VIP Forex Brokers & Premium Forex Services
There are several Forex companies providing VIP accounts and premium services to clients depositing large sums of money. VIP accounts were initially designed to offer custom-tailored solutions to large Forex investors, but nowadays, Forex brokers offer VIP accounts for a significantly smaller minimum deposit.
Basic Advantages of Forex VIP Accounts
VIP accounts offer additional features and improved trading terms, compared to common retail accounts.
These are some key premium Forex account features that every VIP investor should expect:
(1) Connecting Investors Directly with Liquidity Providers
■ Importance: Forex traders (intraday trading, automated-trading)
Direct market access (DMA) is the most important feature for any VIP Forex trader. This means every order is transmitted directly to large liquidity providers without intervention and price manipulation. This is provided via ECN or STP protocols. The advantages of non-dealing desk (NDD) trading are quite a few:
(i) Tighter trading spreads (as there is no price manipulation)
(ii) Faster order execution (ECN/STP brokers offer significantly lower slippage than Market Makers)
(iii) No conflict of interest between the trader and the broker
(2) Paying Less Trading Cost
■ Importance: all Forex investors
VIP accounts offer low trading spreads, and sometimes, even zero-spreads, and lower trading commissions. Furthermore, VIP accounts may enjoy better overnight rates (SWAPs) than regular accounts. The overnight rate is the cost for maintaining positions overnight and it is very important for long-term investors and carry-traders.
Overall, a VIP account will enjoy paying a considerably tighter trading cost than a regular retail account.
(3) Enjoying Trading Rebates
■ Importance: Forex traders (intraday trading, automated-trading)
VIP traders may enjoy trading rebates based on their monthly volumes. A trading rebate plan is a cash-back offer paid at the end of each month. Trading rebates are offered by brokers as an incentive to attract large traders. The total amount of a monthly rebate depends on:
- The monthly volume in lots (where 1 lot = $100K)
- The financial instruments traded during that period
(4) Personal Account Manager
■ Importance: all Forex investors
A personal account manager is a ‘must’ for every premium account and refers to a dedicated professional who offers 24/7 assistance to VIP clients. This professional is responsible for every aspect of the trading experience. That may include account information, funding assistance, trading assistance, or even advice about key upcoming market events.
(5) Faster Withdrawals
■ Importance: all Forex investors
Most of the time, VIP accounts enjoy faster withdrawals than regular accounts. That means instant account processing and considerably faster withdrawals.
(6) Free VPS Hosting
■ Importance: Forex traders (automated-trading systems and EAs)
As automated trading becomes more popular, many Forex brokers offer a free VPS service. VPS stands for Virtual Private Server and enables Forex traders to run their expert advisors (EAs) on an external server that operates autonomously 24/7 without any interruption.
(7) Free Market Analysis
■ Importance: all Forex investors
A premium account offers a comprehensive market analysis by a professional analyst. This analysis usually includes major market events, breaking news in real-time, fundamental analysis, technical analysis reports, and sophisticated charting. Sometimes, premium accounts offer trading signals.
(8) Access to Additional Trading Platforms and Advanced Trading Tools
■ Importance: Forex traders (intraday trading, automated-trading)
VIP clients can access other platforms than classic MT4/MT5. For example, some Forex brokers offer the cTrader platform to VIP clients. Others offer MAMM/PAMM platforms and the ability for fully-managed trading positions. Charting analysis tools such as the AutoChartist may be also available to premium accounts.
Compare Forex Brokers
Table: Basic comparison between regulated ECN Forex brokers offering premium services to Forex investors
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COMPANY
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TRADING TERMS
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FEATURES
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ACCOUNTS & FUNDING
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INFORMATION
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REGULATED BY:
FOUNDATION: 2007 HEADQUARTERS: Australia and the United Kingdom |
TYPICAL SPREADS: EURUSD: 0.1 pip GBPUSD: 0.4 pip USDJPY: 0.2 pip COMMISSIONS ON TRADING: $7.0/lot |
ROBOTIC TRADING: YES PAMM ACCOUNTS: YES ONLINE PLATFORMS □ MetaTrader-4 □ MetaTrader-4 Web □ FIX API □ Mobile Traders □ Autochartist |
EXECUTION TYPE: ECN LEVERAGE: 1:30 SWAP-FREE ACCOUNTS: YES FUNDING METHODS:
Notes:
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KEY POINTS:
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» DUKASCOPY BANK (INCLUDES DUKASCOPY EUROPE)
REGULATED BY:
FOUNDATION: 1998 HEADQUARTERS: Switzerland |
TYPICAL SPREADS: EURUSD: 0.2 pip GBPUSD: 0.4 pip USDJPY: 0.3 pip COMMISSIONS ON TRADING: $1.0-$3.5 per standard lot
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ROBOTIC TRADING: YES PAMM ACCOUNTS: YES ONLINE PLATFORMS □ JForex Automated □ WebTrader □ JavTrader □ FIX API |
EXECUTION TYPE: ECN LEVERAGE: 1:30 SWAP-FREE ACCOUNTS: YES FUNDING METHODS:
Notes:
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KEY POINTS:
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REGULATED BY:
FOUNDATION: 2011 HEADQUARTERS: Cyprus |
TYPICAL SPREAD EUR/USD: 1.8 pip COMMISSIONS ON TRADING: NO Loyalty Progam for reducing trading cost |
ROBOTIC TRADING: YES PAMM ACCOUNTS: YES ONLINE PLATFORMS □ MetaTrader-4 □ MetaTrader-5 □ MT4 and MT5 WebTraders |
EXECUTION TYPE: ECN/STP LEVERAGE: 1:30 ISLAMIC ACCOUNTS: YES FUNDING METHODS:
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KEY POINTS:
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Conclusions
In the past, premium Forex VIP accounts were designed specifically for large investors, depositing a minimum of 100,000 USD. Recently, that has changed and most Forex brokers offer VIP accounts with lower depositing requirements.
A VIP account is guaranteed to enjoy considerably better trading terms than a common retail account. Basically, that includes lower trading spreads and commissions, and rarely, better overnight (SWAP) rates. Paying lower trading cost matters a lot, especially for those who plan to trade regularly in the Foreign Exchange market, like intraday traders or robotic-traders. Additional features such as a free VPS or access to cTrader and Autochartist are useful to specific trading-styles (scalping, intraday trading, etc.). Finally, faster account processing and a dedicated account manager can enhance and improve the trading experience of all Forex investors.
■ VIP Forex Brokers & Premium Forex Services
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