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Binary options trading is a great method that allows even the average person, with some self-discipline and a bit of knowledge to make a sizeable supplementary income for themselves.
However, in order to begin trading, you would need to find a binary options broker, and unfortunately, the binary options brokerage industry has a very negative reputation, and it is not undeserved.
The majority of all binary options brokers are unregulated (meaning there is little recourse available) and the industry is plagued with scam artists and fraudsters.
Even among the regulated brokers, the most popular regulatory body is the Cyprus Securities and Exchange Commission (“CySEC”), and while they have definitely added some much needed legitimacy to the industry, they are not exactly considered to be the most stringent regulator.
Nevertheless, we only recommend dealing with regulated brokers, most of which are CySEC-regulated as CySEC has toughened up their regulation in recent years.
Vantage FX originally started as a forex broker that in 2012 started offering binary options as well. So the main question: is Vantage FX regulated? Good news, not only is VantageFX regulated, it is also regulated by the Australian Securities and Investment Commission (“ASIC”), meaning that it stands out even among the regulated brokers.
Due to its regulated status, Vantage FX is obligated to keep their clients’ funds in segregated accounts with the National Australia Bank.
This means you don’t have to worry about the company using your trading money for their own operational purposes (a big worry in unregulated outfits);Vantage FX also further secures its clients’ money via an additional AUD20m indemnity insurance policy.
Another major plus point is that Vantage FX is not on the other side of your binary options trade, meaning that they are a true broker.
This is in contrast to the vast majority of the binary options brokers who stand on the other side of your trade which means that your loss is their gain and vice versa.
Instead, Vantage FX passes on your trade to their liquidity providers (major banks such as Goldman Sachs, Nomura, Societe Generale etc.) and does not take any spread or commissions either.
That may seem suspicious; however, the reason that Vantage FX adopts this particular business model is because their main business is forex trading and not binary options.
They noticed that when they began offering binary options, their FX trading volumes went up as well and thus they provide binary options trading almost as a free ancillary service with the goal of maximizing FX trading volumes.
VantageFX Account Features
Most binary options brokers, including CySEC-regulated ones, typically offer multiple account tiers, dependent on minimum deposit amounts each with their own increasing rewards and features such as bonuses, market signals, cheaper withdrawals, saving accounts, and our favorite, ‘personal account managers’ who are most likely just commission-based salespeople who will try to get you to invest more money after you’ve lost yours.
Bonuses, which can range up to 100%, also come with some heavy strings attached; often traders are not allowed to withdraw their money (including their original deposit) once their account has been credited with a bonus until they satisfy a certain trading volume threshold.
This is a major downside of the binary options brokerage industry as many unscrupulous brokers use bonuses as a way to withhold traders’ funds, including more blatant cases of crediting an account with a bonus without the trader’s consent and then stating something to the effect of ‘all bonus insertions are final’.
And without a regulatory body, traders have no authority to turn to for recourse.
Due to the legitimacy of Vantage FX, the company sees no need to offer these kind of ‘rewards’, and keeps it simple. There are only two types of accounts available:
- Trading Account
- A free demo account which gives you AUD50,000 in virtual currency.
The demo account will probably be a more effective learning tool for newer traders than any ‘sign up bonus’ could possibly be.
However, they do have a referral program, allowing you to get AUD100 in your account for every friend referred once said friend funds their account with a minimum amount of AUD1,000.
Vantage FX Trading Software
Vantage FX uses the MetaTrader4 (“MT4”) platform, which is entirely web-based with mobile functionality as well.
While the MT4 platform is primarily used for forex trading, Vantage FX has partnered up with Tech Financials, a company listed on the London Stock Exchange, to integrate binary options trading capabilities with the MT4 platform.
Currently, the platform offers 112 different asset types, and offers four types of binary options:
- Touch/No Touch
- Short Term.
Overall, the number of asset and binary options types are not as diverse compared to the industry average and in this regard we have to rate Vantage FX as ‘slightly below average’.
However, we do note that the MT4 platform also offers advanced charting capabilities, which may be useful for more experienced traders.
Vantage FX Support Information
Vantage FX offers three support options: live chat, email, and phone support (5 numbers for current clients and one for account opening). This is pretty standard although we do like that they segregate the phone numbers in such a manner.
Vantage FX Banking and Company Information
Vantage FX’s deposits and withdrawal polices are definitely a cut above the majority of the industry.
They do not have any minimum withdrawal amount, nor do they charge any internal fees for any withdrawal. You can easily find the processing fees applicable for wire transfers and select other methods on their website.
In terms of banking methods, Vantage FX offers credit cards (Visa and MasterCard), wire transfer, BPAY, Neteller, Skrill, PoLi, and even broker-to-broker transfer. Withdrawal times are also expedient, with withdrawals being processed overnight and the funds appearing the next day for Australian bank accounts, while international transfers might take a further 2 to 5 business days.
While this might seem premature, you have to consider that given the largely unregulated and shady nature of the binary options brokerage industry, the fact that Vantage FX is licensed by a strong regulator like the ASIC plus the fact that it is not betting against you is more than sufficient to put it head and shoulders above the rest of the pack.
As such, we have no issues with recommending our readers to begin binary options trading with Vantage FX, particularly if they reside in Australia, just based on the strength of its ASIC regulation and business model alone.
- Free demo account
- Regulated by ASIC
- Many supported payment methods
- No-nonsense account system
- Limited number of assets and binary option types available