In this Broker Review, ForexInfoBook team presents factual information about Ava Trade broker regulations, trading conditions and advantages of trading with them.
Ava Capital Markets Australia Pty Ltd is regulated by the ASIC (No.406684).
Ava Trade Japan K.K. is regulated in Japan by the FSA (No.1662) and the FFAJ (No.1574).
AvaTrade is also regulated in Europe, British Virgin Islands and South Africa
Retail trader accounts with AvaTrade Australia have ASIC’s oversight of AvaTrade, which means that client money is held in a trust and completely separate from AvaTrade’s own money. However, there is no additional compensation scheme in place to cover trader’s deposit in the highly unlikely case of company bankruptcy.
Retail traders with AvaTrade EU account are protected in case of company bankruptcy by the Investor Compensation Company Ltd (ICCL). Click here to know more about ICCL Deposit compensation scheme.
We recommend opening accounts with AvaTrade offices regulated by the stringent and highly reputed agencies in Australia, Japan or EU.
Negative Balance Protection
AvaTrade offers protection against negative balances and guaranteed stops.
With AvaTrade, retail traders cannot to lose more than the funds they have in their account. In the rare scenario where a market move puts the client in a negative balance position, AvaTrade will refund the difference in a “Negative Balance Adjustment”.
AvaTrade EU retail clients get the greatest protection with regulations imposed by the European Securities and Markets Authority (ESMA). Retail Client has Negative Balance Protection (NBP) meaning they cannot lose more than they have deposited with a broker.
AvaTrade offers a maximum leverage of 1:400 on Forex.
Leverage on AvaTrade EU accounts will be restricted to a max of 1:30 as per ESMA regulations.
Limitations to be expected
- Demo accounts are valid for 21 days
- 75-90% of retail investors lose money trading Forex and CFDs with Admiral Markets.
- No Islamic Account
- Admiral Markets does not serve clients from United States, Canada, Japan, Israel, Iran, Belgium.
Ease of Operations
- Simple account opening process
- AvaTrade offers a welcome bonus of 25% after making their first deposits into their accounts.
- Minimum deposits as low as $ 100
- Wide range of payment options for deposits/withdrawals: credit cards, bank wire transfer and E-payments (i.e. Skrill, Webmoney, Neteller).
- AvaTrade has a dedicated support department operating in almost 50 countries. Contact them via live chat, email and phone.
- AvaTrade has introduced its Islamic trading account, fully in line with Islam rules. Customers with an Islamic trading account will not be charged daily swaps. The swap fees are fully replaced in the MT4 platform by daily administration fees on all Forex trading products.
Low Spreads and Commissions
AvaTrade provides competitive spreads with out charging a commission on the trades. This means higher spreads will be seen as compared to other ECN or STP brokers who offer ultra low spreads, but will be charging a commission on each trade.
The typical spreads on major pairs provided AvaTrade is about 2.0 pips – No commission charged on trades. Click here to check spreads on all Forex pairs and other instruments.
Exeuction Type : Market Maker
AvaTrade is a market maker. This means that when you place a buy or sell order, your counter party, is AvaTrade dealing desk. AvaTrade manages its net risk by trading with various banks and liquidity providers.
AvaTrade provides retail traders with average-to-competitive spreads without charging commissions
New traders will benefit from the in-depth collection of educational resources provided by AvaTrade.