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.

Features and Platforms

Features & PlatformsAvaTrade (visit site)Interactive Brokers (visit site)
Headquarter:IrelandUS
Established :
20071978
Retail Loss Rate:
71.00%58.4%
Regulation:
Minimum Deposit:
$100$0
Demo Account:
Managed Account:
Islamic Account:
Inactivity Fee
$50 after three months, recurringNo
Deposit Fee:
NoNo
Withdrawal Fee
Third-PartyThird-Party
Funding Methods:
52
MT4:
MT5:
cTrader:
Proprietary Platform:
Automated Trading:
Social / Copy Trading:
MT4/MT5 Add-ons:
Guaranteed Stop Loss:
Negative Balance Protection:
Bonuses and Promotions:
Unique Feature One:
Excellent educational serviceBroad-asset selection
Unique Feature Two:
Well-balanced asset selectionExcellent trading tools
Broker Offers:

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

Available MarketsAvaTradeInteractive Brokers
Currency Pairs:
Cryptocurrency Pairs:
Commodities and Metals:
Indices:
Equities:
Bonds:
ETFs:
Options, Futures, and Synthetics:
Maximum Retail Leverage:
1:4001:40
Maximum Pro Leverage:
1:4001:40

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

Typical Spreads & FeesAvaTradeInteractive Brokers
Minimum Raw Spreads:
Not applicable0.1 pips
Minimum Standard Spreads:
0.9 pipsNot applicable
Minimum Commission for Forex:
Commission-free$2.00 per round lot
Commission for Equities:
Commission-free0.05% per trade
Commission Rebates:
Not applicableNo
Execution Type:
Market MakerMarket Maker

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

Interactive Brokers

Country of the RegulatorName of the RegulatorLicense Number
US
US Securities and Exchange Commission (SEC)Undisclosed
Canada
Investment Industry Regulatory Organization of Canada (IIROC)Undisclosed
UK
Financial Conduct Authority (FCA)208159
Luxembourg
Commission de Surveillance du Secteur Financier (CSSF)Undisclosed
Ireland
Central Bank of Ireland (CBI)C423427
Hungary
Central Bank of Hungary (MNB)H-EN-III-623/2020
Australia
Australian Securities and Investments Commission (ASIC)453554
Hong Kong
Hong Kong Securities and Futures Commission (SFC)Undisclosed
India
Securities and Exchange Board of India (SEBI)INZ000217730
Japan
Japan Securities Dealers Association (JSDA) 187
Singapore
Monetary Authority of Singapore (MAS)CMS100917

AvaTrade

Country of the RegulatorName of the RegulatorLicense Number
Ireland
Central Bank of IrelandReference Number C53877
The British Virgin Islands
Financial Services CommissionLicense Number SIBA/L/13/1049
Australia
Australian Securities and Investments CommissionLicense Number 406684
South Africa
South African Financial Sector Conduct AuthorityLicense Number 45984
Japan
Financial Services Agency /Financial Futures AssociationLicense Number 1662 / License Number 1574
United Arab Emirates (Abu Dhabi)
ADGM - Financial Regulatory Services AuthorityLicense Number 190018
Israel
Israel Securities AuthorityLicense Number 514666577

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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