Introduction
Velocity Trade is a unique and prominent global broker-dealer, with a strong focus on serving institutional clients. Since its inception and first service in 2007, the firm has drawn on its experience in the highly competitive financial services industry, working with corporations, hedge funds, broker-dealers, and both public and private companies. Velocity Trade is an institutional service, not a retail broker, focused on sophisticated execution and brokerage services designed for the complex demands of large institutional market players.
Velocity Trade has a strong presence worldwide, with offices in major global financial centres, including Toronto, London, Sydney, Singapore and Johannesburg. Velocity Trade combines local knowledge and markets with its sought-after partnerships in established global businesses such as Wedbush Capital, which became a major owner of the firm in April 2023. This article provides a comprehensive overview of Velocity Trade as a brokerage service, including its history, services, regulations, trading conditions, and recent events, to serve as a resource for institutional investors and financial professionals.
Background and History
Velocity Trade was founded in 2007 by two global banks working together to seed the firm and place directors on its board. Although the founders' names are not publicly known, the firm has its origins in a culture of institutional brokerage. Over the years, Velocity Trade has expanded its global presence by opening offices in major financial centres, including Toronto, London, Sydney, Auckland, Cape Town, Johannesburg, and Singapore.
Initially serving firms as an institutional broker-dealer, Velocity Trade has expanded its services. A significant point in its progression was the establishment of Velocity Capital Partners in 2023, a partnership with DeltaCap Partners Inc. to grow its investment banking and equity capital markets capabilities. This growth underscores the firm's commitment to offering a full suite of financial services beyond traditional brokerage services.
Key Features and Offerings
Trading Platforms and Instruments
Velocity Trade provides institutional-grade execution platforms for a variety of asset classes. The platforms cover equities, foreign exchange (FX), commodities, and margin FX trading, and offer clients access to modern trading tools while ensuring optimal execution. The firm utilizes innovative, proprietary software and third-party technologies, including modern web development tools such as JavaScript, HTML, and PHP, to deliver a stable, efficient trading experience.
Account Types and Client Focus
The firm focuses on institutional clients, including corporations, hedge funds, broker-dealers, and large clients. This focus allows Velocity Trade to customize its service and trading terms and conditions for varied sophisticated participants in the marketplace. Each global office is operated by founding members who maintain an ongoing stake in the firm and consistently provide high levels of service and client attention.
Unique Selling Propositions
• Strong emphasis on technology and execution capabilities.
• Global footprint with local management comprised of founding members.
• Partnership with Wedbush Financial Services expands global reach.
• Expansion into capital markets advisory through Velocity Capital Partners.
Regulatory Compliance and Licenses
Overall, operating in a multi-jurisdictional context, Velocity Trade adheres to stringent compliance with local regulatory frameworks. The firm's commitment to regulatory compliance is exemplified by its senior compliance leadership team, which includes Nicole Wu, Chief Operating Officer and Head of Compliance, based in Singapore. A summary of the firm's regulatory licenses and statuses in key jurisdictions is provided below.
Jurisdiction | Regulator | License Status |
|---|
United Kingdom | Financial Conduct Authority (FCA) | Regulated (specific license numbers not publicly detailed) |
Canada | Canadian Regulatory Authorities | Registered and regulated (exact license numbers not specified) |
Australia | Australian Securities and Investments Commission (ASIC) | Regulated |
Singapore | Monetary Authority of Singapore (MAS) | Capital Markets Services (CMS) Licence granted late 2023/early 2024 |
South Africa | Local Regulatory Framework | Operating under local regulations |
New Zealand | Local Regulatory Framework | Operating under local regulations |
Trading Conditions and Technology
Trading Conditions
Velocity Trade services institutional clients and thus has client-specific trading conditions for spreads, leverage, minimum deposits, and commissions that are not publicly available. The firm has competitive spreads and margin FX services for large traders, specifically tailored to their larger trading scales. With the firm's bespoke service model, large clients receive the most favourable trading conditions tailored to their size and trading objectives.
Technology
Velocity Trade invests heavily in technology to enhance efficient execution and expand its trading infrastructure. The firm's trading platforms include both proprietary and third-party technologies, leveraging modern web-based solutions for reliable, responsive trading. While the firm does not explicitly mention mobile applications, given its commitment to technology, one can assume it is actively developing solutions to meet changing client needs in a competitive, fast-paced institutional trading environment.
Feature | Description |
|---|
Asset Classes | Equities, Physical FX, Margin FX, Commodities, Prime Brokerage |
Technology Stack | JavaScript, HTML, PHP, Proprietary and Third-Party Platforms |
Execution | Institutional-grade, low latency, competitive spreads |
Mobile Access | Not explicitly detailed; focus on web-based platforms |
Custodial Services | Integrated global custodial and prime brokerage tools |
Fee Structure
Velocity Trade’s fee structure is tailored to its institutional clientele, with fees negotiated on a case-by-case basis. As such, there is no publicly available standardized fee schedule for deposits, withdrawals, commissions, or inactivity charges. This bespoke approach allows the firm to align costs with client trading volumes, instruments, and service requirements.
Fee Type | Details |
|---|
Deposit Fees | Not publicly disclosed; negotiated individually |
Withdrawal Fees | Not publicly disclosed; negotiated individually |
Commission | Customized per client and instrument |
Inactivity Fees | Not publicly disclosed |
Recent Developments
Velocity Trade has made significant strides in the last few years to position itself as a stronger entity within the market, expanding its services. In August of 2023, Wedbush Capital became a significant minority stakeholder to provide additional capital and financial backing, along with expanding Velocity Trade's presence and capabilities globally. Velocity Capital Partners went live in 2023 as a strategic partnership with DeltaCap Partners Inc. to expand into capital markets advisory and investment banking.
The firm received its Capital Markets Services Licence from the Monetary Authority of Singapore in late 2023 and/or early 2024 to conduct its operations in Asia. Also, it made key hires in Singapore, including Managing Director Brent Morgans and Chief Operating Officer Nicole Wu, to continue its growth strategy and strengthen its compliance infrastructure in Asia.
Conclusion
Velocity Trade stands out as an elite brokerage firm and global dealer, exclusively focused on providing services to institutional clients and offering robust capital.
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