AvaTrade vs Forex.com
If you are reading this article, you’re likely having trouble deciding whether AvaTrade or Forex.com is the better Forex trading platform for you. While both platforms generally provide positive user experiences, there are some essential differences to note.
In this AvaTrade vs Forex.com review, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:
|Feature||AvaTrade (visit site)||Forex.com (visit site)|
|MiFID, Central Bank of Ireland, FSA, ASIC, BVI, FFAJ, FSCA, ADMG - FRSA||FCA, IIROC, FSA, ASIC, CFTC, NFA, CIMA|
Type of Broker:
U.S. Clients Allowed:
|$100||£50 or a currency equivalent|
Commissions / Spreads:
|Spreads||Both, asset dependent|
|Spread Betting||DMA Account|
|24/5||Sunday 3pm - Friday 10pm|
Features and Platforms
AvaTrade, headquartered in Ireland, established itself as a market leader since launching in 2006. Today it caters to more than 300,000 clients, of which 72% of retail traders operate at a loss. The figure places AvaTrade in the top third compared to all brokers, and its excellent educational unit SharpTrader plays a defining role in this regard. A total of eight trading platform and an above-average asset selection exceeding 1,250 instruments add to the success of AvaTrade. Forex.com has catered to traders since 2001 and is the largest MetaTrader broker as of April 2019. Owned by Gain Capital, acquired by publicly listed StoneX, it provides traders with MT4 together with its cutting-edge proprietary Advanced Trading Platform, featuring advanced charting tools, which is superior to the competitive AvaTrade WebTrader. 74% of Forex.com retail traders operate at a loss.
|Type of Platform:||MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based||MT4, Advanced Trading Platform, webtrader|
Guaranteed Stop Loss:
Guaranteed Limit Orders:
Interest on Margin:
Forex.com offers 84 currency pairs, allowing pure Forex traders excellent market coverage, placing this broker in the top 20 globally. AvaTrade only maintains 55 currency pairs but takes a leadership position across all other sectors. Forex.com adds 18 commodities, 18 index CFDs, and eight cryptocurrencies. Traders at AvaTrade have 24, 26, and fourteen, respectively, available, granting more opportunities. With more than 1,000 equity CFDs and ETFs at AvaTrade versus just 69 equity CFDs at Forex.com, the former allows more in-depth cross-asset diversification, further enhanced via 42 options contracts. Forex.com excels for pure Forex traders, but most will find the overall asset selection at AvaTrade more suitable.
Typical Spreads and Fees
AvaTrade maintains a competitive edge with its commission-free trading account versus the same at Forex.com. Spreads at the former commence at an above-average 0.9 pips, while the latter advertises 0.8 pips but generally offers above 1.1 pips. Forex.com has a commission-based direct market access (DMA) account, where mark-ups drop to 0.1 pips for a commission of $60 per $1,000,000 in nominal trading volume or $6 per lot. High-frequency traders may lower it to $20. Swap rates on leveraged overnight positions apply at AvaTrade and Forex.com alike, but AvaTrade charges a $50 monthly inactivity fee after three months versus $15 after twelve months at Forex.com. Traders must also consider third-party payment processor costs which are applied by both brokers.
Security and Trust
While both brokers present traders with a secure trading environment, AvaTrade remains the more trustworthy entity after Forex.com became part of the StoneX corporate umbrella. Despite being a well-capitalized and publicly listed company in the US, StoneX has a history of misconduct and regulatory fines. AvaTrade maintains a clean regulatory track record with seven regulators, including the Central Bank of Ireland, making it a rare broker with direct oversight by a central bank. Client deposits remain segregated at AvaTrade and Forex.com alike, and an investor compensation fund exists where mandated. Both brokers maintain transparency, but given the corporate shadow of Forex.com, AvaTrade presents itself as the more trustworthy operational choice.
AvaTrade vs Forex.com – Verdict
Forex.com remains a competitive choice for pure Forex traders who seek limited cross-asset diversification from a commission-based DMA account. The proprietary Advanced Trading Platform allows clients to manage portfolios from a competitive MT4 alternative, which is also available at Forex.com. A well-thought-through educational section split into seven themes offers new retail traders an excellent service and adds to the quality of Forex.com. Clients should monitor developments following the acquisition of Forex.com owner Gain Capital by StoneX due to misconduct and regulatory fines accumulated by StoneX under various names over the past decade. AvaTrade executes its business model well and provides an excellent asset selection and trading platform choice, suitable for all retail traders. New clients must start at SharpTrader, the spun-out unit of AvaTrade dedicated to education, where over 40 courses and 200 videos ensure a superior package. The commission-free trading environment keeps trading costs balanced, and AvaTrade maintains an overall more competitive trading environment over Forex.com, which enjoys a market-leading position for Forex traders only.
Does AvaTrade or Forex.com offer lower pricing?
The commission-free trading account offers lower pricing compared to the Forex.com one, despite the latter advertising a more competitive mark-up. Forex.com also has a direct market access (DMA) account, where traders have access to raw spreads for a commission of $60 per $1,000,000, which high-frequency traders can lower to $20. Therefore, low-frequency traders will find AvaTrade more cost-effective, while others have a superior pricing environment at Forex.com
Is AvaTrade or Forex.com safer for Forex and CFDs trading?
From a safety perspective, both brokers provide clients with an excellent choice. While Forex.com has more experience, being operational since 2001 versus 2006 for AvaTrade, either one has a clean regulatory record, maintains a transparent trading environment, and is financially healthy. AvaTrade has more regulators than Forex.com, but the corporate owner of Forex.com is a publicly listed company in the US.
Which is better, AvaTrade, or Forex.com?
It depends on the preferences of the individual trader, but AvaTrade maintains an overall more competitive product and services portfolio. Forex.com is an excellent choice for pure Forex traders, especially high-frequency ones in the DMA account from the Advanced Trading Platform. AvaTrade maintains a broader asset selection, a more extensive choice of trading platforms, and a lower cost structure in the commission-free trading account. The educational content remains superior, as well.
What are the minimum deposits for these brokers?
AvaTrade and Forex.com require a minimum deposit of $100 or a currency equivalent, making both accessible to most retail traders. The latter has no minimum on bank wires, but traders must consider the high costs associated with it. AvaTrade supports more payment options, allowing for greater flexibility.