Pros & cons of VantageMarkets

VantageMarkets Fact sheet

Safety starts with regulations. When traders try to find an honest broker, they will first check if it is regulated and by which authorities. The more regulatory bodies regulate the broker, the safer it is to use their services On the regulations side, VantageMarkets seems fine as it is regulated by a few bodies, namely: 

• Australia Securities and Investments Commission - ASIC
• Cayman Islands Monetary Authority - CIMA
• Vanuatu Financial Services Commission - VFSC
• Financial Sector Conduct Authority of South Africa - FSCA

Having these regulators makes it safer for clients. The room for any fraudulent activity is greatly reduced when there are multiple regulators overseeing the conduct of the broker. 

Policies of VantageMarkets

VantageMarkets is a part of the Investors Compensation Fund and clients' funds are kept in segregated accounts. This is really important, as segregated accounts make sure the broker can not touch user funds, and if for any reason the broker becomes insolvent, your funds remain safe. 

When trading with high leverage it is possible to lose more than what’s on the account balance, this is prevented if negative balance protection is in place. Since VantageMarkets offers this negative balance protection, traders won’t lose more than what they have on their accounts.

Another important aspect is that the broker clearly describes all fees related to the withdrawals and not misleading their clients. VantageMarkets states that they don’t charge fees for withdrawals, when in fact, all the withdrawals are charged starting from a 1% fee for Skrill. Security is not much about withdrawals, but the fact that the broker tries to conceal real costs and processing times for withdrawals should be looked at with suspicion. Another thing is the processing times could be as long as 3-5 business days for bank cards and profits can not be withdrawn via Visa/Mastercard and are sent to the nominated bank account instead. With all this in mind, extra caution is advised when using VantageMarkets.

As we have mentioned in the intro, VantageMarkets is a CFD broker with more than 10 years of experience, providing over 835 trading instruments in multiple asset classes including Forex, stock CFDs, indices, and commodities for trading. This is not a small number and will include almost any trader’s preferred assets. CFDs or contracts for difference are derivatives that enable traders to trade the underlying assets without owning them. Because of this, CFDs are only useful for short-term trading activities. One more advantage of CFDs is that traders can make money no matter what the market is doing. They can short-sell the CFDs right away when markets are falling. Despite these aspects, CFDs are risky instruments and more than 76% of CFDs traders lose their money. 

Forex trading on VantageMarkets

Foreign exchange is the biggest currency market in the world. Trillions of dollars are traded each day, which dwarfs other financial markets. VantageMarkets offers 48 currency pairs in total on their trading platforms of MetaTrader 4 (MT4) and MetaTrader 5 (MT5). The spreads are very competitive, starting from 0.0 pip for certain account types. We will discuss account types and trading platforms in more detail later in this review. 

Stock CFDs trading on VantageMarkets

Stocks are among the most popular trading instruments, and CFDs enable traders to speculate on stock price movements. CFDs or contracts for difference are derivatives created solely for speculative purposes. Traders can trade underlying assets using CFDs without owning the asset itself. CFDs enable traders to short-sell the asset when markets are falling, making it possible to earn money no matter what the market is doing. 

VantageMarkets provides access to over 750 stock CFDs, enabling traders to trade with the majority of stocks freely. The commissions are often zero, making it possible for traders to profit greatly from market movements. But, there is one problem with CFDs in general, they are super risky and many CFDs traders are losing money, therefor extra caution is recommended when dealing with these instruments.

Indices trading on VantageMarkets

Indices are great instruments to track the performance of the group of assets. VantageMarkets has around 15 indices. These indices are CFDs that enable traders to gain exposure to an entire market of certain industries. The FTSE100, for example, will track the performance of blue-chip companies. You can short or long all the most popular blue chips by just trading this one CFD. Indices could also be used to analyze the overall performance of a certain industry by looking at its chart. The S&P 500 tracks the performance of the 500 top companies' stocks in the US and can be a good indicator of economic stability. 

Commodities trading on VantageMarkets

Commodities like metals, wheat, oil, and corn are great instruments to gain exposure to the raw materials market. The main factor affecting the prices of commodities the most is supply and demand. The main commodity that is a safe haven during an economic crisis is gold, and many investors try to maintain their health by buying gold. As gold is going to appreciate when there is an economic crisis, it is a good asset for hedging against inflation and other crises. VantageMarkets offer 22 commodities including both soft and hard commodities. This number may seem small, but actually, it is enough to trade most of the popular instruments of commodities in the commodities market. 

VantageMarkets offers three main account types to their clients, Standard STP, Raw ECN, and Pro ECN. Each of these accounts has its advantages and disadvantages. All three offer similar features with MT4 and MT5 platforms, leverage of 1:500, minimum 0.01 lot sizes, and even the trading instruments provided are the same. There is only one difference between spreads, commissions, and minimum deposits. The 0.01 lot size means the broker offers micro accounts for beginners to test the waters before trading with higher positions. The minimum deposit is the same for Standard and Raw accounts starting at $50, but there is a $10,000 minimum deposit requirement for Pro accounts. ECN and STP are used by the broker, which means the broker is not a market maker and connects traders with liquidity providers like big banks and other financial institutions. We will describe each of the accounts in more detail below. 

Pros & cons of VantageMarkets account types

VantageMarkets Demo account

The closest free experience to a live trading account is a Demo account. The Demo account is probably the most important beginner’s tool for learning how to trade. VantageMarkets provides beginners and professionals with unlimited Demo accounts. Professionals can use demos to test new trading strategies, but keep in mind that the trading instruments are more on a demo than on a live account with 1000+ assets that can be demo traded. 

VantageMarkets Standard STP account

STP or Straight through processing is a technology that requires no dealing desk and connects traders to the market through liquidity providers. This account has spreads and no commissions. The main characteristics of the standard STP account are:

• Spreads from 1 pip
• Minimum deposit of $50
• Commissions of $0

These are the three aspects that are different for each account type, every other thing like instruments, platforms, and minimum lot sizes are the same for all accounts. 

The Standard account is overall good for beginner traders who want to improve their trading skills, as it offers a middle ground between the other two. 

VantageMarkets RAW ECN account 

ECN or electronic communications network is a technology that directly connects buyers and sellers through brokers' platforms, leading to better spreads for traders. VantageMarkets Raw ECN offers:

• Spreads from 0 pip
• Minimum deposit of $50
• Commissions from $3 per lot per side

With leverage set to 1:500, the RAW account offers the best option for scalpers. Scalpers are traders who prefer to open many trades throughout the day with small profits. Because of this, scalping strategies rely on the lowest spreads possible. If spreads are high, they can eat up most of the profits and make even a profitable scalping strategy lose money. The RAW account can aid scalpers to develop profitable short-term strategies. 

VantageMarkets Pro ECN account

This account is for advanced users who have more initial capital than average traders. The minimum deposit size is $10,000 and offers traders the best overall terms for trading. Favorable commissions and 0 spreads can amplify scalping strategies for Pro account holders.

The main features of the Pro ECN account are as follows:

• Spreads from 0 pip
• Minimum deposit of $10 000
• Commissions from $1.5 per lot per side

As we can see from the account types above, the Pro account offers almost the same terms as the Raw account. It only lowers the commissions by half. This could be a good bonus for scalpers and make almost no difference for final profitability. The account offers the fastest execution speeds and 24/7 support. 

Getting started on VantageMarkets - Main steps 

Opening an account on VantageMarkets is simple and intuitive, the website is available in twenty different languages, making it easy for any native speakers of these languages to register. For readers who want to open an account and trade with VantageMarkets below are all steps summarized in a comprehensive manner. 

Step one: Opening an account

Opening an account is intuitive and fast. On the home page of VantageMarkets there are two options in the top right corner, one for opening a demo account and another for opening a live account. If you select the live account, some information is required, namely your name, surname, email address, phone number, the country you live in, selecting the account type you want to open (individual or business), and adding a referral code if you have one. It will take less than a minute to go through all the questions and on to the next step. 

Step two: account verification and waiting times

Before trading on a live account, the broker requires users to verify their identity by uploading proof of identity documents. The documents acceptable for identity verification are:

• A copy of your passport
• A copy of your driver’s license 
• A copy of your government-issued national identity card

Once the identity document is uploaded it will take up to 24 hours for the verification process to complete.

Step three: make your first deposit and start trading

In order to start trading on a live account, you will need to fund your account. The methods available for depositing money are Visa, Mastercard, Neteller, Skrill, FasaPay, broker-to-broker, AstroPay, UnionPay, wire transfers, and JCB. Wire transfers take days before they reflect on the trading account, so try to use a different option if possible. 

Once your money reflects in the trading account it is time to open the trading platform that you will be using and then making some trades.

The Forex CFD broker scene is a very competitive market. Countless brokers are providing decent trading services to their clients, but one of the main concerns after safety is how fees are charged and how they compare with other well-established brokers. We will conduct a detailed comparison between VantageMarkets and other popular brokers to make it easier for a reader to choose which one is preferable for them. 

VantageMarkets fees compared to Interactive Brokers fees

*Inactivity fee was eliminated by IB in 2021, it used to be $20/m

VantageMarkets fees compared to eToro fees

VantageMarkets fees compared to IG fees

VantageMarkets fees compared to XM fees

VantageMarkets fees compared to AvaTrade fees

VantageMarkets fees compared to Capital.com fees

VantageMarkets offers its traders the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms along with their web trading platform. MT4 and MT5 both offer full trading capabilities including automating the whole experience through Expert Advisors (automated trading bots) and are among the most powerful software for trading on this planet. While MT4 is specialized and geared towards FX trading MT5 is a multi-asset platform for those looking to trade a broader spectrum of instruments.

The broker offers mobile trading apps for both Android and iOS devices. They make it easy to trade from mobile devices by providing the proprietary Vantage app, MetaTrader 4, and MetaTrader 5 mobile apps. It should be noted that mobile apps come with limited functionality, as they don't have the ability to support custom indicators and Expert Advisors (EAs). It is best to use these apps alongside your desktop counterparts, as doing analyses on the desktop is much better than trying to use charting tools on a tiny phone screen. Vantage app offers similar capabilities to mobile MetaTrader platforms except it's not that advanced when it comes to chart analysis but still good for trade management. 

VantageMarkets has a dedicated section on its website solely focused on educational materials. The users interested in learning trading can choose from various sources, including:

• Academy
• Educational webinars
• How to use MetaTrader 4 and 5

Academy focuses on various important topics for beginners like explaining bull and bear markets and other specifics on trading. 

The MT4 and MT5 guides provide detailed information and an overview of these platforms. Educational webinars which are the most popular, provide educational videos and live sessions to give newcomers some expert guidance. 

Market research tools are also available and divided into two main categories, market analysis and trading tools. Market analysis provides market news, an economic calendar, and sentiment analysis, while the tools section various signals and chart analysis tools for traders. 

In summary, the tools offered for research and education are pretty superb and should not be missed by beginners. They have a schedule for upcoming webinars, making it easy to book a place if you are interested.

When it comes to asking questions or figuring things out, there are many social media accounts that can be reached out to on VantageMarkets, including Telegram, Twitter, Facebook, and more.

On the VantageMarkets website, you will also be able to get in touch with customer support via live chat, and the great thing is that you don’t have to be logged in to the account in order to access this service. 24/5 live support is available in English only, but the website can be accessed in 12 different languages.

There is also a support email address available and a phone number for those looking to make a call.

Headquartered in Sydney and with 10+ years of experience, VantageMarkets is a well-established multi-asset broker that provides more than 800 trading instruments with competitive fees and spreads. A great aspect is that VantageMarkets offers trading services to traders from 172 countries which is something that some brokers are not able to do as they miht have restrictions in place. The leverage situation is also fairly good, with 1:500 giving traders with smaller accounts enough of a boost to start trading. Support is great and is presented throughout all popular social media platforms plus the live chat capabilities seem to work well. When it comes to education and market research, VantageMarkets shines in this department with a dedicated section on their site offering multiple resources to learn and analyze financial markets including stocks and Forex.