VT Markets Review 2024

Trust

VT Markets Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker, allowing us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about the three entities operating under the VT Markets trade name:

• VT Global Pty Ltd is licensed and regulated by the Australian Securities and Investments Commission (ASIC) under license number 516246. We rate ASIC as a Tier-1 regulator. The entity only accepts wholesale clients.
• VT Markets (Pty) Ltd is licensed and regulated by the Financial Sector Conduct Authority (FSCA) under license number 50865. We rate the FSCA as a Tier-2 regulator.
• VT Markets Limited is licensed and regulated by the Mauritius Financial Services Commission (FSC) under license number GB23202269. We rate the FSC as a Tier-3 regulator.

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities to serve clients worldwide. However, licenses obtained from regulators in different jurisdictions do not always entail the same degree of protection.

Some regulators mandate compliance with the strictest financial frameworks, while others are less rigid. That is why traders must familiarize themselves with the safety mechanisms ensured by the entity they want to open an account.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All of VT Markets’ entities ensure the segregation of client funds.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. Negative balance protection is available with all VT Markets entities.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities if the company becomes insolvent. VT Markets is a member of The Financial Commission, and its clients are insured by up to EUR 20,000.
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum retail leverage with VT Markets is 1:500.

Stability and Transparency

In our Trust category assessments, we evaluate factors tied to stability and transparency, including the broker’s longevity, company size, and information transparency.

Based on my thorough research of the broker’s legal and regulatory documents, I assessed that VT Markets is very transparent and trustworthy. It is a member of The Financial Commission, which is a dispute resolution mechanism in the global financial system.

The broker has also issued a ‘best execution policy’ – a legal mandate for derivative brokers to provide their clients with the most optimal price quotes under the prevailing market sentiment. VT Markets also displays live spreads on its website, so traders can quickly assess the competitiveness of the broker’s prices.

Finally, I went over VT Markets’ Client Agreement and discovered that everything was in order. Vital information is readily available and presented in an easy-to-understand manner.

Is VT Markets Safe to Trade With?

I concluded that VT Markets is very safe due to the following factors:

• Provides essential safety mechanisms
• Has issued a ‘best execution policy’
• Is a member of The Financial Commission

Fees

VT Markets Trading Fees

VT Markets Spreads

I tested VT Markets’ spreads on 24 July 2024 during the London and the New York open. The results are shown in the table below:

Broken down by asset class and compared to the industry average, VT Markets charges low spreads on share CFDs, indices, and cryptocurrencies, low-to-average spreads on commodities and average-to-high spreads on currency pairs.

VT Markets Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full base currency contract (100,000 units).

My tests indicate that VT Markets’ swaps are average-to-high compared to the industry benchmark. This combination is not particularly suitable for longer-term trading.

VT Markets’ Non-Trading Fees

Deposits with VT Markets are cost-free, but the broker charges a handling fee on withdrawals depending on the chosen payment method. However, VT Markets does not charge dormant accounts with an inactivity fee.

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees of VT Markets’ two retail accounts and the industry average. It illustrates the spreads and commissions I have recorded for the EUR/USD pair and compares them against the typical costs for ECN and STP accounts in the industry at large.

The table demonstrates how much you would have to pay to trade 1 full lot (100,000 units) in EUR/USD with a pip value of $10 for each account.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

My tests indicate that, for currency trading, VT Markets’ STP account offers less favorable conditions than the industry average, while its Raw ECN account outperforms the average. However, VT Markets provides some of the most favorable conditions for trading share CFDs, indices, and cryptocurrencies.

Are VT Markets’ Fees Competitive?

I concluded that VT Markets offers competitive trading fees on its Standard commission-free account overall. Its spreads across popular instruments from various asset classes are generally lower than the industry average, except for forex pairs, which have quite elevated spreads. Another drawback is that VT Markets charges a handling fee on withdrawals.

Platforms and Tools

The Desktop Version of VT Markets’ MT5 Platform

I tested the MetaTrader 5 platform, which features multiple essential tools, such as one-click trading, an alarm setting option, and a market depth tool. These allow traders to examine various market developments from different angles and to exploit the underlying trading opportunities in multiple ways.

MT5 is arguably best suited for automated trading via its Expert Advisors (EAs) feature. The platform also has an intuitive strategy tester, allowing experienced algo traders to tweak the parameters of their strategies so that they can be used under different market conditions. Additionally, MetaTrader 5 has an intuitive mobile app, which helps traders stay connected to the global capital markets even on the go.

VT Markets also offers Virtual Private Server (VPS) hosting for low-latency trading (with an average execution speed of around 3 milliseconds). When you deposit at least 1000 USD and trade at least $0.5 million notional value per month, the broker will refund you $25. You can find additional information about the offer here.

For those interested in copy and social trading, the broker has developed its proprietary VTrade solution, which connects signal providers and signal followers. The feature is available from the main client area.

General Ease of Use

MT5’s layout is pretty straightforward. Account info is displayed at the bottom of the screen. Charts occupy the middle portion of the window; a watch list of selected instruments and tools screen is positioned on the left side of the window. A panel with various settings and configurations can be found at the top of the window.

Charts

The chart screen is the platform’s most important feature. It facilitates technical analysis by providing an overview of price action behavior. Chart artists use many analytical tools and chart configuration possibilities to examine it from multiple angles. In my experience, the really important aspect of a chart is how easy it is to scale price action up and down.

As shown above, the problem with MetaTrader is that the charts can be crowded quite easily, even when we add no more than 2 indicators. This obscures price action behavior and makes it more difficult to conduct probing technical analysis.

I have broken down the available analytical tools and chart configurations below:

• 38 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next.
• 24 drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels. Despite the rather large collection of drawing tools, MT5’s ruggedness makes it difficult to discern price action behavior.
• 21 timeframes. One of the standout features of MetaTrader 5 is its vast array of timeframes. MT5 allows multi-timeframe analysis of price action behavior. The greater the number of timeframes, the more intricate examinations that can be carried out across the short-term and long-term.
• 3 chart types. Price action can be represented as a line, bars, or candlesticks. This diversity allows traders to examine potential trading opportunities from different angles.

Orders

I have broken down the available order types on the MetaTrader 5 platform below:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price at which the order is filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

My Key Takeaways After Testing the MetaTrader 5 Platform

In my opinion, MT5 is a good option for fast and simple order execution. On the other hand, its dated and rugged design falls short compared to newer, sleeker platforms. As a trader who prioritizes flexible chart scaling, I find MT5’s charting capability too rigid and less effective.

VT Markets’ Execution Model

VT Markets operates under a hybrid STP/ECN model without a dealing desk. The broker’s Standard account features STP execution, whereby client orders are routed to the broker’s liquidity providers. In contrast, its Raw account features order matching via electronic communications.

VT Markets’ Mobile MT5 App

The mobile app version of MT5 affords quick and easy access to the market on the go. It is very useful for opening, terminating, and adjusting open positions.

The market is continually evolving, marked by periodic surges and declines in volatility. For this reason, staying on top of the latest market developments is crucial, a task made simpler through the mobile app version of MT5.

You can also use the app to place market, limit, and stop orders and adjust the exposure of your open trades.

My Key Takeaways After Testing MT5’s Mobile App

MT5’s mobile app suffers from the same underlying problem inherent to other mobile apps. Analyzing price action behavior on low-resolution devices is extremely difficult. That is why I recommend using the mobile app only to monitor the development of your open positions and make changes if needed.

Tradable Instruments

Compared to the industry average, VT Markets offers an average number of currency pairs and a high number of commodities, share CFDs, indices, and cryptocurrencies.

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the underlying asset’s price without physical delivery.

For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars.

One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With VT Markets?

My Key Takeaways After Exploring VT Markets’ Instruments Offering

VT Markets’ instruments offering is broad and diverse. I was especially impressed by the wide variety of ETFs and bonds that afford traders to diversify their market exposure over time. Moreover, VT Markets offers some pretty rare currencies, such as the Bolivian Peso and Indonesian Rupiah.

Customer Support

Customer Support Channels

Customer Support Test

When we test a broker’s customer support, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I conducted my test on 25 July at around 9:32 a.m. CET via live chat. Before connecting to an agent, I had to navigate a chatbot. It is meant to answer more basic and straightforward questions. Upon requesting to speak to an agent, one connected almost instantaneously.

I inquired about the broker’s margin call and stop-out policy. The agent’s answers were swift, straight to the point, and polite.

Deposit and Withdrawal

VT Markets Deposit Methods

VT Markets Withdrawal Times

Account Types and Terms

VT Markets Account Opening Process

To open an account with VT Markets, follow these easy steps:

1. Click ‘Trade Now’ at the top-right corner of the main page.
2. State your country of residence and email address.
3. Choose a password.
4. Enter your personal details.
5. Choose a platform, account type, and base currency.
6. Verify your identity by providing your ID/passport number.
7. Upload proof of ID and proof of address to verify your account.

VT Markets’ Account Types

With a margin call and stop-out levels set at 50%, VT Markets’ Standard account is geared towards inexperienced traders. Meanwhile, the Raw account is better suited for more experienced speculative traders offering a combination of a margin call at 80% and stop out at 20%.

Cent accounts have much lower contract sizes and are intended to be used by beginners making the transition from practice to real trading. They may also suit algo traders wanting to test the performance of their automated strategies.

Demo Accounts

VT Markets offers a demo account that introduces traders to the broker’s services and allows them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account along with a live CFD account.

Islamic Account

VT Markets offers swap-free trading via its Islamic accounts in accordance with Shariah law. You can create one by getting in touch with VT Markets’ customer support.

What is CFD Leverage?

Leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of leverage. Essentially, the broker lends the trader money so that the latter can open bigger positions. Leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

Maximum Leverage By Asset Class

In the table below, I have listed the maximum retail leverage available with VT Markets for instruments from different asset classes:

Restricted Countries

VT Markets does not accept as clients traders from the United States, Singapore, Russia, and jurisdictions listed on the FATF and global sanctions lists.

Research

Research Tools

The Trading Central package, including the market buzz sentiment tool and actionable trading signals, is available to funded accounts with at least $200. The signals, in particular, are reliant heavily on technical analysis, underpinning viable entry and exit levels, stop-out levels, important support and resistance levels, and more.

VT Markets also publishes daily and weekly financial news on its YouTube channel and website. I value that every article comprises aspects of economic and fundamental analysis, explaining to the reader what is driving the market. Each article also features supporting charts underscoring price action behavior.

My Key Takeaways After Exploring VT Markets’ Research Content

I appreciated the breadth and nuance of VT Markets’ research content. Traders can stay on top of recent market developments with detailed market breakdowns and even trade on currently unfolding setups using the actionable trading signals incorporated from Trading Central.

Education

VT Markets’ blog contains hundreds of written articles about technical analysis, fundamental analysis, trading psychology, and risk management.

The broker also has its own podcast, which is divided into several topics: ‘Gold Trading Fundamentals,’ ‘ Mastering Forex Fundamentals,’ ‘Profitable Forex Tactics,’ and more.

Last but not least, VT Markets offers two educational courses for beginners and intermediate traders. They cover a wide spectrum of topics – from understanding the basic order types and reading price action behavior to more complex topics like risk management and trading psychology.

The Bottom Line

VT Markets is a well-balanced forex and CFDs broker that offers access to over 1000 instruments from different asset classes, a choice of several platforms, VPS hosting, and competitive trading fees.

The broker stands out with its robust supporting content, accessible trading accounts, and generally safe trading conditions. However, it lacks phone support and charges a handling fee for withdrawals.

In summary, I concluded that beginners stand to gain the most from VT Markets due to its extensive educational content, low fees, robust research content, and protective margin call and stop-out policies. Advanced traders like scalpers and allgo traders can also benefit from VT Markets’ VPS hosting and customizable platforms.

FAQ