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Velocity Trades Review

Velocity Trades Review 2022: Should You Trust This Offshore Broker?

Velocity Trades Limited is a brokerage firm whose goal is to “offer clients the best trading execution in the industry.” The broker seeks to offer all its customers equal opportunities to access and trade in the financial markets.

In this candid Velocity Trades review, we will unpack the whole truth about the broker to determine whether its claims are genuine. 

Have you lost money trading forex, crypto, or CFDs online? Reach out to our experts for help. We can advise you on the steps to take to recover your funds.

A Brief Look at Velocity Trades

Velocity Trades boasts a long history (25 years) of providing online trading services to retail and institutional investors. Among its key features is a state-of-the-art trading platform that allows traders to trade faster and effectively using live streaming prices, resulting in a highly efficient trading experience.

From its website, the broker professes that it has earned the trust of industry peers through transparent pricing and top-notch client servicing. The firm also states that it secures clients’ funds in segregated accounts held with Tier 1 financiers. This separates Velocity Trades Limited funds from investors’ funds, protecting client money from the company’s operations.

Furthermore, Velocity Trades operates the STP ( Straight Through Processing) model, ensuring more liquidity, faster execution, and accurate pricing. 

Velocity Trades account types

Other notable features include the following:

  • Trading platform: The MetaTrader 4, a stellar and user-friendly trading platform. 
  • 4 account types. The broker offers 4 types of accounts; Cent, Standard, Prime, Gold.
  • Trading assets: These include forex, commodities, stocks, indexes, and CFDs.
  • Funds deposit/withdrawal channels: Bank Transfer, Neteller, MasterCard, and Skrill.
  • Low-cost trading. You can begin trading with a $1 minimum deposit, spreads start from 0.0pips on ECN accounts, while other accounts feature zero commission fees.
  • 24×5 live support. Customers can reach the broker 5 days a week for any inquiries or assistance.

Velocity Trade’s Regulation

Velocity Trades regulation

Velocity Trades falls under ST Vincent’s and Grenadines, (SVG) regulation. Its registration number is 25605 BC, and the head office is located here as well.

Now, the thing with offshore brokers is that their regulatory authorities are not that strict. This means that your money might not be that safe in their hands. In worst cases, they could take off with your investment with no one to bring them to book. Unfortunately, you’d have no recourse.

Conversely, top regulatory bodies like ASIC in Australia, FCA in the UK, the Canadian IIROC, and CySEC in Cyprus run a tighter ship. They have strict rules, and brokers who flout them incur punitive penalties or even have their licenses withdrawn. 

These bodies also ensure that their members operate under strict ethical standards and keep clients’ money safe. To this end, they set up investor compensation funds to ensure that investors don’t lose out in case of fraud or if their brokers run bankrupt. For example, the FCA compensates victims up to 85 000 pounds per person.

So given Velocity Trades regulatory status, should you trust the broker? Would your money be in safe hands? Let’s do some digging.

Is Velocity Trades Worth Your Trust?

If you were thinking of trading with Velocity Trades, you’d better hold on to your money. This unregulated broker is a scam. Here’s why:

1. Velocity Trades Is a Clone Firm

Clone firm

Velocity Trades is guilty of stealing corporate information belonging to Velocity Trade, a leading global brokerage firm holding multiple licenses from worldly-recognized forex regulators. The theft also includes the company name! This stunt is rather popular with scammers, who use it to attract unwary investors, then fleece them of their money.

2. The Broker Uses Gimmicks to Attract Investors

Trading bonuses are forbidden in many jurisdictions, but Velocity Trades uses them to entice clients. The broker offers a No Deposit bonus, Article Submission Bonus, Banner Promotion Bous, and Social Media Promotion Bonus, among others.

Scammy brokers use this ploy to get their customers to deposit as much money as possible into their accounts. However, claiming due bonuses is usually a tall order as the broker makes it extremely difficult by having in place clauses that make it next to impossible to redeem your profits. 

For instance, the broker sets a high turnover target that’s a challenge to achieve and subsequently denies your withdrawal request. In this broker’s case, the terms and conditions are quite strict such as the bonus expires 50 days after activation and you are only allowed to make one profit withdrawal. 

Other suspicious tactics used by the broker and meant to lure unsuspecting investors include:

  • An attractive, well-designed website with lofty but unverifiable claims.
  • An exceptionally low minimum deposit requirement ($10).
  • Claims that the higher the amount deposited, the more the chances of winning.
  • A third-party provider offers the MT4 platform.
  • The spreads (0.1-02. pips on EUR/USD) are too good to be true.

3. A Negative Online Reputation

Negative online reputation
One star Velocity Trades review

                 Source

A majority of the online reviews on Velocity Trades are negative. This is interesting because most broker reviews usually offer conflicting information, so you normally have to dig real deep to hit paydirt. In this case, the verdict is almost unanimous; Velocity Trades is a scam.

Here is a short video that summarizes the reasons Velocity Trades is neither trustworthy nor legit:

Review Conclusion: Velocity Trades Is an Unregulated Scam

After this thorough review, the only conclusion we can draw is that Velocity Trades is an illegitimate broker whom you should steer clear of. The broker is based in SVG, an infamous location because of shady brokerage. Additionally, it’s a clone firm that relies on unsavory business practices and has an extremely poor online reputation.

Lastly, the broker deliberately provides misleading information to attract investors.

Trading with Velocity Trades is taking an unwarranted risk with your money. Be warned. This broker is not to be trusted.

If you are a victim of Velocity Trades scammy tactics, talk to us. We have skilled and trustworthy professionals who have helped countless investors recover their lost funds. We will help you get back your money.

Author

Alan Tepfer

Alan Tepfer has been a pioneer of funds recovery for the victims of online trading scam victims for almost five years. His experience in chargebacks, online trading, and banking spans for close to a decade.

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