Velocity Trade

Risk Warning

Online trading is dangerous, and you could potentially lose all of your investment funds. Not all investors and traders are suitable for it. Please understand that the information on this website is designed to serve as general guidance, and that you should be aware of the risks.

General Information

What is Velocity Trade？

Velocity Trade is a South Africa financial services company that offers trading and investment solutions to clients. They provide access to a range of market instruments, including ETFs & ETNs (Exchange Traded Funds and Exchange Traded Notes), Funds, CFDs (Contracts for Difference), and Margin FX (Foreign Exchange). However, this broker currently has no valid regulation.

Pros & Cons

Velocity Trade Alternative Brokers

There are many alternative brokers to Velocity Trade depending on the specific needs and preferences of the trader. Some popular options include:

• OANDA- OANDA is a reputable broker with a user-friendly platform, competitive spreads, and access to a wide range of markets, making it a popular choice for both beginner and experienced traders.

• CMC Markets- CMC Markets is a trusted broker known for its advanced trading platforms, extensive research tools, and competitive pricing, making it a preferred choice for traders seeking comprehensive market analysis and execution capabilities.

• IronFX- IronFX is a reliable broker offering a diverse range of trading instruments, multiple platform options, and strong customer support, making it suitable for traders looking for a comprehensive and customizable trading experience.

Ultimately, the best broker for an individual trader will depend on their specific trading style, preferences, and needs.

Is Velocity Trade Safe or Scam？

Velocity Trade currently has no valid regulation. When a brokerage operates outside the regulatory boundaries or has an abnormal regulatory status, it suggests a lack of oversight and compliance with industry standards. This can increase the risks associated with trading, including the potential for fraudulent activities or the inability to seek legal recourse in case of issues or disputes.

Besides of this, there is limited information about leverage and other key details raises concerns about the company's reliability.

Market Instruments

Velocity Trade offers a range of market instruments across various asset classes. Here's a brief description of the market instruments provided by Velocity Trade:

ETFs & ETNs (Exchange Traded Funds and Exchange Traded Notes): These are investment funds that trade on stock exchanges and aim to track the performance of a specific index, sector, commodity, or asset class. ETFs and ETNs offer diversification and can be bought and sold throughout the trading day.

Funds: Velocity Trade provides access to various funds, which are pooled investment vehicles managed by professional fund managers. These funds can include mutual funds, hedge funds, or other types of investment funds.

CFDs (Contracts for Difference): CFDs are derivative products that allow traders to speculate on the price movements of an underlying asset, such as stocks, commodities, indices, or currencies, without owning the underlying asset itself. CFDs offer leverage, allowing traders to potentially magnify their trading positions.

Margin FX (Foreign Exchange): Velocity Trade enables trading in the foreign exchange market, allowing clients to trade major currency pairs like EUR/USD, GBP/USD, USD/JPY, etc. Margin FX trading involves speculating on the exchange rate fluctuations between currency pairs.

Accounts

Velocity Trade offers two types of accounts: the International Account and the Trading Account. Here's a brief description of each account:

International Account:

• Accepted Currencies: Velocity Trade's International Account allows deposits in USD (United States Dollar), EUR (Euro), and GBP (British Pound).

• Minimum Deposit: The minimum deposit requirement for the International Account is 10,000 units in the relevant account currency (USD, EUR, or GBP). It means that clients need to deposit a minimum of 10,000 units in the chosen currency to open an International Account.

• Features: The International Account provides access to a broader range of markets and instruments, including ETFs & ETNs, Funds, CFDs, and Margin FX. Clients using this account can potentially trade in multiple currencies and take advantage of international investment opportunities.

Trading Account:

• Accepted Currency: Velocity Trade's Trading Account is denominated in ZAR (South African Rand).

• Minimum Deposit: The minimum deposit requirement for the Trading Account is also 10,000 units in ZAR. Clients need to deposit a minimum of 10,000 ZAR to open a Trading Account.

• Features: The Trading Account is focused on providing trading services within the South African market. Clients may also choose to make use of Velocity Trade's Foreign Investment Allowance facility (FIA). The FIA allows South African clients to open an international account and purchase international securities.

Spreads & Commissions

Velocity Trade offers competitive spreads starting from 1 pip for both the International Account and the Trading Account. In terms of commissions, Velocity Trade charges a variable commission for both the International Account and the Trading Account. The commission rates can vary depending on the specific market.

Below is a comparison table about spreads and commissions charged by different brokers:

Please note that these values are approximate and may vary depending on market conditions and the type of account you have with each broker. It's always recommended to check with the respective brokers for the most up-to-date and accurate information on spreads and commissions.

Trading Platforms

Velocity Trade provides its clients with a selection of trading platforms to accommodate their diverse trading preferences. The first platform is a mobile application that allows clients to trade conveniently on the go using their smartphones or tablets. The second platform is a web application that can be accessed through a web browser, eliminating the need for software installation. This web-based platform offers flexibility and accessibility, allowing clients to trade from any device with an internet connection. Velocity Trade also offers a desktop application, which is a dedicated trading platform installed directly on clients' computers. It is designed to offer enhanced performance and stability, catering to the needs of experienced traders who prefer a standalone software solution.

Customer Service

You may contact Velocity Trade via email support@za.velocitytrade.com or via the Help Desk +27 21 200 8800.

Conclusion

Velocity Trade offers trading and investment solutions across various market instruments, including ETFs & ETNs, Funds, CFDs, and Margin FX. They provide access to different trading platforms such as a mobile application, web application, and desktop application. The company operates in South Africa and offers both an International Account and a Trading Account, each with a minimum deposit requirement of 10,000 units in the relevant account currency.

However, it's important to note that Velocity Trade currently has no regulation, which can raise concerns regarding client protection and transparency. There is also limited information available about key details such as leverage and specific commission rates. When considering Velocity Trade as a potential trading partner, it is advisable to conduct thorough research, including gathering additional information about their reputation, track record, and client feedback.

Frequently Asked Questions (FAQs)