Online trading has witnessed a surge in popularity in recent years, with millions of retail traders worldwide engaging in various financial markets. AvaTrade stands out as a prominent broker with multiple financial products, offering a comprehensive platform for traders of all levels. In this AvaTrade review, we will explore the key features, benefits, and drawbacks of this trading platform.
Key Takeaways:
- AvaTrade is a global online broker offering access to financial markets including forex, cryptocurrencies, commodities, and stocks, with advanced tools like AvaProtect and vanilla options.
- The platform charges spread around 0.9 pips for major forex pairs and 0.5 points for indices, while additional fees include a $50 inactivity fee.
- AvaTrade is considered highly secure and legitimate due to its regulation by multiple tier-1 financial authorities such as the ASIC, CySEC, and the Central Bank of Ireland, along with features like negative balance protection and segregated client funds.
What is AvaTrade?
AvaTrade is a leading online broker for forex and CFDs trading, operating since 2006. Originally established in Ireland, the company has expanded its presence globally, with offices in key financial centers like the UAE, Dublin, Milan, Tokyo, and Sydney.
The platform offers traders access to various financial markets, including Forex, cryptocurrencies, commodities, indices, and stocks. With over 1,250 financial instruments available including futures trading, the platform caters to both novice and experienced traders.
Renowned for its innovative solutions, AvaTrade features the AvaProtect tool, which allows you to safeguard your trades from potential losses. The platform also supports automated trading, which is available through its AvaTradeGO app and MetaTrader platforms.
Beyond trading services, AvaTrade is committed to education, offering a wealth of resources such as video tutorials, webinars, and market analysis to help traders make informed decisions.
The company serves over 400,000 registered clients worldwide, executing 2M+ trades each month. AvaTrade’s total monthly trading volumes now exceed $70 billion, underscoring its significant presence in the online trading industry.
AvaTrade Pros
- Over 1,250 financial products for traders and investors
- The broker supports popular platforms like MetaTrader 4 and MetaTrader 5
- AvaTrade is regulated across 9 jurisdictions
- Comprehensive educational content through AvaAcademy
- A risk-free demo account for beginners
- Negative balance protection with a refund scheme
AvaTrade Cons
- There is a high inactivity fee of $50 for accounts after three months of non-use
- While AvaTrade does offer cryptocurrency, the selection is not as extensive as some specialized crypto exchanges like MEXC or Bybit.
AvaTrade Investment Offerings
Forex Trading: You can trade over 50 currency pairs on AvaTrade, including major pairs like EUR/USD and GBP/USD, as well as minor and exotic pairs.
Cryptocurrency Trading: AvaTrade provides access to a variety of popular cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin. You can trade these digital assets as CFDs (Contracts for Difference). This allows you to benefit from price movements without owning the underlying asset.
Commodities and Indices: If you are interested in trading tangible assets, AvaTrade offers commodities like gold, silver, and oil. Plus, you can trade global indices, including the S&P 500 and UK100, which track the performance of major stock markets.
Stock CFDs: AvaTrade allows you to trade CFDs on stocks from leading global companies like Apple, Amazon, and Tesla. This enables you to speculate on stock price movements without needing to purchase actual shares.
Options Trading: You can trade options on a variety of assets, including forex pairs, indices, and commodities. You have the flexibility to hedge your investments or leverage market positions with limited risk.
Bonds: You can trade CFDs on government bonds, such as US Treasury Bonds.
ETFs (Exchange-Traded Funds): AvaTrade provides access to various ETFs. This means you can trade on a collection of assets that track specific sectors, commodities, or market indices.
AvaTrade Fees and Commissions
Spread Fees
The primary method through which the AvaTrade broker earns revenue is through the spread, which is the difference between the bid and ask prices.
The spread at AvaTrade varies depending on the asset class. For major forex pairs like EUR/USD, the spread is typically around 0.9 pips, which is considered competitive compared to industry standards.
For indices such as the S&P 500, the spread averages around 0.5 points during peak trading hours. When trading stocks, the spread is expressed as a percentage, typically around 0.13% for major stocks like Microsoft and Google.
This means that the cost is built into the price you pay when entering and exiting a trade, eliminating the need for additional per-trade commissions.
Overnight Premium (Swaps)
These apply to positions held open overnight and can be positive or negative depending on the interest rate differential between the currencies in a forex pair.
Inactivity Fee
AvaTrade also imposes non-trading fees, which are charges not directly related to the trading process. One significant non-trading fee is the inactivity fee.
If an account remains inactive for more than three consecutive months, a fee of $50 is charged quarterly. This fee increases to an additional $100 annual administration fee if the account remains inactive for over a year.
These charges can add up for traders who do not actively manage their accounts, so it’s essential to either keep the account active or consider closing it if not in use.
Deposit and Withdrawal Fees
AvaTrade does not charge any fees for deposits. However, third-party payment providers may charge their own fees, which are outside of AvaTrade’s control.
Similarly, AvaTrade also does not charge fees for withdrawals in most cases. Some payment methods may incur fees from the payment provider.
Here is the full AvaTrade fee structure.
Deposit and Withdrawal Methods
The AvaTrade broker offers a variety of deposit and withdrawal methods to cater to different preferences and geographical locations:
- Credit/Debit cards (Visa, MasterCard)
- Bank wire transfer
- E-wallets (Skrill, Neteller, WebMoney)
- PayPal (in select countries)
Note: You can only withdraw funds using the same payment methods that you used to deposit into your account. It’s crucial to withdraw up to 100% of your original deposit back to your credit or debit card first. Once you’ve done this, you can withdraw any remaining funds through another method, provided it’s under your name.
AvaTrade Mobile Trading App Review
The AvaTrade mobile app is highly favored by users, with a strong rating of 4.2/5 on both Google Play and 4.3/5 on the App Store. This app is known for its user-friendly design, which makes it accessible to beginners.
It provides a smooth experience for managing trades, monitoring markets, and accessing your account, all from your smartphone or tablet. The app supports various trading instruments, such as forex, commodities, stocks, and indices, making it a comprehensive mobile trading tool.
AvaTrade supports MetaTrader 4 (MT4) and MetaTrader 5 (MT5), two of the most popular trading platforms worldwide. These apps are available for mobile devices and offer advanced charting tools, a broad range of technical indicators, and automated trading features. MT4 and MT5 are perfect for traders who need more sophisticated features and analytical tools, ensuring that you have powerful trading tools available on mobile devices just like on desktop versions.
AvaTrade Other Trading Platforms
MetaTrader: If you prefer not to download an app, AvaTrade’s Mobile WebTrader is a great option. This platform works directly from your mobile device’s web browser and does not require installation.
AvaSocial: It is another innovative tool from AvaTrade, designed for those who want to benefit from the expertise of experienced traders. This social trading app lets you follow and replicate the strategies of top traders worldwide. It is ideal for those who wish to learn from professionals or do not have the time to develop their own strategies. AvaSocial enables you to observe successful traders’ decision-making processes and copy their strategies to your own trades effortlessly.
AvaOptions: It is designed for those interested in trading options, offering a range of 260 expirations from one day to one year. This app is particularly suited for traders who want to explore various expiration timelines and manage their risk more precisely. AvaOptions provides an advanced yet user-friendly platform for options trading, allowing you to customize trades based on your market outlook and risk tolerance.
AvaFutures. The platform for trading futures contracts. With AvaFutures, you can trade a range of futures across global markets, including commodities and financial instruments. It provides advanced charting tools and analysis features to help you make informed decisions. You can also use leverage to amplify your trading potential. AvaFutures also includes risk management tools to help you safeguard your investments. This platform is designed to offer a comprehensive and accessible trading experience for futures traders.
It also offers two automated trading solutions:
- DupliTrade: An automated trading platform that allows you to replicate the trades of successful strategy providers.
- ZuluTrade: Another social trading platform integrated with AvaTrade, offering a wide range of strategy providers to follow.
AvaTrade Security: Is This Exchange Safe?
Security is a paramount concern for any online trading platform, and AvaTrade has implemented several measures to ensure the safety of its client’s funds and personal information.
Regulatory Compliance: AvaTrade is regulated by multiple tier-1 financial authorities, including:
- FFAJ: The Financial Futures Association of Japan
- Financial Services Agency Japan: Regulates financial services in Japan
- CySEC: Cyprus Securities and Exchange Commission
- ISA: Israel Securities Authority
- IIROC – Friedberg Direct: Investment Industry Regulatory Organization of Canada
- ADGM / FSRA: Abu Dhabi Global Markets Financial Services Regulatory Authority
- CBI: Central Bank of Ireland
- BVIFSC: British Virgin Islands Financial Services Commission
- FSCA: South Africa’s Financial Sector Conduct Authority
- ASIC: Australian Securities and Investments Commission
Here are some additional security measures:
- Segregated Accounts: Client funds are held in segregated bank accounts, separate from the company’s operational funds. This practice protects client money in the unlikely event of the company’s insolvency.
- Negative Balance Protection: If you are losing money rapidly, this feature ensures that you cannot lose more than your account balance, providing an additional layer of financial security.
- Data Encryption: AvaTrade uses advanced SSL (Secure Socket Layer) encryption to protect all data transmissions between clients and their servers.
- Two-Factor Authentication (2FA): Clients can enable 2FA for an extra layer of security when logging into their accounts.
- Regular Security Audits: The platform undergoes regular security audits to identify and address potential vulnerabilities.
- Compensation Schemes: Depending on the regulatory jurisdiction, clients may be covered by investor compensation schemes. For example, EU clients are protected under the Investor Compensation Scheme, which covers up to €20,000 per person.
- Risk Management Tools: AvaTrade provides various risk management tools like stop-loss orders, take-profit orders, and trailing stops to help you manage your exposure.
- Transparent Policies: AvaTrade maintains clear and accessible policies regarding privacy, fund handling, and dispute resolution.
Research and Education
Market Analysis: AvaTrade’s expert team delivers daily and weekly market overviews including the economic calendar, providing you with timely insights and trend analysis.
Trading Central: This feature offers you access to professional-grade technical analysis tools and actionable trading signals across various asset classes.
Live market news feed: You can stay informed with a constant stream of real-time updates on market-moving events and developments.
AvaTrade Academy: This comprehensive learning resource offers a structured curriculum that covers trading essentials, from foundational concepts to advanced strategies.
Video tutorials: Visual learners can benefit from these instructional guides, which offer detailed walkthroughs of AvaTrade’s platforms and key trading principles.
Webinars: AvaTrade hosts both real-time and on-demand online sessions, where trading experts share valuable insights on a variety of relevant topics.
eBooks: You can access in-depth digital guides that explore various trading strategies and market analysis techniques in detail.
Demo account: This risk-free practice environment allows you to test your strategies and get familiar with the platform using virtual funds, bridging the gap between theory and real-world trading.
How to Open Your Account?
- Go to the website of AvaTrade: Go to the AvaTrade website as the first step. Use your web browser to search for “AvaTrade” to find the website.
- Select “Open Free Account” from the menu: You must create a trading account once you are on the AvaTrade website. A registration form will be displayed to you. Your name, email address, and phone number are among the personal details you must enter on this form. You can also get an AvaTrade bonus as a new user.
- KYC Verification: You will need to provide identification after completing the registration form. You can accomplish this by presenting a copy of your identity document, such as your driver’s license or passport.
- Deposit money to your account: Following the verification of your identification, you must fund your account. A number of payment options, such as credit cards, bank transfers, and e-wallets, are available for you to achieve this.
- Start Trading: After funding your account, you’ll be able to begin trading. You can directly buy assets or start using futures with leverage.
Final Thoughts
In this AvaTrade review, it stands out as a reputable and secure retail trading platform, offering a comprehensive suite of trading tools and a wide range of financial products.
With its strong regulatory framework and commitment to user protection, AvaTrade provides a reliable platform for both novice and seasoned traders. If you’re considering engaging in forex trading or exploring various investment opportunities, AvaTrade is a solid choice worth exploring.
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FAQs
Is AvaTrade legit and trustworthy?
Yes, AvaTrade is considered legit and trustworthy. It is regulated by several top-tier financial authorities, including the Central Bank of Ireland and the Australian Securities and Investments Commission (ASIC). The broker has been in operation since 2006 and has built a reputation for reliability and transparency.
Does AvaTrade accept U.S. clients?
No, AvaTrade does not accept clients from the United States due to regulatory restrictions. US citizens should look for forex brokers specifically licensed to operate in the United States. You can use the eToro platform or Coinbase exchange (also a publicly traded company) for cryptocurrency trading.
Is my money safe in AvaTrade?
Yes, your money’s safety is a top priority at AvaTrade, and the broker has implemented several measures to protect your funds. Your deposits are held in segregated retail investor accounts, separate from AvaTrade’s operational funds, which adds an extra layer of security.
As a regulated broker, the AvaTrade platform adheres to strict financial standards set by multiple authorities, including the Central Bank of Ireland and ASIC. You may also be covered by investor compensation schemes, depending on your jurisdiction. AvaTrade offers negative balance protection, ensuring you can’t lose more than your account balance. It also has a 24/7 customer support.
How much is the AvaTrade minimum deposit?
The minimum deposit for AvaTrade typically starts from $100 for most AvaTrade account types. However, this can vary depending on your country of residence and the specific AvaTrade account type you choose.
How long do AvaTrade withdrawals take?
When you request a withdrawal from AvaTrade, the processing time can vary depending on your chosen method. For credit cards, debit cards, and e-wallets, you can expect your withdrawal to be processed within 1-2 business days, assuming your account is fully verified.
If you opt for a wire transfer, you should allow more time – it may take up to 10 business days for the funds to appear in your bank account.
