Is AvaTrade available in Somalia?
We receive several inquiries about whether AvaTrade (the FX and CFDs Online Broker) is available to clients residing in the country, and the answer is Yes, AvaTrade is available for clients residing in Somalia. If you haven't heard of this platform yet, don't worry, our experts tell you all the details you need to know. Also, if you respect the Quran and wish to invest while following the principles of Islam, AvaTrade offers Halal Trading Accounts.
What is AvaTrade (In short)?
AvaTrade is a leading Forex and CFD Online Broker. Since founded in Ireland in 2006, AvaTrade has seen exponential growth: As of 2020, the company has more than 200,000 client accounts operating more than 2 million transactions per month. AvaTrade offers more than 1,250 CFDs on Forex, Indices, Commodities, Cryptocurrencies, Stocks, and Bonds.
Financial Assets Available with AvaTrade
Forex: +50 currency instruments – Major, minor, and exotic pairs.
Stocks: +600 CFDs on Stocks from major Stock Exchanges.
ETFs: 60+ CFDs on ETFs from iShares, Global X, ProShares, Direxion, SPDR, Aberdeen, among other asset managers.
Commodities: 29 CFDs on commodities.
Indices: 22 major stock exchange indices.
Cryptocurrencies: CFDs on 13 cryptocurrencies.
Options: 44 Options on FX Pairs.
Social Trading: As mentioned before, AvaTrade offers the possibility of acquiring portfolios developed by other traders using several platforms.
Bonds: CFDs on Euro-Bund and Japanese Government bonds.
AvaTrade's Regulation: Can we trust this Broker with our money?
One way to understand whether a Broker is trustworthy is through the State Regulation and the Security measures to which the company that owns the platform is subject. If a broker is supervised by a government entity considered Top Tier, this is an indicator to know if it is safe to deposit funds and operate with the platform.
AvaTrade is one of the most heavily regulated brokers globally, being subject to the opinions of the financial authorities of Ireland, Australia, Japan, South Africa, the UAE, and the British Virgin Islands.
When opening an account, you will have to choose the jurisdiction you wish your account to be. It is an important aspect that has to be thought thoroughly since leverage, banking options, and the availability of Investor Compensation schemes will depend on it. For example, suppose you wish to be regulated under AvaTrade's EU entity. In that case, your account will fall under the Central Bank of Ireland's rulebook, implying that you will be subject to the Investor Compensation Scheme. However, the leverage level will be lower than the one offered by AvaTrade's BVI entity.
Trading Platforms available with AvaTrade
MT4 is a Forex Trading Platform that has been around since 2002 and is the industry benchmark in FX online trading. MT4 is easily customisable, user-friendly for novices, but also comprehensive for Pros. MetaTrader 4 features the highest security and technology standards. It supports the native MQL4 (MetaQuotes Language 4) programming language, enabling the development of various customised trading tools to be used directly on it. MQL4 is based on the programming language C++, and its flexibility can help create the following:
Expert Advisors (EAs): EAs are programs that make it possible to apply automated strategies in the forex markets.
Custom Indicators: Besides the built-in technical indicators, traders can also develop their custom mathematical tools and indicators to perform any analytical operation based on the trader's previously set conditions.
Scripts - A script is an app that is programmed to perform any function on the Trading platform. For example, you might apply a script to close all pending orders or delete all the indicators placed on a chart once an asset reaches a predetermined price.
Long story short, MT4 allows Traders a variety of functionalities to customise their trading experience.
MT5 is a state-of-the-art, multi-functional platform that boasts advanced auto-trading systems, technical tools, and copytrading (A feature that allows investors to "follow", copy, and invest in other trader's strategies). MetaTrader 5 accommodates advanced trading needs across a more comprehensive asset class selection (CFDs on stocks, crypto, among others) than its predecessor, MT4.
As its name indicates, AvaOptions is a platform specialised in Options Trading (Spot, Call, Put, and Combined) on 40 FX pairs. Being specialised, it allows many variants of Trading that other platforms don't.
Voted Best Forex Trading App 2020, AvaTradeGo offers a smooth trading experience with a sophisticated dashboard, complete with a set of intuitive management tools, clear charts, zoom for details, and many more helpful features. A display of this platform's view, in the picture below.
AvaTrade's Webtrader is a platform for people who want a simple user experience. For more advanced options AvaTrade offers MT4, MT5 and AvaOptions
How to open an FX Trading Account with AvaTrade in Somalia
Opening a trading account to trade the abovementioned instruments with AvaTrade from Somalia is an online process that takes a few minutes and requires uploading an identity document (Passport or Identity Card), and proof of address (electricity, water bills, etc.) through AvaTrade's website. Should everything be in order, your account may be ready in a couple of days, the time when you should fund your account via Credit Cards, eWallets, or Bank Transfers.
It is important to mention that opening a demo account free, so you may open a Demo account, test the platform, and then decide whether to deposit funds or not.
Does AvaTrade offer Islamic accounts? Am I allowed to Trade if I am Muslim?
Yes - AvaTrade offers Islamic accounts. And how do they work? An Islamic account is a halal trading account available to clients who respect the Quran and wish to invest while following the principles of Islamic finance. Islamic trading accounts differ in several ways from regular Forex accounts.
As Sharia law prohibits the accumulation of interest, traders with Islamic accounts do not pay or receive interest rates. Also, transactions in Islamic accounts have to be completed without delays, so currencies must be transferred from one account to another immediately, and transaction costs must also be paid at the same time. Islamic accounts are also known as swap-free accounts because of this and they follow four basic principles to be considered Halal:
Prohibition of payment and receipt of any interest rate (Riba)
Immediate exchanges in the context of trading operations
Prohibition of gambling
Distribution of risks and benefits
What is AvaTrade's Minimum Deposit?
AvaTrade does not charge a deposit fee, and the minimum deposit is $ 100, so, very accessible for traders who just started.