ValexTrade – Is this a Quality Broker?

ValexTrade

Do you want to engage in online trading? These days, it is incredibly easy for anyone to do so because you just need to open an account with an online broker. Considering that there are thousands of companies that exist, it seems like a piece of cake. But, you have to remember that the key is finding a quality brokerage and this requires some effort on your part. There are mediocre and low quality ones that also operate and you do not want to get involved with those. The purpose of this ValexTrade review is to help you determine its suitability.

Bear in mind that every company you come across will make big promises. You cannot expect them to tell you their own flaws, so you have to dig them out on your own. This means not letting your eagerness prevent you from making the right decision. You need to be smart about it, which means taking a close look and not just believing everything you read. After all, this is the internet and you should never take things at their face value.

Since online trading is very lucrative, it is not surprising that scammers are active in this space. Many fraudulent platforms have taken advantage of people and stolen their money and you do not want to end up as a victim. Hence, you should take control when you are looking at various brokers and go through them carefully to ensure you are not opting for the wrong one. A quick look at ValexTrade shows that it presents itself as a transparent, globally renowned and legitimate platform.

As impressive as that sounds, you have to check to see if these claims are true or not. When you decide to do so, you will learn the truth about what kind of broker ValexTrade really is.

Licensing and regulation

If you want a quality broker, it is a given that they will be licensed and regulated. This automatically adds a stamp of quality because brokerages that are regulated and monitored have to comply with certain standards of services and be transparent. They are also required to offer protections to their clients that you cannot expect from other platforms. Therefore, when you are looking into ValexTrade, you need to check if it is licensed and regulated.

This will depend on where the brokerage is based and you are in for disappointment because ValexTrade is operating from Saint Vincent and the Grenadines. This offshore zone has become notorious because it is a favorite of scammers and fraudulent platforms. It is because the authorities in this region do not monitor their forex industry, which means there are no such barriers or requirements to set up a firm.

Most importantly, brokers do not have to answer to anyone and this is what appeals to criminals, as they can go about their activities. The same is true for ValexTrade because it has not bothered getting regulated in a respectable jurisdiction.

Terms and Conditions

It is always recommended that you check out the Terms and Conditions of a company before you sign up on their platform. These are legal terms that establish the kind of contract you will have with the broker and dictate the policies you will have to comply with and the fees you will be charged, along with other details. This makes them very important, so you should check ValexTrade’s Terms and Conditions as well because this helps in avoiding nasty surprises.

When you do so, you will find the Non-deposited funds clause that ValexTrade has added. This dictates that any profits that you make via bonuses will not be eligible for withdrawal. There are several things wrong with this. First off, the fact that bonuses are given is an issue because this practice has been banned in most areas because of its unfair nature.

Secondly, the Terms and Conditions at ValexTrade state that you cannot withdraw profits generated with the bonus they give, but there is no way to distinguish the profits from those that you generate with your own deposits. Essentially, it means that your withdrawals will be blocked and this is not something that an authentic company would ever do.

Trading software

The most important offering of any online broker is their trading software because you have to use it for executing your trades and it provides you with the tools and features to be used during trading. If the platform malfunctions, breaks down, or does not have any decent features, your performance will take a hit. You will find that ValexTrade offers a web trading solution.

A look at the platform shows that it is very basic and has nothing special to offer, unlike the MT4 and MT5 trading platforms that are considered the best. Legitimate and quality brokers will usually offer you these platforms, while scam brokers like ValexTrade offer a basic web trading platform to further the illusion of authenticity.

Trading conditions

The trading conditions of an online broker are also relevant because they determine the profits you can make through your activities and the kind of costs you will incur during the trading process. When you check the trading conditions that ValexTrade offers, you will find that the spreads for the EUR/USD pair alone are 3 pips.

This is extremely high because most quality brokers will have spreads of 1 pip. This means that ValexTrade is not a competitive broker at all. Secondly, they are also offering leverage ratios of 1:100 and even though it seems attractive, these leverage levels are downright dangerous. Most jurisdictions have imposed a cap on the leverage that online brokers can offer and it is usually between 1:30 and 1:50.

Final Answer

You will also find that ValexTrade supports crypto payments and this is also a concern because these payments are anonymous and final, which means there is no option of getting a refund. When you put all of these problems together, you can see that ValexTrade is not a quality broker.