Is Varchev Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with Varchev try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether Varchev is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker Varchev
Varchev is an international broker that has been providing financial services in the market for 29 years. The company was established by Biser Varchev. The broker provides access to Forex instruments, indices, stocks, commodities, exchange funds and other financial instruments. The company is regulated by Bulgarian FSC (Financial Supervision Commission, RG-03-02-05/15.03.2006). The operation of Varchev meets the requirements of the European directive MiFID, and the broker also works with the ICF (Investor Compensation Fund).
| 💰 Account currency: | USD, EUR, GBP, BGN |
|---|---|
| 🚀 Minimum deposit: | USD, EUR, GBP 200 or BGN 400 |
| ⚖️ Leverage: | Up to 1:500 |
| 💱 Spread: | Floating |
| 🔧 Instruments: | Currency pairs, cryptocurrency, stocks, indices, IPO, CFD, ETF, precious metals, commodities |
| 💹 Margin Call / Stop Out: | No data |
Pros and cons of Varchev
👍 Advantages of trading with Varchev:
•The commissions charged by Varchev are lower than the average commissions in the market.
•The broker offers a wide choice of trading instruments.
•There is a section with free educational materials on the company’s website.
•varchev.com offers negative balance protection.
•Clients can visit the broker’s offline office in London.
•Varchev offers different deposit and withdrawal methods, including wire transfers and electronic payment systems.
•Trading from mobile devices is available.
👎 Disadvantages of Varchev:
•Bonus programs are available only to professional clients of varchev.com.
•Limited number of methods for contacting customer support.
•The broker does not offer investment programs for earning passive income.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is Varchev Regulated? Broker’s license
Security (Protection for Investors)
The broker’s reliability is determined by the availability of regulatory authorities and licenses. Also, the broker is registered with the FSC (Financial Supervision Commission) with the license number RG-03-02-05 (15.03.2006). Varchev complies with the provisions of The Markets in Financial Instruments Directive (MiFID), which also speaks for the company’s reliability.
Client funds of varchev.com are held separately from the broker’s funds. Separate accounts in such banks as Barclays, Unicredit, Citi Bank, IG Markets are used for holding client funds, and also holding the funds with liquidity providers and prime brokers is admissible. Additional protection of the capital is ensured by the broker’s partnership with the ICF (Investor Compensation Fund).
The fund ensures compensation for the investors, in case varchev.com is no longer solvent and cannot fulfill its obligations to the clients. Also, Varchev uses automated systems for protection of accounts against negative balance. The broker thus warns traders about possible losses.
👍 Advantages
- The broker’s operation is regulated by FSC
- The funds of the clients are held in segregated accounts
- The broker works with the Investor Compensation Fund
- The company offers negative balance protection
👎 Disadvantages
- No information about protection of personal data of the clients
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by Varchev, which you can see below.
Trading conditions of Varchev were analyzed by the TU experts to discover the size of the trading commissions and hidden fees. The commission for order execution on Varchev.com starts from 0.03% per stock and 5% per trade, if a trader is trading stocks. The broker does not charge platform, account maintenance and quote fees. Hidden fees have not been discovered as well.
| Account type | Spread (minimum value) | Withdrawal commission |
| Real Account | From 1$ | May be charged by payment systems |
| Cent Account | From 1$ | May be charged by payment systems |
Brokers that are similar to Varchev
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of Varchev conditions with its closest competitors.
Comparison of Varchev with other Brokers
| Varchev | RoboForex | Pocket Option | Exness | FxPro | Tickmill | |
|---|---|---|---|---|---|---|
Trading platform |
MetaTrader4, MetaTrader5, Varchev Absolute Trader |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MobileTrading, MT5, cTrader, FxPro Edge |
MT4, MT5, Tickmill Mobile App |
Min deposit |
$200 |
$10 |
$5 |
$10 |
$100 |
$100 |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
Yes |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0.1 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
$30 |
Cent accounts |
No |
Yes |
No |
No |
No |
No |
Varchev is a broker for professional market players and traders with experience. Trading conditions of Varchev for professional and non-professional clients differ.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
FxPro is a reliable broker company that offers market access to all traders, regardless of their level of knowledge and experience. Broker's clients are protected from negative balance; their activities are carried out in comfortable conditions and with competent professional support.
Tickmill is a suitable broker for both professional traders and novices. The company is good for robotic trading as well as for short-term strategies.
Conclusions
Varchev cannot be considered absolutely reliable. The broker operates on a license of an offshore regulator. This creates certain risks regarding security of your funds. The broker has a good reputation. However, you can work with companies with an offshore regulation only at your own risk.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.