Title

AvaTrade Broker Review

Review By: Alan LittleReview Updated: 2021-01-18

Address: Head Office Address: Ava Trade EU Limited. Dublin Exchange Facility, IFSC 1 Co. Dublin.

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Spread

From 0.9 pips

Max. Leverage

1:400

Deposit Protection

£85,000 GBP

Min. Deposit

$100 USD

  • Our Award-winning AvaTradeGO app
  • Ultra-low spreads
  • Multi-lingual live customer service
  • 1,250+ assets inc. Indices & Stocks
  • Regulation across 6 jurisdictions

Spread

From 0.13%

Max. Leverage

1:20

Deposit Protection

£85,000 GBP

Min. Deposit

$100 USD

Spread

From 0.13%

Max. Leverage

1:10

Deposit Protection

£85,000 GBP

Min. Deposit

$100 USD

Spread

From 0.03 points

Max. Leverage

1:200

Deposit Protection

£85,000 GBP

Min. Deposit

$100 USD

Spread

From 0.35%

Max. Leverage

1:25

Deposit Protection

£85,000 GBP

Min. Deposit

$100 USD

Spread

From 0.0 pips

Max. Leverage

1:1000

Deposit Protection

£85,000 GBP

Min. Deposit

$100 USD

Spread

From 0.03 points

Max. Leverage

1:200

Deposit Protection

£85,000 GBP

Min. Deposit

$100 USD

Spread

From 0.9 points

Max. Leverage

1:100

Deposit Protection

£85,000 GBP

Min. Deposit

$100 USD

Our Overall Rating

Rating3.8

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

 

AvaTrade has established itself as a major name on the online brokerage scene in recent years – and with good reason. This broker has a global footprint and is regulated in some of the world’s major markets by some of the most respected Tier-1 regulators. Looking after clients extends to providing a range of high-end educational resources, including training courses and unique trading indicators.

In terms of costs, the broker has instituted a spread fee model, and spreads are transparent and in line with the peer group. In certain market conditions, some variable spreads can slip to become quite wide. Headline rates aren’t necessarily the best yardstick to measure the T&Cs. Some of the more exotic markets AvaTrade offers, such as options, come with wider spreads as market standard and being able to trade them is the priority.

Those who prioritise the quality of trading experience will find there are plenty of platforms to pick from, including both MT4 and MT5, with ground-breaking in-house platforms offering something extra. Customer service is multilingual and available via online Live Chat or phone. The overall package reflects the broker’s intention to support traders and help them develop a positive and long-term relationship with a well-regulated broker.

Commissions & Fees

Rating

Like many other traders, AvaTrade generates most of its revenue on the difference between buy and sell prices – the bid-offer spread.

One point to note is that spread fees at AvaTrade are variable rather than fixed. That means the spread will vary according to overall levels of market liquidity. During testing, we found AvaTrade spreads to be in line with the peer group but by no means market leading. The feeling is that the additional services AvaTrade offer clients help it stand out from low-cost operators that provide little in terms of trader development.

Below are examples of spreads found at AvaTrade during our testing.

One advantage of AvaTrade in terms of pricing is that it is upfront and transparent about its rates. There is even a tool on the homepage that allows traders to locate the asset class they wish to trade and find the fees from there.

In terms of other fees, such as commissions, this broker does take steps to reduce the overall bill for traders. There are no stand-alone commissions in place on most trades, for example. However, traders need to be aware that several other fees are in place. For instance, inactivity fees exist on most accounts. Traders could find that they need to pay £50 or a similar amount in another currency if they leave their account unused for three months.

Platforms & Tools

Rating

There’s a lot of choice on offer regarding platform selection at AvaTrade. MetaTrader 5, for example, is available to download. It offers traders a whole variety of all-new features that build on the pre-existing MetaTrader 4 service.

MetaTrader 5 allows traders to deal with the inherent risk of trading through the use of tools such as hedging and netting. The additional functionality opens the door to AvaTrade clients adopting more sophisticated strategies. Those looking for a more hands-off approach can use the Expert Advisors (EAs) product that supports automated trading.

MetaTrader 5 is available on desktop either as downloadable software or through a web browser. It is also on the two major mobile operating systems – Android and iOS. In terms of security, meanwhile, the sending of data on the platform is by 128-bit key encryption.

However, AvaTrade has recognised that some traders do not want to leave behind the world of MetaTrader 4, especially if they are particularly used to it. For that reason, it has kept support for MetaTrader 4, and it can be used across the same systems as above. MetaTrader 4 at AvaTrade comes with features that are likely to be highly useful to traders, including pending orders and Instant Execution functions for maximum efficiency.

Carrying on the theme of providing clients with their best-fit platform, the broker continues to roll out new proprietary dashboards. The award-winning AvaTradeGO app is described as an “innovative app for a visionary trader” and demonstrates the firm is committed to supporting those who trade on the move.

The app, in some ways, supersedes the MetaTrader options, as it permits the maintenance and monitoring of more than one MetaTrader 4 account. It also allows alternative account types such as demonstration accounts and fixed spread options to be monitored and comes with various charting tools.

AvaSocial forms a hub for those looking to explore ways of leveraging the trading ideas of others, and AvaOptions is a platform that provides clients with the increasingly popular derivatives markets.

All the platforms come with a range of risk management tools meaning clients can find the best fit for whichever market they are trading.

Markets

At AvaTrade, there is a wide range of asset groups available and a total of more than 1,250 markets on offer. Stocks form a central part of AvaTrade’s offer, and derivative trades in major corporations such as Apple, Facebook and Tesla are available. When it comes to commodities meanwhile, traders can take advantage of instruments covering gold, platinum and corn.

Moving on to indices, widely recognised global instruments such as the S&P 500 can be traded – as can the NASDAQ 100 and more. At the time of writing, spreads on these appeared to be particularly competitive – with the spread on the NASDAQ 100, for example, resting at around 0.24%.

Foreign exchange is also an essential product for traders at AvaTrade. Major pairs are well represented, including the USD/JPY, EUR/CHF and GBP/USD. A search of the AvaTrade instrument’s function indicates that a range of less well-known pairs, such as those featuring the Russian rouble, also feature here.

Finally, the range of exchange-traded funds (ETFs) at AvaTrade is also extensive. Traders can select from funds as diverse as the MSCI Brazil Index, the Energy Select Sector SPDR Fund, and more. It should be noted that some funds are only accessible to traders who are using the MetaTrader 5 service. The MSCI EAFE Index, for example, falls into this category.

Customer Service

Rating

AvaTrade provides some good customer service options. At the top of many pages on its website, there is a symbol of a telephone – it is clickable, and the link is to a telephone number. Traders can also click on a ‘Need help?’ link close to the top of the page – this takes them to a frequently asked questions section split into further subsections for helpful navigation, including ‘Technical Issues’, ‘Compliance & Verification’, and many more.

If this section does not answer the trader’s enquiry, they can then use one of the links on the right-hand side to contact the broker directly via email or use an online chat facility. When this review was produced, the live chat function loaded in seconds.

Research

Rating

 

AvaTrade provides its users with a variety of education and research options. These can be accessed using the ‘Education’ link along the top, which unfurls into a longer list of links directing traders to further, more specific educational resources.

One of these is a series of videos. This video content is split into content for those new to using the MetaTrader 4 platform, while others are for those who have more experience and are perhaps looking for something more detailed. Elsewhere in the education section is an explainer covering the different order types available to pick from and a document outlining the various online trading strategies that traders can use.

A foreign exchange strategy eBook is also available for download at no charge. It diversifies the format of the research content and allows traders to make their own decisions about how to consume the research.

There are also some more unusual aspects to this broker’s education and research section. One of these is the presence of a page entitled ‘Correct Trading Rules’. It is a detailed and helpful section with a list of advice for traders, including how to select a broker and how the trader can get their head around trading rules.

 

Ease of Use

Rating

 

When a trader first checks out AvaTrade ahead of opening an account, they are faced with a relatively easy website to navigate. Clear use of colour differentiates where a trader can sign up for an account and find out more information – this is helpful for user experience purposes. AvaTrade’s homepage then plunges straight into helpful information about buy and sell prices and the relevant spreads. However, this could make the homepage feel a little too crowded and overwhelming for new traders.

There are also clear links in place for app downloads, so those who wish to get started on mobile can do so as soon as possible. Looking at the ease of use involved in the actual trading experience, traders will find that upon loading MetaTrader 4 or MetaTrader 5, they are faced with many options. With practice and the assistance of the AvaTrade education section, most new traders will probably get to grips with this particular aspect of the trading experience quickly.

 

Mobile Trading

Rating

 

AvaTrade’s mobile offer is structured around two mobile apps – one for the Android operating system, which can be downloaded via the Google Play Store, and another for the Apple equivalent. These two apps are essentially miniature versions of MetaTrader, and they offer almost the same features except in mobile internet-powered form.

However, traders who are planning to rely on the mobile trading app options should remember that there are some distinctions between the web and desktop versions of MetaTrader and the mobile version. One such difference is that the MetaTrader 4 mobile app only has 30 technical indicators, while the downloadable desktop software version has far more.

 

Robo Trading

Robo trading is an increasingly common practice in the trading world, and AvaTrade has made the most of this through its ‘Expert Advisors’ offering. This service allows a trader to specify to an automatic trading system how they want it to behave and then leave it to operate on its own based on the rules that have been set. While this does not guarantee that trading profits will be made, it does give traders a chance to remove some of the stress or time commitment of the process.

More choices are available for traders looking to outsource some of their trading workload. One of the ways to do it is technical and involves the trader crafting a ‘robot’ from scratch using a coding language. Those who would prefer to skip this element of the process can find a pre-created robot from an online store and install that instead.

Copy-trading services Zulu Trade and DupliTrade can also be hooked up to client accounts allowing investors to take signals from third parties and apply them.

Crypto Currency

In line with market rules, retail clients based in the UK are not eligible for cryptocurrency trading using CFDs. However, customers in other markets will find many different cryptocurrency options at this broker, including altcoins such as Stellar and Dash. The well-known names such as Bitcoin and its spin-off Bitcoin Cash are also represented. The assets can be traded against fiat currencies, and there is a 2:1 cap on leverage for those trading from the EU – though it is much higher for those from further afield.

Regulatory details

The global nature of Avatrade’s operations is exemplified by the long list of regulators that oversee it in different markets.

Many of AvaTrade’s clients are based in the EU, and the entity they sign up to is AVA Trade EU Ltd – which the Central Bank of Ireland regulates under the number C53877.

Meanwhile, traders in other markets may find that they are accessing the broker through AVA Trade Ltd, which is overseen by the British Virgin Islands Financial Services Commission. In Australia, Ava Capital Markets Australia Pty Ltd is overseen by the Australian Securities and Investments Commission (ASIC).

In Japan, the broker is known as Ava Trade Japan K.K. and is covered by both the Financial Services Agency and the Financial Futures Association. In South Africa, Ava Capital Markets Pty is covered by the South African Financial Sector Conduct Authority. Finally, traders in the Middle East know that the firm’s local branch, Ava Trade Middle East Ltd, is regulated by the Abu Dhabi Global Markets Financial Regulatory Services Authority.

The broker also takes some time to emphasise certain regulatory and risk-related factors. It carries a prominent risk warning at the bottom of its footer in which it explains the risk-focused nature of contracts for difference, especially as they relate to leverage. It recommends that traders spend time thinking about how these derivative products work and have a high level of knowledge about the forces working on these instruments before proceeding.

Finally, an interesting option on the AvaTrade website allows users to compare the trading conditions across the markets in which it operates. This function is accessed using a floating tool on the right-hand side of the browser window on the AvaTrade website. This handy table permits traders to see what account types and trading instruments they can go for based on the local areas in which they operate.

Additional client protection is available through the innovative AvaProtect product, which acts similarly to insurance. Clients willing to pay a premium can build into their trading strategies the chance to reclaim losses on losing trades.

Final Thoughts

On the whole, AvaTrade is a robust broker with several appealing features. It offers several different asset class choices, for example, while it is also fairly competitive in terms of its fee structure. However, clients would do well to remember that there are inactivity fees in place if an account is left unused for extended periods.

One of the broker’s prime advantages from a trader’s perspective is that it offers an almost unrivalled choice of platforms. Not only does it offer both MetaTrader 4 and MetaTrader 5, but it also provides traders with the opportunity to use an in-house, AvaTrade-developed app system. There are many markets, and hence asset classes, to trade, including some instruments that are not always represented at brokers – including ETFs.

Finally, it’s also the case that this broker is regulated, and it is covered by various well-respected global regulators, such as the Australian Securities and Investments Commission and the Central Bank of Ireland. Traders should always be satisfied that they have performed their due diligence, though. They ought to follow the broker’s advice to understand the intricacies of derivative trading and how leverage can cause risk.

FAQ

We Compare Brokers Expert traders thorough Avatrade review. For your reassurance, we have tested all platforms from customer care through to trades.

Is AvaTrade a regulated broker?

AvaTrade is one of the most highly regulated brokers. It operates under licence from seven different financial regulators, including those of Ireland and Japan. 

How can I open a Demo account with AvaTrade?

Setting up a Demo account at AvaTrade is super easy to do. The Registration area of the platform requires new clients to set up a password and provide an email address; it takes just moments. The Demo account at AvaTrade is time limited.

How do I withdraw money from AvaTrade?

To withdraw funds at AvaTrade, simply access your account and input an instruction to transfer funds. Withdrawn funds have to go back to the account from which they originally came.

Latest Broker News

Bonus For New Accounts

AvaTrade regularly offers new client sign-up bonuses. These can take the form of access to high-grade educational materials or, if you are based in an eligible country, a cash bonus to match your initial deposit. These offers are time-limited and heading to AvaTrade is the best way to check for current offers.

AvaTrade Deposit Bonus Programme (where applicable)

  • 1,000-1,999 200
  • 2,000-2,999 400
  • 3,000-4,999 600
  • 5,000-9,999 1,000
  • 10,000-19,999 2,000
  • 20,000-49,999 4,000
  • 50,000-99,999 10,000

Are you enjoying our Avatrade broker Review?  If you have had any experience of trading with Avatrade please take time to comment to help other traders make an informed decision regarding Avatrade.

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