LiteGap is another shady online broker – here is why it is best to avoid this company:
LiteGap regulation and safety of funds
LiteGap is not a regulated broker – and, in fact, there is not a single word on regulation on its website. This means that all bets are off with the company. There is no guarantee that it is not running a scam, or that it is actually qualified to hold your funds and deal with them.
Compare that to a legitimate broker – for example, one from the UK. Companies there are required to report on a daily basis on open and closed trades so any broker could easily be held accountable if it decides to run a scam! Additionally, clients of such brokers have access to guarantee funds, which pay out up to 85 000 pounds per person affected in the case of a broker going under.
LiteGap trading software
LiteGap provides access to a distribution of a web-based trading platform – it unfortunately is a far cry from industry standard trading platform Metatrader 5 – for example, no automated trading is available. Here is what the brokers software looks like:
LiteGaps trading conditions are quite bad too – the spreads on the platform are well over 3 pips for FX majors like the EURUSD, when legitimate brokers keep them under 1. Furthermore, the leverage LiteGap provides is simply too much – amounts like 1:400 have been banned by most jurisdictions as too unsafe for the retail trader. Whenever you see a broker offering such high leverage out there, consider the fact that you might be dealing with an offshore company, a scam, or both!
LiteGap deposit and withdrawal methods and fees
LiteGap accepts deposits only through credit cards – and that is actually rather beneficial to you as the broker‘s trader – it lets you file a chargeback on any payment done within 540 days. A chargeback might be the only way you can get your money out of LiteGap’s hands, without having to contend with the brokers absurd fees. Here is a schedule of these fees:
As you can see, LiteGap charges for pretty much anything you can think of – the broker shows absolutely zero restraint with its fees! The most notorious one is the Dormant Account fee – it is no less than 500 units of currency, owed after 60 days of inactivity. There is no reason why any broker would charge as much!
That said, the withdrawal fee of at least $30 is quite hefty too – and there is a monthly upkeep fee of 0.5% of your account balance to boot. LiteGap is simply incredibly greedy, and no broker acting in good faith would simply tax you as much for these services.
How does the scam work？
There can be little doubt that LiteGap is running a scam – the broker also does so by following one of the oldest schemes in the book. We have seen it unfold hundreds of times – here is how it goes down:
Firstly, someone stumbles upon the website LiteGap runs – and, from it, are prompted to make an account. If they should chose to do so, they will be required to leave a phone number – and the broker will use that to start calling around the clock and demand deposits. More and more money will be taken from the victims of these criminals, until they run out of money, or realize they are being conned – at which point, the scammers will cut them off and move on to new targets!
What to do when scammed？
If you have been scammed, you need to make sure you take the following steps to make sure you do not suffer further losses:
First off, recall what forms of ID and credit cards you gave the scammers access to – and get new ones issued ASAP. Also, remove any forms of remote control software they had you install on your PC!
Secondly, contact your bank and see if you can get a chargeback on your deposit – if that is not possible, however, do not trust any recovery agency that demands an upfront payment for its services! That is simply another scam!
Finally, do not hesitate to leave a comment in the section below with your own thoughts on the broker – in doing so, you will be helping us raise awareness of the scam, which is among the best ways to combat it!
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