Vantage FX Review
Vantage FX is a Cayman Islands-based offshore broker. The broker advertises excellent trade conditions as well as incentive offers and leverage of up to 500 times. We not only investigated the offer further, but we also opened an actual account with Vantage FX. We took advantage of this and executed a number of deals. This rating is based on our entire experience, from the initial contact to the final payment.
The underlying catalog in the raw spread account
Let’s start with the underlying asset for which Vantage FX can be traded. There are 48 FX currency pairings, 13 indices, 6 crypto currencies, 15 commodities and precious metals, 50 US equities, and 50 Hong Kong stocks to choose from. This indicates that for most traders, the database of underlying values is sufficient. However, there are CFD providers who offer a much bigger selection of share CFDs.
- 48 FX currency pairs
- 13 indices
- 50 US stocks
- Hong Kong stocks
- 6 cryptocurrencies
- 15 raw materials / precious metals
Trading conditions at Vantage FX
We used the raw spread account to trade. In FX trading, the spreads are narrower than in other account formats. A fee is levied for this service. For opening and closing, the commission is 5 EUR per lot. The fee is charged to the account when a position is opened. The commission is 6 USD roundturn if the account is in USD.
A “+” is placed next to the FX pairings in the raw spread account. In key currency pairs, spreads are extremely narrow. These spreads were discovered in a sample:
- EUR / USD: 0.20 pips
- AUD / USD: 0.30 pips
- EUR / JPY: 0.40 pips
- GBP / USD: 0.70 pips
- USD / CHF: 0.70 pips
The spreads, in our opinion, are typical of the broker. Throughout our several-week test period, we conducted spot checks to ensure that the quoted spreads were accurate.
As a result, the spreads are quite competitive, particularly in the EUR/USD pair. Taking into account the commission of EUR 5, the costs of trading 1.0 lots are significantly less than EUR 10. This figure denotes the entry point for low-cost brokers. The images below shows the market list for the raw spread account at Vantage FX.
Nothing changes in the spreads when the order ticket is called up:
The contract sizes in FX trading start at 0.01 lots.
Trading in underlying assets outside of the FX market is free of commission. The spreads, however, are wider. Nonetheless, some big indices have competitive spreads, while others do not. Examples:
- DAX: 1.31 points
- Dow Jones: 3.61 points
- NASDAQ 100: 1.0 points
- S&P 500: 0.48 points
- FTSE 100: 1.11 points
- HSI: 5 points
- EuroStoxx50: 1.41 points
- CAC40: 2.19 points
There are lower-cost brokers for the DAX and, in particular, Dow Jones. However, the chasm between the market’s top and bottom isn’t too wide.
It would be preferable if the broker had a little more freedom in terms of contract sizes. The Dow Jones is also only available in 1.0 contracts with a 1 USD / point contract size. When the index reaches 26,000 points, the holdings become too huge for tiny accounts to handle.
A look at the spreads in commodity trading is also a must. Spreads in major markets:
- Crude Oil Future: $ 0.035
- Gold: $ 0.18
- Silver: $ 0.27
What about the spreads when trading stock CFDs? Here, too, we carried out a random check.
- Amazon: $ 1.03
- Boeing: $ 0.19
- Cisco: $ 0.01
In a nutshell: the trading costs at Vantage FX are competitive. There is, however, still potential for improvement, particularly with individual indices like the Dow Jones.
Customers at Vantage FX can trade with up to 500 times leverage. This is several orders of magnitude greater than what is now permitted in Europe. In the client portal, you can adjust the lever. The initial leverage is 100:1. We had access to the 500:1 leverage two minutes following the modification in the client portal. An automatically produced email alerted us about this.
The other account models from VantageFX
Other account types are available from Vantage FX. The minimum deposit in a regular STP account is EUR 200. There are no commissions, but the spreads are bigger. The commissions are slightly lower in the Pro ECN Account. This requires a minimum deposit of EUR 20,000.
The MetaTrader trading platform
Vantage FX offers a variety of trading platforms based on the MetaTrader trading platform. For this test, we used MetaTrader4. MeterTrader5 and the MarketsTrader platform are other options. The latter is a web-based platform based on HTML5. MT4 and MT5 are available in client (download), web-based, and mobile versions.
The functional scope of MetaTrader also includes Expert Advisors. With these, own trading systems can be developed, tested retrospectively and then implemented automatically.
CHARTS AND USER INTERFACE
MT4 is a well-known trading platform that various other brokers use. Line, bar, and candle charts with period durations ranging from 1 minute to a month are available in the basic settings. Horizontal lines, trend lines, trend channels, and Fibonacci retracements are some of the drawing tools available. Last but not least, there is a wide library of indicators. Traders can chnage the parameters of the indicators.
In MT4, there are order types that are well-known. There are buy/sell stop and buy/sell limits in addition to market execution (i.e. limitless orders). You can issue Stop Loss and Take Profit orders when placing an order. These appear on the chart as lines, just like the cost price.
Handling of Stop Loss and Take Profit
You may type the Stop Loss and Take Profit manually or set using the arrow keys. For equities, a click on the arrow equals EUR 0.01 and for indices, it equals 0.01 points. In the chart, SL and TP display as lines, and they are also recorded in the “Trading” menu. For the majority of the underlyings, the SL and TP are separated by at least 5 points. There are competitors with lower minimum clearances in this area. There are no guaranteed stop loss orders, however trailing stops are available.
What market model does VantageFX trade with?
The broker calls the raw spread account an ECN account. It’s more likely that it’s a form of STP trading. The broker forwards orders to liquidity providers or the interbank market. This is accomplished by aggregating the bid and ask prices of several liquidity providers and executing orders at the best feasible prices. The broker’s portrayal is a little contradictory. Due to this constellation, the broker seems to have no interest in price manipulation. At the same time, the broker maintains that this business strategy allows him to live off the spreads. As a result, there is no guarantee that clients will trade at the liquidity pool’s initial prices, in our opinion.
CLOSEOUT AND MARGIN CALL
Vantage FX initiates a margin call if the account balance falls below 80% of the minimum margin. All positions will automatically close when the percentage reaches 50%.
Offshore brokers, such as Vantage FX, have bonus offers that are not available to EU brokers. What are the circumstances like?
We received an automated email from the account manager assigned to us shortly after the account was opened but before the first deposit. In this email we were offered a 25% first deposit bonus. A deposit of at least $1,000 was required to participate. To start an account with the raw spread account, only EUR 500 is required.
This bonus offer can not be found on the homepage. However, there are other bonuses there – e.g. B. a 50% deposit bonus for another account model. The wagering requirement: For each standard EUR / USD lot, EUR 1.30 of the bonus amount is converted into real money.
Payments and Verification
The account opening process is relatively simple. First, a short form including a slimmed-down KYC catalog is filled out on the screen. An email with the access data for the customer portal is then sent automatically.
Customers must first identify themselves before making a deposit. This requires a valid ID card or passport, as well as a three-month-old proof of address. Bank statements, utility bills, and other documents can be used as evidence of address. Also required is a snapshot of the front of the credit card used to make the deposit. It is possible to conceal the card number in part. This proof must be photographed and emailed to customer care.
The Raw Spread Account requires a minimum deposit of EUR 500. (if the account currency is euros).
Deposits are free of charge and you can use a credit card or a bank transfer. Payments are made through Australia National Bank. Deposits are completely free. During the German lunchtime, we paid for this test report with a credit card. We received a “Money Receipt” by email about 1 minute after making the payment. We received notification through email about 70 minutes later that the deposited funds were available for our trading account.
Payouts are only possible by bank transfer. These also run through an Australian bank. We were in for a pleasant surprise when we arrived. It was mentioned on the payout website that up to two distributions each calendar month were free. However, EUR 20 was “missing” when the money was received. A processing charge of 10 EUR and external expenses of 10 EUR were stated in the transfer’s topic.
Brief conclusion: Deposits and withdrawals go through Australia and go very quickly. (Moderate) fees may apply for withdrawals.
What is Vantage FX? A short portrait
Vantage FX is based on an international brokerage company. There are further branches in Australia and the United Kingdom, in addition to the Cayman Islands. Local supervisory authorities are in charge of these (ASIC and FCA). Sydney and London are the locations of the subsidiaries. Specifics of the law:
- Australian Securities and Investments Commission (ASIC), AFSL no.429801
- Financial Conduct Authority, FRN: 590299
Regulation and deposit insurance: what applies offshore?
Vantage International Group Limited manages Vantage FX. The company’s headquarters are in the Cayman Islands. The Cayman Islands Monetary Authority (CIMA), which is in charge there, oversees the broker.
Payments to Vantage FX are made through Advantage College, a Sydney-based trading service provider. He’s got a National Australia Bank account (NAB). The customer funds are also kept there afterwards. The safekeeping takes place in separate accounts.
No exclusion of the obligation to make additional payments
Customers should be aware that there is a risk of a margin call using Vantage FX. The losses could be bigger than the account balance. In practice, SL and TP can effectively prevent this. The closeout level set by the broker also applies. Such additional payment responsibilities may nevertheless exist in extreme instances, particularly in positions maintained overnight or over the weekend.
Tax your profits yourself
Please keep in mind that Vantage FX is not a German tax paying agent and does not pay any withholding tax on profits. You should tax all profits must independently.
How authentic is the demo account?
When comparing demo and real money accounts, you can often discern if a broker is playing with open cards. As a result, we opened a demo account in addition to our genuine account and compared the terms. It takes less than 30 seconds to create a sample account. Interested parties enter a few pieces of information, select a platform and account type, and then receive an email with access information right away.
The spreads in the demo account looked like this:
- EUR / USD: 0.10 pips (0.20 pips in the live account)
- USD / CHF: 0.70 pips (as in the live account)
- AUD / USD: 0.30 pips (as in the live account)
- EUR / JPY: 0.50 pips (0.40 pips in the live account)
- GBP / USD: 0.70 pips (as in the live account)
At separate times, we ran the samples in the live and demo accounts. On the demo account, the broker effectively delivers live courses. This clearly demonstrates the need of honesty.
The customer service in the quality test
We put the account through its paces with a few dozen trades over the course of two weeks. We contacted customer care via live chat and email during this time. In the German nighttime hours, the response time in the live chat is likewise very quick. The account managers are clearly based in Australia, thus there is a significant time difference. All of the customer care employees we interacted with were friendly and capable of resolving or expediting our concerns.
Tools and training at Vantage FX
Vantage FX, like most brokers, offers a variety of training and resources to its clients. The offer, on the whole, seems manageable. Basic FX trading knowledge is available, as well as instructions for MT4 and MT5. An economic calendar, trading signals, indicators, and information on a variety of topics, such as Expert Advisors, are also available.
Vantage FX is an offshore broker based in the Cayman Highlands. The broker also works onshore, with subsidiaries in London and Sydney, as well as the necessary regulatory framework. The regulation in the United Kingdom and Australia has little direct impact on trade in the Cayman Islands, but it helps boost trust. Australia National Bank holds client funds in segregated client accounts.
In terms of trading circumstances, the broker definitely outperforms the majority of its rivals. In euros / US dollars, the entire cost of trading 1.0 lot is well below ten dollars. The spreads on most indices, equities, and commodities in commission-free trading are also beneficial. MetaTrader is a well-established trading platform. The customer support is only available in English, but it is otherwise quite straightforward to contact and answer to if necessary. It takes only a few minutes to open an account and make a deposit. In other words, if you want to trade overseas, Vantage FX is the place to go.
You can open a demo account if you don’t want to take any chances at first. This is accessible in 30 seconds and includes actual courses.