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AvaTrade Review

securely through AvaTrade's website

1 Minute Review

A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.

Best For

  • Beginners
  • Advanced traders
  • Traders looking for a well-diversified portfolio

Pros

  • Controlled by regulatory agencies of multiple countries
  • Choice offered in terms of trading platforms
  • Support available in 14 languages and trading platforms in 20 languages
  • Practice/demo account available for trying out
  • Breadth of trading assets

Cons

  • Does not accept customers from the U.S. as it isn’t regulated in the U.S.
  • Transferring funds to the account may take up to five days; withdrawals could take up to 10 days

AvaTrade has been facilitating online trading since 2006 and has offices all over the world. But as with any brokerage (especially when dealing with forex!), you need to ensure your trades and investments are safe, fees and commissions are reasonable, and customer service is on point.

Who Uses AvaTrade?

AvaTrade caters to the needs of diverse client groups due to the options it provides in terms of its trading platforms/software and tradable asset classes.

Beginners: With the firm’s intuitive and simple interface and the solid backup provided by the AvaTrade’s customer support team, a beginner can easily and comfortably navigate through the complex investing world. The firm also provides specialized educational content for beginners to acquaint them with trading. A case in point is its “Trading for Beginners” section.

Advanced Traders: AvaTrade allows desktop, tablet, mobile and web-based trading with Meta Trader 4 and AvaTradeGO, which provide choices for advanced traders. It has a range of automated trading platforms and EA compatibility. The firm also conducts free webinars targeting traders at all levels.

Traders seeking well-diversified portfolios: The 250+ instruments in stocks, commodities, indexes, forex, CFDs and cryptos help traders diversify their portfolio and in turn mitigate the risk involved.

AvaTrade Commissions and Fees

Account opening requires a minimum deposit of $100 if the deposit is made through credit card or wire transfer. The minimum opening balance depends on the base currency of a client’s deposit.

For forex trading, Avatrade doesn’t charge any commission but is compensated through the bid-ask spread. If the spread is 3 pips on 1,000 units of a currency pair, then the compensation to the brokerage amounts to 1000 * 3 pips or 0.0003, which is $0.30.

The firm also charges inactivity fees of $50 for three consecutive months of non-use. The inactivity fee will be deducted from the customer’s trading account. AvaTrade charges an administration fee of $100 after 12 consecutive months of non-use.

Some of the other applicable charges include overnight interest, maturity rollover, corporate actions, etc.

AvaTrade Platform and Tools

Avatrade offers multiple trading softwares, including an in-house platform. 

  • AvaTradeGO
  • MetaTrader 4
  • Automated Trading softwares such as ZuluTrade/DupliTrade/MQL5, which allow copy trades of experienced traders.

Research from AvaTrade

AvaTrade carries a wide range of educational tools in a webpage dedicated for education. It provides educational content for beginners, focusing on online trading forex, CFD, along with technical analysis. It also provides information on order types and economic indicators that impact currency market.

An ebook is also available for download by clients. Online videos on topics such as advanced trading tools, beginner lessons, forex trading strategies, MetaTrader 4 for beginners, MetaTrader 4 Guide and MyAva guide are available for use.

AvaTrade has a dedicated website called “The Sharp Trader,” which provides all information a trader may need for trading. It has videos that explain various topics needed by traders with different levels of trading knowledge, daily technical and fundamental analysis by the firm’s market analyst, analytical videos and trading tools, including an economic calendar, trading platforms, calculators, etc.

AvaTrade Security

AvaTrade ensures security of client data and the money of clients through 256-bit SSL encryption across the entire website, embedded True-Site identity assurance seal and McAfee Secure that prevents credit card fraud and identity theft.

Ava is WebTrust compliant, as determined by the American Institute of Certified Public Accountants.

AvaTrade Customer Support

Customer support is available through several modes. The webpage has an online form if you’d like to contact the firm, including the reason for request, name, email, phone number, subject and official request.

The firm provides phone support with separate numbers provided for each country where Avatrade operates and a live chat option is also available.

Customer service representatives are available 24 hours a day 5 days a week (Monday-Friday) in 14 languages.

AvaTrade has a dedicated webpage which provides information in the form of answers to FAQs. Information is available regarding withdrawal, support, deposits, affiliates and partners, trading platforms, trading, documents, etc.

Tradable Asset Classes Offered at AvaTrade

  • Forex: Allows trading in 50+ currency pairs, including major, minor and exotic pairs.
  • CFDs: Contract For Difference, or CFD, allows trading in an underlying index, share or commodity contract without having to own it. Avatrade allows trading in CFDs linked to commodities, indices, ETFs, stocks, bonds, Bitcoin and Ethereum.
  • Cryptocurrencies: A wide range of top-traded cryptocurrencies can be bought and sold on the MetaTrader 4 platform offered by Avatrade.

AvaTrade & Its Ease of Use

Opening of an account is fairly simple. The application form can be completed on the website by providing basic information such as first name, last name, email and phone number. Alternatively, AvaTrade allows logging in using Facebook or Google. Once personal details are verified, the account can be funded and used.

Deposits may be made using a regular credit/debit card, in which case the payment will be credited instantaneously. E-payments through Skrill’s Moneybookers, Webmoney and Neteller will be credited within 24 hours. Meanwhile, deposits done through wire transfer can take up to seven business days, depending on the bank and country.

The firm provides a demo account, which allows traders to get a feel of the markets and try out various strategies using virtual money. Price quotes available for the demo account are also live.

The closing procedures are also fairly simple. If a client’s account has funds, he/she can log into “MyAva” and follow the withdrawal procedure outlined there. Following the withdrawal of funds, the client can email his/her account manager or customer support and request closure of the account.

AvaTrade pays bonuses up to $400 for referring a friend and the bonus depends on the amount deposited by the friend. For deposits over $10,000, a bonus of $400 is paid, while deposits as little as $250 can earn a client a bonus of $75.

Final Thoughts on AvaTrade

This forex broker, which operates internationally, is a safer, well-regulated bet for traders. The multiple options it allows in terms of trading platforms and software is an added positive. These along with the depth of educational resources and tools, the high leverage it allows (as high as 400:1), the bonus it offers for referrals and the free demo account it provides makes AvaTrade a tough-to-ignore trading option.