Introduction to VARIANSE
VARIANSE is a newcomer to the cTrader-scene but is by no means an amateur in the forex and CFD trading industry. VARIANSE launched in 2015 and, up to now, focused on providing a low-latency MetaTrader 4 experience to advanced traders. The unique selling points VARIANSE offers clients are low-cost, low latency and reliable order execution for all trading strategies, combined with professional and dedicated support. The company is headquartered in London’s Mayfair in the heart of the Hedge Fund capital and is licensed and authorised by the UK’s Financial Conduct Authority.
The company’s group is additionally licensed by the FSC in Mauritius, and the LFSA in Malaysia, to provide global client coverage across Europe, the Middle East, Africa and Asia. At the beginning of 2021, VARIANSE made a respectable decision and launched cTrader. In this VARIANSE cTrader review, we’ll explore the company’s history, stability, current trading conditions on cTrader and how you can start trading with this broker.
First impression of VARIANSE
Our first impression of VARIANSE is that the company is professional, positioning itself as an investment firm rather than a playground promoting football sponsorships and luring traders with bonuses rather than competitive trading conditions. VARIANSE offers better than average trading conditions on MT4 and cTrader with a range of account types to suit different strategies and client requirements.
VARIANSE is an online trading brand that is used by related companies registered and licensed in various jurisdictions. The company has fewer employees than you would expect to see in a brokerage, but that’s fairly reasonable considering the business model and the level of automation and efficiency the company has achieved. Market-makers chasing inexperienced traders need enormous dealing, sales, support and marketing teams. VARIANSE successfully provides consistently high levels of service and client support with their streamlined approach and automated processes.
|Year Started Offering cTrader||2021|
|Regulation||FCA (UK), FSC (Mauritius), LFSA (Malaysia)|
|Incorporation||Private Limited Company (England & Wales),
Category 1 Global Business Licence (Mauritius),
Company Limited by Shares (Labuan)
|Number of employees||10+|
|Bank Partners||Barclays Bank London|
Where is VARIANSE regulated?
VARIANSE is the trading name of VDX LTD, a company registered in England & Wales with company number 11050659. VDX Limited is licensed and authorised by the Financial Conduct Authority with FCA Register no 802012. The brand VARIANSE is used by related companies VDX Derivatives, licensed as an SEC-2.2 Investment Dealer (broker) by the Financial Services Commissions of Mauritius with license number C118023323. VDX Capital Ltd is licensed by the Labuan Financial Services Authority of Malaysia, with license number MB/20l0051.
Who manages VARIANSE?
VARIANSE is owned and operated by a management team of financial market professionals, holding over 20 years combined experience in Tier 1 banking and institutional dealing environments (such as Merrill Lynch, Barclays, HSBC and PWC) specifically related to electronic trading, technology and statistical analysis. This cements them as a highly competent brokerage that builds long-standing relationships with their clients and partners.
VARIANSE trading conditions
As stated in the introduction, VARIANSE offers very competitive trading conditions and low latency STP execution, which is highly advantageous for algorithmic traders. There are three trading accounts available, each offering various trading conditions. The trading conditions you’ll experience also depend on whether you’re classified as a professional or retail client. Refer to the table below for a general overview of trading conditions.
|Max. Leverage (Pro. FCA & Mauritius)||1:400 (Classic & ECN account)|
|Max. Leverage (Retail FCA)||1:30 (as per ESMA)|
|Asset Classes||Forex, Indices, Metals, Energies, Equities|
|Total Number of Trading Pairs||192|
|Trading Commissions||US$3.50 per lot (ECN Pro)|
|Account Currencies||USD / EUR / GBP / PLN / JPY / AUD|
|Spreads||From zero pips (ECN Pro)|
|Stop Out Level||50% (Classic & ECN account)|
VARIANSE trading instruments
Almost 200 trading instruments are available, spanning forex, commodities, indices and equities asset classes.
- Forex: 58 minor, major and exotic forex pairs
- Indices: major 11 stock market indices
- Shares: More than 100 stocks listed on the NASDAQ stock exchange are available in cTrader
- Commodities: Precious metals and energy products
VARIANSE account types
VARIANSE offers three account types: Classic, ECNpro and Prime. Each account type has different characteristics. Minimum deposit, commissions, spreads, stop-out level, minimum trade size and available instruments vary depending on the type of account.
|VARIANSE account comparison|
|Spread from||1 pip||0 pips||0 pips|
|Commissions (FX & Metals)||0||US$3.50||From US$2|
|Max. leverage (Pro.)||1:400||1:400||1:200|
|Min. order size||0.01 lots||0.01 lots||0.01 lots|
How to open a VARIANSE trading account
You can open your VARIANSE live or demo account in a few simple steps.
- Find the button on the company’s website to open a live or demo account.
- You’ll be asked to select if you want to register with VDX Ltd, regulated by the UK FCA or VDX Derivatives, regulated by the Mauritius FSC.
- Enter your personal information: country, name, phone number, email address and choose a password.
- Verify your email address by clicking a link sent to your inbox.
- Choose whether you want to open a live or demo account. If you chose a demo account, you could go right ahead to selecting a trading platform.
- If you chose a live account, you’d need to provide the following information: type of account (individual or corporate), date of birth and address.
- Next, you’ll need to fill a know-your-client questionnaire and appropriateness test.
- Finally, you’ll need to upload your proof of identity documents, such as a passport, national ID or driving license and a recent proof of address.
Accessibility to VARIANSE services
VARIANSE welcomes clients from around the world, except for the United States, where CFD trading is prohibited, and various high risk and sanctioned countries.
You can fund your VARIANSE trading account using several currencies via bank transfer. Other than the fees your bank charges, there aren’t any additional processing fees when funding your VARIANSE account via bank transfer. Credit and debit card, Skrill, and Neteller deposits are possible using USD, EUR or GBP and incur a 2.9% processing fee.
|Excluded countries||USA & sanctioned countries|
|Deposit methods||Bank wire, credit/debit card, Skrill, Neteller|
|Deposit & account currencies||USD / EUR / GBP / PLN / JPY / AUD|
|Deposit fees||2.9% when depositing with Visa/Mastercard|
|Withdrawal fees||$/£/€5 for cards & $/£/€40 for bank transfer|
The Pros and Cons of trading with VARIANSE cTrader
No review would be complete without a summary of the benefits and drawbacks of a broker. Based on our assessment and opinions, here are the advantages and disadvantages.
The advantages of VARIANSE
- VARIANSE is a true non-dealing desk broker. According to the company’s FCA license, it must straight-through-process all clients’ orders.
- Spreads are offered from 0 pips, making them a low-cost broker.
- Multiple account currencies are supported; this is a great advantage for traders concerned with currency conversion fees on their deposits and withdrawals.
- They are licensed in Mauritius, allowing retail traders to access leverage up to 1:400 without meeting professional-client requirements.
- Client support is rapid and professional.
The disadvantages of Varianse
- There is a lack of educational resources. First-time traders will not find the support or information needed to start trading responsibly.
- VARIANSE does not offer cryptocurrency CFDs due to FCA restrictions.
- There are fees for depositing and withdrawing funds from your trading account; this is a drawback of cooperating with STP brokers.
Frequently asked questions about VARIANSE
Is VARIANSE a market-maker?
No. VARIANSE is not a market maker. The UK company is an IFPRU 125K firm, which means it is prohibited from dealing on its own account. Therefore, requiring the company to execute clients’ orders on a matched principal basis, also known as back-to-back-trading. As the company’s FCA license prohibits it from market-making activities; therefore, all orders are executed using straight-through-processing (STP) methodology. Similarly, VARIANSE Mauritius is licensed as an Investment Dealer (Broker), which permits only agency dealing. It does not allow the company to issue or underwrite securities or take on any market risk.
I am not from the UK. Can I still open an account with Varianse?
Yes, VARIANSE welcomes clients from all countries except for the USA and sanctioned countries.
Can I buy stocks with VARIANSE?
You can trade stocks with Varianse, but you cannot buy or invest in shares. All products offered by VARIANSE are contracts-for-difference (CFDs), meaning all trades are settled in cash according to the difference between the opening and close prices of a position.
The advantage of trading the Stock CFD is that you can go both long and short and increase your buying power with up to 5 times leverage.
How long can I keep my VARIANSE demo account?
Demo accounts will only expire if you do not log in within 180 days to keep your VARIANSE demo account active for an extended period; just log in within the required time or keep a position open.
Can I open an MT4 account and cTrader account at the same time?
Yes. VARIANSE allows you to trade on both platforms at the same time. You’re also able to transfer funds between your trading accounts. Providing both accounts have the same base currency, you won’t be charged when transferring funds.
Why does VARIANSE charge for deposits and withdrawals when other brokers don’t?
VARIANSE does not charge for deposits via Bank Wire; however, it does for alternate payment methods.
Forex brokers are considered high-risk clients by the banking and payments industry. Due to the compliance burden, many banks and payment processing companies (PSPs) avoid cooperating with brokers. The banks and PSPs that do cooperate with FX brokers want to be compensated nicely for their efforts. Many brokers operate a market-making business model, allowing them to earn on average US$15 per lot, whereas STP brokers like VARIANSE earn just US$3.50 per lot.
What’s the difference between VARIANSE in the UK and VARIANSE in Mauritius?
When trading with either company, clients will benefit from the same trading technology, platforms, and low-cost, low latency trading. Similarly, the liquidity and trade execution is the same and impressive. Client fund safety is essential, and it’s good to know that both companies safeguard and segregate clients’ money with Barclays Bank in London. This is very important for a trader to have that peace of mind.
Clients of VARIANSE Mauritius have access to leverage of up to 1:400, whereas clients of VARIANSE UK have access to leverage of 1:30 (or 1:400 if you qualify as a Professional)
Does VARIANSE offer cTrader Copy?
Yes, you can access all of the available strategies on cTrader Copy via your web browser or mobile with a VARIANSE cTrader account.