An ideal broker should be a link between the market participants and the market itself. A trader when entering the market trusts the broker with money and feelings. Brokers like Vantage FX cannot be trusted with such integrity. Such brokers like to claim that they provide top-class services but do not have facts to back such bluffs. The category of VantageFX is degraded, the facts are folded, seldom trustworthy or relatable information can be seen on the broker’s website’s homepage.
Rather than giving out the basic accounts, the broker force-feeds three more complicated accounts; namely, raw ECN, standard STP, and Pro ECN. This is clearly different from most of the brokers and the idea of the simplicity of having silver, gold, or platinum as their core accounts.
A trader linked to Vantage FX has to go through an STP execution. This means that another third party involvement is forced by the broker on the investor. This third party then handles the investor’s money, NOT the broker. The hard-earned money of the investor is at clear risk and no one but Vantage FX is to be blamed.
Another claim of the broker says that it “provides services that are designed for beginner and professional traders”. This sounds so negative since the minimum account requirement for one of its accounts is $20,000. That is a hefty number for even professional traders. So we don’t see where the concept of helping beginner traders is?
The broker offers trading from the globally successful MetaTrader 4 from desktop and web. Since MT5 is already in the markets doing wonders, the availability of MT4 sounds pretty outdated.
The broker also claims to provide 500:1 leverage. This means that with one dollar, the trader can control the trades worth five hundred dollars. As bizarre as it sounds, such a leverage option looks like it placed there just to play with the trader’s emotions and getting money out his pocket as an end result.
The support team claims to be present for five days a week, but trusted sources tell us that they don’t respond to straightforward queries. The team doesn’t respond; it is also not there to support the traders trading on weekends when the market is most volatile since many day traders trade on weekends when they don’t have to go to their regular jobs.
The Vantage FX broker claims to provide traders with the economic calendar and whatnot, but the truth is, that it provides all of the backdated information to its traders. Traders who trusted the broker with almost everything, including the claim, which says that “all the latest information is provided”, are now in deep trauma. Most of the information is old and can lead to wrong decision making on the client’s part.
Commission and Fees
All the accounts rendered by the broker entail high commissions that are charged on each trade. This is very bad for day traders, swing traders in particular. In swing trading, multiple trades are made throughout the day. When each trade is looked upon as a single trade, the profits are less but when these trades add up to a bigger number, that is when the actual profit is calculated.
If the broker starts taking commission per trade from the trader, what will he earn? There is probably nothing because after the commissioning part is done, there is very little profit left in his account.
The commission charged is not at all low, the broker asks for $3 per trade, per lot. Put a special focus on the terms “per lot” the lot size in forex trading varies from 1000 units of currencies to 100,000 units of currencies. The maximum a trader can make in forex trading a single lot is $10.
If the broker asks for $3 in the commission of each trade, 30% of the profit is already gone. Then comes the taxes and then comes the real earnings and after such commission-based trading, we don’t think there are any left.
Apart from all this, the spread asked by the broker for the standard account (in layman terms) itself is 1.4 pips. This is very much higher as compared to other brokers. Pips send more and more money to the broker when a trader wins his trade.
When the broker is not asking for pips, it is asking for a commission. All of this is intended to keep the trader in the loop so that he HAS to pay a handsome amount out of his pocket, at the same time keeping the collars clean from the broker’s end.
Account opening and minimum deposit
Another point where the broker fails to embark itself as a successful broker is when it asks for the minimum deposit. The minimum deposit asked by the broker for its pro account is $20,000. That is the least traders need to have in their brokerage account if they even want to begin trading. $20K is what people make out of trading in a year.
Given the fact that they are better traders than Jim Rogers himself.
When we dug a little deeper, we found that the broker is not regulated by any UK or European regulatory authority. This means that if any trader sitting in these parts of the world finds out that his trade was wrongfully executed, or there is any inside information-based trading going on with the broker, the broker is not subject to regulatory authorities from these counties to be specific.
Deposit and withdrawal
The Vantage FX offers withdrawals via wire transfer and credit cards only, completely neglecting more popular options such as skrill or Neteller. When it comes to the deposits, more variety of options is offered because here, the incoming money is involved, not the outgoing. The whole idea seems like a money-making machine.
Before getting to know brokers, before getting into traps where brokerage is sold in terms of leverage, margins and spreads, do your research. Take as much time as you want for research because that is the only thing that can save you from bad brokers and further, make the correct trades. There are several brokers that are regulated and reliable like T1Markets, HFTrading , PrimeFin, and IGMFX as some of the best brokers.
Frequently asked questions:
Is the broker safe or not?
We do not guarantee the broker being safe, nor we claim that it good for you to trade with it.
Where can I find information on many brokers at one site itself?
There are many good websites that review brokers as per their choice, but we recommend www.fxreviews.best
Can I lose money while trading with Vantage FX?
You WILL lose money in trading. The game is to lose and then compensate it by constant winnings.
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