Varianse online brokerage utilises innovative technologies for Forex and CFD trading. They offer competitive spreads and fees with a choice of powerful platforms. However, trading instruments and educational materials are limited compared to other online brokers.
Varianse Review, Pros & Cons
- Strict regulation
- Financial Services Compensation Scheme (FSCS)
- MAMM accounts
- MetaStock XENITH research & analytics by Thomson Reuters
- Low latency VPS from BeeksFX, UltraFX & CNS
- Limited trading instruments; No stocks & cryptocurrencies
- Clients from USA are not accepted
- No Educational resources
- Minimum $500 deposit
In this detailed Varianse 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.
Varianse is an online forex and CFD broker that was formed by a team of experienced professionals in the financial markets and trading technology fields. Founded in 2015 in London, the broker has deployed modern technologies to offer a secure and affordable online trading environment for its clients. Clients are given access to trade spot forex, indices, energies and metals on the MT4 platform.
Varianse operates the Straight through Processing (STP) brokerage model. The pricing and liquidity is sourced from over 20 top tier institutional liquidity providers. The trading servers are located at the Equinix LD4 data centre which is in London. The broker has deployed the LatentX infrastructure which has resulted into lightening speed trade executions with minimal requotes. Varianse only acts as agents and does not interfere in the pricing or execution of client orders.
Varianse has won multiple online broker industry awards for outstanding services. The broker won the ‘Best Broker for Professional Traders, UK’ in 2018. This award was given by the international Business Magazine.
VARIANSE is the trading name of VDX Ltd; a financial investment firm registered in the UK. It is authorised and regulated by the Financial Conduct Authority (FCA). The registration number is 802012. VDX Ltd is also registered in England and Wales. The registration number is 11050659.
As mandated by the FCA, all clients’ funds are segregated from the broker funds. These investors’ funds are held in Barclays Bank, London; a top-rated UK bank that has been in operations for many years with a global presence in over 50 countries. Varianse is well capitalised and does not use clients’ fund to run its daily internal expenses.
Varianse retail clients’ funds are insured by the Financial Services Compensation Scheme (FSCS). This scheme can compensate eligible clients in case the broker becomes insolvent in the future. The FSCS compensation is capped at £85,000.
Varianse does not provide its services to clients from the Unites States or other countries where its services will conflict with the local or national laws. Some Varianse broker features and products mentioned within this Varianse review may not be available to traders from specific countries due to legal restrictions.
MetaTrader 4 (MT4) Trading Platform
This is a very well known trading platform among forex and CFD traders all over the world. It is popular because of its numerous tools and features as well as its user-friendly interface. The platform is equipped with tools for analyses, order management and swift trade executions. The Varianse MT4 platform is downloadable for windows PC and mobile devices (iOS & Android). Here are some of the features of the MT4 platform:
- 30 inbuilt technical indicators which can be extended to thousands using plugin apps.
- Charts of all instruments can be displayed on over 9 timeframes.
- Incorporates the tools used to create Expert Advisors (EAs) which automate strategies.
- Available in over 35 languages.
- One-click trading and trading from the charts.
- Advanced order management and risk management tools.
MT4 Mobile Platform
Monitor and analyze the markets, trade anywhere and at anytime with the MT4 mobile apps. It is developed for Android and iOS devices and it is downloadable from the respective app stores.
Here are some of the features of the MT4 app:
- Live price quotes on all trading instruments.
- Customisable with alert notifications.
- Charting on 9 timeframes from one minute to one month.
- Order placement, adjustment and closing; all from the app.
- Technical analysis with 30 indicators and 24 analytical tools.
This platform is only available to Prime account holders. The platform is designed for clients to trade directly with liquidity providers. Here are some of its features:
- Advanced Risk management tools.
- Shows the full market depth and volume.
- STP execution and order routing.
- Advanced order types including stop loss, trailing stop, OCO, etc.
- Multiple execution types including market, IOC limit, etc.
- Incorporated real time reporting.
Varianse Trading Tools
FIX API Solution
FIX API gives very fast execution and very low latency. It has multiple order types and execution modes. Varianse offers the FIX API to its traders. It is powered by PrimeXM XCORE and Flexx Trade FIX API.
Virtual Private Server (VPS)
The Varianse Virtual Private Server (VPS) is hosted in the London Equinix data centre in close proximity to the trading servers. The VPS ensures reliable connection and negligible latency. A VPS is often used by EA users and other traders who require steady and uninterrupted connection to the servers. Varianse VPS is cross connected to the trading servers using optical fibre cables, thus, achieving 0.4 milliseconds latency. Access to a free VPS is given to traders who trade 99 round turn lots every month.
This comprises of powerful research, news and analytics which are provided by Thomson Reuters Corporation; a multinational media conglomerate. It is a complete financial analysis suite appropriate for every trader. MetaStock XENITH monthly subscription ranges from $99-$150 but there is a month free trial. It consists of the following sections:
- Reuters News: Breaking news, commentaries, insights and analysis on the market news.
- FX & Money markets: Covers news on over 70 central banks.
- FX Polls: Consensus data, forecasts from banks and insights into market activities.
- Economic Events: This is the economic calendar of global economic events and analysis.
- Swap Calculators: Comprehensive set of forex calculators.
- FX Options: This is forex options calculator and vanilla options analysis.
- FX Heatmap: Provides info on the most liquid currencies, news and market intelligence
- Country Views: for country specific market news, research and analytics.
- Charting: Sophisticated charts, indicators and analysis.
Clients have the choice to become a MAM investor or MAM Master. The system is very transparent because the investor monitors his MAM Master’s strategy and trades. To become a MAM Master, you are required to provide a strategy name, evidence of trading success, leverage, currency, expected returns and expected number of investors. Varianse provides all the tools and softwares required for trade execution, monitoring and assessment.
There are no educational materials on the Varianse broker website. This is as they tend to direct their online brokerage services to professional traders.
The following instruments are available for trading on the Varianse trading platforms:
- 58 Forex Currency Pairs.
- 11 Indices.
- 3 Energies.
- 3 Metals.
Varianse Accounts & Fees
For all accounts, the leverage for retail accounts is 1:30 and 1:400 on Professional accounts. The following account types are available:
- Classic Account: This can be used to trade over 100 instruments on the MT4 platform. Spreads start from 1 pip and no commissions are charged. The minimum deposit is $500.
- ECNpro Account: Spread starts from 0 pips and a commission of $3.5 per lot is charged on trades. The minimum deposit is $5,000 and account holders can trade over 100 assets on the MT4 platform.
- Prime Account: This account is available on the MT4 and Maxx trader platforms. The spread starts from 0 pips and over 60 forex and metal assets can be traded by account holders. Minimum account opening deposit is $50,000 and a commission of $2 per lot is charged on trades. Free X connected VPS is available to account holders.
Islamic Accounts are available when requested from the customer support team. Demo accounts are free and preloaded with virtual funds for practice purposes without any real risks.
To qualify as a professional client requires meeting 2 out of the 3 following guidelines, 1) Have a portfolio of greater than $500k (not including property or cash) 2) Have a verified history of placing significant sized positions (down to broker discretion) 3) Have worked in the capacity of a professional position related to derivatives / speculation / trading. Match any two of these requirements to qualify as a professional client.
It is important to note that negative balance protection, Investor Compensation Fund and recourse to the Financial Ombudsman Service is removed should you qualify for a professional account as you are then classified as professional trader under ESMA regulation.
Accounts can be opened in USD, EUR, GBP, PLN, AUD & JPY. The different currency options are beneficial as currency conversion fees do not apply when using an account in your own currency.
As broker fees can vary and change, there may be additional fees that are not listed in this Varianse review. It is imperative to ensure that you check and understand all of the latest information on the official Varianse website before opening a brokerage account.
The customer support team is available from 9:00 to 18:00 GMT Monday to Friday. The support team can be contacted through email, phone and instant web chat. They have a help centre where common questions are given detailed answers. The answers are in the areas of trading, accounts, MT4, ESMA and general questions.
Varianse Deposit & Withdrawal
Bank Wire Transfer: This payment option is used to transfer funds between a client bank account and Varianse’s bank accounts. Bank transfers are unlimited and attract no charges. Withdrawals take 3-5 business days and the withdrawal fee is $40/$40/£30.
Online Payments: The electronic payments accepted are Skrill, Uphold and SOFORT. The deposit fee charged is 2.9% of the payment amount. The payments are processed within the same day. Skrill withdrawals take 1-3 working days and a withdrawal fee of 1% is charged.
Credit/Debit Card: The cards accepted are Visa and Mastercard. The deposit fee is 2.9%. Withdrawals take 1-3 business days and additional $5 is charged.
China UnionPay: Deposits are accepted only in USD. There are no deposit fees and the transactions are processed instantly.
Varianse Account Opening
It takes a few minutes to open a live trading account with Varianse. Click on the ‘open Live Account’ button on the website to fill the account registration form.
The Registration success page displays and you are encouraged to verify your email to continue the process. Upon account verification, you are automatically logged into the clients’ area. You will be prompted to continue the registration by filling more information on personal details, trading experience, financial background, etc.
Varianse is an online broker that utilises innovative trading technologies for trading forex and CFDs. The broker emphasizes on its technological infrastructure which has engendered raw spreads from 0 pips, 0.4 milliseconds trade latency and true STP executions with minimal requotes.
The broker is regulated and thus must abide by all the stringent regulatory laws. These include segregation of client funds, verification of all new clients as well as digital protection of the transaction environment.
The trader analytical tool provided through the MetaStock XENITH package is comprehensive, though not free. All trading styles are allowed including the use of EA’s.
However, the minimum trading capital of $500 is high when compared to other brokers. Also, there are no educational resources to help new traders. The asset listing is limited as there are no cryptocurrency assets and no stocks.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.