Is AvaTrade Regulated in Pakistan? Is it Legit? - TU Expert review
AvaTrade is a regulated Forex broker supervised by financial authorities in. The broker adheres to the standards established by its regulators, ensuring a secure and transparent trading environment. AvaTrade countries of regulation:
| Regulator | Full name | Country |
|---|---|---|
| BVI FSC | British Virgin Islands Financial Services Commission | British Virgin Islands |
| CySec | Cyprus Securities and Exchange Commission | Cyprus |
| ASIC | Australian Securities and Investments Commission | Australia |
| JFSA | Japan Financial Services Agency | Japan |
| FSCA SA | Financial Sector Conduct Authority of South Africa | South Africa |
| FFAJ | Financial Futures Association of Japan | Japan |
| ISA (Israel) | Israel Securities Authority | Israel |
Is AvaTrade regulated in Pakistan? 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
Is AvaTrade regulated in Pakistan? Broker’s license
AvaTrade regulation review
| Regulator | Country | Regulation level | Investor Protection Fund |
|---|---|---|---|
|
BVI FSC
|
British Virgin Islands | Tier-2 | No specific fund |
|
CySec
|
Cyprus | Tier-1 | Up to €20,000 |
|
ASIC
|
Australia | Tier-1 | No specific fund but has stringent consumer protection |
|
JFSA
|
Japan | Tier-1 | No specific fund |
|
FSCA SA
|
South Africa | Tier-2 | No specific fund |
|
FFAJ
|
Japan | Tier-1 | No specific fund |
|
ISA (Israel)
|
Israel | Tier-1 | No specific compensation fund for forex |
Understanding Forex Regulation Levels
When choosing a Forex broker, their regulatory framework plays a pivotal role in ensuring trust and security. Below is an overview of the different regulatory tiers:
-
Tier-1 Regulators:
These authorities are globally recognized for their strict oversight and high compliance standards. They prioritize trader safety, financial transparency, and overall market stability. Notable examples include the FCA in the United Kingdom and ASIC in Australia. -
Tier-2 Regulators:
While not as stringent as Tier-1, these regulators enforce solid compliance protocols that provide traders with a fair degree of security and reliability. -
Tier-3 Regulators:
Often limited to simple registration processes, Tier-3 regulators operate in jurisdictions with minimal oversight. Brokers under Tier-3 regulation face fewer compliance demands, offering traders less protection.
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 Pakistan?
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:
-
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.
-
A license issued in Pakistan guarantees that the broker operates in compliance with the laws of this country and reports to the local regulatory authorities.
-
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 Pakistan. 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.
Brokers that are similar to AvaTrade
In addition to AvaTrade, also other brokers from this jurisdiction have the license of Pakistan. 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 Pakistan market and have a license of this or another reliable jurisdiction.
Comparison of AvaTrade with other Brokers
| AvaTrade | Eightcap | XM Group | RoboForex | Exness | TeleTrade | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, MobileTrading, AvaTrader, AvaOptions, AvaSocial, AVA Option, MT5 |
MT4, MT5, TradingView |
MT4, MT5, MobileTrading, XM App |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5 |
Min deposit |
$100 |
$100 |
$5 |
$10 |
$10 |
$10 |
Leverage |
From 1:200 |
From 1:30 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
10.00%% |
No |
1.00%% |
Spread |
From 0.9 points |
From 0 points |
From 0.8 points |
From 0 points |
From 0 points |
From 0.2 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Instant Execution |
Market Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
No |
No |
No |
Yes |
Yes |
Yes |
Is it safe to trade with AvaTrade in Pakistan?
AvaTrade is quite popular in Pakistan. The broker does not have a license of the local financial regulatory authority, but it is regulated in a reliable jurisdiction. Therefore, this company can be trusted. The trading conditions of AvaTrade are rather beneficial compared to competitors. Accordingly, trading with this company is a good decision.
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 Pakistan?
Yes. According to the rules of Pakistan, brokers must have an office in Pakistan. This is a mandatory condition for obtaining the license.
Can the license issued by Pakistan be considered reliable protection against fraud?
Yes. The rules of the financial regulator of Pakistan 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.