Is AvaTrade safe?

logomark Luca Puddu calendar Last Updated: November 2021 timer 6 min read
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As a Forex and CFD trading platform, AvaTrade has been offering traders a wide range of financial instruments since 2006, including stocks, bonds, stock indexes, and cryptocurrencies. However, the question that comes in is whether AvaTrade is Safe or not?

Its long year of existence as one of the leading trading platforms notwithstanding, some traders have some reservations about AvaTrade, specifically, about its safety. Our AvaTrade Review addresses the safety issue and provides other helpful information for traders interested in trading on the platform.

Table of contents

Is AvaTrade Safe?

AvaTrade is very safe being one of the few trading companies in the world that is worldwide regulated by five regulatory bodies: The Central Bank of Ireland, the Australian ASIC, the Japanese FSA-FFAJ, and by the BVI. These secure multiple customer money protection policies, including segregated bank accounts for each trader, and an Investor Compensation Fund.

Regulated by: CBI ASIC FSA-FFAJ BVI
Negative Balance Protection Yes Yes Yes Yes
Segregated Client Funds Yes Yes Yes Yes
Compensation Funds 20.000 EUR No No No
Data and Privacy Protection Yes Yes Yes Yes
Customer Support Yes Yes Yes Yes

Problems You May Encounter with AvaTrade

Granted, there are no perfect trading platforms anywhere. Thus, AvaTrade users have experienced some downsides of using the platform. Most of these problems, however, are counterbalanced by the large number of the AvaTrade safety and trading features. For a full overview of the company, we suggest reading our AvaTrade broker review. Going back to the topic, the common complaints are the following two:

Slow Withdrawals 

This is unfortunately one downside of AvaTrade. Despite the good range of deposit and withdrawal methods, these may take up to 7 business days. That’s why some people are complaining about this. However, despite this downside, AvaTrade is still a safe broker since once you have made your withdrawal request, you can be sure to receive the payment from the company.

Account Manager Support

Yes, once you open a real trading account with AvaTrade, you’ll be assigned an expert account manager who will help you if you need assistance. However some people are complaining about their account manager for different reasons. Take into consideration that everything they do and say, is done for you. But if for whatever reason you’re not satisfied with your account manager, you may be assigned a new one if you request it to the broker.

Company, Regulations, and Licenses

AvaTrade is one of the few regulated trading platforms in the world. As proof of its safety, it is regulated by five of the most credible regulatory bodies in the online trading industry. It is uncommon for a trading platform to be regulated and certified okay by multiple regulatory bodies.

AvaTrade’s safety of use has been tested by the multiple regulations in place: AVA Trade EU Ltd is regulated by the Central Bank of Ireland, AVA Trade Ltd is regulated by B.V.I., Ava Capital Markets Australia Pty Ltd by the ASIC. Ava Trade Japan K.K. is regulated by both the Financial Futures Association of Japan (FFAJ), and the Japanese Financial Services Authority (JFSA), and finally, Ava Capital Markets Pty is regulated by the South African FSCA. The bodies have given their potential users the green light to use the platform without risking their safety.

avatrade offices map

Funds Protection with AvaTrade

Traders’ money is stored in some of the best banks across the globe including National Westminster Bank PLC, a renowned UK-based retail and commercial bank, and Barclays Bank UK PLC and Barclays PLC Italy. These financial institutions are highly rated by some of the best global rating agencies such as S & P, Moody’s, and several others. EU traders can benefit from a €20,000 Investor Compensation fund to boost their trading capitals.

AvaTrade implements an array of security measures to protect its traders’ identity and fund. It incorporates the widely trusted 256-bit SSL encryption security technology across its website to make it inaccessible to potential cybercriminals.

It also uses McAfee Secure (HackerSafe) as a potent weapon against identity theft and credit card fraud. This is in addition to segregating clients’ money from the platform’s business funds.

What if AvaTrade Goes Bankrupt?

Unexpected changes in the global economy may affect any business, the trading industry inclusive. As a result, AvaTrade may have to deal with the threat of bankruptcy. How does this affect your fund?

AvaTrade doesn’t mix traders’ money with business money. Trader’s money is saved in segregated accounts to ensure that traders won’t lose their investment fund even if the trading platform goes bankrupt. More so, the broker doesn’t have access to your money because nobody can make deposits or withdrawals on your behalf. 

Making such banking transactions is your exclusive right, not anybody else’s. This is reassuring considering the number of traders that have lost their money to one bankrupted trading platform or the other.

Data Protection with AvaTrade

When you are signing up on the AvaTrade, the trading platform will request for your personal information such as mailing address, name, email address, phone number, education, birth date, trading experience, occupation, estimated net worth and annual income, among other demographic and personal information.

Many traders don’t feel at home providing such sensitive information. However, AvaTrade, as previously mentioned, has put in every measure to protect your information. The platform doesn’t’ share such sensitive information with anyone except members of the platform who specifically need the information. They are available for legal cases or AvaTrade affiliates and financial institutions who may request for the information for legitimate uses only.

Support in Case of Emergency

In case of emergency, AvaTrade won’t leave you to sort yourself out. Rather, through its team of dedicated and professional customer support, you can find answers to your problems or get a solution to some disturbing problems.

You can contact customer support through telephone, email, and live chat. The telephone service is available to traders in over 20 countries. You can also get support in any of the more than 20 supported languages that include English, French, Finish, Hungarian, French, Chinese, Arabic, Greek, Croatian, Dutch, and a host of others.

Thus, whatever the problem, you can always count on AvaTrade’s customer support team to help you out and remove the obstacles that may potentially stand between you and profitable trading.

AvaTrade Safety and Trading

It goes without saying that AvaTrade has committed to its traders’ safety through the measures it incorporates into its operations. How does the trading platform work?

Execution Model

AvaTrade is a member of the group of trading platforms known as Market Maker brokers. As a user of this platform, you don’t have direct access to international markets. Rather, your trading activities will be based on the pricing and parameters provided by the broker.

By the virtue of its status as a Market Maker, AvaTrade can offer you fixed spreads for trading. This is one of the exclusive rights of Market Makers. Although Market Makers are usually considered as less secured, AvaTrade is a different member of the group.

As proof of this you may find AvaTradefeatures in lowest fixed spreads forex brokers as our top choice if you’re interest in fixed spreads.

As previously mentioned in this article, the trading platform is not only regulated by credible regulators that constantly monitors the market making activity, but it also prioritizes security as proven by the several security features it incorporates into its website and operations.

Trading Tools for Safety

When you open a trading position on AvaTrade, the trading platform provides the following trading features for safety:

  1. Trailing stop

The trailing stop is an order that AvaTrade designs to allow all its traders to specify the maximum amount of money they can afford to lose without putting a cap on the maximum amount of profit they can make from a trade.

  1. Stop loss

A stop loss refers to an order place in advance to dispose of an asset at a particular price point. The objective of the stop loss order is to limit a trader’s loss in a trade. If you’re looking for a guaranteed stop loss (which is a special stop loss type that protects you from slippage and volatility), AvaTrade doesn’t offer it.

  1. Take profit

A take profit order enables a trader to fix profit. When the price of the trading instrument reaches the specified amount, the trading position will be closed automatically.

Closing remarks

AvaTrade has proven to be a reliable and safe trading platform with some minor shortcomings. As a trader, you can enjoy all the benefits of using the trading platform and all its benefits to boost your trading skills.


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About the Author

Luca Puddu

Broker Expert

Always full of different interests, Luca started to get interested in the field of personal finance in 2014.

His self-taught studies led him year by year to become increasingly interested in the investment field.

To date, Luca actively invests in the stock market and cryptocurrencies, focusing on rising markets and the industries of the future.

His main role at InvestinGoal.com is to analyze and study in the smallest detail the brokers and their platforms, while checking carefully that the information shown by them is genuine.

In this way, he provides readers with a complete and truthful overview of the broker they might be interested in.


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