AvaTrade heads into 2020 ever determined to continue its policies of client protection. AvaTrade has just been awarded the prestigious prize of “Most Regulated Broker” by The European, a leading global business affairs publication. This award recognises AvaTrade’s ongoing commitment to customer confidence and satisfaction.
AvaTrade is one of a small number of Forex and CDF brokerage firms holding multiple regulatory licenses in major jurisdictions around the world that include; the European Union, Australia, Japan, South Africa, and the British Virgin Islands.
But why does regulation matter?
The Benefits of a Regulated Broker
Security is the number one reason to choose a regulated broker. When you sign up with a forex and CFD broker, you will be required to deposit funds into your trading account as well as complete account verification procedures before you are able to start trading your favourite financial assets online.
As regulated brokers, we are mandated to hold all client funds in segregated accounts, with top tier banks. This essentially guarantees the safety of client money, and also ensures that there will be no delays when traders make payout or withdrawal requests.
Additionally, AvaTrade is a member of Ireland’s Investor Compensation Fund (ICF), which entitles its clients to a compensation of up to €20,000 (euros) in the unlikely event that the broker fails to meet its financial obligations.
Account verification procedures demand that traders submit their identification details as well as proof of residence. In rare cases, some financial information may also be required.
This is very sensitive information that can easily be misused by unethical brokers. Regulated brokers are compelled to ensure that, at no given time, clients’ private and confidential details are compromised.
- Fair and Transparent Pricing
When trading online, you are basically speculating on the prices of financial assets. Brokers control the platform that streams the asset prices, and in the fast-paced financial markets, even a small price variation can very much be the difference between profits and losses.
It is not uncommon for unethical brokers to manipulate their platforms. Regulated brokers, however, are required to adhere to strict, fair pricing guidelines as set out by the regulatory agencies. Furthermore, regulated brokers are also subject to random platform checks performed by regulatory agencies to ensure they always offer transparent price feeds on all their available tradable financial assets.
- Conflict Resolution
Ideally, there should be no conflict between a trader and a broker. However, should a conflict arise with a regulated broker, an independent outside agency will be appointed to investigate and ultimately to protect investor interests. Such a conflict with an unregulated broker, there is no official recourse and the client is at brokerage’s mercy. So, in the unlikely event of conflict you, the client will be assured a fair and just resolution.
Trading financial assets online is a complex activity, and the benefits of having a trustworthy broker cannot be underestimated. In the crowded brokerage scene, regulation remains the best indicator of reputable and credible companies. With this latest award, AvaTrade has proven once again that it is the choice of the discerning and intelligent investor.
Open an account at AvaTrade and start trading with a Regulated Broker!