Minimum Deposit: $500
Maximum Leverage: 1:200
My Score: 6.0
Hello guys, I am going to tell about Varianse forex broker today. Varianse is a UK based company which created by a team of UK Financial Market Professionals.
Varianse is an STP/ECN broker that is located in 4 Lombard Street, Bank, London, EC3V 9HD, United Kingdom. The company is straight to the market and its business model is transparent.
I will give you all the details about the broker in this Varianse review. For example: Is Varianse regulated? What are the account types offered by Varianse? What are the spreads, minimum deposit, and maximum leverage? Is Varianse scam or reliable forex broker?
Regulation of Varianse
The most critical point about a broker is its regulation. As we all know that if a broker is not regulated by a reputable regulator, it may not be trustable.
However, this broker is not one of them. VARIANSE is a trading name of VDX Ltd. which is authorized and regulated by the Financial Conduct Authority (FCA) in the United Kingdom. FCA Register number 802012.
Let’s talk about the FCA. The FCA is the conduct regulator for 58,000 financial services firms and financial markets in the UK and the prudential regulator for over 18,000 of those firms.
According to FCA regulations, VARIANSE must abide by strict financial terms, including capital adequacy requirements. For instance, the broker must hold a minimum of €730 000 in net tangible assets in order to prove their good financial standing.
Besides, the FCA regulated brokers must keep clients funds with segregated accounts separate from their operational funds. And also, regularly, VARIANSE is required to submit financial reports to regulators. The Financial Conduct Authority enforces these standards.
Moreover, there is also a compensation scheme for the FCA regulated brokers’ clients. All FCA regulated brokers participate in the FSCS, and in case any of them goes bankrupt, clients can receive up to GBP 50,000 of their trading capital.
Account Types and Spreads
There are three account types the broker offers. These are Classic, ECNpro, and Prime account types. All account types have different properties.
Let’s consider these account types one by one. The classic account requires 500 USD minimum deposit. Spreads are from 1 pips on EUR/USD and no commission. The maximum leverage for pro 1:400 for retail 1:30.
If you want to open an ECNpro account, you must deposit 5,000 USD minimum deposit. Spreads are from 0 pips but there is commission $3.50 per lot (per side) on EUR/USD. Minimum trade size is 0.1 lot and the maximum leverage ratio is the same.
The last one is the Prime account and it requires 50,000 USD minimum deposit. Spreads are from 0 pips + $2 commission per lot (per side). The maximum leverage is different from other account types and it is 1:200.
I think the spreads are competitive but the minimum deposit is quite high for all account types. The maximum leverage is high but you should keep in mind that higher leverage includes higher risks. High leverage can result in high profits as well as high losses.
Varianse offers the world’s most popular trading platform known as MetaTrader 4 for desktop and mobile versions.
MetaTrader4 is perfectly equipped to allow traders to harness the power and dynamism of the FX markets. The platform has great features:
- 50 + built-in indicators
- Advanced Charting tools built-in
- Ability to create custom indicators, incorporating 9 time periods (from 1 minute to 1 month)
- Automated Trading – Program your own algorithmic strategies using Expert Advisors
- Multi-Language program interface
There is also MaxxTrader options for traders. Exclusively available to PRIME account clients. The platform supports advanced STP execution and electronic order routing and is found on the FX trading desks of the world’s leading Institutions.
There are various trading instruments such as Forex, Indices, Energy, Futures, and Metals. You can trade with 50+ currency pairs, 12 global indices, Brent crude oil, natural gas, gold, silver, and copper.
I think the broker offers a wide range of trading instruments. It is not the best but it is enough.
In order to trade on your live account, you will have to deposit and fund the minimum required opening balance directly with the execution venue who will hold your funds.
You can deposit/withdrawal your account by credit/debit cards, bank wire transfer, Skrill, Sofort, Uphold, and China Union Pay.
I think the payment methods are limited. There should be different options such as Bitcoin, Paypal and Neteller.
The broker is duly-regulated and reliable. It offers competitive trading conditions. However, the minimum deposit amount is high and payment methods are limited.
There are pros and cons for this forex broker. You can choose which side is more important for you. If you didn’t like the features of this broker, you can check my top forex brokers list to find a better one.