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Stability and reliability of ActivTrades

Your expert
Krisztián G.
Fact checked by
Tamás D.
Updated
4w ago
Personally tested Personally tested
Data-driven Data-driven
Independent Independent

Can I trust ActivTrades for long-term investment as of March 2024?

In short, yes, ActivTrades can be trusted, as it is regulated by at least one top-tier financial authority. But is it the best for long-term investment?

If you want to invest for the long term but avoid the hassle of having to switch brokers often, you'll need a broker that will still be around in 10-20 years' time. This is something that's impossible to predict for certain, but a broker's age and its background are among a handful of clues that can tell you about its potential staying power.

ActivTrades was founded in 2,001 and does not have a banking background. Read on to see what this means for you and how this compares to the rest of the field.

My key findings in a nutshell
Krisztián
Krisztián Gátonyi
Method-Man | Forex • Market Analysis • Stock Market

I've thoroughly tested ActivTrades services with our analyst team by opening a real-money account and these are my most important findings:

  • ActivTrades was founded in 2,001; a solid track record that includes surviving the 2008-09 crisis
  • ActivTrades lacks the added security provided by a banking background
  • Top-tier regulation is essential; stock-exchange listing is a plus
ActivTrades stability
Regulation
Mid-range
Banking background
No
Listed on stock exchange
No
Foundation date
2,001

Data updated on March 18, 2024

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66-83% of retail CFD accounts lose money

Is ActivTrades a well established broker?

The online brokerage market itself is relatively new, so you won't find many players that have been around for decades, unless they started out offline. The last few years in particular have seen a lot of newcomers, especially in the discount broker segment. Still, how long a broker has existed says a lot about its resilience in the face of market troubles and about the strength of its business model.

ActivTrades was founded in 2,001. This hints at a solid foundation that allowed ActivTrades to survive the 2008-09 financial crisis and the frequent market turmoil and increased brokerage competition of recent years. There is a reasonable chance that ActivTrades will last long enough to take care of your long-term investments. Still, it's worth looking at other aspects such as the strength of its regulation or its background (read more on these below).

There are many aspects that can influence your broker choice, including fees, platform quality or the range of products available for trading. But, all other factors being equal, a broker with a longer track record is probably a better choice for long-term investment.

ActivTrades and competitors foundation date
Foundation date
2,001 2,001 2,006

Data updated on March 18, 2024

Does ActivTrades have a banking background?

No, ActivTrades doesn't have a banking background.

Why is this important? A broker with a banking license (or with a bank as its parent company) means that it has met stricter criteria when it comes to having sufficient capital and handling client deposits. Also, many of the banks that are behind online brokers have operated for decades, a potential sign that their brokerage operations could be around long enough in the future to handle your long-term investments.

Still, having a banking background is not an ultimate guarantee of long-term stability, as banks can also sometimes go bankrupt, or simply make a business decision to cease their brokerage activities.

The majority of online brokers (including most brokers reviewed by BrokerChooser) do not have a banking background, so it probably shouldn't be a make-or-break criterion when selecting a broker. Instead, treat this as an additional layer of security and added proof of long-term broker stability.

ActivTrades and competitors banking background
Banking background
No No No

Data updated on March 18, 2024

Other aspects of long term broker stability

One consideration that should be near the top of your list when sizing up the stability and trustworthiness of a broker is regulation. We at BrokerChooser only feature brokers that are regulated by at least one top-tier financial authority.

ActivTrades is regulated by the following financial authorities: FCA in the UK and CSSF in Luxembourg.

It is also worth checking whether a broker is listed on a stock exchange. A stock exchange listing requires a broker to disclose its financial information publicly, and in general operate transparently. Having gone through this process is a sign that the broker is taking its mission seriously and is positioning itself to stick around for the long term.

Only a small minority of online brokers are listed on a stock exchange, so you probably shouldn't automatically rule out the ones that aren't. Rather, you should view this as a plus when assessing a broker's long-term trustworthiness.

ActivTrades and competitors stock exchange listing
Listed on stock exchange
No No No

Data updated on March 18, 2024

Best brokers for long-term investment

Do you want to zoom out and pick the best broker for long-term investment based on a full set of criteria including fees, trading platform experience and product selection? Look no further than our list of the best brokers for buy-and-hold investors.

Check out this short video for a behind-the-scenes peek into how our experts personally test and evaluate brokers.

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Further reading

Author of this article

Krisztián Gátonyi

Method-Man | Forex • Market Analysis • Stock Market

I have 15 years of experience in proprietary trading, mainly in the interbank currency market as a foreign exchange risk manager. I'm actively involved in reviewing the 100+ brokers listed on our site. I personally open accounts with real money, execute trades, test customer services. I hold an MSc in International Business from the University of Middlesex. My purpose is to help people find the best investment provider.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

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