AvaTrade has settled with a Canadian securities regulator over years of unregistered trading, agreeing to pay a penalty and to hand back the revenue it earned from clients in the province of Alberta. The AvaTrade Alberta settlement, dated January 2020, closed a case built on the firm offering contracts for difference to Albertans without being registered to do so.
The Alberta Securities Commission, the ASC, found that Ava Trade Ltd had opened and operated roughly 372 accounts for Alberta investors between May 2015 and August 2018, letting them trade contracts for difference through its online platforms while it was not registered in the province. Under the settlement, AvaTrade paid the ASC 30 thousand Canadian dollars and disgorged a further 213 thousand dollars, representing its net revenue from those trades less a 20 percent credit for cooperation.
Disgorgement Is the Telling Part
The most instructive element of this settlement is the disgorgement. A 30 thousand dollar penalty is a modest administrative fine. But requiring the firm to hand back the revenue it earned from the Alberta clients is a different kind of remedy. It reflects the principle that a firm should not keep the money it made from activity it was not permitted to carry out. Disgorging more than 200 thousand dollars of net revenue says the regulator viewed the entire Alberta business as something the firm had no right to be running.
To its credit, AvaTrade cooperated, which earned it the 20 percent reduction, and it agreed to put things right: implementing controls to stop Alberta residents opening accounts, transferring its Canadian clients to a local broker, restricting Canadian traffic to its websites, and closing and liquidating its Canadian client accounts. The firm confirmed it had closed all of those accounts by November 2018. That cooperation is a genuine mitigating factor and belongs in the record alongside the breach.
Regulated Abroad, Unregistered in Alberta
This is the central tension of the case, and it is a common one for global brokers. AvaTrade is a regulated firm in a number of major jurisdictions. But holding licences abroad does not authorise a firm to solicit and serve clients in a Canadian province that requires its own registration. For three years, on the regulator's findings, AvaTrade did exactly that in Alberta, and the settlement is the price of unwinding it. Regulated somewhere is not the same as registered where the client actually lives.
For a retail trader, the Alberta case carries a precise and useful lesson. When a broker advertises that it is regulated, the right follow-up question is: regulated where, and am I covered? A firm can be perfectly legitimate in its home markets and still be operating without permission in yours. AvaTrade settled, cooperated and cleaned up its Canadian business, which is to its credit, but the underlying fact remains that it served Alberta clients for years without the registration the province required.
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The Headline Number Is Small, but the Disgorgement Is the Point
AvaTrade paid a 30 thousand dollar penalty and handed back more than 200 thousand dollars of net revenue it had earned from Alberta clients, because the Alberta regulator concluded it had been running that business without the registration the province required, for three years. To be fair to AvaTrade, it cooperated, took the cooperation credit, transferred its Canadian clients and shut the accounts — all of which is genuine mitigation.
But the shape of the remedy tells the story. Disgorging the revenue says the regulator viewed the whole Alberta operation as unauthorised.
Regulated in your home market is not the same as registered where your client lives, and that distinction is the one every trader should insist on.
About the Company
About AvaTrade
Regulator
Alberta Securities Commission (ASC)
Jurisdiction
Alberta, Canada
Action Type
Settlement, Unregistered Trading
Penalty
CAD 30,000 + CAD 213,428 disgorged
AvaTrade is a retail forex and CFD broker founded in 2006, regulated in several major jurisdictions. In a settlement dated January 2020, the Alberta Securities Commission found that its entity Ava Trade Ltd had operated roughly 372 accounts for Alberta investors between 2015 and 2018 without being registered in the province. The firm paid a 30 thousand Canadian dollar penalty, disgorged about 213 thousand dollars of revenue, and wound up its Canadian client accounts.
Frequently Asked Questions
Is AvaTrade regulated?
Yes. AvaTrade is regulated in several major jurisdictions. The Alberta case concerned the firm operating in a Canadian province where it was not registered, not its licences elsewhere.
Why did AvaTrade settle with the Alberta regulator?
The Alberta Securities Commission found it had operated roughly 372 accounts for Alberta investors between 2015 and 2018 without being registered in the province. AvaTrade settled in January 2020.
How much did AvaTrade pay?
It paid a 30 thousand Canadian dollar penalty and disgorged about 213 thousand dollars of net revenue, after a 20 percent credit for cooperation.
Is AvaTrade safe for traders?
AvaTrade is broadly regulated and cooperated with the ASC, but the case shows a licensed broker can still operate without local registration. Check authorisation in your jurisdiction and compare brokers in our Best Forex Brokers in 2026 ranking.
Editor's note & source: Factual points drawn from the Alberta Securities Commission. This article is not legal advice. Last updated: 8 August 2026.