MADEIRA, Portugal, May 10, 2012 (AFP) - The 30-year-old - who has two wins on the second tier Challenger Tour to his credit including the Kazakhstan Open - holds a two shot lead over a host of players including former Ryder Cup player Oliver Wilson.
"I was consistent all day and putted very well," Velasco told the European Tour website.
"If you hit it in the right spots the course is quite easy, but if you're in the wrong place it's easy to get in trouble.
"I can't remember the last time I made such a good start to a tournament."
Wilson has slumped from the high of playing in the 2008 Ryder Cup - albeit when the United States regained the trophy in Kentucky - to losing his card on the tour after a terrible season last year.
The 32-year-old - a nine time runner-up on the EPGA Tour - showed some of the old sparkle had returned to his game with a fine 66 perhaps a sign that his taking care of some health concerns at the end of last year could pay off.
The tournament gives a chance to some of the lesser lights on the tour to earn a good payday - 675,000 euros to the winner - as the bigger stars are competing in the Players Championship in the United States.
Leading scores from EPGA Madeira Islands Open after the first round here on Thursday (GRB and IRL unless stated) par-72:
64 - Alvaro Velasco (ESP)
66 - Magnus A Carlsson (SWE), Tommy Fleetwood, Joakim Lagergren (SWE), Morten Orum Madsen (DEN), Ben Parker, Oliver Wilson
67 - Warren Abery (RSA), Hans Peter Bacher (AUT), Matthew Baldwin, Charlie Ford, Andreas Harto (DEN), Colm Moriarty
68 - Richard Bland, Knut Borsheim (NOR), David Dixon, Adam Gee, Sihwan Kim (NOR), Lloyd Saltman, Ricardo Santos (POR)