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.
AvaTrade is regulated by several authoritative bodies such as ASIC, JFSA, FSA, FSCA, ADGM, CBI, ISA, KNF, IIROC. However, AvaTrade is not regulated by the MAS ( Monetary Authority of Singapore). In this article, we will explore AvaTrade’ regulations, and its features, and provide a list of alternative brokers that are regulated by MAS.
Does AvaTrade Operate Under MAS?
No, AvaTrade does not operate under MAS (Monetary Authority of Singapore) 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 MAS in Singapore.
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: http://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 MAS Regulated Forex Brokers: Alternatives to AvaTrade
AvaTrade is one of the leading forex and CFD brokers. The broker is not regulated by MAS. It is regulated by other top-tier regulators including ASIC, JFSA, FSA, FSCA, ADGM, CBI, ISA, KNF, IIROC. There are several MAS regulated brokers that can serve as alternatives to AvaTrade. These brokers include:
- Founded In: 2001
- Minimum Deposit: $100
- Maximum Leverage: 50:1
- Regulations: CySEC, CFTC, NFA, CIMA, FCA, FSA, MAS, ASIC, CIRO
- Trading Platforms : Mobile App, Web Trader, Meta Trader 5
- Trading Instruments: Forex, Indices, Stocks , Cryptocurrency, Commodities , Gold and Silver.
- Founded In: 2005
- Minimum Deposit: $50
- Maximum Leverage: 1:500
- Regulations: ASIC, Austrac, Bafin, CIMA, ESCA, CySEC, FSC, FMA, MAS, TFG, VFSC, FSCM, FSAS
- Trading Platforms: MT4, MT5, Multibank-Plus
- Trading Instruments: Forex, Metals, Shares, indices, Commodities, Cryptocurrencies
- Founded In: 1974
- Minimum Deposit: $0
- Maximum Leverage: 1:200
- Regulations: ASIC, FCA, JFSA, SFC (Hongkong), FSCA, MAS, FMA, GmbH, FINMA
- Trading Platforms: MT4, WebTrader, MobileTrader (MobileApp), ProRealTime
- Trading Instruments: Forex, indices, Cryptocurrencies, Shares, Commodities
- Founded In: 1989
- Minimum Deposit: $0
- Maximum Leverage: 1:500
- Regulations : FCA, ASIC, BaFin, IIROC, FMA, MAS
- Trading Platforms : MT4 , Share trading platforms
- Trading Instruments: Forex Major, Forex Crosses, Forex Minor, Metals, Oil , CFD, Stock indices
- Founded In: 1978
- Minimum Deposit: $0
- Maximum Leverage: 1:500
- Regulations: SEC, CFTC, FCA, FSCS, FINRA, FCM, IIROC, MAS, FSA
- Trading Platforms : WebTrader, FIX API, MobileTrader
- Trading Instruments: Stocks, options, futures, currencies, bonds, and funds
These brokers operate under MAS regulation. According to MAS rules, they offer leverage up to 30:1 and provide negative balance protection for retail traders. To learn more about MAS-regulated forex brokers, you can read our content on the best MAS-regulated forex brokers.
How Can I Verify If My Broker is regulated by MAS or Not?
To verify if your broker, such as AvaTrade, is regulated by the MAS, follow these steps:
Step 1: Obtain the Broker’s License Number or Name
The first step in verifying whether a broker is MAS-regulated is to gather the necessary details from the broker’s official website. Look for the broker’s licensed or reference number, which is typically listed in the footer, legal section, or “About Us” page. If the license number is not available, the broker’s name can also be used for verification. Having the correct license number or name ensures a more accurate search when checking the broker’s regulatory status.
Step 2: Search the MAS Financial Institutions Directory
Once you have the broker’s license number or name, visit the official MAS Financial Institutions Directory at https://eservices.mas.gov.sg/fid. Enter the license number or the broker’s name into the search bar and hit enter. This directory contains all MAS-regulated entities, and your search results should show the broker’s profile if they are indeed regulated. This step is critical for confirming that the broker you are considering operates legally under MAS oversight.
Step 3: Check License Type and Status
After locating the broker in the MAS directory, carefully review their profile. Look specifically for the license type and status to ensure that the broker is authorized to offer the services you need. If you are trading forex, verify that the broker is licensed to provide “Spot Foreign Exchange Contracts for Leveraged Forex Trading” under “Dealing in Capital Markets Products.” This step confirms that the broker has the necessary permissions to legally offer forex trading and other related financial products.
Step 4: Verify Broker Contact Details
Another essential step is to ensure that the contact details listed on the MAS website match those provided by the broker on their own site. Pay close attention to details such as the broker’s website URL, email address, and phone number. If the contact details differ, it could indicate that you are dealing with an unauthorized broker or a clone firm that is pretending to be MAS-regulated. Verifying these details helps protect you from potential scams or unauthorized firms.
Step 5: Stay Away from Unlisted Brokers
If you cannot find the broker in the MAS directory, this is a red flag. Brokers that are not listed are likely unauthorized, and trading with them can put your funds at serious risk. Unauthorized brokers often operate without regulatory oversight, meaning they may not adhere to client fund protection rules, leaving your investments exposed. Always stay away from brokers that are not listed in the MAS directory to ensure your money remains safe.
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. Though AvaTrade is not regulated by MAS, it is regulated by other reputed regulatory authorities including ASIC, JFSA, FSA, FSCA, ADGM, CBI, ISA, KNF, IIROC. These regulations ensure strict compliance with industry standards and provide protection for client funds.