Our broker comparison of AvaTrade and NAGA will help you find the best broker for you, based on your needs as a trader. Both AvaTrade and NAGA offer traders the opportunity to easily trade a wide range of assets as CFDs, but which is best? Read on to find out if AvaTrade is better than NAGA, or vice versa.
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.
RISK WARNING: Derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail investor accounts lose money when trading derivatives with this provider. You should consider whether you understand how derivatives work and whether you can afford to take the high risk of losing your money.
AvaTrade offers clients a zero-commission model, with fees taken from the spreads, which are pretty reasonable. On the EURUSD, for example, the average spread is 0.9 pips. There is also an inactivity fee of $50 per quarter that applies when an account is inactive for 12 months, along with an admin fee of $100 annually.
Forex trading at NAGA is also commission free, with average spreads on the EURUSD of 1.2 pips. There are no deposit fees, but withdrawal fees may be charged, with fees of $/€0-5 applied, based on your VIP level. When copy trading, there is also a fixed copy fee of €0.99 or equivalent, plus 5% from the profit of the trade when profits exceed €10 or the equivalent.
AvaTrade is an international broker with a presence in numerous countries across the globe. The broker provides leveraged trading through the use of contracts for difference (CFDs). There is a wide range of instruments available at AvaTrade, across multiple asset classes, including forex, stocks, commodities, indices and cryptocurrencies. The broker offers around 55 forex pairs and around a dozen cryptocurrencies.
NAGA describes itself as a stock and crypto trading social network and has over a million users. The firm has a strong focus on automated copy trading and offers trading via CFDs across a range of instruments. Clients at NAGA can choose to trade a number of popular forex pairs, stocks, indices, commodities, futures and ETFs, as well as both real stocks and stock CFDs.
The AvaTrade website is clean, uncluttered and user-friendly with a good choice of platforms, to allow users to choose the one that suits them best. It is quick and easy to open and fund your account, and there is a low minimum deposit requirement of just $/£/€100. Clients can choose to trade with the MT4 and MT5 trading software, or with WebTrader or AvaTradeGO (the firm’s own proprietary platform). AvaTrade also offers social and automated trading via the AvaSocial app, ZuluTrade and DupliTrade.
At NAGA, account opening is also very straightforward, and again the website is well laid out and available in several languages. The site accepts traders from various countries, including most EU countries, and much of Asia and the Middle East, but it is not currently regulated to provide services to clients based in the UK, Australia or the US. Trading platforms at NAGA include MT4 and MT5, as well as the firm’s own NAGA app available for the web, as well as Android and iOS devices. NAGA provides a range of trading tools and educational resources, including a trading calculator, an economic calendar, and training tools such as webinars, eBooks and video tutorials.
AvaTrade is fully licensed and regulated by the various relevant authorities across the jurisdictions in which the firm operates. The firm is under the authority of CySEC in the EU and ASIC in Australia. It is also authorised to serve clients in South Africa, the Middle East and the British Virgin Islands.
NAGA is owned by The NAGA Group AG and operated by NAGA Markets Europe LTD, a German-based fintech company publicly listed on the Frankfurt Stock Exchange. NAGA Markets Europe Ltd is authorised and regulated by CySEC and also registered with BaFin in Germany. As already mentioned, the firm is not currently regulated to provide services to those resident in the UK, US or Australia.
New clients at AvaTrade can open a demo account first, and this is extremely quick and easy to do. You simply need to submit your full name, phone number and email. There is also an option for one-click sign-up via Facebook or Google. The AvaTrade demo account provides users with up to $100,000 of virtual funds to practice trading with.
At NAGA, you can also try out the platform with a demo account. In fact, you get a demo account by default when you sign up, though NAGA is not as generous with virtual funds, only offering $10,000. You may feel that this doesn’t matter too much as the funds are not real, but obviously the more funds you have, the more you can practice and try out potentially risky trading strategies. It is also worth noting that the demo account does not give you access to one of the site’s main attractions, the Autocopy feature. You only get that when you upgrade to a live account and deposit some real money.
In addition, we like to remind traders that while demo accounts can be very useful and do attempt to mimic real trading conditions as closely as possible, they cannot replicate real-world trading exactly as they do not depend on real-time market liquidity and do not reflect the pricing delay, and the resulting slippage and re-quotes that can happen when trading live markets.
As our broker comparison has demonstrated, both AvaTrade and NAGA are brokers worth considering, but there are a few things to keep in mind. NAGA has a strong focus on social trading and an efficient Autocopy feature that allows a ‘set it and forget it’ approach to trading, which will appeal to some traders. AvaTrade also, however, allows for social trading via ZuluTrade and DupliTrade, which you may already be familiar with. If you are in the UK, US or Australia, then it really doesn’t matter if you prefer NAGA as you won’t be able to open an account there at this time.