Is Velocity Trade 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 Velocity Trade try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether Velocity Trade 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 Velocity Trade
Velocity Trade is an international brokerage company that has been providing financial services since 2007. The range of services includes comprehensive brokerage solutions, commission management, creation of trading terminals, access to the Forex market and 40 international exchanges, as well as consulting and financial services. The range of trading instruments available includes currency pairs, stocks, futures, options, commodities, CFDs, FX Spot, and others. Companies from different countries can become Velocity Trade clients because Velocity Trade is licensed on 5 continents. The broker is authorized and regulated by the Australian ASX and ASIC (329813); Canadian IIROC, CIPF, and TMX; European AFM; South African FSCA (43295) and STRATE; British FCA (497263); and the New Zealand FMA (FSP20003).
| 💰 Account currency: | Multicurrency accounts |
|---|---|
| 🚀 Minimum deposit: | $1 |
| ⚖️ Leverage: | From 1:1 |
| 💱 Spread: | Determined individually |
| 🔧 Instruments: | Forex, stocks, metals, commodities, fixed income assets, margin instruments, vanilla and exotic options, futures, CFDs, FWD, NDF, Spot FX |
| 💹 Margin Call / Stop Out: | No |
Pros and cons of Velocity Trade
👍 Advantages of trading with Velocity Trade:
•The company cooperates with clients worldwide.
•It offers a large number of trading instruments.
•The broker is regulated and licensed in 6 regions.
•The company offers comprehensive solutions for its clients.
•Trading terms of cooperation are discussed with each client on an individual basis.
•The company provides high asset liquidity, including margin instruments.
•The broker has about 10 offices in various countries.
👎 Disadvantages of Velocity Trade:
•The company doesn’t offer financial services to private traders.
•Bonuses and affiliate programs are not provided.
•Not any organization can become a Velocity Trade client because the broker reserves the right to reject an application for cooperation.
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 Velocity Trade Regulated? Broker’s license
Security (Protection for Investors)
The VelocityTrade brokerage provides financial services on 5 continents and is regulated by the proper authorities on each of them. For example, in Australia, Velocity Trade is licensed by the AFSL to provide financial services (license number 329813), is a member of the ASX (Australian Stock Exchange) and is supervised by the ASIC (Australian Securities and Investments Commission). In Canada, the company is registered with Fintrac, and is also a member of IIROC (Investment Industry Regulatory Organization of Canada), CIPF (Canadian Investor Protection Fund), TSX Venture Exchange, and the Toronto Stock Exchange.
In New Zealand, the broker is registered with the FMA (Financial Markets Authority) as a financial services provider under number FSP20003. In the South African region, Velocity Trade is an Authorized Financial Services Provider (FSP number 43295), supervised by the FSCA (Financial Services Supervision Authority of South Africa) and approved by STRATE. In the UK, this broker is regulated by the FCA (Financial Conduct Authority) under registration number 497263. It is also registered in the Netherlands and regulated by AFM (Netherlands Financial Markets Authority).
👍 Advantages
- VelocityTrade is regulated by local authorities in 6 global regions
- The broker has several licenses to provide financial services
- The company provides information on sales and trade in the public domain
👎 Disadvantages
- There is no information on the Velocity Trade data protection center
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 Velocity Trade, which you can see below.
The experts at the Traders Union inspected Velocity Trade for hidden and explicit trading fees, as well as non-trading fees. The specifics of Velocity Trade's work don’t allow you to determine the size of commissions beforehand. The company's clients are not private traders, but financial corporations, therefore Velocity Trade determines the terms of cooperation for each client individually.
| Account type | Spread (minimum value) | Withdrawal commission |
| Real account | from $2 | Discussed individually |
Brokers that are similar to Velocity Trade
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 Velocity Trade conditions with its closest competitors.
Comparison of Velocity Trade with other Brokers
| Velocity Trade | RoboForex | Pocket Option | Exness | FreshForex | XM Group | |
|---|---|---|---|---|---|---|
Trading platform |
Proprietary Mobile app, Proprietary portal, Proprietary platform |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MobileTrading |
MT4, MT5, MobileTrading, XM App |
Min deposit |
$1 |
$10 |
$5 |
$10 |
No |
$5 |
Leverage |
1:1 |
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 |
From 0.1 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0 points |
From 0.6 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, Instant Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
$30 |
No |
Cent accounts |
No |
Yes |
No |
No |
Yes |
Yes |
Velocity Trade is a broker for financial institutions willing to expand the range of services that it provides, such as access to global order execution and its business development consulting services.
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.
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.
XM Broker is a broker for professional trading. Trading conditions correspond to the average market; there are technical advantages that distinguish XM Broker from its competitors.
Conclusions
Velocity Trade is a quite reliable broker for trading. Velocity Trade 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.