AvaTrade Review (2022): Is AvaTrade a Scam or a Legitimate Broker?
Forex trading is a fast-growing way to make money. While there are several legitimate brokers, there’s an increase in the number of scammers in this business. Is AvaTrade one of them?
If you are thinking about investing your money with this firm, read this in-depth AvaTrade review before committing any money.
Have you lost money trading with AvaTrade and would like to get it back? We can help you. Schedule a free consultation session with our team of experienced experts to kickstart the process. We have helped many traders get their money back.
Let’s take a closer look at AvaTrade.
An Honest Look at AvaTrade
Established in 2006, AvaTrade is a multinational company that people use to trade cryptocurrency, CFDs, and forex.
The company claims to be the most secure broker in the industry because it is regulated by seven regulators across six continents. AvaTrade uses this as evidence that its operations are legitimate.
In 2021, AvaTrade partnered with eight-time Olympic gold medalist and global sporting icon Usain Bolt to become the company’s brand ambassador. While all these look legit, is it true or just a ploy to attract unsuspecting investors?
What is AvaTrade: A Brief Background
AvaTrade specializes in forex, indices, commodities, CFD trading, and cryptocurrencies. Since its establishment, AvaTrade has expanded significantly to over 300,000 registered customers globally. The company executes more than two million trades a month with trading volumes now surpassing $70 billion per month.
AvaTrade administrative headquarters are in Dublin, Ireland. The brokerage firm also has offices in Paris, Milan, Tokyo, Mexico, Chile, Mongolia, Poland, South Africa, Abu Dhabi, and Sydney.
Is AvaTrade Legitimate?
To determine whether AvaTrade is legitimate, we’ll look at the company’s products, services, and activities. In addition, we’ll also tell you whether the brokerage firm is regulated by any authority bodies. This information will provide a final verdict about whether the brokerage firm is legit.
Let’s look at some of the pillars that make up this brokerage firm.
AvaTrade has the latest market trading tools that appeal to investors. To trade with this broker, you can use different platforms including, AvaTradeGo, MetaTrader 4 (MT4), MetaTrader 5 (MT5), and WebTrading.
In addition, they have AvaSocial, a social trading app that lets you copy top traders. And AvaOptions, a trading platform for smartphones and the web that has simulation platforms.
The AvaTrade website has educational resources that traders can use to help them make investment decisions. These materials include trading videos such as tutorials, stock market fundamentals, and forex basics. If you are a newbie, there are resources on how to trade online and copy trading.
Who Regulates AvaTrade?
According to the AvaTrade website, the brokerage firm is regulated across 5 continents. They use this detail as proof that they are legitimate. Here are the regulatory bodies that govern AvaTrade.
AVA Trade EU Ltd is regulated by the Central Bank of Ireland under registration no. C53877.
- Investment Industry Regulatory Organization of Canada Friedberg Direct (IIROC).
- Financial Services Agency Japan (FSA).
- The Financial Futures Association of Japan (FFAJ).
- The Abu Dhabi Global Market Authorities Financial Services Regulatory Authority (ADGM – FSRA).
- Australian Securities and Investments Commission (ASIC).
- British Virgin Islands Financial Services Commission (BVI).
What are the AvaTrade Scam Signals?
While AvaTrade packages itself as a legitimate company, it has some red flags that raise questions. Before investing with AvaTrade, here are some of the scam signals.
Poor Customer Reviews
Customers who have dealt with AvaTrade have some negative complaints about this brokerage firm. Based on reviews on Trustpilot, the firm has a high rating of 4.7 out of 5 stars. However, there are negative reviews showing:
- Customers lose money to the brokerage firm after withdrawing.
- AvaTrade withholds bonus payments.
- The brokerage firm expands the spread during trading to jeopardize customer accounts.
- Poor customer service.
On the other reputable review site, Forex Peace Army (FPA), AvaTrade also has tons of issues and negative comments from traders who have used the brokerage firm before.
Some of the issues highlighted on this site include,
- In 2013, Forex Peace Army recommended that traders should avoid using the Forex Gun software or any software offered by AvaTrade. This is because the brokerage company did not provide FPA with any information about how the company differentiates between a normal off-market fill vs. what is arbitrage.
- In 2018, FPA asked all AvaTrade reviewers to include their account numbers in their review.
- In June 2020, an AvaTrade employee told FPA that “we are one of 3000 companies to use the same IP.” This raises questions about the security of sensitive client financial and personal information, especially if several companies are sharing the same IP address.
When investing with a brokerage firm, you need to know how much fees and commissions you’ll need to pay. If a brokerage firm has some hidden fees, it raises questions about the legitimacy of its operations.
AvaTrade claims to have low spread charges on its promotional materials; however, based on customer comments, the charges are still high. The brokerage firm does not disclose that it charges withdrawal fees and commissions on some accounts.
Non-disclosure is illegal and also misleading to investors. This opens loopholes for the company to steal customer money.
While the company claims to be authorized across five continents, it’s not authorized by reputable bodies such as the Financial Conduct Authority (FCA) in the UK. In addition, it does not accept clients from the U.S. yet it’s a multinational organization. These are red flags of a potential scammer.
AvaTrade Review Conclusion: The Final Verdict
It’s evident that AvaTrade is not the company it claims to be. While it packages itself as a reputable brokerage firm, multiple customer reviews depict otherwise.
Our in-depth AvaTrade review shows that the firm is a regulated scam broker.
If you have traded and lost money to AvaTrade, we can help you get it back. Trader Protection has years of experience helping traders get their money back. Schedule a free consultation session with our team today.