Is AvaTrade Regulated in Germany? Is it Legit? - TU Expert review
A license is crucial for a broker, providing the legal framework for its operations and confirming compliance with established financial oversight regulations in each country. In light of this, many traders in Germany wonder, “Is AvaTrade operating legally in Germany? Is it legitimate?”
TU experts have investigated all aspects of AvaTrade operations and are prepared to answer questions regarding the broker's regulation and legality of operation in Germany.
Short summary about the broker AvaTrade
AvaTrade was founded in 2006 in Dublin, Ireland. The company has offices in 10 countries. It currently has over 300, 000 registered users and processes more than 2 million transactions every month. These factors contribute to AvaTrade being a reliable and trusted broker. They are accredited across five continents and are one of the market leaders. The broker is regulated by the Australian Securities and Investment Commission (ASIC, 406684), the Japanese FSA ( 1662), and the South African FSCA ( 45984). AvaTrade holds accreditation by the Central Irish Bank ( C53877 ), the Abu Dhabi Financial Services Regulatory Authority (190018), and the British Virgin Islands Financial Services Commission ( SIBA/L/13/1049), CySEC ( 347/17). AvaTrade allows traders to trade stocks, securities, indices, cryptocurrencies, and currency pairs. In total, the offer more than 1,200 tools to customers.
| 💰 Account currency: | AUD, JPY, GBP, USD, EUR, CHF |
| 🚀 Minimum deposit: | 100$ |
| ⚖️ Leverage: | 1:30 to 1:400 |
| 💱 Spread: | From 0.9 to 3 p. |
| 🔧 Instruments: | Forex pairs, Cryptocurrencies, Commodities, Indices, Stocks, Bonds, Vanilla Options and ETFs |
| 💹 Margin Call / Stop Out: | 25% / 10% |
Pros and cons of AvaTrade
👍 Advantages of trading with AvaTrade:
•a wide range of trading instruments;
•there is a license for the provision of services on the territory of 5 continents;
•customer service operates around the clock and provides competent assistance to users in 14 languages;
•a wide choice of convenient trading platforms;
•ability to trade from mobile devices;
•availability of an account for representatives of Islam (swap-free);
•for reliable storage of customer funds, the broker uses a segregated account;
•option for automated trading using trading advisors, indicators, and other analysis tools;
•no restrictions on trade and scalping;
•availability of training materials and conducting webinars for beginners and experienced traders.
👎 Disadvantages of AvaTrade:
•the site interface is not user-friendly;
•customer service efficiency and response time
•trading terminals are prone to occasionally freeze.
Why is it important for a broker to have the license in Germany?
A financial license is the key document for any broker. It confirms that the company complies with the requirements of the financial regulator and observes the law. It is important for traders to choose a broker registered their jurisdiction for the following reasons:
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Any claim is filed at the place of the broker’s registration. Accordingly, in case any dispute arises, it will be easier for the trader to file a claim.
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A license issued in Germany guarantees that the broker operates in compliance with the laws of this country and reports to the local regulatory authorities.
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Traders can claim compensation under the government programs of deposit guarantees in case the broker experiences financial problems.
It is also possible to choose a broker that is not regulated in Germany. In that case, however, the company must have a license from a reliable regulator, for example of an EU country, the UK, USA, Australia, etc.
Is AvaTrade regulated in Germany? Broker’s license
Security (Investors’ Protection)
Information
The activity of AvaTrade is regulated by 7 commissions: European CBI, Australian ASIC, South African FSCA, Japanese FSA and FFAJ, and the authorities of the British Virgin Islands B.V.I. FSC and CySEC.
To obtain accreditation from each of the regulatory authorities, it is necessary to follow clear regulations and comply with all the declared requirements for the provision of financial services.
The activity of AvaTrade fully complies with the criteria of regulators and the broker's regulations. Thanks to this, reliable legal relations between the company and consumers are ensured. The safety of financial assets is observed.
👍 Advantages
- Trading operations are conducted under clear regulations
- Relations between the broker and the trader are regulated by the agreement
- Regulation by 7 authorities allows a customer to submit a claim from any country
- Protection of customer funds using storage at segregated accounts
- Licenses and other regulating documents are freely available at the broker’s website
👎 Disadvantages
- Before the start of cooperation with the broker it is necessary to familiarize yourself with a lot of documents
- Claims from only major investors are accepted
Brokerage fees
The broker has been checked by our experts for the existence of explicit and hidden commissions, in particular a commission for trading volume and withdrawal of funds.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | From 0 to 20 US dollars, depending on the platform | No |
Brokers that are similar to AvaTrade
In addition to AvaTrade, also other brokers from this jurisdiction have the license of Germany. AvaTrade has many competitors, and before you start working with this broker, you need to compare it to other companies. TU analysts have prepared a comparison of brokers that operate in the Germany market and have a license of this or another reliable jurisdiction.
Comparison of AvaTrade with other Brokers
| AvaTrade | RoboForex | Pocket Option | Exness | XM Group | Tickmill | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, MobileTrading, Zulu Trader, Mirror Trader, AvaTrader, AVA Option |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5, MobileTrading, XM App |
MT4, MT5, Tickmill Mobile App |
Min deposit |
$100 |
$10 |
$5 |
$10 |
$5 |
$100 |
Leverage |
From 1:200 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
Yes |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0.9 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0.6 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Instant Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
$30 |
Cent accounts |
Yes |
Yes |
No |
No |
Yes |
No |
Is it safe to trade with AvaTrade in Germany?
AvaTrade is a good choice for traders in Germany. The broker holds the license of the local financial regulatory authority. AvaTrade has a good reputation in Germany, as well as many positive reviews. The broker also offers good trading conditions compared to competitors. Therefore, AvaTrade is an excellent option for trading.
FAQ
How do I check a broker’s license?
Brokers should provide their license on their official website. It is also recommended to check it on the official website of the financial regulatory authority.
Does a broker need to have an official representative office in Germany?
Yes. According to the rules of Germany, brokers must have an office in Germany. This is a mandatory condition for obtaining the license.
Can the license issued by Germany be considered reliable protection against fraud?
Yes. The rules of the financial regulator of Germany are very strict, which makes obtaining a license in this jurisdiction extremely difficult for scammers.
What kind of information should a broker provide for traders?
On their official websites, brokers must provide the name of the managing company, r egistration certificate, legal address and internal regulatory documents.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.