An In-Depth Valutrades Review
Forex traders in the UK have remarkable choices when it comes to selecting a broker, which inadvertently requires brokers to be a part of some of the most stringent regulatory guidelines to satisfy the Financial Conduct Authority (FCA) of the UK. Valutrades is one of the latest Forex and CFD brokers to have joined the growing number of UK Forex companies for targeting the highly lucrative and immensely competitive retail FX market in Europe.
Approved Forex Brokers
- Website: www.valutrades.com/en/
- Support: +44 (0) 20 3141 0888
- 55 Old Broad Street
- EC2M 1RX
Valutrades began its journey in 2012 and had quickly established itself as a leading FCA regulated broker in the UK.
Specific Details of Valutrades Regulation By The FCA
FCA regulation has many different features that help in protecting investor rights and for maintaining the integrity of the UK’s financial markets. FCA has devised a comprehensive regulatory structure that requires all financial companies to adhere to a code of conduct for a uniform regulatory framework. All Forex brokers in the UK have an obligation to hold at least $1 million in operational assets, and should not use their client funds for any other purposes than to maintain positions in the interbank exchange. To prevent traders’ fund misuse, the FCA has instructed all FCA Forex brokers to hold their traders’ money in segregated accounts at top banks in the country, which ensures that the money can only be used to satisfy the margin requirements. Valutrades has to submit periodic financial reports and provide certified audit reports performed by independent auditors to be transparent in its operations. FCA and its representatives sift through these reports to ensure that the broker does not indulge in any financial malpractices. FCA does implement severe sanctions and penalties for companies that fail to satisfy the FCA’s regulatory guidelines, thereby offering complete peace of mind to the investor. Valutrades also offers an insurance of up to £50,000 in compensation in the event of broker liquidation or bankruptcy. Under the Financial Services Compensation Scheme (FSCS), Forex brokers must protect their traders’ funds up to the specified limit in order to compensate all traders promptly. The financial ombudsman service also plays an integral role in resolving consumer disputes and for settling matters out of the court. Overall, Valutrades FCA affiliate is certainly one of the positive attributes of the company in enhancing trust among clients.
The Minimum Investment For A Valutrades Account
The minimum investment required to open a Valutrades account is $100. A $100 investment allows a trader to open either the Standard account or the RAW ECN account. Both accounts have similar trading conditions, but the trading costs, types of order execution, and the direct market access protocols vary for each account. As far as Valutrades spreads are concerned, the standard account sees the spread starting from 1 pip on the majors, while the ECN account has guaranteed spreads starting from 0 pips. The commission for ECN account, however, starts from $6 per round lot, which is slightly more expensive than regular ECN accounts. Valutrades leverage for both accounts max out at 1:400, and traders can start trading from as low as 0.01 lots. However, the maximum leverage offered on both accounts are lowered once the account equity gets greater than $20,000, and the maximum leverage will be dropped to 1:50 for equity larger than $100,000. Traders can also access a free VPS service if they maintain a minimum monthly quota of traded lots, which is a significant advantage for ECN account holders looking for super-fast execution and automated trading. The required monthly minimum for a free VPS access is $1000 and a minimum of 10 standard lots traded per month. VPS services do cost quite a lot of money, and it is understandable that the broker imposes minimum trading restrictions to be able to enjoy a free VPS account. Traders can also receive access to a VIP account for a $100,000 initial deposit, which promises even better trading conditions and tighter spreads. A free VPS is provided as standard for the VIP account without any trading restrictions, along with a waiver on commission for trading. The VIP account is specifically designed for institutional investors, which should also qualify for large traders and money managers. In case you were wondering about the Valutrades platforms, traders are offered access to different versions of the MT4 for trading. MT4 is the most widely adopted platform on the PC, and the popularity has also spilled onto the mobile trading industry. Even Valutrades mobile traders are required to download the MT4 mobile apps for their mobile trading needs, which seem to be the standard platform adopted by most Forex brokers in the UK. The lack of a proprietary trading platform shouldn’t affect most traders; since MT4 does have more popularity and exposure than other platforms combined.
A Brief Rundown On The Valutrades Trading Experience
Valutrades has an ECN account that offers direct market access to the global liquidity pool, and the broker has partnered up with leading liquidity providers to provide the best quotes. Orders are filled mostly at market price, but an ECN account does involve significant slippages. However, the ECN account does not induce any requotes, which is one of the main problems of an STP account. The standard account does have minimal slippage, but at the expense of requotes. Access to a free VPS service is also a great incentive for traders using automated trading strategies, especially for those who run EAs around the clock. Apart from these benefits, a Valutrades Forex account is essentially comparable to some of the other mainstream brokers; albeit the minimum investment may sound a bit too large for smaller traders. The broker also does not offer any Valutrades bonus, which may deter traders from depositing large sums of money, especially those that are looking for the best promotions and deals in the market. Regardless, Valutrades should make an excellent proposition for average traders, especially due to the availability of a VPS and an ECN account.