VARIANSE Review
| Broker | ||||||
|---|---|---|---|---|---|---|
|
||||||
| Specification | ||||||
|
||||||
VARIANSE is a newcomer to the cTrader-scene but is by no means an amateur in the forex and CFD trading industry. VARIANSE launched in 2015 and, up to now, focused on providing a low-latency MetaTrader 4 experience to advanced traders.
Introduction to VARIANSE
VARIANSE launched cTrader in 2021. While the broker has only offered cTrader for a few years, the firm is not an amateur in the forex and CFD trading industry. VARIANSE launched in 2015 and focused on providing advanced traders with a low-latency MetaTrader 4 experience.
The unique selling points VARIANSE offers clients are low cost, low latency and reliable order execution for all trading strategies, combined with professional and dedicated support. The company is headquartered in London’s Mayfair in the heart of the Hedge Fund capital and is licensed and authorised by the UK’s Financial Conduct Authority.
The company’s group is additionally licensed by the FSC in Mauritius and the LFSA in Malaysia to provide global client coverage across Europe, the Middle East, Africa and Asia. At the beginning of 2021, VARIANSE made a respectable decision and launched cTrader. In this VARIANSE cTrader review, we’ll explore the company’s history, stability, current trading conditions on cTrader and how you can start trading with this broker.
About VARIANSE
VARIANSE is an online trading brand that is used by related companies registered and licensed in various jurisdictions. The company has fewer employees than you would expect to see in a brokerage, but that’s fairly reasonable considering the business model and the level of automation and efficiency the company has achieved. Market-makers chasing inexperienced traders need enormous dealing, sales, support and marketing teams. VARIANSE successfully provides consistently high levels of service and client support with their streamlined approach and automated processes.
VARIANSE regulation
- VARIANSE is the trading name of VDX LTD, registered in England & Wales with company number 11050659. VDX Limited is licensed and authorised by the Financial Conduct Authority with FCA Register no. 802012.
- The brand VARIANSE is used by related companies VDX Derivatives, licensed as an SEC-2.2 Investment Dealer (broker) by the Financial Services Commissions of Mauritius with license number C118023323.
- VDX Capital Ltd is licensed by the Labuan Financial Services Authority of Malaysia, with license number MB/20l0051.
VARIANSE trading conditions
As mentioned earlier, VARIANSE offers very competitive trading conditions and low-latency STP execution, which is highly advantageous for algorithmic traders. There are three trading accounts available, each offering various trading conditions. The trading conditions you’ll experience also depend on whether you’re classified as a professional or retail client. Refer to the table below for a general overview of trading conditions.
| Max. Leverage (Pro. FCA & Mauritius) | 1:400 (Classic & ECN account) |
| Max. Leverage (Retail FCA) | 1:30 (as per ESMA) |
| Asset Classes | Forex, Indices, Metals, Energies, Equities |
| Total Number of Trading Pairs | 192 |
| Trading Commissions | US$3.50 per lot (ECN Pro) |
| Account Currencies | USD / EUR / GBP / PLN / JPY / AUD |
| Minimum Deposit | US$500 |
| Spreads | From zero pips (ECN Pro) |
| Stop Out Level | 50% (Classic & ECN account) |
VARIANSE trading instruments
Almost 200 trading instruments are available, spanning forex, commodities, indices and equities asset classes.
- Forex: 58 forex pairs
- Indices: 11 stock market indices
- Shares: More than 100 stocks listed on the NASDAQ stock exchange are available in cTrader
- Commodities: Precious metals and energy products
VARIANSE account types
VARIANSE offers three account types: Classic, ECNpro and Prime. Each account type has different characteristics. Minimum deposit, commissions, spreads, stop-out level, minimum trade size and available instruments vary depending on the type of account.
| Account type | Classic | ECNpro | Prime |
|---|---|---|---|
| Spread from | 1 pip | 0 pips | 0 pips |
| Commissions (FX & Metals) | 0 | $3.50/ lot | $2 per lot |
| Commissions (Indices) | $0.50/ lot | $0.50/ lot | 0 |
| Commissions (Equities) | 0.05% | 0.05% | N/A |
| Commissions (Oil) | 0 | 0 | N/A |
| Minimum deposit | $500 | $5,000 | $50,000 |
| Max leverage (Pro) | 1:400 | 1:500 | 1:200 |
Accessibility to VARIANSE services
VARIANSE welcomes clients from around the world, except for the United States, where CFD trading is prohibited, and various high-risk and sanctioned countries.
You can fund your VARIANSE trading account using several currencies via bank transfer. Other than the fees your bank charges, there aren’t any additional processing fees when funding your VARIANSE account via bank transfer. Credit and debit card, Skrill, and Neteller deposits are possible using USD, EUR or GBP and incur a 2.9% processing fee.
The Pros and Cons of trading with VARIANSE cTrader
No review would be complete without a summary of the benefits and drawbacks of a broker. Based on our assessment and opinions, here are the advantages and disadvantages.
- VARIANSE is a true non-dealing desk broker. According to the company’s FCA license, it must straight-through-process all clients’ orders.
- Spreads are offered from 0 pips, making them a low-cost broker.
- Multiple account currencies are supported; this is a great advantage for traders concerned with currency conversion fees on their deposits and withdrawals.
- They are licensed in Mauritius, allowing retail traders to access leverage up to 1:400 without meeting professional client requirements.
- Client support is rapid and professional.
- There is a lack of educational resources. First-time traders will not find the support or information needed to start trading responsibly.
- VARIANSE does not offer cryptocurrency CFDs due to FCA restrictions.
- There are fees for depositing and withdrawing funds from your trading account; this is a drawback of cooperating with STP brokers.
How to open a VARIANSE trading account
You can open your VARIANSE live or demo account in a few simple steps.
- Find the button on the company’s website to open a live or demo account.
- You’ll be asked to select if you want to register with VDX Ltd, regulated by the UK FCA or VDX Derivatives, regulated by the Mauritius FSC.
- Enter your personal information: country, name, phone number, and email address and choose a password.
- Verify your email address by clicking a link sent to your inbox.
- Choose whether you want to open a live or demo account. If you choose a demo account, you could go right ahead to select a trading platform.
- If you chose a live account, you’d need to provide the following information: type of account (individual or corporate), date of birth and address.
- Next, you’ll need to fill out a know-your-client questionnaire and appropriateness test.
- Finally, you’ll need to upload your proof of identity documents, such as a passport, national ID or driver’s license and a recent proof of address.
VARIANSE FAQ
Is VARIANSE a market-maker?
No. VARIANSE is not a market maker. The UK company is an IFPRU 125K firm, which means it is prohibited from dealing on own account. Therefore, the company must execute clients’ orders on a matched principal basis, also known as back-to-back trading. As the company’s FCA license prohibits it from market-making activities, all orders are executed using straight-through-processing (STP) methodology. Similarly, VARIANSE Mauritius is licensed as an Investment Dealer (Broker), which permits only agency dealing. It does not allow the company to issue or underwrite securities or take on any market risk.
I am not from the UK. Can I still open an account with Varianse?
Can I buy stocks with VARIANSE?
The advantage of trading the Stock CFD is that you can go both long and short and increase your buying power with up to 5 times leverage.
How long can I keep my VARIANSE demo account?
Can I open an MT4 account and a cTrader account at the same time?
Why does VARIANSE charge for deposits and withdrawals when other brokers don’t?
What’s the difference between VARIANSE in the UK and VARIANSE in Mauritius?
When trading with either company, clients will benefit from the same trading technology, platforms, and low-cost, low-latency trading. Similarly, the liquidity and trade execution are the same and impressive. Client fund safety is essential, and it’s good to know that both companies safeguard and segregate clients’ money with Barclays Bank in London. This is very important for a trader to have that peace of mind.
Clients of VARIANSE Mauritius have access to leverage of up to 1:400, whereas clients of VARIANSE UK have access to leverage of 1:30 (or 1:400 if you qualify as a Professional).
Does VARIANSE offer cTrader Copy?
VARIANSE launched in 2015 and is headquartered in London’s Mayfair in the heart of the Hedge Fund capital and is licensed and authorised by the UK’s Financial Conduct Authority. The unique selling points VARIANSE offers clients are low cost, low latency and reliable order execution for all trading strategies on cTrader and MetaTrader 4, combined with professional and dedicated support. The company’s group is also licensed by the FSC in Mauritius and the LFSA in Malaysia to provide global client coverage across Europe, the Middle East, Africa and Asia. Learn more about VARIANSE by reading our detailed review.
