Vantage Review 2024

Trust

Vantage Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker. This allows us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about the four entities operating under the Vantage trade name:

• Vantage Global Prime Pty Ltd is licensed and regulated by the Australian Securities and Investments Commission (ASIC) with AFSL number 428901. We rate ASIC as a Tier-1 regulator.
• Vantage Markets (Pty) Ltd is licensed and regulated by the Financial Sector Conduct Authority (FSCA) in South Africa under license number 51268. We rate FSCA as a Tier-2 regulator.
• Vantage International Group Limited is licensed and regulated by the Cayman Islands Monetary Authority (CIMA) with SIBIL number 1383491. We rate CIMA as a Tier-3 regulator.
• Vantage Global Limited is licensed and regulated by the Vanuatu Financial Services Commission (VFSC) with register number 700271. The VFSC is ranked as a Tier-3 regulator on our system.

We have summarized the essential aspects of Vantage in terms of regulation and safety in the table below:

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities because it allows them to serve clients worldwide. However, licenses obtained by regulators in different jurisdictions do not always entail the same degree of protection. Some regulators mandate compliance with the strictest financial frameworks, whereas others are less rigid. That is why traders need to familiarize themselves with the safety mechanisms ensured by the entity they want to open an account with beforehand.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All Vantage entities ensure segregated client funds.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. This is especially important in volatile markets. All Vantage entities, except for Vantage International Group Limited, ensure negative balance protection.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities in the unlikely event that the company becomes insolvent. Clients of Vantage Global Limited are protected by up to EUR 20,000 under The Financial Commission.
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum retail leverage with Vantage is 1:500.

Is Vantage Safe to Trade With?

Vantage has one Tier-1 and one Tier-2 regulation and complies with most of the essential safety requirements. It has also implemented a tight stop-out and margin call policy. Overall, I assessed the broker to meet the industry safety standards.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focus on how long the broker has been in business, how big the company is, and how transparent it is in terms of readily available information.

I checked Vantage’s Client Agreement, which is available from the Legal Documents sections of the website, and everything seems in order. The document is easily accessible, and all essential information is written in an easy-to-understand way.

I also concluded that Vantage maintains high fee transparency. The broker displays live spread info on its website, which is easily accessible to visitors of the website. I also compared the numbers displayed to the broker’s live quotes on the platform and determined that they matched.

In summary, my research indicates that Vantage can be regarded as having a sufficient level of trust and stability due to the following factors:

• Holds Tier-1 license
• Presents legal information clearly and concisely
• Member of The Financial Commission

Fees

Vantage Trading Fees

Vantage Spreads

I tested Vantage’s spreads during the most actively traded times – the London open at 8:00 a.m. GMT and just after the U.S. open at 2:45 p.m. GMT. The test was conducted on 17 January 2024. The results are shown in the table below:

Broken down by asset class and compared to the industry average, Vantage charges low spreads on currency pairs, shares CFDs, indices, and cryptocurrencies, and low-to-medium spreads on commodities.

Vantage Commissions

Vantage’s Raw ECN account type features a fixed round-turn commission of $6 per traded lot (100,000 units) applied to FX currency pairs and metals. Notably, there is no commission liable for trading US stocks, which is quite rare for an ECN account. This means that Vantage’s Raw ECN account type is especially suitable for share CFDs trading.

Please note that ‘round-turn’ means that half of the fixed rate is paid whenever an order is opened, and the other half is paid when the position is closed. I determined that Vantage’s commission rate meets the industry average.

Vantage Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full contract (100,000 units) of the base currency.

My tests indicate that Vantage charges medium-to-high swaps compared to the industry benchmark.

Vantage’s Non-Trading Fees

Deposits and withdrawals are cost-free with Vantage, though third-party banking fees may apply depending on the chosen payment method. The broker does not charge dormant accounts with an inactivity fee.

Accounts Comparison

I have compiled the table below to help you better understand the difference between the pricing mechanisms of Vantage’s Standard and Raw ECN account types. It illustrates the spreads and commissions I have recorded on the EUR/USD pair for each account type. It also shows the typical costs for ECN and STP accounts in the industry at large. The table demonstrates how much you would have to pay to trade 1 full lot (100,000 units) on the EUR/USD with a pip value of $10 for each account.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

My findings indicate that Vantage’s Standard account lives up to its name since it incorporates the same pricing mechanism that is typical to most STP account types in the industry. Its Raw ECN account type, however, offers more competitive prices than the typical ECN account type.

Platforms and Tools

MetaTrader 5 stands out with its simplistic design and key features like one-click trading, alarm settings, and a market depth tool, ensuring fast and efficient order execution.

MT5 is ideal for automated trading, thanks to its Expert Advisors (EAs) and an integrated strategy tester for algo traders.

Vantage provides free VPS hosting for accounts with a minimum $1000 balance and a monthly trade volume of at least $0.5 million. The broker also offers advanced copy trading capabilities.

Vantafe gives access to a wide range of supporting tools, such as its market sentiment indicator powered by TradingView. I found the indicator particularly useful for intraday trading, as it informs traders of how other market participants are positioning themselves on the market. There is also an entire basket of supporting tools that comes in with ProTrader. Against a minimum deposit of $200, Vantage clients can gain access to ProTrader’s Market Buzz, advanced charting capabilities, featured ideas, and other tools.

Vantage’s Desktop MetaTrader 5 Platform

General Ease of Use

MT5’s layout is pretty straightforward. Account info is displayed at the bottom of the screen; charts occupy the middle portion of the window; a watch list of selected instruments and tools screen is positioned on the left side of the window; and a panel with various settings and configurations can be found at the top of the window.

Charts

I consider the charts screen a platform’s most important feature. It facilitates technical analysis by providing an overview of price action behavior. Chart artists use many analytical tools and chart configuration possibilities to examine it from multiple angles. In my experience, the really important aspect of a chart is how easy it is to scale price action up and down.

I have broken down the available analytical tools and chart configurations below

• 38 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next. The problem with MetaTrader 5, in my opinion, is that applying 2 or more indicators to the chart obscures price action rather than contextualizing it. This is due to the ruggedness of MT5.
• 24 drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels. Despite the rather big collection of drawing tools, the ruggedness of MT5 makes it difficult to discern price action behavior.
• 21 timeframes. MT5 allows multi-timeframe analysis of price action behavior. The greater the number of timeframes, the more intricate examinations that can be carried out across the short-term and long-term. One of the standout features of MetaTrader 5 is its vast array of timeframes.
• 3 chart types. Price action can be represented as a line, bars, or candlesticks. This diversity makes it possible to examine potential trading opportunities from different angles.

Orders

I have broken down the available order types on the MetaTrader 5 platform below:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order gets filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

My Key Takeaways After Testing the MetaTrader 5 Platform

MT5 excels in simplified order execution, but its dated and rugged design falls short compared to newer, sleeker platforms. As a trader who prioritizes flexible chart scaling, I find MT5’s charting too rigid and less effective. However, its strength lies in automated trading, enhanced by Vantage’s free VPS hosting service.

Vantage’s Proprietary Mobile App

I was strongly impressed by Vantage’s proprietary trading app powered by the seamless TradingView. It offers a superior design with numerous functions, enabling easy market access and real-time monitoring of market trends for on-the-go position adjustments.

The app effectively combines crucial features like charting, order execution, and account information with additional services, including market analysis and copy trading.

My Key Takeaways After Testing Vantage’s Mobile App

Although I’m usually skeptical of trading apps due to the limitations of small screens for detailed technical analysis, Vantage’s app impressed me. Its advanced charting capabilities add remarkable versatility, and I valued its convenience in consolidating all essential Vantage services into one accessible platform.

Tradable Instruments

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the underlying asset’s price without physical delivery. For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars. One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With Vantage?

I have broken down the available instruments with Vantage below:

• 61 Currency Pairs
  Major, Minor, and Exotic
• 20 Commodities
  Soft, Metals, and Energy
• 721 Share CFDs
  UK (98), US (489), EU (134)
• 16 Indices
  US, Europe, Asia
• 47 Cryptocurrencies
  Major and Minor
• 19 Futures
  Commodities (2), Indices (10), Bonds (7)
• 51 ETFs
  Retail, Commodities, Other

Compared to the broader industry, Vantage offers an average number of currency pairs and a high number of commodities, indices, share CFDs, and cryptocurrencies.

My Key Takeaways After Exploring Vantage’s Tradable Instruments

I appreciated the wide range of cash indices and futures indices. It favors day traders because they can lock in more favorable entries into trades. Additionally, the impressive assortment of more than 50 lower-risk securities allows day and position traders to hedge their longer-term risk and better manage expected and unexpected changes in volatility.

Customer Support

Customer Support Test

When we test a broker’s customer support team, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I conducted my test on 17 January at around 12:39 CET via live chat. After I typed in my name and email address, I was immediately connected to the VIVA chatbot. I found it quite sophisticated and intuitive.

Then, I typed the phrase ‘average execution speed’ and was immediately provided with a satisfactory answer. There is also an option to chat with an agent, however, it may take more than 20 minutes before one becomes available.

Deposit and Withdrawal

Vantage Deposit Methods

Vantage Withdrawal Methods

Vantage does not charge any internal fees for deposits or withdrawals. However, International Bank Transfers attract a minimum bank processing fee of 20.00 units of your account base currency from Vantage’s bank’s side. For the first international bank transfer of every calendar month, Vantage will cover the 20.00 unit fees for you.

Account Types and Terms

Why is Choosing the Right Account Type Important?

Your account should reflect your goals, needs, and ambitions on the market. You should take into consideration several factors, such as whether the account type has a minimum deposit requirement, its spreads and commissions, the execution method, and more.

What Account Types Does Vantage Offer?

I have broken down the features of Vantage’s account types below:

I noticed that the only distinction between the three account types, except for the minimum deposit requirements, are the pricing mechanisms for the three. In terms of value, the Professional account undoubtedly offers the best conditions – raw spreads and low commission. However, the high minimum deposit requirement can be too costly for some traders to start. Also, professional accounts usually lack protections like negative balance protection, which are mainly offered to retail traders.

The Raw ECN account features the second-best conditions, and its extremely low deposit requirement makes it easily accessible to a wide variety of traders. I found this account type suitable for all kinds of trading strategies.

However, the relatively slow order execution speeds – between 100 and 250 milliseconds – are not ideal for scalping, whereas the average-to-high swaps that I recorded are less than optimal for position trading.

What is CFD Leverage?

The leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of the leverage. Essentially, the broker lends the trader money so that the latter can open bigger positions. The leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

Vantage’s Execution Model

Although Vantage is registered as a market maker, it primarily sources its liquidity from external entities, specifically banking institutions in the interbank market. Consequently, it functions more like an ECN (Electronic Communication Network) broker, offering its clients raw spreads directly from these external liquidity providers.

ECN brokers utilize electronic execution of client orders since they operate as Over-the-Counter (OTC) derivatives brokers. The advantage of OTC trading over trading on an Exchange is that there is no need for a dealing desk, and client orders are filled much faster.

Vantage’s Account Opening Process

The account creation process with Vantage is straightforward and quick. You can go at your own pace and be done with everything within an hour. I have summarized the step-by-step process below:

• Step 1. Click ‘Register’ at the top-right corner of the main page.
• Step 2. Fill in your country of residence, email address, and password.
• Step 3. Copy the verification code sent to the email you provided.
• Step 4. Fill in your personal details, including your name, date of birth, etc.
• Step 5. Choose a platform, account type, and base currency.
• Step 6. Wait for approval of your application. It may take up `to 24 hours.
• Step 7. Upload proof of ID and address to verify your account.

Why is a Demo Account Important?

Vantage offers demo accounts that introduce traders to the broker’s services and allow them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account for yourself alongside your live CFD account.

Vantage’s Restricted Countries

Vantage’s services are not directed towards residents of the following countries: Canada, China, Romania, Singapore, the United States, Poland, Spain, and Italy.

Research

Research Tools

I have broken down the available research tools below:

Economic Calendar

The economic calendar is an essential tool in a trader’s arsenal. It informs traders of upcoming market events and releases that have the potential to stir price action, thereby creating viable trading opportunities.

Market News and Articles

Vantage’s market breakdowns are available from the website with free access to registered and unregistered clients. They provide coverage on current economic and financial news with potential market impact, focusing on various financial assets like gold, the US dollar, bonds, and more.

ProTrader Tools

The ProTrader basket of tools comprises different features, such as an economic calendar, market buzz, featured ideas, technical insights, and more. The market buzz tracks the number and frequency of social interactions and mentions of various instruments (a market sentiment gauge), which helps traders better understand how and where volatility is likely to increase or decrease.

The featured ideas and technical insights break down various trading opportunities. You can read about a currently developing price pattern (channel, wedge, correction, etc), the most important pivot points, support and resistance levels, viable entry and exit levels, and more.

Daily Financial News

Vantage offers financial news in video format on its YouTube channel, providing an easily digestible and time-efficient way to stay informed.

Education

Educational Tools

I have broken down the most important types of educational content with Vantage:

Educational Courses

The courses offered are ‘Forex Beginner’ and ‘Stock Beginner.’ Spanning over 270 minutes in total, I found these courses to be quite in-depth and diverse. The attention to minor details and their clear structure was particularly impressive.”

Articles

Vantage’s library features 79 articles and is regularly updated. These articles offer a broader perspective on market developments, including forecasts for the indices market in 2024, and help traders gain a deeper understanding of the underlying driving forces in the market.

Webinars

There is a truly impressive assortment of over 270 past webinars available from the broker’s YouTube channel. New webinars are held weekly. There is already enough content to provide newbie traders with a firm understanding of the ABCs of trading.

The Bottom Line

Vantage is a well-balanced Australian broker that offers retail and professional traders access to nearly 1000 instruments at competitive prices.

The broker incorporates multiple tools and several platforms, including MetaTrader 4&5 and ProTrader, and has a wide collection of educational materials.

There are not many cons to Vantage’s offering, though I would say that its average execution speeds of 100-250 milliseconds make it less prudent to execute high-frequency strategies, such as scalping.

With its affordable prices and a selection of over 50 lower-risk securities, I assess Vantage to be a great choice for day traders and position traders.

FAQ