AvaTrade has been operating as an online forex and CFD broker since 2006. There are some other brokers that are operating by the same parent company but in other jurisdictions. As such, the group holds several registrations with various regulators, such as MiFID and ASIC. Despite these registrations, AvaTrade has had run-ins with regulators in the past and engages in several questionable practices.
Action Taken by Regulators Against AvaTrade
Several regulators have taken action against AvaTrade. Their Israeli branch, ATrade, had to pay a fine of $140,000 to the Israeli Securities Authority in 2019 for allowing their clients to purchase prohibited financial instruments. In 2017, the firm received a similar penalty of €175,000 from the Belgian FSMA for selling CFDs without disclosing mandatory information.
Trading With AvaTrade
AvaTrade has a very standard offering of assets, about 50 Forex pairs and over assets for CFDs. Their users can trade on both the MetaTrader 4 and MetaTrader 5 platforms, enjoying the industry-standard features they offer. One thing to note is that this broker gives investors leverage of up to 1:400. In the EU, leverage is capped at 1:30 by the ESMA to protect novice traders from excessive risks.
Bonuses Incentivize Higher Deposits
Unlike most similar brokers, AvaTrade offers both fixed and floating spread accounts. The minimum starting deposit is $100. AvaTrade promises several benefits to clients who put down more than this minimum deposit. At the high end of this structure are the special conditions they offer to those who deposit $100,000 or more, including prioritized withdrawals, various gifts, and even customized trading terms for those clients.
Brokers Are Required to Disclose Risk
If a broker has solicited you to invest in prohibited financial instruments or invest in CFDs without disclosing the risk, you could have grounds to initiate a chargeback. Contact us today for a free consultation and to review your options.