LittInvest is a company offering a mix between forex trading and binary options. The company has multiple account types, although no information about the trading conditions is given. The benefits included with bigger deposits are things such as educational programs and personal phone calls (basically nothing special).
Also offers binary options – We are not certain if this should be viewed as an advantage, but at least it’s a feature of this company. Recently, a lot of binary brokers have started offering products which are closer to spot trading. While this is a more complicated mechanism of accessing the markets, it gives traders more control over their investment.
Joke registration – The list of negatives about LittInvest can include a lot of things, but their most unique feature is the fact they are registered in St Andrews, the birthplace of golf. This may not seem like a joke initially, but given the fact they are not overseen by the Financial Conduct Authority (FCA), we find this quite dubious. Registering your (unregulated) company a couple of miles next to the most famous golf course in the world seems so strange, we believe it to be a joke.
No information on trading conditions – LittInvest does such a poor job of presenting their offering, we couldn’t find anything specific on their website. This will not fool any somewhat sophisticated investor. The account types, which we mentioned in the beginning do not reveal anything worthwhile.
Wide spreads – After testing the platform provided by LittInvest , we saw the EUR/USD spread hovering around 2.7 pips.
This level is simply not acceptable in the current market environment. Even if you don’t want to view our spread comparison platform (the link above), we will mention that everything above 2 pips on the most popular currency pair is simply not acceptable.
Few payment methods – Creating an account with LittInvest also led us to see their payment methods, which included Credit Card options and Bitcoin. This is an odd choice as eWallets, such as PayPal are probably still more common than the biggest cryptocurrency out there.
Relatively bad trading platform – The trading platform provided by LittInvest is one which we have seen by other hybrid brokers (offering both binary options and spot trading). While it looks nice, it severely lacks some counterparts, in terms of functionality.
The current industry leading platform MetaTrader4 (MT4) is very preferable to this. There is basically not much room for comparison as the software provided by LittInvest, as MT4 offers much better charting, automated trading systems and a whole lot more.
LittInvest is an unregulated broker. We do not recommend trading with such companies, as they don’t provide any security for your funds. In other words, you are only relying on their honesty, to provide their service. To put it even more bluntly, you may not see the money you deposit with them ever again.
LittInvest claims to be registered in St Andrews, pretty close to the golf course. While we took that as a joke, let’s consider it seriously for a moment. In case they were based in Scotland, they would have to be under the regulatory zeal of the Financial Conduct Authority (FCA) of the United Kingdom, just like IG.
This is one of the most reputable watchdogs, which imposes a lot of tough rules upon the brokers registered with it. While they are complicated, we will just briefly mention the two most important ones, form a security of funds perspective. Client accounts have to be kept in segregated accounts i.e. the company can’t access the funds in order to “borrow” them – this must be done following a specific procedure. On top of that the Financial Services Compensation Scheme (FSCS) is a mechanism to which all FCA regulated brokers must be part of. It acts like an insurance company, which protects clients in case the broker declares bankruptcy (coverage is limited to £50,000 per account).
LittInvest Review Conclusion
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