Launched in 2020, Veracity Markets is a relatively young broker in the CFD trading landscape, hailing from South Africa. While its age might raise some eyebrows, it’s crucial to delve into its offerings and uncover whether Veracity holds promise for traders. This comprehensive review will dissect every aspect of Veracity Markets, providing you with the information you need to make informed decisions about your trading journey.
Company Overview
| Account currency: | USD, GBP, ZAR, KWD |
| Minimum deposit: | USD 250 |
| Leverage: | from 1:100 to 1:500 |
| Spread: | from 2 pips (Fixed), from 1.6 pips (Standard and Standard Cent), from 0.0 pips (ECN) |
| Instruments: | Currency pairs, CFDs on precious metals, commodities, indices, futures, stocks, cryptocurrencies |
| Margin Call / Stop Out: | 100-150%/30-75% |
Trading Instruments
Veracity focuses primarily on CFD trading, offering a range of instruments including forex, indices, commodities, and energies. However, compared to established brokers, the selection is noticeably smaller. Notably absent are single stocks, cryptocurrencies, and other niche instruments. This might limit the appeal for traders seeking diverse portfolios.
Trading Platforms
Veracity exclusively utilizes the popular MetaTrader 4 (MT4) platform. MT4 is a well-established and user-friendly platform, familiar to many traders. While it offers a robust trading environment, it lacks some of the advanced features found in newer platforms like MT5. For some, this might be a drawback, especially if they rely on specific technical analysis tools.
Account Types
Veracity offers three account types: Standard, Fixed, and ECN. The Standard and Fixed accounts cater to beginners and those seeking predictable costs, with spreads fixed at a specific level. The ECN account, on the other hand, is targeted towards experienced traders who prefer tighter spreads in exchange for commissions. However, compared to other brokers, Veracity’s spreads are generally not the most competitive, especially on the Standard and Fixed accounts.
Leverage
Leverage is a double-edged sword, amplifying both profits and losses. Veracity offers leverage up to 1:500 on major forex pairs, which is a high ratio. While it can be tempting for aggressive traders, it’s crucial to remember the associated risks. Beginners should be cautious with high leverage and stick to lower levels until they gain sufficient experience.
Fees and Commissions
Veracity’s fee structure is transparent, with all costs listed on their website. The Standard and Fixed accounts incur wider spreads, while the ECN account charges commissions. Additionally, there are no deposit fees, but withdrawal fees might apply depending on the chosen method. Compared to other brokers, Veracity’s fees are not the lowest, but they are within the acceptable range.
Customer Support
Veracity boasts 24/7 customer support through live chat, email, and phone. However, user reviews suggest that responsiveness and quality of support vary depending on the chosen method. Live chat seems to be the quickest and most reliable option. Nevertheless, it’s crucial to consider that support is only available during South African office hours, potentially causing delays for international clients.
Regulation and Safety
This is where Veracity raises concerns. While it claims to be regulated by the Financial Services Board (FSB) in South Africa, closer inspection reveals that the license is a clone of a legitimate FSB license held by another company. This raises serious red flags about the broker’s regulatory compliance and the safety of client funds.
Things To Be Concerned
- Veracity does not offer educational resources or research tools, potentially hindering beginner traders.
- The website is available in 20 languages, making it accessible to a global audience.
- The broker offers a demo account, allowing traders to test the platform and conditions before committing to real capital.
Pros and Cons of Veracity Markets
| Pros | Cons |
| Multiple base currencies | Commission charges in the ECN account |
| Available in multiple regional languages | Unavailability in the UK, US & other European countries |
| No deposit or withdrawal fees charged | The trading platform does not offer sufficient educational resources, such as charts, news, and economic calendars. |
| Low Minimum deposit requirements | |
| Tight Spreads |
Alternative To Veracity Market’s
| Aspects | eToro | forex.com | Veracity Markets |
| Trading platform | MobileTrading, WebTrader | MT4, MT5, FOREX.com | MT4, MT5, cTrader, R StocksTrader, R MobileTrader, R WebTrader |
| Min. deposit | $50 | $1000 | $250 |
| Spread | from 2.0 p | from 0.2 p | from 0.0 p |
| Margin call/Stop out | 0% / 0% | 0% / 0% | 30% / 75% |
| Orders Execution | Instant Execution | Market Execution, Instant Execution | Market Execution, Instant Execution |
| No-deposit Bonus | No | No | No |
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Conclusion
Veracity Markets presents a mixed picture. While it offers a familiar platform, multiple account types, and 24/7 support, its limitations in instrument selection, platform options, and potentially questionable regulation raise significant red flags. The lack of competitive spreads and educational resources further diminish its appeal. Overall, Veracity might not be the best choice for most traders, especially beginners. Due diligence and further research are crucial before considering depositing any funds.
