AvaTrade is a well-known online trading platform that has been in operation for over a decade. As with any online trading platform, it is important to weigh the pros and cons before investing your hard-earned money. In this blog, we will delve into the various aspects of trading with AvaTrade, such as the account types and minimum deposits, commissions, trading platforms, market coverage and more. We will also address some common questions that potential traders may have, and help you evaluate if AvaTrade is the right fit for your investment needs.
🏢 Headquarters: AvaTrade’s headquarters are located in Dublin, Ireland.
📅 Year Founded: AvaTrade was established in 2006 and has since grown into one of the largest online trading platforms in the world.
👨👨👧👧 Supported Languages: AvaTrade supports several languages, including English, Russian, French, Portuguese, Arabic, Spanish and German.
💰 Account Types: AvaTrade offers options, currencies, stocks, ETFs, cryptocurrencies, bonds, indices, commodities and futures for trading.
💳 Minimum Deposit: The minimum deposit required to open an account on AvaTrade is $100.
💹 Maximum Leverage: The maximum leverage offered by AvaTrade varies depending on the regulatory authority. It offers a maximum leverage of 1:400 for BVI FSC, 1:400 for FSC Mauritius, and 1:400 for FSCA South Africa.
🖥 Trading Desk Type: AvaTrade operates as a Market Maker.
📊 Trading Platforms: AvaTrade offers several trading platforms, including AvaTradeGo, AvaOptions, AvaSocial, MT5, MT4, Proprietary and WebTrader.
💳 Payment Methods: AvaTrade offers several payment methods, including Wire Transfer, Neteller, Skrill, QIWI, Credit Card, Boleto and PayPal.
🤴 Demo Account: AvaTrade offers a demo account for practicing trading strategies without risking real money.
☑️ Regulations: AvaTrade is licensed and regulated by multiple regulatory bodies worldwide, including ASIC (Australia), BVI FSC (Virgin Islands, British), CBI Ireland (Ireland), CySEC (Cyprus), FSA Japan (Japan), FSC Mauritius (Mauritius), and FSCA South Africa (South Africa).
Background and History
When was AvaTrade founded?
AvaTrade, formerly known as AvaFX, was founded in 2006 and has since grown into one of the largest forex brokers in the world. It was established with the aim of providing traders with a user-friendly platform that allows them to trade on a wide range of markets, including forex, stocks, commodities, cryptocurrencies and more. Over the years, it has won numerous awards for its innovative trading features and excellent customer support service. Today, AvaTrade operates in multiple countries across the globe and continues to expand its offerings to cater to the needs of traders of all skill levels.
What is AvaTrade’s regulatory status?
AvaTrade is a regulated online trading platform that adheres to strict guidelines and requirements set by various financial regulatory bodies across the world. It is licensed and regulated by top-tier regulatory authorities such as the Central Bank of Ireland, the Australian Securities and Investments Commission (ASIC), the Financial Services Commission in the British Virgin Islands, the Financial Sector Conduct Authority in South Africa, the Financial Services Agency in Japan, Financial Services Regulatory Authority in Abu Dhabi, and Israel Securities Authority.
These regulations ensure that AvaTrade operates in a transparent and fair manner, and that it maintains high standards of security and client protection. So, rest assured that when trading with AvaTrade, you can trust that the platform complies with robust regulatory standards.
Is AvaTrade legit?
Yes, AvaTrade is a legitimate online trading platform that has been operating in the industry for over a decade, providing traders worldwide with a user-friendly platform to trade on a wide range of markets such as forex, stocks, commodities, cryptocurrencies and more. The company is regulated by several top-tier financial regulatory authorities worldwide, such as the Central Bank of Ireland, ASIC, and FSCA, among others. Additionally, AvaTrade has won numerous awards for its innovative trading features and excellent customer support service, proving its legitimacy and reliability in the industry. In summary, AvaTrade is a legitimate and reputable online trading platform that traders can trust to conduct their investment activities in a secure and transparent environment.
Fees and Conditions
What are the AvaTrade account types and minimum deposits?
AvaTrade, a renowned online trading platform, provides its users with several account options, each tailored to meet the unique requirements of different traders. Here’s a detailed look at each account type:
Retail Account: This account type is perfect for day traders, offering competitive spreads and a good choice of assets. It provides lightning-fast execution speeds and competitive pricing. The minimum deposit for a Retail Account is $100.
Standard Account: The Standard Account is the primary choice for most AvaTrade clients to manage their portfolios. It offers access to a wide array of markets, including Forex, commodities, stocks, cryptocurrencies, indices, ETFs, and bonds. The spread is only fixed and starts from 0.9 pips on forex. The minimum deposit for a Standard Account is also $100.
Professional Account: The Professional Account is best suited for experienced traders. It offers reduced fixed spreads on forex from 0.6 pips. This account type gives traders access to higher trading leverage and reduced margins on major indices, FX pairs, and shares. However, it’s important to note that while a greater amount of leverage is available to Professional Account holders, there is also a greater amount of risk involved. The minimum deposit for a Professional Account is $100.
Deposits can be made through various methods, including credit card, wire transfer, or e-wallets. One of the advantages of AvaTrade is that it does not charge any additional fees for deposits, ensuring that the full amount deposited is credited to the user’s account. This feature makes AvaTrade a preferred choice for many traders worldwide.
What are AvaTrade commissions and fees?
AvaTrade, a globally recognized online trading platform, offers a transparent and straightforward fee structure. Here’s a breakdown of AvaTrade’s commissions and fees:
Trading Fees: AvaTrade does not charge any commission fees for executing buy or sell orders. Instead, it earns through the market bid/ask spread, which is the price difference between where you can buy or sell an asset. This spread is incorporated into the AvaTrade quoted rates and is not an additional charge or fee payable by you above the quoted rates.
Deposit Fees: AvaTrade does not charge any deposit fees. However, minimum deposit levels do apply. The minimum deposit for credit cards and e-payment methods is $100 (or similar if your account is in a different currency) and $500 for wire/bank transfers.
Inactivity Fee: After 3 consecutive months of non-use, an inactivity fee will be deducted from the value of the customer’s trading account. This fee is $50 for USD, EUR, and GBP accounts.
Administration Fee: After 12 consecutive months of non-use, an administration fee will be deducted from the value of your trading account. This fee is $100 for USD, EUR, and GBP accounts.
Overnight Premium: An overnight premium is deducted from your account when holding a position after a certain time. This is also known as the “Overnight Funding Time”.
Currency Conversion Fee: If you make a deposit that is in a different currency than the one on your account, you’ll be charged a currency conversion fee.
Please note that AvaTrade’s fees are subject to change periodically. It’s always recommended to check the latest guidelines on the AvaTrade website for the most accurate information.
How much does it cost to withdraw money from AvaTrade?
Good news for AvaTrade users! AvaTrade is committed to providing a seamless trading experience, which includes the withdrawal process. Unlike many other online trading platforms, AvaTrade does not charge any fees for withdrawals.
This means that the amount you decide to withdraw from your AvaTrade account is exactly the amount that you will receive, with no deductions. However, it’s important to note that your account must be fully verified before you can initiate a withdrawal.
Also, AvaTrade stipulates that funds can only be withdrawn to the original payment method used to fund the account. This is a common practice in the industry and is designed to prevent money laundering.
Please remember that while AvaTrade does not charge any withdrawal fees, your payment provider might. Therefore, it’s always a good idea to check with your bank or e-wallet provider about any potential charges on their end.
As with all its policies, AvaTrade’s withdrawal policy is subject to change, so it’s recommended to check the AvaTrade website regularly for the most current information.
Trading Platform and Tools
What trading platform does AvaTrade use?
AvaTrade, a leading player in the online trading space, provides its users with a variety of robust and user-friendly trading platforms. Catering to both novice and experienced traders, AvaTrade ensures a seamless trading experience with these platforms:
WebTrader: An award-winning proprietary platform that requires no download. It’s known for its user-friendly and intuitive interface.
AvaTradeGo: This is AvaTrade’s mobile trading app, designed for trading on-the-go. It offers advanced trading features and charts, all optimized for the smartphone screen.
MetaTrader 4 (MT4): One of the most popular trading platforms globally, MT4 offers a powerful and flexible trading environment. It’s suitable for traders of all experience levels and offers automated trading through the use of Expert Advisors.
MetaTrader 5 (MT5): The next generation of the MetaTrader platform, MT5 offers state-of-the-art trading capabilities, more technical analysis tools, order types, timeframes, and graphical objects. It also supports automated trading with an all-new coding language.
AvaOptions: This platform allows traders to express their market view with calls and puts, and it includes embedded tools to maximize returns when trading Vanilla Options.
AvaSocial: This platform allows traders to copy the trades of experienced traders, making it easier for beginners to get started and learn from the pros.
Each platform is designed to provide traders with a unique trading experience, catering to different trading styles and strategies. Whether you prefer trading on your desktop or on your mobile device, AvaTrade has got you covered.
What is the spread on AvaTrade?
AvaTrade, a globally recognized online trading platform, offers competitive spreads that are close to the industry average. The spread is essentially the difference between the bid (buy) and ask (sell) price of a financial instrument.
On AvaTrade, the spread starts from as low as 0.9 pips for major forex pairs like USD/EUR. This is slightly higher than the spreads available on entry-level accounts offered by some other brokers, but the difference is minimal and should not significantly impact your trading experience.
It’s important to note that spreads can vary based on market conditions and the type of account you have. Therefore, it’s always a good idea to check the current spread before executing a trade.
Remember, lower spreads mean lower trading costs, so AvaTrade’s competitive spreads can help you maximize your potential profits. As with all trading platforms, it’s crucial to understand how spreads work as they form a key part of your trading costs.
What is the leverage on AvaTrade?
AvaTrade, a globally recognized online trading platform, offers competitive spreads that are close to the industry average. The spread is essentially the difference between the bid (buy) and ask (sell) price of a financial instrument.
On AvaTrade, the spread starts from as low as 0.9 pips for major forex pairs like USD/EUR. This is slightly higher than the spreads available on entry-level accounts offered by some other brokers, but the difference is minimal and should not significantly impact your trading experience.
It’s important to note that spreads can vary based on market conditions and the type of account you have. Therefore, it’s always a good idea to check the current spread before executing a trade.
Remember, lower spreads mean lower trading costs, so AvaTrade’s competitive spreads can help you maximize your potential profits. As with all trading platforms, it’s crucial to understand how spreads work as they form a key part of your trading costs.
Is hedging allowed in AvaTrade?
Yes, AvaTrade does permit hedging. Hedging is a strategy used by traders to protect their investments against potential market fluctuations. It involves taking an offsetting position on the same instrument to reduce the risk of the primary position.
In AvaTrade, you can fully hedge one position by opening a new one that fully offsets the existing one. For instance, if you have 5 Lots of EURUSD short, you can open 5 Lots of EURUSD long to cover the existing position. This is known as full hedging.
Partial hedging is also possible in AvaTrade. In this case, the new position offsets only part of the existing one. For example, you can open 3 Lots of EUR/USD long to hedge part of the existing 5 EURUSD Lots short.
Hedging is a valuable tool for traders as it helps manage risk and potentially secure profits in volatile markets. However, it’s important to note that while hedging can limit losses, it can also limit potential gains. Therefore, it should be used judiciously and as part of a well-planned trading strategy.
Does AvaTrade allow scalping?
Yes, AvaTrade does allow scalping. Scalping is a trading strategy that involves making numerous trades within a short time frame to profit from small price changes. This strategy is popular among day traders who aim to take advantage of small price movements in the market.
With AvaTrade, traders can engage in scalping, opening and closing trades within seconds or minutes. The goal of scalping is to capture small profits by taking advantage of these minor price movements. Scalpers often open a large number of trades, hoping that the small profits captured will accumulate into a substantial amount by the end of the trading session.
Scalping can be done manually by experienced traders who can monitor the market effectively and identify profitable opportunities within short periods. Alternatively, it can be done automatically using scalper bots designed to trade the market mechanically based on coded algorithms.
So, if you’re a trader who prefers a fast-paced trading environment, AvaTrade could be a suitable platform for you as it supports scalping strategies.
Does AvaTrade allow high-frequency trading?
In addition to high-frequency trading, AvaTrade also supports latency arbitrage. Latency arbitrage is a high-frequency trading strategy that capitalizes on small delays in the execution of trades. Traders using this strategy aim to exploit the minor price differences that arise due to these time disparities.
This strategy involves using sophisticated algorithms and high-speed infrastructure to identify these price discrepancies and execute trades before the information fully reaches other market participants. It’s a complex method that requires a solid understanding of the markets and a robust trading strategy.
However, it’s important to note that while AvaTrade allows latency arbitrage, it’s typically used by experienced traders or institutions due to its complexity. As always, traders are advised to understand the risks associated with latency arbitrage and to ensure that they have robust risk management strategies in place.
What markets are available for trading with AvaTrade?
AvaTrade, a globally recognized online trading platform, offers a wide range of markets for trading. These markets cater to the diverse needs of traders worldwide and include:
Forex: AvaTrade provides access to a broad range of currency pairs, allowing traders to take advantage of the volatility in the forex market.
Stocks: Traders can take positions on leading tech firms like Tesla, Apple, and Microsoft, among others. Stocks from leading exchanges including the NYSE and FTSE are available for trading.
Commodities: AvaTrade offers a variety of commodities for trading, including precious metals like gold, energy assets like crude oil, and more.
Cryptocurrencies: AvaTrade provides a variety of cryptocurrencies for trading, allowing traders to capitalize on the dynamic crypto market.
Indices: AvaTrade offers an above-average selection of indices, providing traders with the opportunity to trade on the overall market movement.
Options: With AvaTrade, traders can express their market view with calls and puts, balancing risk and reward to match their market view.
ETFs: AvaTrade offers a selection of Exchange Traded Funds (ETFs) that track indices, commodities, and baskets of assets.
These markets provide endless trading opportunities, making AvaTrade a preferred choice for many traders worldwide.
Order Execution and Customer Support
What is the execution model used by AvaTrade?
AvaTrade operates as a Market Maker, a type of broker that creates its own internal market for clients. Unlike other types of brokers, such as Straight Through Processing (STP) or Electronic Communication Network (ECN) brokers, a Market Maker does not route its clients’ orders to the external market. Instead, it takes the other side of its clients’ trades, meaning when you’re trading with AvaTrade, you’re essentially trading against AvaTrade.
Market Makers like AvaTrade have their own dealing desk, which provides liquidity by buying or selling financial instruments. This ensures that trades can always be executed. They quote both a buy and a sell price in a financial instrument or commodity, hoping to make a profit on the bid-offer spread.
One of the key advantages of trading with a Market Maker like AvaTrade is the ability to offer instant and faster order execution. This is because orders do not need to be routed to the external market, which can sometimes lead to delays. Instead, all trades are executed internally, allowing for quicker transaction times.
Additionally, Market Makers can offer fixed spreads, and lower entry barriers for new traders. However, it’s always important for traders to understand the execution model of their broker and how it might impact their trading. As always, traders are advised to familiarize themselves with AvaTrade’s trading policies and to ensure that they understand how trades are executed on the platform.
What is the average order execution speed with AvaTrade?
AvaTrade, a globally recognized online trading platform, is known for its swift and efficient order execution. While the exact speed can vary depending on market conditions and the type of order placed, AvaTrade strives to execute orders as quickly as possible to ensure the best possible trading experience for its users.
One of the key factors contributing to AvaTrade’s fast order execution is its fully automated trading platform. When you place an order, it’s processed instantly by the platform, eliminating the need for manual intervention and reducing the time taken to execute the trade.
It’s important to note that faster order execution can lead to better trading outcomes, especially for high-frequency traders and scalpers who rely on speed to take advantage of small price movements in the market.
What customer service channels are available?
AvaTrade, a leading online trading platform, offers multiple customer service channels to ensure a seamless and efficient user experience. Here’s a breakdown of the customer service channels available at AvaTrade:
Live Chat: AvaTrade provides a live chat feature for instant communication. This feature allows users to get real-time assistance from AvaTrade’s dedicated customer service team.
Phone: AvaTrade offers phone support through various local phone numbers. This allows users to speak directly with a customer service representative for immediate assistance.
Email: Users can also reach out to AvaTrade’s customer service team via email. This is particularly useful for non-urgent inquiries or when detailed explanations are required.
WhatsApp: In addition to the traditional channels, AvaTrade also offers customer support through WhatsApp. This provides a convenient and familiar platform for users to get assistance.
These customer service channels are available in more than 14 languages, ensuring that users around the globe can get the help they need in a language they’re comfortable with.
Is customer support available 24/7?
AvaTrade, a globally recognized online trading platform, is committed to providing top-notch customer service to its users. However, it’s important to note that AvaTrade’s customer service is not available 24/7.
The AvaTrade Client Services team operates from Monday through Friday. The English desk is available between 05:00 AM and 09:00 PM GMT. For users who prefer other languages such as Spanish, French, Italian, Arabic, Russian, Portuguese, and German, the service representatives are on call between 06:00 AM and 03:00 PM GMT.
Users can reach out to AvaTrade’s customer service team through various channels including chat, phone, and email. Despite not being available round the clock, AvaTrade strives to provide efficient and timely support to its users during its operating hours.
Education and Research
What educational resources and tools does AvaTrade offer?
AvaTrade, a leading online trading platform, is committed to empowering its users with a wealth of educational resources and tools. These resources are designed to help both novice and experienced traders enhance their trading knowledge and skills. Here’s a look at what AvaTrade offers:
Articles: AvaTrade provides a rich collection of articles that cover a wide range of trading topics. These articles are designed to provide traders with in-depth knowledge about various aspects of trading.
eBooks: AvaTrade offers a selection of eBooks that provide comprehensive information on various trading strategies, market analysis techniques, and more. These eBooks serve as handy guides for traders looking to expand their trading knowledge.
Videos: AvaTrade hosts an array of educational videos that cater to traders of all levels. These videos cover everything from basic trading concepts to advanced strategies, providing visual learners with a valuable resource.
Webinars: AvaTrade conducts regular webinars that offer live learning experiences. These webinars are conducted by industry experts and cover a wide range of topics.
Trading Tutorials: AvaTrade provides basic to advanced trading tutorials that guide traders through various aspects of trading. These tutorials are particularly useful for beginners who are new to trading.
These educational resources and tools are part of AvaTrade’s commitment to providing a supportive and enriching trading environment for its users. Whether you’re a beginner starting your trading journey or an experienced trader looking to refine your strategies, AvaTrade’s educational resources can be a valuable asset.
What market research and analysis tools does AvaTrade provide?
AvaTrade, a globally recognized online trading platform, offers a suite of market research and analysis tools designed to help traders make informed decisions. These tools provide valuable insights into market trends and can guide traders on the road to successful trading. Here’s a look at some of the key tools provided by AvaTrade:
Technical Analysis Tools: AvaTrade provides a range of technical analysis tools that help traders forecast future price movements based on past price behavior. These tools include chart patterns and mathematical indicators such as moving averages and Stochastics.
Fundamental Analysis Tools: Fundamental analysis tools provided by AvaTrade help traders understand the economic, social, and political factors that affect the supply and demand of an asset. These tools track major economic events and news releases that may impact the prices of assets.
Sentimental Analysis Tools: AvaTrade offers sentimental analysis tools that help traders understand the overall mood of the market. These tools reflect the combined attitude of market participants towards risk.
Trading Central: AvaTrade has partnered with Trading Central to offer award-winning market insights and intelligence directly to its clients. Trading Central provides news, trading ideas, and statistical market data.
Daily Strategy Newsletter: AvaTrade sends a daily strategy newsletter directly to your inbox to help you kick off your trading day the right way. The newsletter combines technical and fundamental research which is viewable on your mobile device.
These tools, combined with AvaTrade’s educational resources, provide traders with a comprehensive toolkit to navigate the financial markets effectively.
Conclusion
Pros & Cons of trading with AvaTrade
👍 Pros
🗺️ Regulated in multiple countries: AvaTrade is indeed regulated in several countries including Ireland, Australia, Japan, South Africa, Abu Dhabi, British Virgin Islands, and Israel¹²³⁴.
🛡️ Negative balance protection: AvaTrade offers negative balance protection, which means you cannot lose more money than you have deposited into your account.
💰 No withdrawal fee: AvaTrade does not charge a fee for withdrawals.
💰 Low minimum deposit: The minimum deposit to start trading is only $100.
💵 Multiple base currencies: AvaTrade supports multiple base currencies including EUR, GBP, USD, CHF, AUD, ZAR, JPY.
👎 Cons
💰 Inactivity fee: AvaTrade charges an inactivity fee. If you do not plan to trade regularly, this could be a disadvantage.
💵 Conversion fee for non-base currency deposits: AvaTrade may charge a conversion fee for deposits in a non-base currency.
Is AvaTrade a good broker for beginners?
AvaTrade, with its global presence and regulation by top-tier authorities, offers a sense of security for beginners embarking on their trading journey. The platform’s commitment to education is noteworthy, offering a wealth of educational content that can be a valuable resource for beginners.
The user-friendly interface of AvaTrade’s platform is designed to be intuitive and easy to navigate, making the trading process less daunting for newcomers. Financial accessibility is another highlight of AvaTrade. With no withdrawal fee and a low minimum deposit of $100, AvaTrade becomes an accessible option for beginners.
However, there are a few areas where AvaTrade could improve. The product portfolio, primarily limited to forex, CFDs, and cryptos, might not cater to beginners interested in a wider range of investment options. Also, the platform charges an inactivity fee and a conversion fee for deposits in non-base currency, which could be potential drawbacks for beginners.
While AvaTrade has several beginner-friendly features, it’s important for each individual to assess whether the platform aligns with their specific needs and goals. Thorough research and possibly seeking advice from financial advisors is recommended before starting a trading journey. This ensures that the chosen platform not only teaches the basics of trading but also aligns with the individual’s long-term trading goals. So, while AvaTrade is a good starting point, the final decision should always be based on personal requirements and objectives.
Which broker is better than AvaTrade?
Eightcap is an award-winning broker known for its competitive pricing and distinct competitive edge provided by Capitalise AI. It offers a lower minimum deposit compared to AvaTrade, making it more accessible for beginners. However, AvaTrade provides a superior asset selection and higher-quality education. Our broker review of Eightcap highlights these features and more, providing a comprehensive overview of what this broker has to offer.
Trade Nation, a multi-regulated broker, offers a wide range of financial markets on a user-friendly platform, making it a good choice for newer traders. It also provides a low minimum deposit and strong educational resources. Our broker review of Trade Nation delves into these aspects in detail, offering valuable insights into the broker’s services and features.
Both Eightcap and Trade Nation have their own strengths and could potentially be a better fit than AvaTrade depending on your trading needs. As always, it’s important to conduct thorough research and consider seeking advice from financial advisors before choosing a trading platform. This ensures that the chosen platform not only teaches the basics of trading but also aligns with the individual’s long-term trading goals. So, while AvaTrade is a good starting point, the final decision should always be based on personal requirements and objectives. Be sure to check out our detailed broker reviews for more information.
Is my money safe in AvaTrade?
When it comes to the safety of your money with AvaTrade, there are several factors to consider. AvaTrade is a globally regulated online broker, which means it adheres to strict guidelines and requirements set by various financial regulatory bodies across the world. It is licensed and regulated by top-tier regulatory authorities such as the Central Bank of Ireland, the Australian Securities and Investments Commission (ASIC), the Financial Services Commission in the British Virgin Islands, and the Financial Sector Conduct Authority in South Africa, among others.
These regulations ensure that AvaTrade operates in a transparent and fair manner, and that it maintains high standards of security and client protection. So, when you’re trading with AvaTrade, you can trust that the platform complies with robust regulatory standards.
Moreover, AvaTrade is trusted by over 400,000 customers with millions of dollars in deposits. This level of trust from a large number of customers further attests to the safety of funds with AvaTrade.
However, it’s important to remember that trading always involves risks. While AvaTrade takes measures to protect your money, the nature of trading means that there is always a risk of losing your investment. Therefore, it’s crucial to understand the risks involved and to trade responsibly.
In conclusion, while no broker can guarantee absolute safety, AvaTrade’s strong regulatory oversight and commitment to transparency and security make it a platform where your money is as safe as it can be in the world of online trading. As always, it’s recommended to conduct your own research and consider seeking advice from financial advisors before choosing a trading platform. This ensures that the chosen platform not only aligns with your financial goals but also provides the level of security and protection you’re comfortable with.