Can I trust Vantage for long-term investment as of June 2024?
In short, yes, Vantage can be trusted, as it is regulated by at least one top-tier financial authority. But is it the best for long-term investment?
If you want to invest for the long term but avoid the hassle of having to switch brokers often, you'll need a broker that will still be around in 10-20 years' time. This is something that's impossible to predict for certain, but a broker's age and its background are among a handful of clues that can tell you about its potential staying power.
Vantage was founded in 2,009 and does not have a banking background. Read on to see what this means for you and how this compares to the rest of the field.
I've thoroughly tested Vantage services with our analyst team by opening a real-money account and these are my most important findings:
- Vantage was founded in 2,009; a good track record but yet to be tested by a major crisis
- Vantage lacks the added security provided by a banking background
- Top-tier regulation is essential; stock-exchange listing is a plus
Regulation
|
Mid-range |
---|---|
Banking background
|
No |
Listed on stock exchange
|
No |
Foundation date
|
2,009 |
Data updated on June 17, 2024
74-89% of retail CFD accounts lose money
Is Vantage a well established broker?
The online brokerage market itself is relatively new, so you won't find many players that have been around for decades, unless they started out offline. The last few years in particular have seen a lot of newcomers, especially in the discount broker segment. Still, how long a broker has existed says a lot about its resilience in the face of market troubles and about the strength of its business model.
Vantage was founded in 2,009. It has successfully navigated the market volatility and the surge in client interest triggered by the Covid-19 pandemic, the 2021 GameStop market frenzy and the rise of crypto. However, it has yet to be tested by a major market upheaval like the 2008-09 financial crisis. To have a better idea of the stability of its operations, check out other criteria such as its background or the strength of its regulation (see more on these later).
There are many aspects that can influence your broker choice, including fees, platform quality or the range of products available for trading. But, all other factors being equal, a broker with a longer track record is probably a better choice for long-term investment.
Foundation date
|
2,009 | 2,010 | 2,007 |
---|
Data updated on June 17, 2024
Does Vantage have a banking background?
No, Vantage doesn't have a banking background.
Why is this important? A broker with a banking license (or with a bank as its parent company) means that it has met stricter criteria when it comes to having sufficient capital and handling client deposits. Also, many of the banks that are behind online brokers have operated for decades, a potential sign that their brokerage operations could be around long enough in the future to handle your long-term investments.
Still, having a banking background is not an ultimate guarantee of long-term stability, as banks can also sometimes go bankrupt, or simply make a business decision to cease their brokerage activities.
The majority of online brokers (including most brokers reviewed by BrokerChooser) do not have a banking background, so it probably shouldn't be a make-or-break criterion when selecting a broker. Instead, treat this as an additional layer of security and added proof of long-term broker stability.
Banking background
|
No | No | No |
---|
Data updated on June 17, 2024
Other aspects of long term broker stability
One consideration that should be near the top of your list when sizing up the stability and trustworthiness of a broker is regulation. We at BrokerChooser only feature brokers that are regulated by at least one top-tier financial authority.
Vantage is regulated by the following financial authorities: FCA in the UK and ASIC in Australia.
It is also worth checking whether a broker is listed on a stock exchange. A stock exchange listing requires a broker to disclose its financial information publicly, and in general operate transparently. Having gone through this process is a sign that the broker is taking its mission seriously and is positioning itself to stick around for the long term.
Only a small minority of online brokers are listed on a stock exchange, so you probably shouldn't automatically rule out the ones that aren't. Rather, you should view this as a plus when assessing a broker's long-term trustworthiness.
Listed on stock exchange
|
No | No | No |
---|
Data updated on June 17, 2024
Best brokers for long-term investment
Do you want to zoom out and pick the best broker for long-term investment based on a full set of criteria including fees, trading platform experience and product selection? Look no further than our list of the best brokers for buy-and-hold investors.
Check out this short video for a behind-the-scenes peek into how our experts personally test and evaluate brokers.
Further reading
- Vantage price alerts explained
- Vantage stop-loss order type explained
- Vantage news feed quality
- Vantage mutual funds availability
Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.