Is Veracity Markets 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 Veracity Markets try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether Veracity Markets 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 Veracity Markets
Veracity Markets is an STP and ECN broker, which has been providing online access to trading Forex and CFD instruments since 2020. The broker’s focus is the traders from African countries, although the company accepts clients from all around the world. The broker offers 250+ instruments for trading, a wide selection of accounts, 24h support and the most popular trading platforms MT4 and MT5. The operation of Veracity Markets is regulated by the Financial Sector Conduct Authority (FSCA, 49924).
| 💰 Account currency: | USD, GBP, ZAR, KWD |
|---|---|
| 🚀 Minimum deposit: | USD 250 |
| ⚖️ Leverage: | from 1:100 to 1:500 |
| 💱 Spread: | from 2 pips (Fixed), from 1.6 pips (Standard and Standard Cent), from 0.0 pips (ECN) |
| 🔧 Instruments: | Currency pairs, CFDs on precious metals, commodities, indices, futures, stocks, cryptocurrencies |
| 💹 Margin Call / Stop Out: | 100-150%/30-75% |
Pros and cons of Veracity Markets
👍 Advantages of trading with Veracity Markets:
•A huge selection of trading accounts for retail and professional traders.
•No re-quotes; operation without a dealing center with direct prices of the liquidity providers.
•Desktop and mobile versions of the trading platforms MetaTrader 4 и MetaTrader 5.
•High leverage – 1:500 on all account types.
•24-hour support via Live Chat on the website and in the Personal Account.
•A possibility to withdraw funds to popular electronic wallets Bitcoin, Skrill and Neteller.
•Clients’ deposits are kept in segregated accounts at major banks.
👎 Disadvantages of Veracity Markets:
•Not very attractive conditions for novice traders: minimum deposit is $250 and the spreads are high – from 1.6 to 2 pips on a tranquil market.
•There is no educational information, video tutorials, or a glossary on the broker’s website.
•The company does not provide analytics, research instruments and news.
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 Veracity Markets Regulated? Broker’s license
Security (Protection for Investors)
Veracity Markets is a brand of Veracity Markets (Pty) Ltd., incorporated in South Africa with registration number 2018/515174/07.
It is a juristic representative of Nirvesh Financial Services (Pty) Ltd with registration number 2014/214417/07, which is a financial services provider (FSP4701), regulated by the Financial Sector Conduct Authority (FSCA). FSCA strictly controls observance of the Financial Advisory and Intermediary Services Act of 2002 by the company.
👍 Advantages
- The broker holds the deposits of the clients on segregated accounts at the banks, not inside the company
- Negative balance protection
- The regulator regularly performs financial audit of the brokers under its control
👎 Disadvantages
- The regulator prohibits the company to accept payments from third parties
- You must pass verification in order to fund a trading account
- Deposit and withdrawal with cards is not available
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 Veracity Markets, which you can see below.
Detailed analysis of conditions of all accounts of Veracity Markets showed that the broker charges two types of commissions – trading and non-trading. As a trading commission, the broker charges only spread on the Fixed, Standard and Standard Cent accounts. On the ECN account, in addition to the spread, commission per lot is charged, but only for forex and metals trading - $3.5 for opening and $3.5 for closing a trade. Veracity Markets does not charge deposit and withdrawal fees on deposits/withdrawals to the accounts at South African banks. The broker charges 2% fee on withdrawals via Skrill and Neteller. There are no inactivity, account or platform fees.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard Cent | From $0.2 | Charged on withdrawals to Skrill and Neteller |
| Standard | From $16 | Charged on withdrawals to Skrill and Neteller |
| Fixed | From $20 | Charged on withdrawals to Skrill and Neteller |
| ECN | From $0 | Charged on withdrawals to Skrill and Neteller |
Brokers that are similar to Veracity Markets
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 Veracity Markets conditions with its closest competitors.
Comparison of Veracity Markets with other Brokers
| Veracity Markets | RoboForex | Pocket Option | Exness | AMarkets | Libertex | |
|---|---|---|---|---|---|---|
Trading platform |
No |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5, AMarkets App |
Libertex, MT5, MT4 |
Min deposit |
No |
$10 |
$5 |
$10 |
$100 |
$100 |
Leverage |
No |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
No |
From 0 points |
From 1.2 point |
From 1 point |
From 0 points |
From 0.1 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
No |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
No |
Yes |
No |
No |
No |
No |
Veracity Markets offers accounts to experienced and novice traders. However, the broker offers better trading conditions to professional market players.
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.
AMarkets is a broker that is more suitable for professional trading. Everything here is designed to accommodate trading with EAs and that is the broker’s strength. The weakness of the broker is that it won’t be easy for traders without experience to work here.
Libertex is a reputable broker. It would be worthwhile to look at the platform as a technical solution. It will appeal to those who can not imagine their life without gadgets and are eager to keep up with the time.
Conclusions
Veracity Markets is a quite reliable broker for trading. Veracity Markets operates on the license of a reliable jurisdiction and its operation is regularly monitored. However, the company does not offer the best trading conditions compared to competitors. You can choose this broker and not worry about the safety of your funds, but there are better options in terms of trading conditions.
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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.