Is VT 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 VT Markets try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether VT 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 VT Markets
The VT Markets (Pty) Ltd broker is an international intermediary that offers transparent access to Forex and CFD trading. The company has been providing services since 2015 and is regulated by the Australian Securities & Investments Commission (ASIC: 516246), Financial Sector Conduct Authority of South Africa (FSCA: 50865), Mauritius Financial Services Commission (FSC: GB23202269). Its mission is to provide traders all over the world with the best terms without forced requotes, price manipulation, or trading restrictions. VT Markets (Pty) Ltd received over 13 awards in the field of online trading. It has been recognized as the Best MT4/MT5 Broker with the Lowest Trading Costs by the Global 100 Awards 2020.
| 💰 Account currency: | USD, EUR, GBP, CAD, and AUD |
|---|---|
| 🚀 Minimum deposit: | From USD 100 |
| ⚖️ Leverage: | Up to 1:500 |
| 💱 Spread: | From 1.2 pips (Standard), from 0.0 pips (ECN) |
| 🔧 Instruments: | Currency pairs, CFDs on US and Hong Kong stocks, indices, commodities, energy resources, ETFs, bonds, and precious metals |
| 💹 Margin Call / Stop Out: | 80%/50% |
Pros and cons of VT Markets
👍 Advantages of trading with VT Markets:
•Financially stable parent company and reliable custodian bank.
•Over 230 assets of different classes are available for trading.
•It allows trading using STP, ECN, and Islamic accounts.
•A wide range of investment solutions from reputable third-party platforms.
•Margin trading with leverage up to 1:500 for cryptocurrency pairs.
•Average trading commissions on ECN and precise market spreads on all account types.
•Access to making trades in desktop and mobile terminals MetaTrader 4/5, as well as in the web version of MT4.
👎 Disadvantages of VT Markets:
•The high minimum deposit for novice traders is $100.
•Lack of access to micro (cent) accounts.
•The list of available assets does not include cryptocurrencies and ETFs.
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 VT Markets Regulated? Broker’s license
Security (Protection for Investors)
VT Markets is a trademark of VT Global Pty Ltd is authorised by the ASIC (licence number - 516246).
VT Markets is representative offices are authorized and regulated in different jurisdictions. In South Africa, it is supervised by the Financial Sector Conduct Authority FSCA (license number - 50865), and in Mauritius by the FSC (license number - GB23202269). VT Markets' client funds are stored in segregated accounts at the Commonwealth Bank of Australia (CBA), the largest Australian bank with a AA rating and a market capitalization of $120 billion.
👍 Advantages
- Australia's largest bank acts as the depository
- You can file a complaint against the broker to the regulator
- CIMA allows trading with high leverage and the use of e-wallets for payments
👎 Disadvantages
- You cannot open a trading account without providing scanned copies of documents
- CIMA doesn’t compensate traders if a broker declares bankruptcy
Brokers that are similar to VT 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 VT Markets conditions with its closest competitors.
Comparison of VT Markets with other Brokers
| VT Markets | RoboForex | Pocket Option | Exness | FBS | FreshForex | |
|---|---|---|---|---|---|---|
Trading platform |
MetaTrader4, MetaTrader5 |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MobileTrading |
MT4, MobileTrading |
Min deposit |
$100 |
$10 |
$5 |
$10 |
$1 |
No |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
Yes |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0.2 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, Instant Execution |
No deposit bonus |
No |
No |
No |
No |
$5 |
$30 |
Cent accounts |
No |
Yes |
No |
No |
Yes |
Yes |
VT Markets is a broker for Forex and CFD trading with low leverage and low spreads in the newest versions of MetaTrader platforms.
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.
FBS is a broker for those who appreciate a variety of trading instruments and prompt support. The company is suitable for both beginners and experienced traders working on PCs and smartphones.
FreshForex is a reliable Forex broker providing a standard set of trading tools. The company is a good option for traders of all levels, from beginner to professional traders. It is mid-range in terms of size and number of registered traders and they are reliable based on our research and analysis.
Conclusions
VT Markets is a quite reliable broker for trading. VT 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.