Is veonco.com scam or good forex broker?

Veonco is a forex and CFD broker who doesn‘t disclose much details about the entity behind the operation. This, of course is a major issue, as well as the fact that this brokerage doesn’t hold a lgit forex license. So, if you are tempted by the seemingly attractive offer of Veonco, be sure to read the following lines first.

Veonco Advantages

Access to MT5, various assets

Veonco isnt a broker we can recommend, but they still have some potential benefits to offer traders. For example, the broker supports the popular MetaTrader5 (MT5) platform.

Although not as popular as its predecessor, the MT4, MT5 still retains some great features that you will surely enjoy, such as the great charting and the Expert Advisors used for automated trading. Besides, the MT5 allows for centralized market trades and is certified by many stock exchanges. There are also improvements in the time frames, and more pending order types for more versatile trading options.

Veonco also offers traders a wide variety of CFDs, which can be traded on the MetaTrader4 (MT4) platform – currency pairs, and an array of CFDs – on indices, commodities, stocks, precious metals, and the most popular cryptocurrencies.

Solid leverage

Furthermore, Veonco offers its clients leverage of up to 1:200, which is also considered a plus. Such leverage ratios are enough to suit the needs of most traders. That said, we should note that high leverage comes with a price – increased risk of losses. That is why we advise investors to exercise caution when using higher leverage ratios.

Veonco Disadvantages

No address, no number, no license

Overall, the website of Veonco doesnt contain much information on the company operating the brand. It only features the supposed name of the firm – Veonco Group Ltd., but there is no contact number, no physical location, and no mention about license or regulation.

So, the people behind the brokerage remain relatively anonymous and traders have no way of contacting them. We remind readers that anonymity is a big red flag forex trading since the people providing the financial service answer to no known authority which leaves them free to conduct business as they see fit.

Spreads not attractive

Although the broker markets spreads as low as 1 pips on majors on its website, when we tested its MT5 in demo mode, we found out that trading costs are actually significantly higher.

A spread of 3 pips for the EUR/USD pair is more than two times higher than the average in the sector.

We should also note that Veonco says to offer several account types, but hasnt disclosed how the trading conditions for those differ from one another. Such lack of transparency is another negative that is very common among shady unregulated brokerages.

Conclusion

Veonco is an unregulated MT5 forex broker that doesn‘t stand out in any way. In our reviews, we keep reiterating that trading with unregulated brokers carries high level of risk, as investors’ interests and funds are not protected. What is worse, most brokers operating without valid licenses are often involved in investment scams. So, our advice is – stay away from Veonco!

It is only in the best interest of investors to select among companies that are reliable and licensed by well-established governmental agencies like the Financial Conduct Authority (FCA) in the UK or CySEC in Cyprus. This is the only way to minimize the risk of foul play in the forex market.