Avatrade CySEC Regulation 2024: Supervision, Investor Protections, and More

Published :
Updated :
Written by

AvaTrade is a forex and CFD broker offering online trading services to traders and investors worldwide. The broker provides a diverse range of trading instruments, including Forex, Metals, Commodities, Stocks, 

FX Options, Oil, ETFs, Crypto currencies, CFDs, Shares, Spread Betting, Indices, Bonds. It also supports multiple trading platforms and tools such as MT4, MT5, WebTrader, AvaOptions, AvaTradeGO, DupliTrade, Trading Central.

Although AvaTrade is regulated by several authoritative bodies such as ASIC, JFSA, FSA, FSCA, ADGM, CBI, ISA, KNF, IIROC,  it is not regulated by CySEC (Australian Securities and Investments Commission). In this article, we will explore AvaTrade’ regulations, and its features, and provide a list of alternative brokers that are regulated by CySEC.

Does AvaTrade Operate Under CySEC?

No, AvaTrade does not operate under CySEC (Cyprus Securities and Exchange Commission) regulation. However, the broker is regulated by several other reputable financial authorities including ASIC, JFSA, FSA, FSCA, ADGM, CBI, ISA, KNF, IIROC. These regulatory bodies ensure compliance with various standards for financial stability, transparency, and investor protection, though they do not provide the specific protections offered by the CySEC in the EU.

What Other Regulations Does AvaTrade Have?

ASIC :

AvaTrade is regulated by ASIC. Founded in July 1998, the Australian Securities & Investments Commission (ASIC) is Australia’s national corporate regulator, overseeing corporations, markets, and financial services in accordance with the Australian Securities and Investments Commission Act 2001. Being based in Australia, ASIC regulation ensures that the broker complies with Australian laws on financial services, including responsible conduct, risk management, and financial reporting. Client money is kept in segregated accounts, and there is an emphasis on risk disclosure and trader protection.

FSCA :

AvaTrade is regulated by the Financial Sector Conduct Authority (FSCA). The FSCA, which replaced the Financial Services Board (FSB) in 2018, is responsible for overseeing forex and CFD brokers in South Africa. As the primary regulator, the FSCA focuses on creating a transparent and reputable trading environment, aiming to protect investors from scams and fraud. While the FSCA is considered less restrictive compared to European regulators, it is recognized for its strong governance framework, offering traders in South Africa reliable oversight and protection.

FSASVG:

AvaTrade is also registered with the Financial Services Authority of St. Vincent and the Grenadines (FSASVG). The FSASVG acts as a registry authority rather than a strict financial regulator, overseeing the incorporation and administration of international business companies, including forex brokers. While it does not impose the same stringent regulatory standards as more established jurisdictions, registration with the FSASVG provides AvaTrade with the legal framework to operate globally. Traders should be aware that investor protection and oversight under FSASVG may be limited compared to more heavily regulated regions.

ADGM:

AvaTrade is regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). The ADGM, established in 2013, is an international financial center located in Abu Dhabi, United Arab Emirates.

The FSRA of ADGM oversees financial institutions to ensure they operate with high standards of integrity and transparency. For AvaTrade, this includes requirements for maintaining adequate capital, safeguarding client funds by keeping them separate from company assets, and providing clear financial reporting. This regulation helps ensure that AvaTrade offers secure and reliable services for clients in the ADGM and globally.

CBI:

AvaTrade is regulated by the Central Bank of Ireland (CBI). The CBI, which has been overseeing financial markets since 1943, is a government agency that ensures financial institutions in Ireland operate safely and fairly.

AvaTrade must follow strict rules set by the CBI. This includes keeping enough capital, separating client funds from company assets, and regularly updating its financial reports. The CBI also supervises forex trading and limits leverage to 1:25 to help manage risk. Plus, AvaTrade offers negative balance protection, meaning you won’t lose more than your account balance. For more details, you can check out their website: https://www.centralbank.ie.

ISA:

AvaTrade is regulated by the Israel Securities Authority (ISA). The ISA, founded in 1968, is a government agency that oversees financial markets and ensures investor protection in Israel.

The ISA requires AvaTrade to meet strict standards, including maintaining adequate capital, separating client funds from the company’s assets, and providing regular financial reports. Forex trading is supervised by the ISA, and the maximum leverage allowed is 1:100. Although there isn’t a specific protection scheme offered by the ISA, its regulations ensure that AvaTrade operates transparently and securely. For more information, visit their website: https://www.isa.gov.il/.

KNF:

AvaTrade is regulated by the Komisja Nadzoru Finansowego (KNF). The KNF, established in 2006, is Poland’s financial regulatory authority, responsible for overseeing the country’s financial markets and institutions.

The KNF ensures that AvaTrade adheres to strict guidelines for transparency, financial stability, and investor protection. This includes maintaining adequate capital reserves, segregating client funds from the company’s own, and providing regular financial reports. KNF regulation helps protect Polish investors and ensures that AvaTrade operates securely and in compliance with Polish financial regulations.

IIROC:

AvaTrade is regulated by the Investment Industry Regulatory Organization of Canada (IIROC) under its relevant license. IIROC, established in 2008, is a national self-regulatory organization responsible for overseeing investment dealers and trading activities in Canada’s debt and equity markets.

IIROC requires AvaTrade to comply with strict standards, including maintaining sufficient capital, segregating client funds from company assets, and providing transparent, regular financial reporting. IIROC’s regulation ensures that AvaTrade operates with integrity, offering a secure and transparent trading environment for clients in Canada, protecting investors, and ensuring market fairness.

JFSA

FSA regulation refers to the rules and oversight provided by the Financial Services Agency (FSA) of Japan. Established in 2000, the FSA supervises financial institutions including banks, insurance companies, and forex brokers to ensure the stability and fairness of Japan’s financial system. It works to protect investors and maintain confidence in the market.

Financial service providers, such as forex brokers, must be licensed by the FSA to operate in Japan. The FSA enforces strict standards on capital requirements, risk management, and transparency. It requires firms to segregate client funds to ensure their protection and implement robust measures to prevent financial misconduct. By enforcing these regulations, the FSA plays a key role in upholding market integrity and safeguarding investor interests

Best CySEC Regulated Forex Brokers: Alternatives to AvaTrade

AvaTrade is one of the leading forex and CFD brokers. The broker is not regulated by CySEC. It is regulated by other top-tier regulators including ASIC, JFSA, FSA, FSCA, ADGM, CBI, ISA, KNF, IIROC. There are several CySEC  regulated brokers that can serve as alternatives to AvaTrade. These brokers include: 

Pepperstone

Pepperstone

  • Founded In:  2010
  • Minimum Deposit: $0, Recommended: $200
  • Maximum Leverage: 500:1
  • Regulations: FCA, ASIC, CySEC, BaFIN, DFSA, CMA, and SCB
  • Trading Platforms : MT4, MT5, cTrader, TradingView and Own Trading Platforms
  • Trading Instruments: Forex, Commodities, Indices, Currency Indices, Cryptocurrencies, Shares, ETFs, and CFD Forwards.
IC Markets

IC Markets

  • Founded In:  2007
  • Minimum Deposit: $200
  • Maximum Leverage: 1:1000
  • Regulations: ASIC, CySEC,  and FSA
  • Trading Platforms: MT4, MT5, Ctrader and TradinView
  • Trading Instruments: Forex, commodities, indices, cryptocurrencies, shares, ETFs, and CFD forwards
Etoro

Etoro

  • Founded In:  2007
  • Minimum Deposit: $50
  • Maximum Leverage: 30:1 EU, 50:1  USA
  • Regulations: SEC, FINRA, FCA, CySEC, FSA-S, SIPC, 
  • Trading Platforms: eToro Trading Platforms
  • Trading Instruments: Cryptocurrencies, Stocks, Commodities, Currencies
Eightcap

Eightcap

  • Founded In:  2009
  • Minimum Deposit: $100
  • Maximum Leverage: 1:500
  • Regulations : ASIC,FCA, CySEC, SCB
  • Trading Platforms : MT4, MT5, TradingView, Webtrader
  • Trading Instruments: Forex,Commodities,Indices,Shares,Crypto
Tickmill

Tickmill

  • Founded In:  2014
  • Minimum Deposit: $100
  • Maximum Leverage: 1:1000
  • Regulations: FCA, DFSA, FSCA, CySEC, FSA- Labuan,  FSA-S
  • Trading Platforms : MT4, MT5, WebTrader Platform, MetaTrader for Mac , Tickmill Mobile App
  • Trading Instruments: Forex, stock, indices, commodities, bonds, cryptocurrencies, Futures & options

These brokers operate under CySEC regulation. According to CySEC rules, they offer leverage up to 30:1 and provide negative balance protection for retail traders. To learn more about CySEC-regulated forex brokers, you can read our content on the best CySEC-regulated forex brokers.

How Can I Verify If My Broker is CySEC-regulated or not?


You can find a CySEC-regulated broker’s profile on the CIF Regulated Entities List on the CySEC website. To verify if your broker, such as AvaTrade, is regulated by the CySEC follow these steps:

1. Get Broker Details

Start by finding the broker’s license number or name. This info is usually on the broker’s website. Having the right details is key for the next steps.

2. Visit the CySEC Website

Go to the CySEC Regulated Entities List. This is where you can verify if your broker is regulated.

Enter the license number or broker name into the search bar. This will bring up the broker’s profile on the CySEC website, showing important details about their regulatory status.

4. Check Authorization

Make sure the broker is authorized to offer specific services:

  • Look for “9 – Financial contracts for differences” under Investment Services.
  • Check for “Foreign exchange services connected to investment services” under Ancillary Services. This confirms they can legally offer forex and CFD trading.

5. Match Firm Details

Finally, ensure that the information on the CySEC website matches what you see on the broker’s site. Check the website, email, and other contact info. If anything doesn’t match, it could mean the broker isn’t authorized, and you should stay away to protect your money

Frequently Asked Questions ( FAQs)

What is AvaTrade?

AvaTrade is a global broker established in 2006. On its MetaTrader and proprietary platforms, you can trade over 1,000 forex, CFDs, and forex options. Social traders can trade via AvaSocial, DupliTrade, and ZuluTrade. AvaProtect, a market news feed, and Trading Central analyses are some of the tools available to traders.

Is AvaTrade Considered Safe?

Yes, AvaTrade is considered safe. The broker is regulated by multiple top-tier regulatory authorities, including ASIC, JFSA, FSA, FSCA, ADGM, CBI, ISA, KNF, IIROC. It offers negative balance protection and holds client funds in segregated bank accounts. 

Does AvaTrade Offer Negative Balance Protection?

Yes, AvaTrade offers negative balance protection. All CySEC-regulated brokers must offer negative balance protection. Negative balance protection means that traders are protected from losing more money than they have in their trading accounts. If a trade results in losses that exceed the amount of funds in the account, negative balance protection ensures that the trader’s balance cannot go below zero. This prevents the trader from owing the broker any additional money.

Is AvaTrade regulated in Cyprus?

No, AvaTrade is not regulated in Australia. The broker is not regulated by CySEC, the Australian regulator. However, it accepts Australian clients under its global entity. AvaTrade is regulated by several other authorities, including ASIC, JFSA, FSA, FSCA, ADGM, CBI, ISA, KNF, IIROC.

Written by

Jason Paine is a forex trader, researcher, and tech enthusiast. He is passionate about financial markets and cutting-edge technology. With a dynamic 16-year trading career, he's on a mission to guide fellow traders. Having navigated diverse forex brokers, Jason shares his insights at Brokersway to bridge the gap between traders and the right brokerage.

DisclosureAt Brokersway we're committed to delivering unbiased information. our opinions are our own and are not influenced by the payment we receive from our advertising partners. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money.

Leave a Comment