Yes. CFD trading in BVI is subject to fewer regulatory rules and safeguards than in Australia, which means you lose the following important regulatory protections:
- Lower rates of leverage – as margin rates are not capped, you will be more exposed to the risk of losses if the market moves against you.
- Negative balance protection – if the market moves against you, it will be possible for your Ava Trade account to go into negative balance, and you will be responsible for repaying the debt.
- Right to complain to an independent adjudicator – while you will retain the right to complain to Ava Trade Markets Limited, if you are not happy with the outcome you will not be eligible to escalate that complaint to an independent adjudicator.
If you would prefer to trade with a broker that is licenced in Australia and which offers regulatory protections to retail clients, you should consider opting out of the transfer.
