Valutrades Review 2020
Valutrades is a regulated online broker with flexible platforms and accounts. They have a selection of trading tools and educational materials but non-FX instruments are lacking in comparison to other online brokers.
Valutrades Review 2020, Pros & Cons
- Strict regulation
- Segregated client funds
- FSCS insurance
- Commission free trading
- MAM accounts
- Free VPS
- Sentiment tool
- Additional indicators
- No US clients
- Limited non-FX instruments
- Restricted leverage for non-professional clients
In this detailed Valutrades review, our online broker research team have covered some of the most important aspects for you to consider when choosing the best broker for your online trading needs.
Valutrades is not ranked in our best forex brokers, best stock brokers, best cfd brokers, best crypto brokers or best online brokers categories. You can use our free broker comparison tool to compare online brokers including Valutrades.
Valutrades Review: Summary
Valutrades is a regulated ECN broker located in London (UK) that offers a selection of 100+ financial instruments across multiple markets including Forex, Commodities, Cryptocurrency, Stocks, Shares, Indices, Metals, Energies & CFDs.
Valutrades have a robust non-dealing desk trading environment with spreads starting from just zero pips and leverage of up to 1:500 available for those who qualify as professional clients. Clients can trade via the MetaTrader platform and FIX API connectivity. The minimum deposit requirement is just $50.
They offer free webinars, trading tools, indicators, and a free VPS for live accounts depositing and trading 1 or more trades per month. All trading styles are welcome including automated algorithms, high frequency traders (HFTs) and scalpers.
Valutrades were established in 2012 by an experienced financial services management team that have worked with a number of leading brokers and asset managers. Since then they have expanded into 6 continents and over 70 countries making them a truly global broker.
They put great emphasis on offering professional and transparent trading services whilst providing a personalised experience catering to individual needs. Each client gets a dedicated account manager with native speakers of each language available.
Valutrades maintains a tier 1 prime brokerage relationship with their own direct liquidity providers including banks, non-bank market makers, ECNs and hedge funds. These relationships enable them to offer a sophisticated infrastructure with access to top quality liquidity provider lines and client order matching. They can also create customised liquidity pools for institutional traders.
Valutrades have an extensive range of technology solutions that are located across the globe in all major datacentres including NY4 (New York), LD4 (London), TY3 (Tokyo) and HK3 (Hong Kong). They are members of oneZero’s ecosystem which allows them to distribute their liquidity to other brokers and firms in the same environment at reduced fees for all participants.
Valutrades Review: Regulation
Valutrades is authorised and regulated by the FCA (Financial Conduct Authority) in the United Kingdom with financial services register number 586541. This means they must implement strict adherence to the FCA’s regulatory regime. This helps to ensure traders that they are using a fair and transparent online broker that is focused on customer success and service.
Valutrades accounts have guaranteed negative balance protection and client funds are held according to FCA Client Money Rules in segregated client money accounts. Thsis means client funds are separate from the company funds and thus cannot be used for any other purposes such as business running costs. The client funds are placed into segregated accounts held at approved banks in the European Economic Area (EEA), they currently use Barclays and Lloyds banks.
Furthermore, all client deposits are covered up to a maximum of £85,000 under the Financial Services Compensation Scheme (FSCS). The Financial Services Compensation Scheme is the UK’s statutory deposit insurance and investors compensation scheme for customers of authorised financial services firms. This means that the FSCS can pay compensation if a firm is unable, or likely to be unable, to pay claims made against it.
Valutrades Review: Countries
Valutrades accept clients from most countries excluding the United States and some other countries where there are strict laws and regulations in place preventing them from doing so. Some Valutrades broker features and products mentioned within this Valutrades review may not be available to traders from specific countries due to legal restrictions.
Valutrades Review: Trading Platforms
Valutrades have a selection of flexible trading platforms for different trader’s needs across various devices. They offer a choice of MetaTrader 4 (MT4), MetaTrader 5 (MT5), Hummingbird and FIX API connectivity.
MetaTrader 4 (MT4) Platform
MT4 is an award-winning trading platform that is recognised across the globe as one of the most popular for traders of all experience levels. It has a user-friendly interface and vast array of built in trading tools. This makes it a convenient and efficient trading environment.
Amongst the many features of MT4 it has support for multiple order types, multiple chart types, 9 chart timeframes and real time market quotes. It has a range of built in indicators and graphical objects for conducting chart analysis. Users can set alert notifications via email, SMS and pop ups.
MT4 can run automated trading systems also known as expert advisors (EAs). There is the MetaEditor where users can programme their very own EAs and custom indicators in the MQL language. The MQL market place can also be accessed from within the terminal and offers thousands of EAs, indicators and trading signals from other users within the MetaTrader community. The strategy tester allows you to back test EAs over historical data downloaded from the broker or an external data provider.
MT4 is freely available on desktop (Windows / Mac), web and mobile (iPhone / iPad / Android / Tablet). The mobile application is useful for those who need to trade whilst on the go. The web platform allows you to trade through most modern web browsers without needing to install any additional software.
MetaTrader 5 (MT5) Platform
MT5 is the successor to the MT4 platform, delivering a cutting-edge and high-performance trading experience. It maintains all of the core functionality of the MT4 platform whilst having some additional features including more technical indicators, more timeframes, more order types, depth of market display, economic calendar multi-currency strategy tester and much more.
MT5 is also freely available on desktop (Windows / Mac), web and mobile (iPhone / iPad / Android / Tablet). The mobile and web applications have most of the same features as the desktop platform whilst being useful for those who need to access their trading account from anywhere in the world with an internet connection.
Traders can download the revolutionary Hummingbird mobile trading platform through Valutrades. It is known for its simplicity and being easy to use, allowing anyone to trade popular cryptocurrencies, such as Bitcoin or Ethereum, along with traditional forex currencies, in a single platform.
FIX API Connectivity
FIX API is a transparent trading solution that gives more client control and direct market access (DMA). FIX API users get access to Valutrades ECN matching engine using FIX 4.4 API. This can help to reduce trading costs whilst improving trading efficiency.
MAM Money Manager
Valutrades offer the innovative MetaFX multi account manager (MAM) software which handles complex MAM setups on MT4 & MT5 and can be used by money managers who need to simultaneously manage multiple trading accounts. Amongst the many features of the MetaFX MAM software, it includes;
- Multiple allocation types (equity, balance, percentage, lot, etc).
- Add and remove accounts in real time.
- Realtime allocation and reporting.
- Change allocations at any time without restrictions.
- Commission, mark up and profit share settings.
- No trading style limitations.
- Executing trades just as you would using a regular MT4 terminal.
Valutrades Review: Trading Tools
Valutrades have some useful trading tools which can benefit clients.
Virtual Private Server (VPS)
A VPS is useful for those who wish to run their trading platform 24/7 around the clock but cannot always have their computer switched on. With a VPS, you run the platform remotely on a server and can access it as and when you wish. This is often a popular solution for those who use expert advisors. Valutrades offer a free VPS for live accounts that deposit and trade at least 1 or more trades per month.
The Valutrades website has an economic calendar embedded from MetaQuotes, the software company behind the MetaTrader platform. It contains dates and times of economic releases along with the markets that will be impacted. The expected level of impact is displayed along with the previous, forecasted and actual results of the release. This tool is useful as part of a fundamental market analysis.
Traders can use technical indicators for conducting chart analysis to help identify potential market movements. Whilst the trading platforms contain a wide range of built in indicators, Valutrades offer clients an additional seven custom indicators for the MT4 platform, free of charge.
Double Top / Bottom
This indicator will point out double tops and bottoms on your chart. These patterns are often seen as a sign of reversal or a potential breakout. Double tops and bottoms occur when two highs or lows are more or less even in price with equal distance between them.
Inside Outside Bars
This indicator will identify inside bars (candle engulfed by previous candle) and outside bars (previous candle engulfed by following candle). This is a price action formation often used to help anticipate the markets direction.
Three Strike Pattern
This indicator will identify when there have been three consecutive candlesticks in the same direction and is often interpreted as a trend continuation pattern.
Support Resistance Lines
This indicator can help to identify areas of support and resistance on your chart. These price levels can signify where price may reverse or breakthrough with significance.
RSI CCI Divergence
The Relative Strength Indicator (RSI) and Commodity Channel Index (CCI) divergence indicator can help to establish the markets momentum and identify potential overbought and oversold conditions.
The doji pattern indicator can identify when a doji occurs on the chart. This is usually a candle with a small body and range. It is often seen as a potential reversal point or indecision in the market.
The hammer pattern indicator pin points hammer formations on charts. It is called a hammer due to the fact the candle looks like one, with a body that is at least half the size of the wick. These chart patterns are often used to identify potential points of reversal.
Valutrades have a very useful client sentiment tool that displays the percentage of their clients who are long or short on a selection of forex currency pairs. Sentiment analysis is often used as part of a contrarian trading strategy and can be combined alongside further technical and fundamental analysis.
Valutrades Review: Education
Valutrades have a decent amount of frequently updated and free educational resources available on their website.
On the Valutrades website you will find a trading glossary that contains a list of frequently used trading terminologies along with an explanation of each. This can help improve your trading knowledge by familiarising yourself with some key terms.
Valutrades have a trading blog that contains detailed articles and videos on various trading subjects including strategies, asset classes, technical and fundamental analysis. These can help improve overall trading knowledge and inspire trading ideas.
Webinars & eBooks
Valutrades provide a good selection of webinars and eBooks to help clients improve their trading knowledge and skills. These are suitable to all experience levels and cover topics such as trading basics, platforms, strategies, risk management and more.
Valutrades Review: Trading Instruments
Valutrades provide over 100+ financial instruments across multiple asset classes including Forex, Commodities, Cryptocurrency, Stocks, Shares, Indices, Metals, Energies & CFDs.
There are more than 80+ major, minor and exotic forex currency pairs. Commissions are competitive and spreads start from just zero pips on all major pairs when using the true ECN account.
Valutrades offer contract for difference (CFD) trading on popular global indices including AUS200, DE30, ES35, F40, HK50, JP225, STOXX50, UK100, US100, US30 & US500. Commissions are competitive and contract sizes flexible to suit all traders.
Valutrades offer commodities trading on gold, silver and oil.
Valutrades Review: Trading Accounts & Fees
Valutrades have a choice of two trading accounts for different trading styles. There is the ECN account for the tightest possible spreads with a competitive commission fee or the standard account which has no commission fee as it is included within a marked-up spread.
Demo accounts are available to test the different trading platforms and conditions before opening a real account.
ECN Trading Account
The ECN trading account has the tightest spreads from just 0 pips and is tailored towards the more professional trader. There is a commission of $6 per lot per round turn. The minimum deposit required is $50. This would most likely be the account of choice for those whose trading strategy requires tight spreads, such as scalpers.
Standard Trading Account
The standard account keeps things simple by including all costs (including commissions) within the spreads which start from 1 pip. This does mean the spreads will be higher than on the ECN account and thus this account is geared towards those whose strategies are not so spread dependant, such as swing traders. The minimum deposit required is $50.
As broker fees can vary and change, there may be additional fees that are not listed in this Valutrades review. It is imperative to ensure that you check and understand all of the latest information before you open a Valutrades broker account for online trading.
Valutrades Review: Customer Service
Valutrades welcome any questions or queries regarding their services and accounts. Multilingual support is based in their head office which is in London, United Kingdom. They are available during office hours via telephone, email and live online chat. Clients are also welcome to visit the team.
Valutrades Review: Deposit & Withdrawal
Valutrades have a variety of convenient methods for depositing and withdrawing funds from your trading account. This includes bank wire, credit card and online payment systems such as Neteller and Skrill. Please note that some methods may only be available to specific countries and not all are available for both deposit and withdrawal.
Withdrawal requests are processed within the same day or next if outside working hours. The withdrawal time can vary depending on the payment provider and method. Bank transfers may take a few business days to clear whilst some methods can be instant. Valutrades does not charge fees on any deposits and the first three withdrawals each month. Some fees may be charged when using certain payment methods
Some payment systems may have transaction limits, restrictions, and requirements which are indicated on their respective websites. You may need to verify your account to remove limits on particular methods in some countries. Valutrades strictly does not accept third-party payments. All funds deposited into your trading account must be under the same name as your Valutrades trading account.
Accounts can be opened in AUD, CHF, EUR, GBP, JPY, USD, ZAR, NZD. The different currency options are beneficial as currency conversion fees do not apply when using an account in your own currency.
Valutrades Review: Account Opening
Opening a trading account at Valutrades is a simple process. They are committed to providing an efficient onboarding process, with a set up time of 24 hours or less for all new corporate accounts after the provision of the required due diligence documentation.
You just need to complete the online application form which asks for some basic information. Following on from that you will need to provide proof of identification (e.g. passport or drivers licenses) and proof of address (e.g. utility bill no more than 3 months old). Once you have passed KYC checks, your account will be approved and you can then fund it to commence trading.
Valutrades Review: Conclusion
Valutrades is a regulated online broker with flexible trading platforms and accounts for different levels and types of trader. They have a good selection of trading tools and educational materials but non-FX trading instruments are lacking in comparison to some other online brokers.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.