Overview
AvaTrade is an online brokerage platform that has been offering trading services to a large number of customers worldwide since its inception in 2006. Being a market-maker type broker, AvaTrade fulfills trading actions with an in-house dealing desk which keeps spread betting costs low, while ensuring optimal execution by identifying servers close to the users’ market trading hubs.
The platform provides traders with easy and fast account opening options, free deposit and withdrawal alternatives, and top-notch research tools. However, it’s crucial for traders to be aware that AvaTrade mainly focuses on CFDs, forex, and cryptocurrencies. On the downside, there are high inactivity fees and average forex fees, which may be significant factors for some traders.
Key Takeaways
- AvaTrade is a market-maker broker offering low-cost spread betting and optimal execution.
- Easy account opening, free financial operations, and valuable research tools are available.
- Mainly focused on CFDs, forex, and cryptocurrencies but be cautious about inactivity and forex fees.
Key Features & Benefits
 Year Founded |
2006 |
|---|---|
 Headquarters |
Ireland, Australia, Japan |
 Tier-3 Licenses |
Yes |
| Minimum Initial Deposit | $100 |
| Demo Trading | Yes |
| Leverage (EU Clients) | 1 : 30 |
| Leverage(Non-EU-Clients) | 1 : 500 |
| Average Spread EURUSD | 0.9 pips |
 Withdrawal fee |
No |
| Withdrawal Time | Same day |
| Inactivity Fee |
No |
AvaTrade is regulated by ASIC, FSCA, and FSA, ensuring a safe and secure trading environment for its clients. It offers negative balance protection, protecting traders from losses exceeding their account balance. AvaTrade also provides transparent fee structures, with no deposit or withdrawal fees.
Opening an account is quick and easy, and traders can choose from different account types to suit their needs. However, customer support is not available 24/7, and the range of trading assets is somewhat limited.
What Did We Like about the Broker
AvaTrade has several positive aspects that make it a preferred choice among traders. Some of the notable advantages include:
- Regulation: AvaTrade is regulated by reputable authorities such as ASIC, FSCA, and FSA, ensuring compliance with financial regulations and providing traders with a reliable and secure trading environment.
- Negative Balance Protection: AvaTrade offers negative balance protection, which safeguards traders from losing more than their account balance, providing an extra layer of security and peace of mind.
- No Deposit or Withdrawal Fees: Unlike many other brokers, AvaTrade does not charge any deposit or withdrawal fees, allowing traders to freely fund and withdraw from their accounts without additional costs.
- Easy Account Opening: AvaTrade offers a seamless and efficient account opening process, allowing traders to quickly start trading. With three main account types and an Islamic Account option, AvaTrade caters to a diverse range of traders.
Account Types
AvaTrade provides traders with a choice of three account types: Standard Account, Professional Account, and Corporate Account. Additionally, an Islamic Account, or Swap-Free Account, is available for traders who adhere to Shariah law. Each account type has its own unique features and requirements.
Standard Account
The Standard Account is the most common account used by individual traders at AvaTrade. It is available for international traders outside the European Union. Traders using the Standard Account can enjoy a maximum leverage level of 1:400, and they have access to cryptocurrency trading, hedging, scalping, and automated trading through Expert Advisors (EAs).
Professional Account
To qualify for a Professional Account, traders must meet certain criteria set by AvaTrade. These criteria include having a trading asset portfolio exceeding 500,000 EUR, at least one year of experience in the financial services industry, and consistent trading activity over the past 12 months. Professional Account holders enjoy access to leverage of up to 1:400, PAMM/MAMM management features, compatibility with EAs, and the ability to trade in large quantities without risk warnings.
Corporate Account
The Corporate Account is designed for corporate entities and institutional businesses. It offers the same benefits as the Standard Account but allows trading under the business name rather than as an individual. Traders with a Corporate Account have access to scalping, hedging, and Expert Advisors (EAs).
Islamic Account
AvaTrade recognizes the importance of catering to traders who follow Shariah law. The Islamic Account, also known as a Swap-Free Account, provides an opportunity for traders to trade with AvaTrade while adhering to their religious beliefs. The Islamic Account does not include rollovers, and cryptocurrency trading is not available. The approval process for an Islamic Account takes approximately two business days through the customer service department of AvaTrade.
Types and Operation
With AvaTrade, you have various account options to choose from, suiting your trading preferences and needs. Opening an account is swift and easy, and you can choose between a retail account, a professional account, or a demo account. Retail accounts are designed for individual traders, whereas professional accounts cater to more experienced traders and require meeting two out of three criteria – having a financial portfolio exceeding €500,000, previous experience in the financial sector, and executing a significant number of transactions within the last year.
Additionally, AvaTrade accommodates Islamic traders with swap-free accounts which comply with Sharia law.
Trading Options and CFDs
AvaTrade strives to offer a diverse range of financial instruments to cater to its clients. The broker’s offerings primarily focus on CFDs (Contract for Difference), forex, and cryptocurrencies. You’ll find a variety of asset classes, such as:
- Forex (currency pairs)
- Cryptocurrencies (Bitcoin, Ethereum, and more)
- Commodities
- Indices
- Stocks
- ETF CFDs
By utilising CFD trading, you can speculate on the price movements of these asset classes without owning the underlying instrument. This allows you to potentially profit from both rising and falling markets, albeit with a higher level of risk involved.
Leverage and Spreads
In trading with AvaTrade, you are provided with competitive leverage and spread options. Leverage allows you to control larger positions with a smaller amount of capital, thereby amplifying your profits or losses. Retail account holders enjoy leverage of up to 30:1 on forex pairs, while professional account holders can access leverage as high as 400:1 on select forex pairs and 25:1 on specific cryptocurrencies.
Spreads are another crucial factor to consider. AvaTrade offers competitive spreads starting from 0.9 pips for major forex pairs, which helps reduce your trading costs.
Furthermore, AvaTrade ensures a broad range of order types to assist you in managing your trades effectively. These include market orders, limit orders, and stop orders, allowing you to customise your trading style per your tailored risk management strategies.
Trading Platforms
AvaTrade offers a range of trading platforms to cater to the diverse needs of its clients. These platforms are available for both desktop and mobile devices, providing convenience and flexibility for traders.
Overview of Trading Platforms
AvaTrade offers a solid selection of trading platforms for you to choose from, catering to a variety of trader preferences. The selection includes the popular MetaTrader 4 and MetaTrader 5, as well as their own proprietary platforms, AvaTradeGo and AvaOptions. Each platform comes with different features to accommodate your trading needs.
Metatrader 4 and 5 Comparison
MetaTrader 4 (MT4) is well-known for its user-friendly interface, advanced charting capabilities, and a wide range of technical analysis tools. Some of the main features include:
- Multiple chart setups and timeframes
- Customisable indicators
- Built-in MQL4 language for programming EAs
- Supports Expert Advisors (EAs) for automated trading
- Mobile app versions available for iOS and Android
On the other hand, MetaTrader 5 (MT5) is an upgraded version, designed to provide an enhanced trading experience. It offers some additional features such as:
- 21 timeframes (compared to 9 in MT4)
- Built-in MQL5 language for improved programming possibilities
- An Economic calendar
- Advanced depth of market display and additional pending order types
- Improved strategy tester for EAs
Both MetaTrader 4 and 5 are popular choices for forex and CFD traders, and it mainly depends on your specific requirements and trading style which one you prefer.
AvatradeGo and AvaOptions
AvaTradeGo is AvaTrade’s proprietary mobile trading platform designed for flexibility and ease of use. It offers:
- A user-friendly interface suitable for traders of all levels
- Advanced charting and analysis tools
- Customisable watchlists
- Risk management tools, such as stop loss and take profit orders
- Available on iOS and Android devices
Lastly, AvaOptions is a platform specifically designed for trading options. It provides you with features such as:
- A dedicated options trading interface
- A wide range of forex and precious metals options products
- Risk management tools and a strategy simulator
- Mobile app available for both iOS and Android devices
- Integration with MetaTrader platforms for seamless trading
In summary, AvaTrade offers a robust selection of trading platforms, catering to various types of traders and their specific needs. Each platform provides a unique set of features to enhance your trading experience, effectively catering to your specific trading preferences and strategies.
Security and Licensing
Regulations and Oversight
As a trader, it’s essential to choose a platform that is regulated by reputable financial authorities to ensure security and confidence in their services. AvaTrade is a well-regulated broker, overseen by multiple global regulatory bodies. They are authorised and regulated by the Central Bank of Ireland, which demonstrates the platform’s commitment to maintaining high standards of integrity and financial stability.
AvaTrade is also regulated by other prominent regulatory agencies such as the Financial Conduct Authority (FCA) in the UK, the Financial Services Agency (FSA) in Japan, and the Abu Dhabi Global Markets (ADGM) in the United Arab Emirates. This extensive regulatory oversight is a solid indicator that AvaTrade takes the safety of its clients’ funds seriously and operates within the guidelines of these regulatory bodies.
Data Privacy and Security
In today’s digital age, safeguarding your personal information and financial data is crucial. AvaTrade employs industry-standard security measures to protect your data and ensure the overall safety of their platform. With advanced encryption technology and secure servers, the platform prevents any unauthorised access to your sensitive information.
When you trade with AvaTrade, you can trust that your data privacy and security are a top priority. As a result, you can focus on your trading activities with peace of mind, knowing that your information is well-protected.
By choosing AvaTrade, you can be confident in the platform’s regulatory oversight and commitment to providing a secure trading environment, allowing you to concentrate on making informed trading decisions.
Customer Service and User Experience
Customer Support and Feedback
AvaTrade’s customer service is generally well received, with positive feedback from clients on various platforms such as Trustpilot. Their quick response times, helpful staff, and multilingual support are appreciated by users, making their experience pleasant and efficient. Clients have reported being contacted promptly after opening an account, with validation processes taking less than an hour and allowing them to start trading in a short period.
You can reach AvaTrade’s customer support via live chat, telephone, or email 24 hours a day, 7 days a week. Their account managers, like Vincent, have been praised by users for being helpful in ensuring smooth account setups and providing access to essential information for successful trading.
Platform Usability
The mobile trading platform, AvaTrade Go, offers a user-friendly experience, with a good search function and unique features such as the AvaProtect insurance scheme. The platform is tailored for intuitive use but comes only in English.
However, there are a few limitations to consider. The available order types on the platform could be more extensive, and those who prefer a more diverse linguistic functionality may find the platform somewhat lacking.
Overall, AvaTrade offers a satisfactory user experience and customer service. Their professional and prompt customer support, coupled with a modern and user-friendly trading platform, contribute to a pleasant trading environment for clients keeping in mind some of the platform’s limitations.
Financial Operations
Deposits and Withdrawals
AvaTrade offers easy and hassle-free deposit and withdrawal options for you. You can fund your account through various methods, such as credit/debit cards, e-wallets, and bank transfers. When it’s time to withdraw your funds, you can use the same method as for your deposit.
Deposits are usually processed quickly, allowing you to start trading almost immediately. Withdrawals are similarly fast to process, ensuring you have access to your profits when you need them. Additionally, the withdrawal and deposit services are offered free of charge, providing you with more value for your money.
Fees and Commissions
With AvaTrade, you will find that their fees and commissions are quite competitive. Forex fees are average, while trading CFDs and cryptocurrencies might incur slightly different charges. It is important to be aware of the inactivity fee, as it can be relatively high. If you don’t trade on your account for a specified period, you may need to pay this fee.
To avoid any surprises, familiarise yourself with the fee structure before starting to trade. This will help you understand the costs associated with your trading activities, allowing you to make informed decisions and focus on your investments.
Remember that keeping your account active and monitoring your investments can protect you from unnecessary fees and maximise your profits in the long run.
AvaTrade vs. Competitors
When comparing AvaTrade to its competitors, several factors set it apart. AvaTrade’s strong regulatory framework, including licenses from reputable authorities, ensures a high level of security and trust.
The availability of negative balance protection and the absence of deposit and withdrawal fees are additional advantages. However, it’s worth noting that AvaTrade’s range of trading assets is somewhat limited compared to some competitors, and the withdrawal process can be slow.
Conclusion
In conclusion, AvaTrade is a reputable and well-regulated forex broker that offers a range of features and benefits to traders worldwide. With its commitment to client protection and adherence to regulatory requirements, AvaTrade provides a safe and secure trading environment.
The availability of different account types, including an Islamic Account, caters to the diverse needs of traders. The various trading platforms, along with the option for social trading, offer flexibility and convenience. While there are some limitations, such as a limited range of trading assets, overall, AvaTrade stands out as a reliable choice for forex traders.
