Vertical Markets Review
Vertical Markets Review
Vertical Markets is a forex broker, offering multiple account types. The gaps in deposit requirements are fair, in comparison to the offers by some brokers.
The Company. Security of Funds
Company Country Regulation
TS Basis LTD Seychelles N/A
Vertical Markets is a trading brand of TS Basis LTD, a company registered on the Seychelles. The company does not fall under any financial regulation. The combination of an off-shore registration and lack of oversight is a dangerous one.
You may already be aware of this, but for those who aren’t, we must mention why financial regulation is so important. If you trade with an unregulated broker, you are basically trusting the company’s word. Different countries have different agencies, which monitor the activities of companies in the financial services sector, to prevent fraud. One such agency is the Cyprus Securities and Exchange Commission (CySEC). In order to register with the Commission, a company must prove having at least EUR 730,000 in capital, to ensure a long-term stability.
Furthermore CySEC enforces segregation of client accounts. This rule means, a broker can’t freely access client accounts and “borrow” money from them. Additionally, a compensation scheme is in place. This is a mechanism, which works similarly to an insurance company. All CySEC regulated brokers have to periodically give a portion of their profit to a collective pool, which later serves as a guarantee against broker bankruptcy. If you traded with such a company and it happens to go insolvent, your account will be covered up to EUR 20,000.
Vertical Markets also offers a form of fund management, which is not very clearly presented. Whatever the conditions are, a broker offering this type of service hides great potential for conflict of interest. One should proceed with extreme caution in these situations, especially when dealing with an unregulated entity.
Minimum Initial Deposit
Vertical Markets requires a $30 initial deposit. This is a very low level, even for the current environment, where some brokers, like the FCA-regulated industry leaders at IG, who have removed no minimum requirement.
We should mention, the “entry barrier” should not be a very important criteria, when assessing a broker’s credibility.
Average spreads & Commissions
The first two account types at Vertical Markets provide spreads, which aren’t very competitive. On the other hand, there is no information on the ECN feed, for the best account type. Our testing with the broker’s platform revealed a 0.9 average spread on EUR/USD (with no commissions), While this conflicts the information on the website, it is a rather competitive spread level. We are not certain what conditions real account holders will receive. On the other hand you can compare what some of the top-rated brokers are currently offering, via our real-time spread comparison platform.
The maximum spread offered by Vertical Markets is 1:500. This is a very high level, but it is not that uncommon in the current age.
High leverage carries bigger risk for your trading capital. Be sure to fully understand the principles of margin trading before participating in it.
Vertical Markets offers MetaTrader 5 (MT5). This is the newer platform provided by MetaQuotes, which will eventually replace MT4. While most of the functionality is pretty similar, there are a few improvements. One of them is the fact some modules are now detachable, which allow multiple monitor support. On the other hand custom technical indicators and Expert Advisors which are created for MT4 do not work on the new version. It will take some time before all developers migrate their software to the upcoming new standard.
Methods of Payment
Vertical Markets provide several methods of payment. Some of them appear to be focused on Russian customers. Here is the list: Bank Transfer, Dengi Online, Perfect Money, WebMoney, Skrill, PayPaw and Qiwi.
Vertical Markets is an off-shore, non-regulated broker. If this wasn’t enough to turn you way from the company, their trading conditions are rather misleading. The broker’s demo account offers nothing similar to the ones mentioned on the website.
Vertical Markets Review Conclusion
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