VTB24 Forex Review
VTB24 Forex offers just one type of live trading accounts. There is also a demo account with RUB100 000 for those who wish to try trading without risk. The broker’s portfolio is somewhat limited, with just around 20 forex pairs – majors and minors.
Usually the brokers are offering are more extensive list of forex pairs. FxPro, for example, has more than 70 pairs. FX Choice is more modes with 38 pairs, while the main player on the Russian market – Alpari has a portfolio of 61 instruments.
The Company. Security of Funds
Company Country Regulation
VTB24 Forex (ВТБ24 Форекс) Russia Bank of Russia
VTB24 Forex is a daughter company of one of Russia’s major private banks – VTB24. It was set up in early 2016 as an entity to offer forex brokerage services, which were previously offered by the bank itself. In the autumn of 2016 VTB24 Forex got its forex brokerage license from the megaregulator Bank of Rusia, but at the time of writing of this review (January 2017), still has not launched active operations. According to broker’s employees and company statements, this is due to happen sometime in February 2017 pending the setting of further standards by the Bank of Russia.
VTB24 Forex is member of two self-regulatory organizations: the Association of Forex Dealers (AFD) and the National Association of the Forex Dealers (NAFD) and a compensation scheme. Judging by the fact that is website is in Russian only, obviously the broker is targeting only the local traders.
Minimum initial deposit
In theory VTB24 Forex does not require a minimum deposit, pending additional regulations by the Bank of Russia.
According to the reply of a company official in the broker’s forum, the required sum to start trading is $2000. To be more precise, the sum must be the ruble equivalent of $2000, as for the time being the company accepts client deposits in rubles only.
Spreads and commissions
VTB24 Forex has fixed spreads and does not charge additional commissions. The 3 pips spread for the most popular forex pair EURUSD is a bit above the average of around 2 pips. The forex broker XM, for example, gives an average of 1.7 pips, while FXCM has even tighter spreads for the Mini account.
VTB24 Forex gives a max leverage of 1:50, which is rather low for the industry, where the average is around 1:200. There are other forex brokers, like FiboGroup who give as much as 1:400 on some accounts and FXTM whose highest leverage is 1:1000.
According to the company employees, the max leverage in the demo account is 1:45 and the stop-out margin is 1:50, but this could change once the live trading accounts are launched.
Our guess is that VTB24 Forex is simply proceeding cautiously, even though the major players on the Russian market like Alpari and Forex Club offer higher leverage. On the other hand, another smaller broker on the Russian market – Gerchik&Co has a max leverage of 1:100 and 1:50 for ruble pairs.
VTB24 Forex is one of the brokers who offers the trading platform MetaTrader 5 (MT5) – the successor of the all-time favorite MT4. Since the introduction of the hedging option in the spring of 2016, MT5 has been growing in popularity, even more so after its developer MetaQuotes said it is starting to phase out MT4. It is said that MT5 is better and faster than its predecessor and has more options, but the absence of the hedging feature was keeping it in the shadow of MT4. Now only time will tell whether MT5 will succeed in repeating its success.
Other forex brokers that are already offering MT5 are FxPro, FXTM, FXChoice and FiboGroup.
Methods of payment
We could not find specific information about the deposit options, besides the most obvious – bank transfer. Probably the broker will provide other options once it becomes fully operational and launches live trading.
Judging by the posts in the broker’s forum section, traders are showing interest in becoming clients of VTB24 Forex. There are also those who have already traded forex using the previous service of the parent bank.
When comparing to other forex brokers, the trading conditions of VTB24 Forex do not strike us as very attractive. The initial deposit is rather high, the leverage is too low and the minimum trade size is pretty big as well. Most brokers offer trading in micro lots, or at least in 0.1 lots, like IG. Alpari, the leading broker on the Russian market offers trading in 0.01 lots. Another major broker – TeleTrade, however, offers trading in entire lots only.
VTB24 Forex Review Conclusion
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