What you need to know about the AvaTrade IPO
Online broker AvaTrade has started preparations for a £700 million London IPO in the coming months. Find out everything you need to know about AvaTrade before it lists.
Share this:
What is AvaTrade?
AvaTrade is an online trading platform that provides access to financial markets – including shares, forex and indices – via CFDs. It was founded in 2006 by Emanuel Kronitz and Negev Nosatzki, in the Republic of Ireland.
The company now has four offices across the globe, located in Japan, Australia, Ireland and the British Virgin Islands. It is also a member of the Ava Group, which is headquartered in Australia.
AvaTrade’s client base grew to more than 300,000 traders across 150 countries – including the US, Europe, Africa and China – in 2020. It reports some two million trades monthly, representing around £60 billion in volume.
AvaTrade is not regulated by the Financial Conduct Authority (FCA), which may be concerning to UK and EU-based traders. But it is regulated by several different bodies, including the Central Bank of Ireland, the Australian Securities and Investments Commission, Japan’s Financial Services Agency and the Financial Sector Conduct Authority in South Africa.
How does AvaTrade make money?
AvaTrade makes money from the spreads and commissions it charges on each trade and any additional fees such as overnight financing and inactivity.
AvaTrade uses a dealing desk or market maker model of execution on its client accounts – where it uses internal liquidity to offset positions, and then hedges any additional exposure it may have.
Is AvaTrade profitable?
As AvaTrade is a private firm, a lot of its balance sheet remains unknown. What we do know is that AvaTrade has experienced a strong performance in 2020 thanks to the increase in market activity brought on by coronavirus volatility. It now has an estimated revenue of $76 million.
What is AvaTrade’s business model?
AvaTrade states that its business model is based on ‘commitment to client success and satisfaction’. This strategy has involved the creation of various add-ons to its basic package that allows traders to boost their experience – for a price.
For example, in 2020, AvaTrade introduced a new application called AvaProtect, which allows clients to protect trades against adverse market movements for a cost paid upfront. Essentially, the company would reimburse a trade for up to a certain amount of losses during a specific period for a fee. Notably, AvaTrade does not offer guaranteed stop-loss orders, which prevent market gapping entirely.
AvaTrade has also introduced ‘AvaSocial’ an app where clients can learn from expert traders and copy their trades.
Who are AvaTrade’s competitors?
AvaTrade’s competitors are numerous, as there are a lot of big names in the online brokerage space, including StoneX Trading and Forex.com.
With the introduction of its social trading app, AvaTrade also now competes with similar providers such as the controversial app Robinhood or eToro.
Who are the directors of AvaTrade?
- Dáire Ferguson, CEO AvaTrade
- Sari Hemmendinger, CFO
- Turlough McIntyre, VP Risk Management
- Ian Webb, VP Compliance
- Peadar O’Shea, Non-Executive Director
When is the AvaTrade IPO?
AvaTrade has reportedly settled on an IPO on the London Stock Exchange in the second half of 2021. Reports suggest the company will list on the AIM sub-market with the help of JP Morgan and Jefferies.
Although no date has been set, it seems AvaTrade’s IPO could take place within just a few months as they seek to take advantage of the rush of IPOs in London.
Find out more about potential upcoming IPOs in 2021.
How much is AvaTrade worth?
AvaTrade is estimated to be valued between £500-£700 million following its IPO. It has no previous public funding rounds that can give any further indication of its value.
How to trade AvaTrade shares
When AvaTrade lists, you’ll be able to trade its shares in the same way you would any other publicly-traded company on the stock market.
In the meantime, you can trade stocks with Forex.com using CFDs, with spreads from 1pt. Follow these steps to start trading:
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Gold Q4 2026 outlook: Resilience in the face of rallying dollar and yields
As we headed towards the latter stages of Q3 and into Q4, the Fed had just hiked rates in a hawkish FOMC meeting, while the likes of the ECB and BoJ had also tightened their respective policies. Oil prices remained elevated amid the prolonged US-Iran conflict. Meanwhile, bond yields were breaking out, and the dollar was higher across the board. Yet, remarkably, gold was still holding in the positive territory for the third quarter, even if it had weakened somewhat in September.
ASX 200 Slides as Oil, Yields and Rate Risks Hit Sentiment
The ASX 200 suffered its worst week in six months as surging oil, higher bond yields and renewed rate-hike bets drove a broad risk-off move.
DeepSeek IPO: Everything You Need to Know About DeepSeek
DeepSeek IPO: Learn about its potential 2027 listing, valuation, revenue, profitability, ownership, competitors and what investors should watch.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.