The variance was founded in 2015 by a team of financial market professionals. The broker is headquartered in London and is owned by VDX Ltd. It operates under a trading license from the UK Financial Conduct Authority (FCA). Since 2015, the online brokerage has attracted thousands of retail traders worldwide and won numerous awards.
The MetaTrader 4 (MT4), one of the most popular Forex intraday trading platforms, is available through the broker. MT4 is a data-rich trading environment with several market analysis tools that may be downloaded from the website.
Over 50 technical indicators, 30 sophisticated charting tools, and nine timeframes are included in MT4. Customizable indicators, powerful algorithmic trading options, and a large historical database are also available. Due to its intuitive design and feature set, MT4 is accessible to both novice and professional traders.
All Variance clients can trade 45 currency pairs. Classic and ECN Pro account holders also get access to CFDs on precious metals, energy, futures, and 10 global stock indices.
Variance also provides custom settlement baskets and FX indices. These are collections of forex pairings that have been individually weighted to create an instrument that can be priced and tracked much like a regular forex pair. Forex baskets might help you avoid losing money due to currency price volatility.
(Weighted trade index)
TWIs are based on the currencies in the central bank index, with each constituent currency being weighted according to its impact on the index. TWIs capture the medium-term effects of inflation and exchange rate movements to gauge a currency’s performance versus a set of its major competitors. These indices are calculated for eight major currencies, including the British Pound Sterling, the US Dollar, and the Euro.
The Commodity Index measures the performance of the US dollar against the Australian, Canadian, and New Zealand currencies. The export of products determines the strength of each of these three currencies. Combining currencies that are so sensitive to fluctuations in commodity prices allows for sophisticated and possibly lucrative trading methods.
The company creates a currency volatility index, which serves as a benchmark for investors’ predictions of future volatility. The index is comprised of the nine most liquid crosses, with weights depending on each cross’s average daily turnover.
Spreads and commissions
Variable spreads and commissions are how the company makes money. Prime and ECN Pro account users benefit from more liquid markets and competitive spreads on major currency pairings that can fall as low as zero.
Classic accounts, on the other hand, have less competitive spreads, which might start as low as 1 pip during moments of strong liquidity. For comparison, the average spreads for an ECN Pro account are 0.1 for EUR/USD, 0.6 for GBP/USD, and 0.9 for EUR/GBP, all of which are competitively tight.
For trading volumes of up to $0.5 billion per month, commissions for Prime accounts start at $3 per lot. Classic accounts are paid no commission at all, while ECN Pro accounts are charged $3.50 per lot, with the broker receiving their commission from the spread.
Account inactivity fees do not apply; however, swap fees apply to holdings held overnight. Depending on the instrument owned, exchange fees can be negative or positive.
The European Securities and Markets Authority (ESMA) is an EU regulator that sets a leverage limit of 1:3 for retail clients, safeguarding traders from excessive risk. Professional traders with Classic or ECN Pro accounts have up to 1:400 leverage, whereas Prime account holders only have up to 1:200 leverage.
The MetaTrader 4 mobile app is available to clients. The app is available for iOS, Android, and Windows smartphones, tablets, and PDAs to download. The mobile app is fully linked with the desktop platform and features over 30 indicators, making it ideal for trading on the go. You can also set up position and market news alerts to ensure you don’t miss out on any possibilities.
Bank transfers, e-wallets, and Visa or MasterCard payment cards can all be used to fund and deplete accounts. Wire transfers accept pounds sterling, euros, US dollars, Japanese yen, zloty, and Australian dollars for deposits. However, e-wallets and payment cards only accept pounds sterling, euros, and US dollars. If you deposit between 09:00 and 18:00 GMT, it will be deposited to your account the same day.
Withdrawals can be made using the same methods as deposits, although an extra processing fee of £5 for cards and £30 for wire transfers may apply.
A free demo account is available from Variance to test trading methods, platforms, and chart formats. There is no risk to your money because the account is stocked with virtual money.
With a variety of appealing add-ons, Variance offers more than just basic trading services. To begin with, all retail customers are protected from negative balances. Virtual Private Servers (VPS) are also available, which minimize latency and open up more market opportunities and profit potential. Lower latency improves execution speed as well as the time it takes to update pricing. Cross-connected VPSs are even faster, with latency as low as 0.4 milliseconds.
The MetaStock Xenith Monthly Free Trial is a high-end market analysis suite offered by the broker. MetaStock Xenith provides retail clients with institutional-level analysis in addition to real-time economic news and data from thousands of journalists, FX heatmaps, and advanced indicators and charting methodologies.
Variance offers three live trading accounts in addition to the demo account, each tailored to a distinct experience and trading volume level. Hedging, scalping, automated trading, and client money segregation are all available on all accounts.