Interactive Brokers versus AvaTrade

The choice of trading platforms at AvaTrade is outstanding. It consists of the proprietary WebTrader, the mobile app AvaTradeGO, Ava Option, MT4, and MT5. Social trading is available via Ava Social, ZuluTrade, and DupliTrade. The Trading Central upgrades MT4/MT5, where trades can run algorithmic strategies or use the embedded copy trading feature. Passive income seekers benefit from the partnership program with $250M+ in payouts.

Interactive Brokers presents a suite of cutting-edge proprietary solutions developed for advanced traders, including algorithmic trading and support for third-party developers. Investor’s Marketplace offers 1,500+ services, and passive investors can benefit from Interactive Advisors available from $100.

We have conducted an in-depth review of AvaTrade and Interactive Brokers to determine which one presents the better overall choice and which traders will benefit the most at either broker.

Headquarters
IrelandUnited States
Regulators
ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFIDN/A
Tier 1 Regulator(s)?
Owned by Public Company?
Year Established
20061978
Execution Type(s)
Market MakerECN/STP, No Dealing Desk
Minimum Deposit
$100$0
Negative Balance Protection
Trading Platform(s)
Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+Proprietary platform
Average Trading Cost EUR/USD
0.9 pips0.2 pips ($2.00)
Average Trading Cost GBP/USD
1.5 pips0.4 pips ($4.00)
Average Trading Cost WTI Crude Oil
$0.03 $0.01
Average Trading Cost Gold
$0.29 $0.17
Retail Loss Rate
77.82%N/A
Minimum Raw Spreads
Not applicableN/A
Minimum Standard Spreads
0.9 pipsN/A
Minimum Commission for Forex
Commission-free$1.00 - $2.00
Islamic Account
Signals
US Persons Accepted?
Managed Accounts
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Features and Platforms

MT4
MT5
MT4/MT5 Add-Ons
cTrader
Proprietary Platform
Automated Trading
Social/Copy Trading
DOM?
Guaranteed Stop Loss
Scalping
Hedging
One-Click Trading
OCO Orders
Interest on Margin
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Noteworthy:

SharpTrader, the successfully spun out AvaTrade academy, and the IBKR Campus remain two of the highest-quality educational services industry-wide for beginner traders. They also get high-quality market research at Interactive Brokers.

Available Markets

Currency Pairs
Cryptocurrencies
Commodities
Crude Oil
Gold
Metals
Equity Indices
Stocks (non-CFDs)
Bonds
ETFs
Options
Futures
Synthetics
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Most traders will find the balanced asset selection at AvaTrade more than enough to execute strategies and achieve cross-asset diversification. AvaTrade supplements its standard Forex selection with Forex options. As a prime brokerage Interactive Brokers maintains 135 markets across 33 countries in 23 currencies, resulting in excellent sector exposure for demanding clients.

Typical Spreads and Fees

Average Trading Cost EUR/USD
0.9 pips0.2 pips ($2.00)
Average Trading Cost GBP/USD
1.5 pips0.4 pips ($4.00)
Average Trading Cost WTI Crude Oil
$0.03 $0.01
Average Trading Cost Gold
$0.29 $0.17
Average Trading Cost Bitcoin
$39 $0.25
Minimum Raw Spreads
Not applicableN/A
Minimum Standard Spreads
0.9 pipsN/A
Minimum Commission for Forex
Commission-free$1.00 - $2.00
Deposit Fee
N/A
Withdrawal Fee
Inactivity Fee
$50 quarterly after 3 months N/A
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Forex traders at Interactive Brokers get a notable cost advantage with minimum fees of $3 versus $9 at AvaTrade, making it the better choice for scalpers and high-frequency traders. Equity trading at AvaTrade remains commission-free and costs 0.05% per trade at Interactive Brokers, the lowest cost commission-based competitors.

Security and Trust

Country of the Regulator
United Arab Emirates, Australia, Ireland, Israel, Japan, British Virgin Islands, South AfricaUnited Kingdom, United States
Name of the Regulator
ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFIDN/A
Regulatory License Number
C53877, SIBA/L/13/1049, 406684, 45984, 1662, 190018, 51466657736418, 8-47257, 208159
Regulatory Tier
N/A1, 1
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AvaTrade and Interactive Brokers both segregate client deposits and offer negative balance protection. AvaTrade is a trusted broker, but trading conditions depend on the regulatory jurisdiction. Interactive Brokers, a NASDAQ-listed company and S&P 400 constituent, is 81.5% privately held with $6 billion in excess regulatory capital.

AvaTrade vs Interactive Brokers – Verdict

Interactive Brokers

ProsCons
Cutting-edge proprietary trading platforms with support for algorithmic tradingLimited deposit and withdrawal options
Industry-leading asset selection and trading costs
Superior trading tools consisting of 1,500+ services
Low-cost passive investments from as little as $100

AvaTrade

ProsCons
High-quality educational offering via SharpTraderHigher trading costs typical of commission-free brokers
Excellent choice of trading platforms catering to various trading needs
Broad asset selection and cross-asset diversification opportunities
Well-regulated and trusted broker with oversight from a central bank

Given the ultra-competitive costs at Interactive Brokers, Forex scalpers, high frequency, and algorithmic traders, and those with demanding asset requirements get a good trading environment there. The overall product and services portfolio may overwhelm many retail traders, but AvaTrade covers all their needs and so typically remains a better choice for them. The support for social trading, and user-friendly mobile app, stand out among the features millennial and GenZ traders favor.

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FAQs

Should I use AvaTrade?

AvaTrade offers a balanced asset selection and quality trading environment, catering well to most retail traders, but everyone needs to gauge the product and services portfolio against their unique requirements.

Is AvaTrade a dealing desk broker?

AvaTrade is a market maker and, therefore, has a dealing desk, even if it is automated.

Is AvaTrade South African?

AvaTrade is an international multi-asset CFD broker headquartered in Ireland, but it maintains a South African subsidiary.

Is my money safe in AvaTrade?

Client funds at AvaTrade remain secure and segregated from corporate funds. Additionally, AvaTrade complies with seven regulators, one being a central bank.

Who are the competitors of Interactive Brokers?

Theoretically, all brokers compete with Interactive Brokers and each other. Since Interactive Brokers remains in the top echelon of the brokerage scene, companies including IG Markets, Saxo Bank, RoboForex, TD Ameritrade, IC Markets, FXCM, CMC Markets, and City Index rank as immediate competitors.

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