AvaTrade

AvaTrade

AvaTrade
TypePrivate
IndustryFinancial services
FoundedJune 2006; 20 years ago (2006-06)[1]
Founders
  • Emanuel Kronitz
  • Negev Nosatzki
HeadquartersDublin, Ireland[1]
Key people
Dáire Ferguson (CEO)[2]
ServicesOnline brokerage
Number of employees
450 (2025)[3]
Websitewww.avatrade.com

AvaTrade is a privately held online brokerage group headquartered in Dublin, Ireland. Founded in 2006 as AvaFX by Emanuel Kronitz and Negev Nosatzki, it offers trading in the foreign exchange market, contracts for difference (CFDs), commodities, stock market indexes, shares, exchange-traded funds, options, futures, cryptocurrencyies, and bonds through its trading platforms and mobile apps.

The group operates through separately regulated entities in the European Economic Area and other jurisdictions and expanded internationally through acquisitions during the 2010s. Its entities have also been subject to regulatory enforcement actions and settlements in several jurisdictions.

History

AvaTrade was established in 2006 by Emanuel Kronitz and Negev Nosatzki and began trading in January 2007 under the AvaFX brand, initially focusing on foreign-exchange trading.[1] The group expanded partly through acquisitions, buying Japanese broker Art Co. in 2010, acquiring the non-US clients of eForex and the non-EU customer accounts of Finotec Trading UK in 2011, and acquiring the Australian customer accounts of YouTradeFX in 2014.[1][4][5] In April 2013, AvaFX was renamed AvaTrade as the company expanded its offering beyond foreign exchange trading.[1]

In July 2015, Playtech agreed to acquire AvaTrade for $105 million.[1][6] The Central Bank of Ireland opposed the transaction,[7] and Playtech appealed the decision. An Irish Financial Services Appeals Tribunal found an error in the Central Bank's decision-making process and referred the matter back to the regulator, but Playtech withdrew from the acquisition in December 2015.[8]

In March 2021, Sky News reported that AvaTrade had hired JPMorgan and Jefferies to prepare for a possible listing on the London Stock Exchange, with an expected valuation of between £500 million and £700 million.[9] In 2024, the company launched AvaFutures, a platform providing retail investors with access to exchange-traded futures contracts.[10]

Ownership and finances

AvaTrade is privately held. When Ava Financial Ltd was established in 2006, founders Emanuel Kronitz and Negev Nosatzki collectively held approximately 66.5% of the company and Clal Finance held approximately 33.5%.[11] Clal sold half of its stake in October 2009 and its remaining 16.5% in June 2010. The latter stake was acquired by Kronitz and Nosatzki for $6.5 million.[11][12] By June 2025, Kronitz and Nosatzki each held 35% of AvaTrade, while minority shareholders included Shuki Abramovich, Moshik Lipetz and businessman Ilan Calic, each with a 5% stake.[3] That month, an investor group led by Israeli businessman Zvika Barenboim sought regulatory approval for a transaction that would give it approximately 50% of the company at a valuation of $400–500 million. Kronitz was expected to sell his 35% stake, while Nosatzki was expected to increase his holding.[3]

In 2014, the Ava Group generated revenue of $69.9 million, EBITDA of $24.6 million and pre-tax profit of $24.3 million.[1] By 2025, its annual EBITDA was estimated at approximately $90 million.[3]

Regulation

AvaTrade operates through separately regulated entities in a number of jurisdictions.[13] In the European Economic Area, its principal investment firm is authorised by the Central Bank of Ireland (CBI) under MiFID and provides services in other EEA countries under cross-border arrangements, including through a branch in Poland.[14][15] AvaTrade also operates through a separately licensed investment firm in Cyprus regulated by the Cyprus Securities and Exchange Commission.[16]

Outside the EEA, AvaTrade entities are regulated by the British Virgin Islands Financial Services Commission[17], the Australian Securities and Investments Commission[18], South Africa's Financial Sector Conduct Authority[19], Japan's Financial Services Agency[20], the Financial Services Regulatory Authority of the Abu Dhabi Global Market[21], Kenya's Capital Markets Authority[22], and the Israel Securities Authority.[23]

In Canada, AvaTrade provides its trading technology through Friedberg Direct, whose parent company is regulated as an investment dealer by the Canadian Investment Regulatory Organization; AvaTrade does not own or control the dealer.[24][25]

Controversies

In 2013, an Israeli court ruled that a lawsuit brought against AvaTrade could be heard in Israel despite a contractual clause providing for jurisdiction in the United Kingdom. The court held that the foreign-jurisdiction clause was prejudicial to Israeli customers and could discourage them from pursuing legal claims.[26] In 2014, the Tel Aviv District Economic Court rejected a claim that ATrade's business model created an inherent conflict of interest in which customer losses necessarily constituted gains for the company.[27]

In March 2014, the Central Bank of Ireland reprimanded Ava Capital Markets Limited (later renamed AVA Trade EU Limited) and fined it €165,000 for breaches of MiFID transaction-reporting requirements. The regulator found that between February 2010 and December 2011 the company had submitted late or inaccurate reports on 523,389 transactions and had inadequate compliance, information-system and outsourcing controls.[28][29]

In May 2017, the Israel Securities Authority (ISA) fined AvaTrade's local subsidiary NIS 150,000 over a promotional video that it found could mislead clients about regulatory protection and the risks of trading CFDs.[30][31] In August 2017, Belgium's Financial Services and Markets Authority (FSMA) reached a €175,000 settlement with AVA Trade EU Limited for offering CFDs without the required prospectus and distributing related materials without prior regulatory approval. The company also agreed to allow Belgian clients to terminate their contracts without charge and recover their account balances.[32]

In January 2019, the ISA fined ATrade NIS 576,000 for failing to carry out required reconciliations and controls over client funds and to obtain a required external-auditor report.[33] In July, ATrade admitted allowing clients to open transactions in instruments not permitted under its licence and agreed to a NIS 500,000 penalty, a further conditional NIS 500,000 penalty for two years, and an externally reviewed compliance programme.[34][35]

In 2019, Ava Trade reached settlements with securities regulators in Saskatchewan and Ontario over unregistered activity. In Saskatchewan, it admitted registration breaches related to an online trading platform operated between 2015 and 2018 and agreed to reimburse C$143,573.69 to 40 investors and pay a C$7,500 administrative penalty.[36][37] The following month, the Ontario Securities Commission approved a settlement under which Ava Trade admitted unregistered trading and distributing CFDs without a prospectus, paid a C$550,000 penalty and C$25,000 in costs, and disgorged approximately C$3.7 million in revenue.[38]

In June 2022, the Financial Services Regulatory Authority of the Abu Dhabi Global Market fined Ava Trade Middle East Limited AED 119,000 and ordered remedial measures for breaches of the Common Reporting Standard, including deficiencies in client tax-residency checks, record keeping and regulatory reporting.[39][40]

In May 2024, Japanese regulators took action against Ava Trade Japan K.K. after the Securities and Exchange Surveillance Commission (SESC) found that falsified customer data had been used in mandatory stress tests. After results deteriorated in 2021, the company's president asked the parent company to conduct the tests using altered data, resulting in inaccurate reports and a failure to take required measures.[41] The Kanto Local Finance Bureau issued a business improvement order requiring an overhaul of compliance and internal controls;[42] TV Asahi reported that it was the first such action under Japan's stress-testing regime.[43] In September, the Financial Futures Association of Japan imposed a ¥7 million penalty over the same conduct.[44]

References

  1. ^ a b c d e f g "Proposed acquisition of Ava Trade Ltd". Playtech plc. 1 July 2015. Retrieved 24 August 2026 – via Investegate.
  2. ^ "Management". AvaTrade. Retrieved 24 August 2026.
  3. ^ a b c d Ezer, Almog (18 June 2025). "צביקה בארינבוים בדרך לרכישת השליטה ב-AVATRADE לפי שווי של 450 מיליון דולר" [Zvika Barenboim on track to acquire control of AvaTrade at a $450 million valuation]. Calcalist (in Hebrew). Retrieved 23 August 2026.
  4. ^ Greenberg, Michael (22 March 2011). "eForex transfers clients to AvaFX". Finance Magnates. Retrieved 24 August 2026.
  5. ^ Fox, Mike (30 July 2014). "AvaTrade acquires the Australian customer book of Sydney based broker YouTradeFX". LeapRate. Retrieved 24 August 2026.
  6. ^ "Playtech buys Israeli co Ava Trade for $105m". Globes. 1 July 2015. Retrieved 24 August 2026.
  7. ^ Boland, Vincent (5 October 2015). "Playtech suffers setback in bid to acquire AvaTrade". Financial Times. Retrieved 24 August 2026.
  8. ^ Paul, Mark (11 December 2015). "Sagi drops Ava bid after Central Bank opposition". The Irish Times. Retrieved 24 August 2026.
  9. ^ Kleinman, Mark (25 March 2021). "Online trading platform AvaTrade places bet on £700m London float". Sky News. Retrieved 24 August 2026.
  10. ^ "AvaTrade lanza una plataforma de negociación de futuros para inversores minoristas" [AvaTrade launches futures trading platform for retail investors]. Europa Press (in Spanish). 26 June 2024. Retrieved 24 August 2026.
  11. ^ a b דוח תקופתי לשנת 2011 [Periodic report for 2011] (PDF) (Report) (in Hebrew). Clal Finance Ltd. 22 March 2012. p. 116. Retrieved 23 August 2026.
  12. ^ Bergman, Roee (6 June 2010). "Clal Finance sells remaining stake in forex unit AVA". Globes. Retrieved 23 August 2026.
  13. ^ "Compare our Global Offering". AvaTrade. Retrieved 23 August 2026.
  14. ^ "AVA Trade EU Limited". Financial Service Provider Register. Central Bank of Ireland. Retrieved 23 August 2026.
  15. ^ "Notyfikacje zagranicznych firm inwestycyjnych z państw UE/EOG – działalność w formie oddziału" (in Polish). Polish Financial Supervision Authority. Retrieved 23 August 2026.
  16. ^ "D.T. Direct Investment Hub Ltd". Cyprus Securities and Exchange Commission. Retrieved 23 August 2026.
  17. ^ "Ava Trade Markets Ltd". British Virgin Islands Financial Services Commission. 14 July 2026. Retrieved 23 August 2026.
  18. ^ Risky business: driving change in CFD issuers' distribution practices (PDF) (Report). Australian Securities and Investments Commission. 20 January 2026. Retrieved 23 August 2026.
  19. ^ "FSCA warns against unauthorised financial services providers". SAnews. Government Communication and Information System. 2 February 2023. Retrieved 24 August 2026.
  20. ^ "Financial Instruments Business Operators" (PDF). Financial Services Agency. Retrieved 23 August 2026.
  21. ^ "Ava Trade Middle East Limited". Abu Dhabi Global Market. Retrieved 23 August 2026.
  22. ^ "List of licensees – Non-Dealing Online Foreign Exchange Brokers". Capital Markets Authority. Retrieved 23 August 2026.
  23. ^ "List of companies licensed to operate trading platforms" (PDF) (in Hebrew). Israel Securities Authority. 1 October 2020. Retrieved 23 August 2026.
  24. ^ "Friedberg Mercantile Group Ltd". Canadian Investment Regulatory Organization. Retrieved 23 August 2026.
  25. ^ "About Friedberg Direct". Friedberg Direct powered by AvaTrade. Retrieved 23 August 2026.
  26. ^ Gueta, Yasmin (17 July 2013). "Court: Dispute to be heard in Israel – even though Forex determined it will be heard in the UK". TheMarker (in Hebrew). Retrieved 24 August 2026.
  27. ^ Neuman, Efrat (2 July 2014). "Court rules: Atrade Forex company's business model is not based on client losses". TheMarker (in Hebrew). Retrieved 24 August 2026.
  28. ^ "Settlement Agreement between the Central Bank of Ireland and Ava Capital Markets Limited" (PDF). Central Bank of Ireland. 6 March 2014. pp. 66–68. Retrieved 24 August 2026.
  29. ^ "Central Bank fines Ava Capital Markets for breaches of rules". RTÉ News. 6 March 2014. Retrieved 24 August 2026.
  30. ^ "The Israel Securities Authority imposed a financial sanction of NIS 150,000 on Atrade Ltd. for violating the Securities Law" (in Hebrew). Israel Securities Authority. 9 May 2017. Retrieved 24 August 2026.
  31. ^ Tomer, Uri (4 July 2017). "Legal but Lethal: Who will remain in the arena after the crackdown on Binary Options?". TheMarker (in Hebrew). Retrieved 24 August 2026.
  32. ^ "Agreed settlement – AVA TRADE EU Ltd and iCFD Ltd". Financial Services and Markets Authority. 23 August 2017. Retrieved 24 August 2026.
  33. ^ Rosenberg, Elitzafan (8 January 2019). הפרו חובתם כלפי המשקיעים - ונקנסו ב-700 אלף שקל [They violated their duty to investors and were fined NIS 700,000]. Ynet (in Hebrew). Retrieved 24 August 2026.
  34. ^ Decision in the matter of ATrade Ltd (PDF) (Report) (in Hebrew). Israel Securities Authority. 23 July 2019. Retrieved 24 August 2026.
  35. ^ Kimberley, David (24 July 2019). "AvaTrade Israel Fined $141,000 by Regulator". Finance Magnates. Retrieved 24 August 2026.
  36. ^ "Ava Trade Ltd. Resolves Matter; Agrees To Pay Investors Back". Government of Saskatchewan. 25 June 2019. Retrieved 24 August 2026.
  37. ^ Giles, David (25 June 2019). "Overseas firm agrees to pay thousands back to Saskatchewan investors". Global News. Retrieved 24 August 2026.
  38. ^ "Oral Reasons for Approval of Settlement: In the Matter of Ava Trade Ltd". Ontario Securities Commission. 24 July 2019. Retrieved 24 August 2026.
  39. ^ Regulatory Action against Ava Trade Middle East Limited (Report). Financial Services Regulatory Authority, Abu Dhabi Global Market. 9 June 2022. Retrieved 24 August 2026.
  40. ^ Nagraj, Aarti (1 September 2022). "ADGM regulator fines five financial institutions for breaching reporting requirements". The National. Retrieved 24 August 2026.
  41. ^ "SESC Latest Topics No. 99 – June 2024". Securities and Exchange Surveillance Commission. 26 June 2024. Retrieved 24 August 2026.
  42. ^ "Administrative action against Ava Trade Japan K.K." Financial Services Agency. 23 May 2024. Retrieved 24 August 2026.
  43. ^ 金融庁　金融商品取引業者に初の行政処分　ストレステストに改ざんデータを使用 [FSA takes first administrative action against financial instruments business over falsified stress-test data]. TV Asahi (in Japanese). 14 May 2024. Retrieved 24 August 2026.
  44. ^ 会員に対する処分について [Disciplinary action against a member] (PDF) (Report) (in Japanese). Financial Futures Association of Japan. 30 September 2024. Retrieved 24 August 2026.

Content Disclaimer

Informasi ini disarikan dari Wikipedia dan disajikan kembali untuk tujuan edukasi. Konten tersedia di bawah lisensi CC BY-SA 3.0. Kami tidak bertanggung jawab atas ketidakakuratan data yang bersumber dari kontribusi publik tersebut.

  1. The information displayed on this website is sourced in part or in whole from Wikipedia and has been adapted for the purpose of restating it. We strive to provide accurate and relevant information, however:
  2. There is no guarantee of absolute accuracy. Wikipedia is an open, collaborative project that can be edited by anyone, so information is subject to change.
  3. It is not intended to constitute professional advice. The content displayed is for informational and educational purposes only. For important decisions (e.g., medical, legal, or financial), please consult a professional.
  4. Content copyright. Wikipedia is licensed under the Creative Commons Attribution-ShareAlike License (CC BY-SA). This means that content may be reused with appropriate attribution and shared under a similar license.
  5. Responsible use. Any risk arising from the use of information from this website is entirely the responsibility of the user.