Avian Markets Review
Avian Markets Review
Avian Markets is a forex broker, which attempts to appeal to automated traders. This is done by allegedly providing a supreme environment for trading robots. In this review, we will take a closer look at their offer.
The Company. Security of Funds
Avian Markets is a brand owned by Avian International Markets Limited. The company is registered in the UK, but does not claim affiliation with the Financial Conduct Authority (FCA). This is enough to make us not recommend dealing with the broker, as unregulated entities always carry a level of counterparty risk.
To clarify – if you trade with a forex broker, whose activities are not overseen by any agency, your may not get your money back. While not all un4regulated companies are dishonest, the possibility for them to be is enough to make you think twice before investing with such a broker.
On the other hand, the aforementioned Financial Conduct Authority (FCA) is one of the most respected watchdogs in the industry. It stringently monitors the activities of the companies who are under its oversight and moreover enforces certain rules upon them. When it comes to the security of your funds, two of them are very important.
First of all, client funds are to be kept in segregated accounts. This implies a broker can’t freely access the money, traders have deposited with it. In effect this prevents the most brutal scam – a company simply accepting deposits and offering “paper money” trading.
On top of that, the FCA forces all brokers to take part in the Financial Services Compensation Scheme (FSCS). Think of this scheme as an insurance company – all brokers must periodically pay a small portion of their profits (similar to the premium) to a collective fund. The fund then serves as a guarantee against one of these brokers going bankrupt. If your FCA-regulated broker happens to become insolvent you can claim up to £50,000 from the FSCS.
While Avian Markets isn’t regulated, the company also offers fund management. This automatically creates a conflict of interest. The reason why most forex brokers avoid offering such services is simple – they know about this conflict. If the broker uses an STP/ECN model, it has the incentive to manage your funds with systems, which generate a lot of trades (i.e. commissions). On the other hand, if the company is a market maker, the problem is even more self-evident – they can simply lose your money to … themselves. Social trading services like Zulutrade ot eToro are totally different, as a third party actually manages the accounts i.e. they don’t have an interest in them (or you) losing.
Minimum Initial Deposit
The minimum deposit at Avian Markets is $100, which is pretty much a standard level nowadays. Lots of brokers, like the FCA-regulated industry veterans at HYCM require such a deposit for the creation of a new account.
That being said the minimum deposit does not tell us anything about the reliability of a given broker (unlike its regulatory status)
Average spreads & Commissions
Spreads at Avian Markets are at the barely acceptable, given the current state of the industry. Our testing with their trading platform revealed the EUR/USD spread hovering around 1.7 – 1.9 pips, which although slightly higher than 1.5 is still in-line with their claims. Do you want to find a company offering tighter spreads? Cheek out our real-time spread comparison page, which features the conditions provided by some of the leading brokers.
Leverage at Avian Markets is capped at 1:100. This used to be the standard offering several years back, but nowadays it is considered a conservative level. We must note, it is only conservative when compared to the latest offers by other brokers, which occasionally exceed 1:500.
That being the case, 1:100 can still be dangerous if you are not familiar with the principles of risk management in the forex market. If you were to utilize your entire trading account as collateral (which is absurd) for one trade, a mere 1% market move against you, will wipe-out your entire investment. Be sure to use adequate position sizing and not turn trading into gambling.
Avian Markets offers trading with the popular MetaTrader4 (MT4) platform. You are very likely to be familiar with it, if you have any experience in the forex market. This is the current industry Standard, which is offered by a lot of brokerages. While it has a lot of functionality, its most distinguishing feature is the ease with which automated trading software can be created and used. The so called Expert Advisors or EAs are systems, based on an algorithm, which trade the markets for you. We have reviewed a lot of the ones, which are available for sale here.
MT4 also has some drawbacks, the most notable of which is the lack of multiple monitor support. The desktop platform is locked in a single window and (by default) no elements can be detached from it. That being said, there are mobile apps, which are pretty useful for catching-up with the markets when you are on the go.
Methods of Payment
There are a lot of payment methods available at Avian Markets. They include more traditional options, such as Bank Transfer and Credit Card, as well as several e-wallets: Skrill, Neteller, WebMoney and China Union Pay.
Avian Markets is an unregulated forex broker. |While the company’s advertising seems to be targeted at automated traders, most of them will probably find the trading conditions a bit disappointing. They are not too bad, but better offers can be found at other brokerages. Do not forget, financial regulation is still a much more important factor than the rest.
Avian Markets Review Conclusion
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