Whether you have been looking for a forex broker or a stock trading broker, you might have come across the word “Avatrade.” This particular broker claims to be regulated and does business in most of the world, but not in the United States. However, you need to be careful of avatrade scams. In this article, we will discuss what you should know about this company, and how to avoid them.
Avoid avatrade scams
Whether you are new to the world of trading or an experienced investor, you have to be aware of Avatrade scams. These scams have been around for a long time, but have gained a lot of attention thanks to social media. Scammers use a variety of tactics, but they all aim at getting a naive investor to lose money.
Scammers usually set up a fake AvaTrade website that offers attractive offers to investors. After sending their money, investors end up losing their money. The website may copy the entire website of the leading broker, or it may be more refined.
Regulated
Unlike most online brokers, Avatrade is a regulated entity. Its business model is based on a model that promotes responsible trading. AvaTrade has several enlightened security measures, including a two-step verification process, that is similar to those used by most banking institutions. The company also offers several bonus features, including a free mobile app. Moreover, it offers a wide selection of assets, including forex, CFDs, and futures.
Besides, the company boasts several global offices and branches. This means AvaTrade can keep its assets separate, ensuring that your money is safe from hacks and malware.
Acts as their market maker
Whether you’re a new investor, or you’ve been in the financial market for a while, you might be curious to know what market makers do. In addition to facilitating investment activities, they also ensure that the market remains balanced and liquidity is stable. However, the role of a market maker isn’t without its risks. It can lead to herding behavior, and it may damage the integrity of the capital market.
A market maker’s role is to display buy and sell quotations for a specific number of securities. They can be either a member of a securities exchange or a single market participant. They use their funds to maintain liquidity in the market and ensure that the prices are fair. They may use information that is not publicly available to facilitate their trades. They also ensure that the market remains balanced and that all participants have access to the most up-to-date information.