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Is Your Money Safe? The Ultimate Regulation Check
You are reading Lesson 3 of the broker-battles course.
1. Global Licenses
- Plus500: Listed on the London Stock Exchange (LSE). Regulated by FCA, ASIC. Very safe.
- eToro: Regulated by FCA, ASIC, CySEC. Solid, but has had past service outages.
- AvaTrade: Regulated in 9 jurisdictions across 6 continents. This includes the super-strict Central Bank of Ireland, ASIC (Australia), and the Japanese FSA.
Winner: AvaTrade. Their regulatory footprint is arguably the widest in the industry.
2. Insurance Features
- The Field: Most brokers offer standard Stop Loss orders.
- AvaTrade: Offers AvaProtect. This is a game-changer. For a small fee, you can "insure" a trade. If it loses, AvaTrade reimburses you 100% of the loss. If it wins, you keep the profit. No other broker offers this direct insurance.
3. Reputation & Longevity
- Plus500: Founded 2008.
- eToro: Founded 2007.
- AvaTrade: Founded 2006.
All three are veterans. However, AvaTrade's clean record with regulators (fewer major fines compared to competitors) gives it the edge in trust.
The Winner: AvaTrade
While Plus500 is a safe public company, AvaTrade wins the Safety battle due to its unparalleled global regulatory net (9 jurisdictions) and the unique AvaProtect feature, which allows beginners to trade without fear of initial losses.
Secure your funds
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