AvaTrade: Is It Safe? A few considerations


AvaTrade is a well known Forex broker active since 2006 with a wide offering of financial instruments and a platform where traders from all over the world invest their money from all over the world.

However, there’s still many people, especially rookies of the trading world, asking about the safety of this brokering service. Which is always a good thing, especially when you’re willing to give your money in the hands of another person or institution: giving it in a mindless way would be a crazy thing to do!

So, the question remains: Avatrade is it safe?

Short answer should be yes, it is safe.

For the long answer though, you’ll have to read this article.

 AvaTrade Regulation

AvaTrade is an Irish broker founded in Dublin and active since 2006. It is considered to be a very safe decision in terms of brokering service because of their well-rounded regulation.

As a matter of fact, this online broker is one of the few to be regulated by five different regulatory bodies. Those are financial regulatory entities are:

  • The Central Bank of Ireland: it authorises and regulates AvaTrade in Europe.
  • The Australian ASIC: the Australian Securities and Investments Commission (ASIC) authorises and regulates AvaTrade in Australia.
  • The Japanese FSA-FAAJ: the Financial Services Agency (FSA) authorises and regulates AvaTrade in Japan.
  • The International BVI: the British Virgin Islands Financial Services Commission (BVI) authorises and regulates AvaTrade internationally.

Remember that if you give money to a broker which does not comply with any regulatory body, you’re putting your funds in the hands of a non-regulated brokering service which may be a fraud.

With that being said, thanks to the aforementioned regulatory bodies to this regulation you will be able as a trader to invest in many financial markets and assets like stocks, FX pairs and cryptocurrencies.

AvaTrade and Funds Protection

Traders’ money stored within the AvaTrade funds protection system are well preserved and safe.

That’s mainly because of the fact that they use a segregated funds balance system which stores traders’ funds in top tier financial institutions all across the globe in some of the best banks available today. Those include:

  • NatWest: the National Westminster Bank PLC is a major retail and commercial bank founded in the United Kingdom in 1968. It is considered to be one of the Big Four clearing banks of Great Britain.
  • Barclays Bank UK PLC: it’s a British multinational investment bank and financial services company founded in London in 1690 as goldsmith banking business. It’s one of the most ancient and important financial institutions of the world.
  • Barclays PLC Italy: the Italian branch of the aforementioned financial institution.

These highly rated institutions can help EU traders to benefit from a €20,000 Investor Compensation to boost their trading capitals in case of need.

Segregated funds are also used to divide traders funds from the broker funds, in order to protect their clients in the unlikely case of an AvaTrade bankruptcy. In other cases, liquidators would have access to their traders’ money too.

Moreover, nobody can make deposits or withdrawals on your behalf, not even the broker, because nobody has access to the deposited money but you.

AvaTrade Data Protection

When you decide to open a trading account with AvaTrade, the broker will request a series of personal information. Such as:

  • Name
  • Surname
  • Mailing address
  • Email address
  • Phone number
  • Education
  • Birth Date
  • Trading Experience
  • Occupation
  • Estimated Net Worth
  • Annual Income

If you are concerned about your personal information to be shared without permission, you should know that the broker has put many protective measures in order to protect your personal data.

AvaTrade also uses the powerful McAfee Secure (HackerSafe) against identity theft, frauds and data leaks.