Lirunex.eu in short
The lirunex.eu website is operated by Lirunex Limited. The company is registered as a Cyprus Investment Firm (CIF) and is licensed by the Cyprus Securities and Exchange Commission (CySEC). It provides retail and professional customers with financial and investment services for trading CFDs on currency pairs, and commodities. Lirunex Ltd is dedicated to modern technology practices, the company claims. Customers can trade using one of the world’s most popular trading terminals – MetaTrader 4 (MT4). You can open a live account by investing EUR500.
Let us check which body the brokerage company is regulated by. Lirunex Limited is a multinational company that holds multiple licenses and is regulated by different authorities. Lirunex Limited is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 338/17. This license allows the company to provide brokerage services to all European Union (EU) member states. It must comply with all applicable EU and local regulations including the European Markets in Financial Instruments Directive (MiFID II). All the clients’ funds are kept in segregated accounts in regulated EEA financial institutions. The company is a member of the Investor Compensation Fund (ICF), which aims to provide protection and compensation for cash payments when a company member of the fund is unable to meet its obligations. Clients of Lirunex Limited (CySEC) are protected by the Investor Compensation Fund (ICF) up to EUR20,000 per person.
In addition, Lirunex Limited is regulated by the Labuan Financial Services Authority (LFSA) under license number MB/20/0050. It is also registered in the Republic of Marshall Islands as an International Business Corporation.
There are three types of live trading accounts you can open with the CySEC regulated company. They differ in the required initial deposit, the minimum value of the spread and the size of the commissions.
LX Standard Account – The minimum deposit amount is EUR500. All orders will be filled using an instant execution model and the spread for major currency pairs starts at 2 pips. Trading is commission free.
LX Prime Account – The minimum deposit amount is EUR1,000. All orders will be filled using an instant execution model and the spread for major currency pairs starts at 0.6 pips. There is a commission of USD8 per lot traded and you will be charged at the opening of the position.
LX Pro Account – You must invest at least EUR10,000 to open this type of account. Spreads for major currency pairs are close to zero and the commission is USD4 per lot. If you are classified as a professional client, the leverage can be up to 1:100.
If you sign a contract with the LFSA-regulated company, you will be able to open four types of trading accounts. The minimum initial deposit is within USD25 and USD1,000.
Market Maker or STP Brokerage?
Let us see what the legal documents show. The Order Execution Policy file does not explicitly inform how the company acts against the customer orders, is it a principal and counterparty to each order. You can find out that Lirunex Limited can either execute client orders or can receive and transmit them for execution. It is written that depending on the type of the client account, a third-party liquidity provider will be the execution venue and the financial institution acting as such is Bortagon Prime Ltd. However, the Execution Policy section of the Terms and Conditions document informs that the company is the counterparty to every order you place and therefore Lirunex Limited is the only execution venue. In other words, the company may execute orders as a counterparty and when doing this it keeps the entire risk for itself. When orders are transmitted for execution using the Straight Through Processing (STP) model, there is no major conflict of interest. When the company acts as principal and is the sole execution venue for the execution of its clients’ orders, it acts as a market maker, keeping the entire risk to itself. Any loss to customers is a gain for the company and the conflict of interest exists.
The Order Execution Policy document also informs about slippage, which occurs when the order is executed several pips away from the requested price. The company mentions that slippage is a normal phenomenon during the period of low liquidity or high volatility. Because the company uses the instant execution model, slippage refers to stop loss orders mainly. They will be filled at the next available market price; Therefore, stop loss orders are not guaranteed. It is also noted that in some cases, the company will provide a secondary quote to the client, after an order has been submitted. The secondary price will be the next available market price.
Sometimes the rapid movement of the market can lead to a negative balance in the customer’s account. The same file confirms that all retail clients are covered by Negative Balance Protection. This means that the customer will never owe an additional amount to the company in case the losses exceed the account balance.
In addition to the usual fees such as spreads, commissions and swaps the company also imposes the so-called inactivity fee. If the client did not place a trade or made a deposit for a period of 90 days, then the account status will become “inactive”. The company will charge a monthly payment of USD5 as “Inactivity Fee”, related to the maintenance and administration of such inactive accounts. When the account balance reaches zero, the account becomes dormant.
Deposits and Withdrawals
Lirunex Limited supports the most popular methods for depositing and withdrawing funds. They include bank transfer, credit/debit cards, and popular electronic payment systems such as Neteller and Skrill. The minimum deposit/withdrawal amount depends on the payment method and is EUR300 for payments made by bank transfer and EUR50 for other types of payments. All deposits are processed within 24 hours. Lirunex does not apply fees on bank transfers, but intermediary banks may do. However, the company applies fees if you deposit by cards (2%) and by e-wallets (4.9%).
Withdrawals will be returned to the client’s account via the same method that has been used to deposit. They are processed within 24 hours. There is a withdrawal fee of 1% when payments are made by Neteller or Skrill.
The company offers the popular terminal MetaTrader 4 (MT4) for trading. The advanced interface of MT4 helps traders to make deals in a simple and efficient way. It can be customized effortlessly to present your favorite instruments and preferred chart types. Customers are aided by the One-Click Execution feature and the availability of many technical indicators. The platform supports automated trading mode using available and custom expert advisors (EAs). MT4 is available as a desktop version for PCs and can also be downloaded as an application for iOS and Android devices.
Currency Pairs – 15 major and 20 minor currency pairs are available for trading. The spread for the EUR/USD pair depends on the account type and the average value is 2 pips for the LX-Standard account and 0.6 pips for the LX-Prime account.
Commodities – Gold, Silver, and Crude Oil are available for trading. Their spreads also depend on the account type. Gold has spread of USD3.9 in the LX-Standard account and USD2.5 in the LX-Prime account.
There is an educational section on the website entitled “Tools“. It consists of a beginner’s guide, trading strategies, market analysis, and economic calendar (it was broken and did not show anything).
Lirunex Limited is a Cyprus Investment Firm (CIF) that is licensed by the Cyprus Securities and Exchange Commission (CySEC). This license allows the company to provide financial services across European Union. It usually acts as a market maker, being a counterparty. It also can use the STP model to arrange orders, on its own discretion. You can trade only currency pairs, Gold, Silver and Crude Oil. Indices, shares, and cryptocurrencies are not available here. There are 3 types of accounts that differ in the required deposit amount, the size of the commissions, and spreads offered. The minimum initial deposit is EUR500.