IC Markets
Is AvaTrade Safe? AvaTrade Regulation, Licences and Client Protection
AvaTrade has operated since 2006 and its companies hold licences from the Central Bank of Ireland, ASIC, CySEC, the FSCA, Japan's FSA, the ADGM FSRA, the BVI FSC, Kenya's CMA and the Israel Securities Authority. Which company holds your account decides your protection. Here is how AvaTrade is regulated and what that means for you.
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AvaTrade is a regulated broker, but not by one regulator. Its group, founded in 2006, runs separate companies in different regions, and each holds its own licence. According to AvaTrade's regulation page, EU clients are served by AVA Trade EU Ltd under the Central Bank of Ireland, Australians by an ASIC-licensed company, and most other international clients by Ava Trade Markets Ltd in the British Virgin Islands.
That structure is common among global brokers, and it matters: the protections you get, from leverage limits to compensation schemes, follow the company your account sits with, not the AvaTrade brand.
| Founded | 2006 |
|---|---|
| EU company | AVA Trade EU Ltd, Central Bank of Ireland C53877 |
| Australia | Ava Capital Markets Australia, ASIC 406684 |
| International | Ava Trade Markets Ltd, BVI FSC SIBA/L/13/1049 |
| Business model | Market maker with its own dealing desk |
| Negative balance | Refunded through a Negative Balance Adjustment |
AvaTrade's companies and licences
| Company | Regulator | Licence |
|---|---|---|
| AVA Trade EU Ltd (Ireland) | Central Bank of Ireland | C53877 |
| DT Direct Investment Hub Ltd (Cyprus) | CySEC | 347/17 |
| Ava Capital Markets Australia Pty Ltd | ASIC | 406684 |
| Ava Trade Markets Ltd (BVI) | BVI Financial Services Commission | SIBA/L/13/1049 |
| Ava Trade Japan K.K. | FSA and Financial Futures Association of Japan | 1662 / 1574 |
| Ava Capital Markets Pty (South Africa) | FSCA | 45984 |
| Ava Trade Middle East Ltd | ADGM FSRA | 190018 |
| ATrade Ltd (Israel) | Israel Securities Authority | 514666577 |
| Ava Trade Kenya Ltd | Capital Markets Authority (non-dealing) | 262 |
You can check each licence on the regulator's own register, for example the Central Bank of Ireland register or ASIC Connect. AvaTrade also has a representative office in Colombia, authorised by the Financial Superintendency of Colombia to promote its products there.
Which company will hold your account?
Your country decides it. EU residents trade with AVA Trade EU under MiFID rules; Australians with the ASIC company; Japanese, South African, UAE and Israeli clients with their local companies where they apply. Traders in most of Asia, Africa and Latin America are generally registered with Ava Trade Markets Ltd in the British Virgin Islands. The Help Center confirms this for South Africans: opening an account registers you under the BVI company, which is offshore and doesn't need a local OTC derivatives licence.
Your Client Agreement and the account opening screens name the company you are contracting with. Check it before you deposit.
What each kind of licence means for you
| EU (Central Bank of Ireland) | Australia (ASIC) | International (BVI FSC) | |
|---|---|---|---|
| Retail leverage on major FX | 30:1 | 30:1 | Up to 400:1 |
| Investor compensation scheme | Yes, for EU clients | Check with ASIC company | Not stated |
| Stop out (retail MetaTrader) | 50% | Check your agreement | 20% (non-EU clients) |
AvaTrade's Help Center says EU citizens trading with the BVI company can move to AVA Trade EU, which gives them MiFID and ESMA protections and access to an investor compensation scheme. That is a direct statement that the EU company offers more protection than the offshore one.
Market maker: who is on the other side
Asked whether it is a market maker, AvaTrade answers "Yes" in its Help Center, and says your counterparty is its dealing desk, which manages its net risk by trading with banks and liquidity providers. Its prices come from independent third-party data providers, with its spread added on top. A market maker isn't unsafe in itself, but you should know your broker takes the other side of your trades. Our AvaTrade fees guide explains how that spread is your main cost.
Negative balance protection
AvaTrade's Help Center says it is impossible for a trader to lose more than the funds in the account, and that if a market move ever leaves you with a negative balance, it refunds the difference through a Negative Balance Adjustment. Stop outs are designed to prevent that: AvaTrade closes positions on retail MetaTrader accounts at 50% of margin, and on professional and non-EU accounts at 20%.
Countries AvaTrade does not accept
AvaTrade lists the countries it doesn't currently accept clients from. They include the United States, the United Kingdom, Belgium, New Zealand, Russia, Belarus, Iran, North Korea, Syria, Cuba, India, Iraq, Afghanistan, Algeria, Lebanon, Libya, Myanmar, Somalia, Sudan, South Sudan, Yemen, the Palestinian territory, the Isle of Man, Jersey and Guernsey. US residents and funds that originate in the US aren't accepted.
Complaints
- Contact Client Support first; AvaTrade says many issues are misunderstandings resolved quickly.
- If that fails, download the Complaint Form from AvaTrade's Legal Documents page.
- Send it with supporting evidence to [email protected] to register a formal complaint.
- If you remain unhappy, take the matter to the regulator or dispute body that covers your AvaTrade company.
Red flags and how to protect yourself
- Only deposit through the Finance area of your own AvaTrade account, never to a person or a third-party wallet.
- Check that any 'AvaTrade' contact uses the official domain and phone numbers listed on its contact page.
- Be wary of anyone promising guaranteed returns or offering to trade your account for you.
- Keep your account verified: AvaTrade may block accounts not verified within 14 days of the first deposit.
Is AvaTrade safe?
On the evidence of its licences, yes: AvaTrade has operated since 2006 under several of the world's stricter regulators, including the Central Bank of Ireland and ASIC. The level of protection is what varies. EU and Australian clients get the strongest framework; international clients under the BVI company get higher leverage but lighter oversight. See how it compares in our XM vs AvaTrade comparison.
With a group like AvaTrade, the question isn't whether it is regulated but by whom for you. Find the company name in your agreement, then look that company up on the regulator's register yourself.
Hannah opened an AvaTrade account from Ireland and checked her agreement: AVA Trade EU Ltd, Central Bank of Ireland C53877. She confirmed the reference on the Central Bank's register, accepted the 30:1 cap on EUR/USD as part of the EU rules, and kept the agreement on file in case she ever needed to complain.
Frequently asked
Is AvaTrade regulated?
Yes. Its companies are regulated by the Central Bank of Ireland, ASIC, CySEC, the FSCA, Japan's FSA, the ADGM FSRA, the BVI FSC, Kenya's CMA and the Israel Securities Authority.
Which AvaTrade company will I trade with?
It depends on your country. EU clients trade with AVA Trade EU (Ireland), Australians with the ASIC company, and most international clients with Ava Trade Markets Ltd in the British Virgin Islands.
Is AvaTrade a market maker?
Yes. AvaTrade's Help Center says it is a market maker and your counterparty is its dealing desk, which manages risk with banks and liquidity providers.
Can I lose more than my deposit with AvaTrade?
AvaTrade says no: if a market move leaves your account negative, it refunds the difference through a Negative Balance Adjustment.
Does AvaTrade accept clients from the UK or US?
No. Both are on AvaTrade's list of countries it doesn't accept, along with India, New Zealand, Belgium and others.
How do I complain about AvaTrade?
Contact Client Support first. If unresolved, submit AvaTrade's Complaint Form with evidence to [email protected].
When was AvaTrade founded?
In 2006, according to AvaTrade.
Does AvaTrade keep client funds segregated?
AvaTrade says client funds are held in segregated accounts, separate from company operating funds.
Which AvaTrade company serves South African clients?
AvaTrade's Help Center says South African clients register with Ava Trade Markets Ltd, regulated by the BVI FSC. Its group also holds an FSCA licence (45984).
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