically obsolete in real trading.

Instead, brokers launch cent or nano accounts. On such accounts, the trader's capital is measured but in cents. Ten dollars on a cent account will be displayed as 1,000 cents.

Board Lot

A board lot is a block of shares, which differs depending on the company. For example, for one company, the round lot will be equal to 1,000 shares, and for another to 10 shares.

Round Lot

A round lot is often like a board lot, but it can be larger. For example, with a board lot of 100 shares, round lot shares may be equal to 300. In this situation, a round lot is equal to 3 board lot.

Odd Lot

An odd lot is usually a part of the board lot. It can be any number of shares, 5, 15, or even 37 with a board lot of 100. This lot is a rare phenomenon on the exchange because brokers charge a higher commission for its formation.

Why Forex Lot Is Important in Trading and How to Calculate It on Forex



The trader chooses the lot for each trade independently. Potential profit and loss depend on the transaction volume.

For example, if you trade one full lot of EUR/USD, the price increase by one pip (percentage in point) will either bring the trader 10 dollars (if the transaction was opened for purchase) or reduce his capital by 10 dollars. If the deal was opened for one micro lot (10,000 EUR/USD), the trader's capital would change by only one dollar.

What Are CFD Lots

CFDs are contracts for price differences that allow you to trade in Forex shares, gold, oil, and other non-currency instruments.

Lots for CFDs will correspond with the asset for which the contract was launched. For example, 1 CFD lot for oil will be equal to 100 barrels. And one lot of CFD per share of a company will be equal to its board lot.

It is a bit more difficult to calculate the CFD lot for trading, but the principle remains the same - it is recommended to open deals with a lot, which is a maximum of 10 times more than the trader's capital.

Conclusion

For effective trading, each trader should be able to calculate a lot correctly. One needs the practice to learn how to calculate a lot properly, and the best way to do so is to use a demo account. A demo account is available for free on the Libertex platform. In addition, the multiplier mode allows you to calculate the volume of a deal using a simplified scheme, so even beginners can handle this task.

Libertex:

Regulatory pressure creating opportunities in Chinese tech

In the wake of the coronavirus, global tech stocks enjoyed an unprecedented boom. It truly was nothing short of spectacular, with companies making ten years' worth of gains in the space of just a few months. There was, however, one notable exception: China.

This was particularly surprising given the erstwhile rapid growth rate of Asia's biggest economy and its current position in the development cycle. Far from rivalling their US counterparts Alphabet, Amazon and Facebook, China's tech giants Alibaba, Baidu and Tencent actually saw an average of 40-50% knocked off their share prices. But as shocking as this all might seem, there is, in fact, a perfectly understandable explanation for it.

So, is this the end of the road for Chinese stocks, or are we looking at the buying opportunity of a lifetime? Without a crystal ball, it's impossible to say for sure where prices are headed. However, what we can do is look at the reasons behind the recent declines and assess the future prospects of the tech space in China.

So, what's the story?

It's no secret that the Chinese authorities have been wary of Big Tech for some time now. And it just so happened that the advent of the coronavirus coincided with the regulators finally cracking down on the once freewheeling sector. The brunt of their ire fell on Alibaba CEO Jack Ma, leading to the cancellation of the Ant Financial IPO and a huge $2.8 billion antitrust fine for the e-commerce leviathan. This led to a nearly 70% decline in Alibaba's share price and started a chain reaction across Chinese tech stocks, initiating a downtrend, the end of which is still not in sight.

In reality, though, this has been a long time coming. The CCP has been gradually taking legislative action to rein in their biggest data holders, starting with its Cybersecurity Law (enacted 2017). This was then followed by its Data Security Law (enacted 2021), with the trifecta eventually completed by the Personal Information Protection Law (also enacted in 2021). Now that the government has its protective legal framework in place, it might just spell the end of the crackdowns. Assuming they all play ball with the regulators, the bulk of the damage could already be priced into the shares of Alibaba, Baidu and Tencent.

But why?

The reason for the CCP's regulatory offensive is actually quite simple. Data has been heralded as the new gold, and nobody recognises this more acutely than the Chinese government, which recently listed data as a "factor of production" on par with the traditional factors of socialist economic policy: land, labour, capital and technology.

In light of this, it's understandable that the authorities were not particularly happy about its biggest data holders listing on US stock exchanges, where they can be required to share precious bytes with local regulators. It's no coincidence that the past couple of years has seen a raft of secondary Hong Kong listings from China's tech elite. The Chinese government has been encouraging firms to migrate to exchanges within its sphere of influence for some time as it seeks to build its own Shanghai-based answer to the Nasdaq, the Star Market.

This explains why Didi (which does not yet have a second listing) was so hard-hit post-IPO, with the authorities removing its apps from domestic stores for suspected data breaches. Since Alibaba, Tencent and Baidu are already listed on the Hang Seng, they could be on their way to regaining the Chinese regulators' trust and some of their lost value along with it.

When will it all be over?

The truth is nobody knows for sure. While it looks like there is light at the end of the tunnel as far as regulatory woes go, the current macroeconomic climate makes it tough to tell exactly when growth will return. Aside from the local real estate crisis, the high global inflation rate is also taking its toll on the country's major exporters. While this might be an ongoing problem for Alibaba, Tencent and Baidu can count themselves lucky that their business is largely unaffected by rising raw materials prices.

This relatively minor issue aside, though, there certainly are many positive factors for the entire Chinese tech sector. First, having already taken such a beating of late, there's not much more room for them to fall given their all but assured future as some of China's biggest companies. To put things into perspective, Alibaba is down 58% at the time of writing, while Baidu and Tencent aren't faring much better with 32% and 39% losses of their own. When taken together with the fact that all of them are present in some way in the rapidly developing countries of South-East Asia, this gives them every chance of reaching the market cap of US counterparts Amazon, Alphabet and Facebook in the next ten years, making current prices an absolute steal!

Is there a way to play with a Big Tiger?

Attempting to trade the market is always risky, and this is especially true when it comes to China. There are far too many variables, political and otherwise, to make short term bets on individual stocks here. As for leverage, don't even think about it! All of that aside, every serious investor ought to have at least some portion of his or her portfolio invested in the Asian powerhouse.

While the short-term risks are very real (and totally unpredictable), it's hard to imagine a scenario where China's tech giants fail to grow their businesses multiple times over in the decade ahead. As such, some form of measured, long-term, and unleveraged (can't stress this enough) investment in these instruments should at least be on the radar for even the most risk-averse of investors, especially at these valuations.

With Libertex Invest, you can purchase individual shares in Alibaba, Tencent and Baidu – or a wider basket of Chinese tech firms via the iShares China Large-Cap ETF – all at the touch of a button. Best of all, Libertex charges no commission whatsoever on investments made via Libertex Invest, which means more of your potential profits stay in your pocket. For more information or to register an account, visit http://www.libertex.com/invest

Libertex:

Forex und CFD Swap Raten

The term swap comes up from time to time in the world of trading and can cause confusion. Part of the reason is that the word is used to refer to two different things. Swaps are a type of derivative trading product, but the word is also used to describe the interest that is either earned or paid on overnight CFD and forex trades. In this article we describe both and clear up the difference, and then go into a little more detail on how swap rates apply to CFD and Forex trading.

Swaps as Trading Products

What is a swap and how does it work?

A simple example would involve two parties exchanging the cash flows of two interest rate products, such as bonds. One may pay a fixed rate, while the other pays a variable rate. If the holder of the fixed rate instrument believes rates may rise, they would be happy to receive the variable rate cash flows, rather than the fixed rate cash flows. If the holder of the variable rate instrument wants more certainty of the rate they will receive, they will be happy to exchange their variable cash flows for fixed cash flows.

Swaps allow institutions like pension funds, insurance companies and banks to manage liabilities and risk. They also allow hedge funds and traders to speculate on interest rates, currencies and other variables in the economy. They are generally traded on an OTC (over the counter) basis and are not listed on exchanges. This means the terms of each swap agreement are agreed by the two parties for each trade.



Types of swaps

- Interest Rate Swaps are used to exchange interest payments that are either paid or received. Usually one rate will be fixed, while the other is variable. They allow issuers of floating rate debt instruments to fix their liabilities and also allow funds to speculate on interest rate changes.
- Currency Swaps allow two parties to exchange the principal and interest payments of debt instruments. This allows parties to manage risk or speculate on interest rates and currency changes. They are used by central banks to stabilize currencies, and by corporations to manage their foreign exchange exposure.
- Commodity Swaps are used to exchange the spot price of a commodity for a fixed price, for a specified period. They allow producers and manufacturers that use commodities to manage their revenue and costs.
- Total Return Swaps are very similar to CFDs, but are used by institutions rather than retail traders. They allow two parties to exchange the price changes, in addition to the dividend and interest payments of an asset or pool of assets, for a fixed rate.
- Credit Default Swaps are like insurance policies that protect the holder of a bond in the event of default by the borrower. In the event of default, the seller pays the buyer the principle and interest payments they have lost.

Swap and Rollovers in the CFD and Forex Markets

CFD and forex trading involves various currencies and interest rates. Interest is always paid or received daily, so every time you hold a CFD or forex position overnight, you must either receive or pay interest.

This means any overnight position involves a type of interest rate or currency swap.



CFD Swap

When you buy a CFD on a stock, index, cryptocurrency or commodity, you are trading on margin and effectively borrowing capital from the seller of the CFD. There is usually no interest cost if you sell the CFD on the day you bought it. However, if you hold it overnight, you will have to pay interest on the position. This is the Swap Buy Rate and is debited from your trading account.

If you hold a short position overnight using a CFD on a stock, index, cryptocurrency or commodity, you are effectively lending capital to your broker. When your broker sells the underlying asset, they receive cash which earns interest until the position is closed. However, you must also pay a fee to borrow the underlying asset. The interest you earn is netted against the asset borrowing fee and may result in a positive or negative rate, depending on the interest rate. The net rate is the Swap Sell Rate.

In most cases, the interest rate will be calculated based on the base currency of your trading account. However, in more complex transactions, the interest may be charged based on the country where the underlying asset is traded or held. This may seem complicated, but Brokers list the Swap Buy and Swap Sell rates on their websites or on the trading platform. These vary from one instrument to the next, as the applicable interest rates and asset lending rates vary.

Example:

Apple CFDs have a swap buy rate of -0.0302%, and a swap sell rate of -0.0254%. That means that for every day you hold a long position, you will be debited 0.0302% of the value of the position at the time of purchase.

Let’s say you buy CFDs on 10 Apple shares at $201.50 each.

The nominal value of that position is $2015. So, for each day you hold the position, your account will be debited $2015 x 0.0302%, or $0.61.

If you open a short CFD position on 10 Apple shares at the same price, your account will be debited for $2015 x 0.0254% or $0.51.



Forex Swap

Forex swaps work in a very similar way. When you buy a forex pair, you own the first currency and you are short of the second currency. That means you earn interest on the first and receive interest on the second currency.

Because most countries have very low interest rates, in most cases, the net interest rate will still be negative. However, when you buy currencies with higher rates you may earn a net positive rate.

Example One

The EUR/USD forex pair has a swap buy rate of -0.0038 % and a

swap sell rate of -0.0018%.

If you buy the EUR/USD pair, you are holding Euros and you owe US Dollars. That means you earn interest on the EUR position and pay interest on the USD position.

If you sell the EUR/USD pair, you are short Euros and long USD. That means you pay less on the position, because USD rates are higher than Euro rates.

Example Two

The USD/MXN pair has a swap buy rate of -0.0184 % and a swap sell rate of 0.0123%.

In the case of the USD and Mexican Peso, there is a significant interest rate differential between the two currencies. That means that if you hold Pesos, you will earn the difference between the two interest rates.

To hold Pesos, you would have to sell the USD/MXN pair, and pay USD rates while earning MXN rates.

Swap Trading Strategies

Strategy №1: Carry Trade

Buy a high yielding currency and sell a low yielding currency when the higher yielding currency is in an uptrend. Hold for as long as the uptrend persists.

Example:

Sell EUR/MXN, which yields 0.0131% per day. Hold as long as the swap rate remains positive and the MXN does not lose value.

Pros:
- A very effective strategy when rates are generally high and emerging market currencies are in demand.
- The yield will increase if the interest rate of the lower yielding currency falls.

Cons:
- Profits can be wiped out quickly if the price of the higher yielding currency falls.
- Takes a long time to generate a decent return.

Strategy №2: Triple Swap Credit

Daily swap interest is debited or credited every day. However, to make up for the weekend, a triple debit or credit is applied on one day every week. Some brokers do this on Friday and some brokers do it on Wednesday. This means holding a carry trade overnight on that day can result in a triple credit.

Example:

Sell EUR/MXN, which yields 0.0131% per day on Wednesday and close the position on Thursday morning. This will result in a credit of 0.0393%.

Pros:
- An effective way to earn a small profit on an overnight trade. Works best when executed in conjunction with another trading strategy.

Cons:
- The profit can be wiped out quickly if the currency pair moves against you.

No swap accounts

A no swap account, or swap free account, is an account that does not get debited or credited when positions are rolled over each day. These accounts were originally developed for Islamic traders. However, some brokers now make them available to everyone.

The loss of revenue is usually made via other types of fees.

Pros:
- You get to focus entirely on the price action without worrying about interest rates.
- You won’t pay interest when you are short of high yielding currencies.

Cons:
- You can’t earn interest when you buy higher yielding currencies.
- You may end up paying more in hidden fees than you would with a regular account.

Conclusion

From time to time, changes in the global interest rate environment create opportunities to earn interest from Forex swaps. Short selling other assets can also generate interest credits in the right environment.

If you would like to learn more about Forex and CFD trading, Libertex is a great platform to start with. Libertex is a broker and trading platform which offers Forex, CFDs, stocks, commodities, indices, ETFs and cryptocurrencies with leverage of up to 30 times. The platform offers free trading tutorials and state of the art trading tools.

You can open a free demo account with Libertex and begin learning about the market immediately, with no risk.

Libertex:

Technical Analysis

It would not be an exaggeration to say that technical analysis is the most popular analytical method in the financial market. Many new Forex traders follow strategies based on the results of this analysis. However, not everyone truly understands what technical analysis is, what it’s based on, or why this trading strategy is sometimes successful and sometimes not. You will learn about the different types of technical expertise, advantages, and disadvantages while reading this article. It will also help you decide whether or not you are going to use this method in your trading strategy, and if so – how to use it correctly.

Definition of Technical Analysis

Technical analysis is a prediction of future price changes based on the analysis of price changes in the past. Technical analysis consists of the study of charts and the identification of patterns. Mathematics and statistics calculations are often used to convert models and patterns that are formed in the chart into the forecasts, which determine the one that can be opened for trading.

History of Technical Analysis

It is believed that technical analysis was first implemented in Japan during the 18th and 19th centuries. During those times, Japanese rice merchants started using charts to track and analyze product prices.

At the end of the 19th and beginning of the 20th century, an American journalist and researcher named Charles Dow started the classic technical analysis. His published series of articles about prices on the securities market later became a fundamental component of the Dow theory.

In the middle of the 20th century, the development of computer technologies allowed the first indicators to appear. The indicators calculations were created automatically, which made it possible to apply the results of complex formulas to the graph. From that point onwards, computer analysis developed very fast, indicators began improving, and new tools were found. “Candle” and graphic analyses have kept their initial design, but they are still quite popular among traders.

Postulates of Technical Analysis



There are several main postulates of the technical analysis made by Charles Dow (or by his followers on the basis of his articles). They represent the very essence of technical expertise and explain why it should even work in the first place.

Price considers everything

This postulate rejects the significance of the fundamental analysis. Price considers everything means that there is no point in tracking down all economic and political news, pay attention to the “loud” events. Everything that could affect the price is already taken into account. That is why the priority is to study charts and indicators. 

Price movement delivers the trend

Random price fluctuations form the sequences – trends. Each timeline represents the directional price movement (ascending and descending trends), or flat – fluctuations in the horizontal diapason. Even though the tendencies break and change sooner or later, it is believed that the possibility of the continuation of the current trend is higher than the probability of its change.

History repeats itself

This postulate explains how technical analysis works in general. It is based on the following idea: let’s say, that you formatted a certain pattern on the graph, which resulted in the price moving in a particular way. The next time the same pattern occurs, it is likely the price will behave similarly. At the very least, its probability will be much higher than the probability of a different scenario.

The main problem is that the probability of an absolutely identical situation occurring is extremely rare. That is why analyzing the patterns is a priority. Often, a trader has to decide whether the situation on the graph fits the pattern or not, and question whether he should open a deal.

Technical Analysis tools

Let’s take a look at comprehensive technical analysis tools which are used in contemporary Internet trading.

Candlestick patterns

Candlestick analysis is believed to be the very first sub-type of technical analysis, its predecessor. In contemporary candlestick analysis, trade is conducted on the patterns formed by one or several candles.

The main patterns of candlestick analysis are:
- External bar
- Internal bar
- Morning/evening star
- Hummer/hangman
- Doji
- Gap, etc



Each pattern informs a trader that the price will likely move in a particular direction. For example, the “hangman” pattern on the graph indicates that the price is more likely to turn downwards (the pattern forms at the top of the ascending trend). The pattern thus gives the trader a signal to sell.

Trend lines

The trend line is the basic instrument of graphic analysis, which helps to reveal the current direction of the trend. It is first defined in a visual manner, then the relevant line is added.

1. If the trend is ascending, the line is held under it, being attached to the local minimums.
2. If the trend is descending, the line is held above, attached to the local maximums.



The most effective way to trade using trend lines is to trade breakouts.

1. If the price penetrates the descending trend’s line, bottom-up, then one should open a deal to buy.
2. If the price is penetrating the ascending trend’s line, top to bottom, one should open a deal to sell.

Support and resistance levels

Support and resistance levels are quite similar to trend lines. The only difference is that the S&R levels are horizontal. The support is built on the local minimums and the resistance is built on the local maximums. Support breakout gives the signal to open a deal to sell, while resistance breakout signals that it is the right time to buy.



Figures of Graphic Analysis

Graphic analysis is one of the largest components of technical analysis. It is based on studying the figures created by fluctuations in the price chart.

There are three types of figures:

1. Turnaround figure (head and shoulders, double top/double bottom). If you see these figures, then the trend is very likely about to change, and you should open deals in the opposite direction.
2. Figures of the trends’ continuation (flag, pennant). Formation of these figures signals that there is a high possibility that the trend will continue, and you should open deals in its’ direction.
3. Uncertainty figures (triangles and others). Such figures mean that the market could move in any direction and one should abstain from the trade for a while.



In accordance with the type of figure formed on the chart, the trader will open a deal in one direction or another, or will even stop trading for the moment.

Indicators

Technical analysis indicators are automatic tools which spare the trader the necessity to analyze the graph himself and make a decision about opening the deal.

The indicator gives you a clear sign and the trader opens the deal when he sees the signal.

Each indicator is automatically plotted according to a certain formula. For example, the most popular and basic indicator, moving average, is just the average value of the price indicators during a certain period. A moving average, with a period of 10, is the arithmetic mean of the price for the last 10 time marks.

Indicators can be the following:
- Osma
- Oscillators
- Volume indicators
- Informational



Usually, the signal for opening a deal is formed by the interaction between indicators and the price, or with other indicators.

Fundamental vs. Technical Analysis

It is hard to tell what type of analysis – technical or fundamental – is more effective or popular. Each of them has its own advantages and followers.

Followers of this method certainly do not agree with the postulate “price considers everything”. They believe that technical analysis is looking at the past (and history doesn’t always repeat itself), while fundamental analysis is looking to the future.

Though they may have one thing in common: even the most thorough analysis of the fundamental data does not guarantee you a prediction of the price changes that is 100% correct. For example, a positive quarterly company report, with the revenues significantly exceeding expectations, may not raise the price of the company’s shares if the market participants think that it is already high.

Novice traders may find it challenging to choose the type of analysis they should use for themselves. On the one hand, technical analysis systems are often totally automated and the trader just has to notice the signal in time and open a deal in the proper direction. On the other hand, newbies also look for strategies that do not have indicators (they think indicators are too complicated for them), and fundamental analysis does not use these tools except for several information panels.

Technical Analysis in Forex

In Forex trading, technical analysis has an even better position than fundamental analysis. This is due to certain fundamental analysis facts that are relevant for the stock market (like quarterly reporting of a company or dividend info), but are not suitable for the Forex market. Still, the techniques used in technical analysis can be applied to both the stock and Forex market.

For example, let’s have a look at the Forex trading strategy using the MACD indicator and two MA.

You can open a strategy transaction when you meet the following requirements:

1. If the fast-moving average (5-period) crosses the slow (10-period) from top to bottom and the MACD histogram crosses the MACD line in the same direction, a sales transaction is opened.
2. If the fast-moving average crosses the slow one from the bottom up and the MACD histogram crosses the line from the bottom up, a buy transaction is opened.



This is an example of a simple Forex strategy. Some trading strategies are based on the readings of five or more indicators and include tools for the automatic recognition of the figures of graphical analysis. Complex systems are not always better than simple ones, although well-known strategies are rarely profitable. To be able to make a fortune using Forex trading, you have to develop your own unique strategy.

Conclusion

Every trader should know the basics of technical analysis, even if he doesn’t plan on building his own trading strategy using technical expertise. This method allows for a better understanding of the market and its participants.

To practice technical analysis, a trader needs a trading system. One of the best options is to use the Libertex system provided by the Forex Club. It is completely free, and novice traders may train there using a demo account until they are ready to start trading for real. Besides, the platform has all of the necessary instruments and indicators to complete a high-quality technical analysis of the charts.

Libertex:

Copy of Tired of trading commissions? You've come to the right place

Last December, Libertex announced that it was completely slashing commission, swap and exchange fees to zero on all crypto CFDs available on its platform as part of a special holiday promotion. But it was simply too good to let go since undoubtedly these are possibly the best trading conditions currently available on the market. The response from clients was so overwhelmingly positive that Libertex has decided to continue these trading conditions indefinitely.

The cryptocurrency sector is one of the most exciting areas of trading today, and Libertex is making it infinitely more exciting by eliminating some of the annoying fees that other brokers still charge. Essentially, this means that, with the Libertex platform, if you have €100 in your account, you can use your entire balance to trade crypto CFDs without wasting a big part of it on fees. That’s it! No catch, no fine print! With three different kinds of fees slashed to zero, Libertex lets traders save money that other brokers would normally charge as fees.

Libertex is possibly the only online broker to eliminate these three fees. Going forward, it plans to continue offering 0% swap, commission and exchange fees on all cryptocurrency CFD trades. These include Bitcoin, Ethereum, Litecoin, Stellar, Solana and any other cryptocurrencies on the Libertex platform. These special conditions are available for both new and existing Libertex retail clients (except UK retail clients, where cryptocurrency CFDs are not available).

How much money is a typical trader losing to broker fees?

In trading, while one can make or lose money on any individual trade, most brokers charge for their administrative services in several ways. The commission is charged for activity on a platform, such as deposits and trades. It is taken directly from the equity of the trading account, usually as a percentage, and deducted before any transaction happens, whether the trade is successful or not. Swap fees are interest charged on holding a trading position overnight. Exchange fees are charged for currency and asset exchanges.

- 0% commission means that all the money you deposit for a trade will actually be used for trading. This is not the case with typical brokers, who deduct a percentage before any trading can take place. For example, if you deposit 100 euros with a broker that has a 5% commission fee, then you will have only 95 euros to make your trade with. Trade crypto CFDs with Libertex, and your 100 euros deposit will be used in full for trading. Many new traders are taken by surprise by commission amounts, and end up trading less than they wanted to.
- 0% swap means that you will not be charged for holding a trading position overnight. Brokers usually charge swap on currency pairs based on the interest difference between the currencies, so it is also percentage-based. But the crypto market doesn’t sleep, nor does it depend on any issuing government’s time zone. Libertex recognises that it serves a large body of clients, and no one should be worrying about closing their crypto position by a certain time to avoid swap fees.
- 0% exchange fees mean that you won’t be charged for exchanging cryptocurrency, whether to fiat money or other crypto CFDs, on Libertex. Most exchanges will charge a percentage-based fee for this, limiting a trader’s flexibility.

So, what does it actually cost someone to trade crypto CFDs on Libertex?

The only thing a trader would pay on a crypto CFD trade with Libertex is the spread (the difference between the Ask and Bid prices). In other words, traders can expect to save a substantial amount of money with Libertex when making multiple trades, overnight trades, high-volume trades and more.

Fewer fees, more freedom in trading crypto CFDs

It is only natural for traders to do their best to minimize or avoid fees, but in the fast-moving crypto market, this can restrict their flexibility in responding to trends or cause unnecessary stress. Feedback from crypto CFD traders on Libertex indicated that they need cryptocurrency trading to be faster, more flexible and more friction-free than classic forex trading. By eliminating three different kinds of fees, Libertex continues its mission to make trading accessible for everyone and provide its clients with high-quality assets such as crypto CFDs and more.

Trade for More with Libertex

With over 24 years of financial market experience and more than 40 international awards, including most recently Best Trading Platform (Forex Report, 2021) and Most Trusted Broker of Europe (Ultimate Fintech, 2021), Libertex has been one of the leading platforms combining classic market expertise with cutting-edge technology, designing user-friendly software that makes the market accessible from any device, anywhere, anytime. Used by everyone from professional traders to complete beginners (who can start with a practice demo account), Libertex features a full range of tools and information in order for its clients to get the most out of the platform.

It only takes a few seconds to register with Libertex and enjoy the potential advantage of these unique crypto CFD trading conditions as well as a full range of stocks, commodities, and forex CFDs. Say goodbye to crypto CFD commissions for good and sign up to trade with Libertex!


Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.3% 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. Cryptocurrency instruments are not available to retail clients in the UK.

Available for retail clients on the Libertex Trading Platform.

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