Arincen

Item: VT Markets
Rating: 5.9

VT Markets

VT Markets is a Sydney-based online broker launched in 2016.
It is a subsidiary of Vantage International Group Limited LLC, headquartered in the UK and established in 2011.
The broker offers traders access to 230+ FOREX, commodities, metals, indices and share Contracts for Difference (CFD).
VT Markets promises it can open live accounts in under five minutes.
VT Markets buys its liquidity from over 30 partners.
VT Markets Australia is licensed and regulated by the Australian Securities and Investments Commission (ASIC).
VT Markets in the Cayman Islands is licensed and regulated by the Cayman Islands Monetary Authority (CIMA).
The broker’s parent company Vantage Global Prime LLP is regulated by the Financial Conduct Authority (FCA) in the UK.
Trading is available in five base currencies.
VT Markets offers two main account types, a Standard Account and a Raw Account suitable for entry level traders and elite traders.
VT Markets offers market access covering five asset classes.
Islamic trading is available.
VT Markets offers reasonably competitive spreads and commissions across its account types.
The maximum leverage offered by this broker is 1:500.
VT Markets customers can access high-quality education materials.

Vt Markets Evaluate - research result

Overall Evaluation 5.9

Regulations

5.5

Deposits and Withdrawals

5.5

Commissions

5.9

Assets

Trading Platform

Research and Development

5.5

Customer Service

5.5

Mobile App Trading

Learning

Experience with broker

Trading Tools

Website

Overall Summary

VT Markets is a Sydney-based online broker that is a subsidiary of Vantage International Group Limited. The company’s head office has over 10 years of market experience, but VT Markets as a separate entity was founded in 2015 and is a new entrant into the online trading world.

The broker claims to be driven by the idea that “Innovation makes the difference.” It uses this slogan as a driving force to roll out what it believes are superior platforms and advanced technical tools to provide a “superior trading experience.” This belief is belied by the fact that the broker, until recently, only used MetaTrader4 (MT4) as its sole platform and has just rolled out MetaTrader5 (MT5).

The broker is licensed by two regulators. These are ASIC in Australia and CIMA in the Cayman Islands. Its head office, Vantage International Group, is regulated by the UK’s FCA, but this license does not apply to VT Markets, even though VT Markets is keen to advertise its parent company’s FCA regulation to boost its image by association.

The broker boasts over 10,000 actively trading accounts from a global client base. This is not a sizable number of clients compared to more established brokers, but, as a growing broker, this shows steady growth. Some of the key claims made by the broker are that it executes over 1.5 million trades per month and it handles over $100 billion in monthly trading volume.

Who Is VT Markets Good For?

VT Markets

Rating

Foundation Year

2015

Main Branch

Australia

Other Branches

Not Available

Languages

20 languages including English

Work Hours

Market Opening Hours

VT Markets is a solid and emerging broker in its home market of Australia. Although its home regulator, the ASIC, is highly regarded, this regulator does not mandate that investor funds be protected. The CIMA does not mandate investor fund protection, either.

In saying this, Australian traders will be attracted to this broker as it hails from their home market. Beyond this group of traders, we found it difficult to find something about this broker that could attract a certain portion of the market compellingly. Its fees are competitive enough, but not market-shaking, and its platforms are merely adequate.

It must be said that traders who select this broker are advised to have prior experience in the market, as the broker does not provide any negative balance protection or stop-loss capabilities. VT Markets touts itself as a non-advisory broker, so traders are on their own. With a maximum leverage of 1:500, traders must be prepared to sink or swim with no advice from the broker. Here are some key factors to consider before dealing with this broker:

Pros

Regulated by two entities.
Carries over 230 tradable assets.
Provides trading insights.
Solid financial analysis and risk management literature.
Fast execution on trades.
High leverage up to 1:500 available.
Third party Trading Central tools available.

Cons

No cryptocurrency trading.
Limited platforms.
Trading basket is not very diverse.
No negative balance protection.
Poor research section.

Is VT Markets Safe?

As mentioned before, VT Market’s parent company is registered in the UK and is regulated by the FCA. VT Markets in Australia and the Cayman Islands, respectively, are regulated by the ASIC and the CIMA. VT Markets in Australia keeps investor funds in a separate account with the Commonwealth Bank of Australia, which is frequently ranked as one of the top 20 safest banks in the world.

Importantly, neither the ASIC nor the CIMA call for investor fund protection in the case of broker insolvency. To deal with this, VT Markets provides additional indemnity insurance in the form of professional liability insurance. However, this is not investor fund protection as we know it, with traders eligible for funds to be paid back in case a broker goes under, but simply insurance cover for the broker in case one of its staff members discharges their duties negligently.

Traders affiliated with VT Markets Australia can consider themselves relatively safe, as the ASIC has some of the most stringent reporting guidelines for brokers that could help diagnose a problem before it gets out of hand. However, those trading through the Cayman Islands entity have a less robust operating structure to work with, inevitably leading to vulnerabilities. Overall, given this broker’s newness to the market, as well as its lack of investor protection, traders are advised to engage this broker with caution.

Trading Account Information

Account Currency

AUD, USD, GBP, EUR, CAD

Minimum Deposit

$100

Segregated Accounts

Payment Methods

Bank transfer, credit card, Electronic Banks

America Accepts

Available Markets

Forex, Commodities, Stocks, Cryptocurrencies, Indices, ETFs, Bond.

Trial Duration

30 Days

Offering of Investments

The company offers the following set of investment products:

FOREX.
Indices.
Energy.
Precious metals.
Soft commodities.
US CFD shares.
HK CFD shares.

Traders can make the most of over 100 CFD instruments covering the above-mentioned trading options. Clients can trade in over 40 currency pairs and take advantage of over 15 world stock indices, such as the DAX30, the DJI30, and the SP500. They can also trade energy commodities like crude oil, natural gas, and gasoline. Precious metals include gold and silver, while soft commodities encompass commodities such as cocoa, coffee and cotton.

While this product basket shows the broker’s desire to provide a diverse range of tradable assets, experienced traders can instantly spot the telltale signs of a limited basket, such as a relatively low number of FOREX pairs and only two available precious metals to trade.

Markets	Available	Number of Assets
Currency Pairs		47
Stocks		725
Commodities		15
Crypto		3
Indices		7
ETFs		52

Account Types

Account Type	Minimum Deposit	Spread Commission	Commission	Swap Commission	Deposit Commission	Withdrawal Commission
Standard STP	$100	Starting from 1.2 pip	$0	Not mentioned	Starting at $0 with credit cards and wire transfer, and up to to 2% with electronic banks.	1.5% when using credit cards and/or electronic banks and up to 30$ with bank transfers.
RAW ECN	$100	Starting from 0 pip	$6 (per round turn)	Not mentioned	Starting at $0 with credit cards and wire transfer, and up to to 2% with electronic banks.	1.5% when using credit cards and/or electronic banks and up to 30$ with bank transfers.
Swap-free	$100	Starting from 1.2 pip	$0	Not mentioned	Starting at $0 with credit cards and wire transfer, and up to to 2% with electronic banks.	1.5% when using credit cards and/or electronic banks and up to 30$ with bank transfers.

VT Markets provides traders with two simple account types.

Standard Straight Through Processing (STP) Account: The broker advertises this STP account as the perfect solution for beginner traders who wish for uncomplicated market entry with zero commissions. The account has the following features:

Spread from 1.2 pips.
Zero commission.
Available currencies USD, AUD, GBP, EUR and CAD.
Links to over 30 liquidity partners.
$200 minimum deposit.
Maximum leverage of 1:500.

Raw Electronic Communications Network (ECN) Account: The broker sells this account to seasoned traders who need generous liquidity and highly competitive spreads. According to the broker’s marketing messages, the spreads on this account are the lowest in the entire FOREX trading industry. Using ECN execution, traders can access competitive spreads and low commissions via rapid execution speed. The account has the following key features:

Spread from zero pips.
$6 Commission per lot.
Available currencies USD, AUD, GBP, EUR and CAD.
Over 100 tradable assets.
$200 minimum deposit.
Maximum leverage of $10.

Islamic Account: Islamic traders can access compliant versions of the broker’s two main account types. The Islamic Standard STP and Islamic RAW ECN accounts provide deep liquidity and trading on MT4 and MT5. Islamic accounts do not incur interest fees on overnight positions, but they attract a small administration fee.

Account Opening

By clicking the Live Account button on the VT Markets landing page, traders can go through a process that will allow them to have a functioning account in a few minutes. They will need to provide standard Know Your Customer (KYC) information, such as biographical details. All they need to do is provide the proof. This process is handled in a secure Client Portal Area, where trader information is safe.

Demo Account

The broker offers a Demo Account, where traders can practice their trading skills and strategies. The Call-to-Action Demo Account tab takes would-be traders directly to a secure location, meaning that it is not immediately clear what the terms of the Demo Account are.

Bonuses and Promotions

VT Markets offers attractive promotions to new traders. They are designed to encourage regular deposits and increased trading within its client base. There is a $500 Welcome Bonus for traders who deposit their first $1,000. There is also the tempting offer of a 20% re-deposit bonus each time traders make a deposit into their account.

Advantages of Trading

Maximum Leverage

1:500

Minimum Lot Size

0.01

Available FOREX Pairs

47 Currency Pairs

Scalping

Yes

Hedging

Yes

Spread

Starting from 1.2 pips

Trailing Stop

Yes

Islamic Account

Yes

Trading Platforms

Web platform, MT4,MT5,Private platform

Regulatory Bodies

ASIC

Broker Type

STP

Deposits and Withdrawals

VT Markets traders can make deposits and withdrawals via several convenient methods. These include:

Domestic Electronic Funds Transfer (EFT).
International EFT.
Bpay.
Poli Payments.
Debit/Credit card.
China Union Pay.
Neteller.
Skrill.
FasaPay.
Broker-to-Broker.

Accounts can be funded in AUD, USD, GBP and EUR. Withdrawals through bank wire transfer, debit/ credit card, Neteller and Skrill are free of commission, although third-party charges may apply. Monies must be withdrawn into a bank account with a holder name that matches your VT Markets trading account. Traders should note that international transfers are subject to a facility fee the equivalent of 20 units of the base currency.

Customer Service

VT Markets provides skilled and helpful customer support in both English and Mandarin Chinese. Clients can access these services through live chat, email and a handy call back service available 24/5. The live chat service is manned by well-trained staff who are ready to help.

Commissions and Fees

Trading costs depend on the applicable asset class and the type of account in question. Costs are in line with the market. Both the Standard STP Account and the Raw ECN Account have a minimum deposit of only $200.

Average spreads with this broker hover at around 1.2 pips for the Standard STP account. The Raw ECN Account shows an average effective spread of 0.7 pips. This is based on its 0.6 pips commission and 0.1 pips average spread. This pricing is generally in line with the industry average, with only the Standard STP Account being slightly expensive.

The Standard STP Account provides zero-commission trading, with only spreads and swaps payable. The Raw ECN Account features a commission charge of $6 per lot per round turn, with spreads and swaps applicable. Spreads can be as low as zero pips. Traders should consult the broker’s rate card, which is updated with information on the latest spreads and overnight charges per instrument.

Leverage

The broker offers a maximum FOREX trading leverage of 1:500. Traders can alter their FOREX leverage by contacting the broker to enact the change. However, the broker stresses traders do so at their own risk, as highly leveraged trading is extremely risky. VT Markets reminds traders that, as a non-advisory FOREX broker, it cannot provide investment advice.

Platforms and Tools

VT Markets does not have a proprietary trading platform and relies on MT4 and recently MT5 to carry its products to market. It offers the desktop and Web versions of these platforms. Although it relies on MetaTrader, and this could be a slight criticism, the broker offers the full MetaTrader platform solution, as well as a suite of extra plugins for traders who deposit above $1,000.

By using MT4 and MT5 in conjunction, traders can have access to multiple chart types, timeframes, and FOREX signals. They will also receive help from Expert Advisors (EA) for automated trading. They can also access multiple order types, all without the need of a download.

Mobile Trading

Traders can execute orders on-the-go from the MT4 and MT5 mobile apps that are available on both Android and iOS devices. Clients can find the app download buttons on the broker’s Website, or they can choose to go to Google PlayStore or Apple AppStore.

The MetaTrader-enabled mobile apps offer many of the same features and technical analysis tools as the desktop and Web versions. Traders can carry out technical analysis, survey real-time pricing, and trade from charts. At the time of this review, the VT Markets Pro app was recently released, and promised many of the same individualized trading insights and detailed financial analysis that traders can get on the MT4 and MT5 mobile apps.

Research and Development

According to our findings, the broker does not offer a strong selection of research resources. The material on its flagship Daily Market Analysis series only amounted to one article per day. The complementary research-based Daily Video update was not much better, as its daily two-minute 30 second videos did not do enough to cover the markets.

Education

The broker has responded to established criticism of its lack of educational materials by recently commissioning a slate of helpful educational resources. Its education section is now much better stocked. It carries the following sections:

Learn FOREX.
Education videos.
MT4 Guide.
Trading Central Tools Guide.

Traders can analyze each section and find a range of detailed and informative materials. For example, the Educational Videos section carries such helpful videos as Fibonacci guides, trading techniques and psychology, and chart formation patterns. The material is professionally produced and presented and is targeted at various levels of traders.

Final Thoughts

This broker is an emerging force in the Australian region. It still has some way to go toward realizing its aim of surging worldwide growth. As a recognizable Australian-based broker, it is perfectly geared for its home market, but it may struggle to satisfy clients from other regions of the world.

Its levels of regulation leave something to be desired, and it does not provide extra investor protection. Its trading platforms, while dependable, do not show a broker that is trying to push the trading experience to the next level, as stated in its own slogan.

Its fees are competitive without being market leading. There is a concerning lack of willingness to steer traders away from the rocks of bad trading behavior through protections, like stop-loss orders. Its research section is poor, but its education materials are now much improved.

Its market access is acceptable but is nowhere near best-in-class. Overall, the broker is trying to get a foothold in the industry as it is still a young company. In our assessment, it has a way to travel because much of its product offering requires enhancement before it can be considered a powerful player.

Conclusion

VT Markets is growing steadily, but its products still leave many areas in need of development and improvement. For a start, it simply must improve its regulatory framework and investor protection plans to show faith to its clientele.

Beyond that, the broker’s fees are acceptable, as is its platform coverage. The broker is not excellent at any one thing, but appears to be trying to remain competitive in all the areas. Its trading basket requires a boost, and it could offer more attractive spreads and rewards to attract high-volume traders.

With no research resources of any note, and a recently introduced educational section, the broker needs to develop in this area to show traders it wishes to be by their side along their trading journey. For a young broker, VT Markets is trending well, but it must know that it needs to improve in several areas to catch up to the competition.

VT Markets in Brief

VT Markets is an improving broker from Australia. Its regulation is weak, and it needs to find better ways to secure client investments. Its fees are acceptable, and so are its platforms. It will serve entry level and seasoned traders alike, but it is not at the front end of broker innovation.

Review Methodology

The team at Arincen collected over 120 pieces of data covering in excess of 100 licensed FOREX companies. Data collection was done in three ways:

1. Companies’ Websites.
2. Other Websites that have ranked FOREX companies.
3. A survey questionnaire (referred to here as Survey “1”) we had sent to the companies invited to participate in the exercise.

We have identified 12 criteria for our assessment, each containing several aspects and carrying its own relative weight. These include licensing, deposits and withdrawals, number of assets etc.

Afterward we validated the data by:

1. Registering with FOREX companies as a secret shopper and/or as Arincen.
2. Survey number “2,” in which we asked these companies’ customers for important feedback and past experience.

The next step saw us evaluate and rank each company, relying on the hard work of 15 Arincen employees. We were very careful in ensuring the most accurate assessment possible, including taking into account different languages, as well as the various mobile-app operating systems e.g., Apple, Samsung etc.

To add credibility to our research project, we sent a final and third survey (referred to here as Survey “3”) to enable participating FOREX companies to evaluate our own research and whether it accurately reflects the realities on the ground. We were fortunate enough to receive a mark of 9.9 out of 10! We have kept to a minimum the margin of error, which stood at a measly 1%. To learn more on how we came up with the evaluation, please click here.