A chat with AvaTrade CEO, Dáire Ferguson
We sat down with CEO Dáire Ferguson to talk about what's going on at AvaTrade and the changes he is seeing in trading.
We can't ignore the biggest global story around, so how is the pandemic changing the trading landscape?
"Coronavirus has created unprecedented volatility - and with that increased opportunities for investment. People who have been at home unable to work now realise they can join in the trading world at the click of a button. Our mobile trading app AvaTradeGO takes 30 seconds to download and register for an account to start trading - users can get direct access to the world stock markets, which they perhaps previously always thought were restricted to investment banks and hedge funds. The retail investor is shaping the markets of the future."
Has the FCA regulation requiring retail brokers to declare the percentage of customers that lost money trading CFDs in their advertising had an impact?
"Higher risk and higher reward is a fundamental of life - and not something that is confined to the trading world. However, there is significant risk in CFD trading - and again the objective of such metrics is designed to provide full transparency to all clients. For us, this is a part of educating clients, ensuring they have a good knowledge of all aspects of the trading environment and especially the associated risks."
Tell us more about education
"In any line of business a more informed client is a better client. At AvaTrade we want our clients to feel comfortable and confident in their trading abilities. The more knowledge a client can garner from the trading world, the more educated trading decisions they will be able to make. Building a defined trading strategy, using stop losses and identifying specific profit targets are all part of the knowledge growth for all clients.
We are committed to operating our platform transparently and openly, providing users with up-to-date educational tools and information on economic events via push notifications, email updates, social media and live updates from our platform - meaning they have the best possible chance at success. Indeed, education is key to our approach. Through our website we offer our users access to a host of tools - from beginners guides to professional trading - via webinars, video and e-book tutorials, and dedicated, personal account managers. We pride ourselves on our long-lasting relationships and consumer confidence, ensuring our users are educated and, where desired, protected from losses through our risk management tool, AvaProtect.
We are also at pains to ensure our interests are always aligned with those of our customers - endeavouring to support clients and help them make profits with their trades, on the understanding that a successful trader is likely a repeat customer."
Is public trust an issue? And is it getting better or worse?
"I think public trust has certainly improved in recent years - in large part due to regulation. Trust is a critical factor for any broker and regulation is central to our strategy at AvaTrade. It is our goal to be one of the most regulated brokers in the world. Now regulated in nine jurisdictions worldwide, in the past year we've secured licences in Canada, Abu Dhabi, Cyprus and, most recently, Poland, adding to our growing list of international offices. In fact, we were the first ever retail trading broker to obtain a licence in Abu Dhabi - having worked closely with the local regulator to secure operational approval - and just the second in Poland. For us, regulation is a key part of our brand strength and we're keen to openly embrace regulations designed to protect our clients."
Finally, what makes AvaTrade different?
"We differentiate ourselves by developing trust with our customers and much of this trust is fostered through regulation - we welcome regulatory scrutiny because it demonstrates our dedication to providing a safe and trustworthy service to traders. Among the most regulated trading platforms internationally, we are just a handful of providers that can offer such high levels of security and trust.
Our latest innovation for the retail market is AvaProtect, a revolutionary one-click risk management tool which gives clients the opportunity to purchase total protection against loss for a defined period after opening a position. In whichever direction the market goes, traders can enjoy piece of mind knowing their trades are protected from market adversity. If the protection ends and traders have an open position that is losing, AvaTrade reimburses the loss directly into their client's trading accounts in the form of liquid cash and the only cost to the trader is the initial AvaProtect fee itself.
In the current market climate of high volatility, these tools help traders make informed decisions and carefully manage the risks associated with their positions; we're proud to empower our clients to invest and trade with confidence in a safe, innovative and reliable environment."
This article was submitted by Avatrade.