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 & Platforms||AvaTrade (visit site)||Interactive Brokers (visit site)|
Retail Loss Rate:
|$50 after three months, recurring||No|
Social / Copy Trading:
Guaranteed Stop Loss:
Negative Balance Protection:
Bonuses and Promotions:
Unique Feature One:
|Excellent educational service||Broad-asset selection|
Unique Feature Two:
|Well-balanced asset selection||Excellent trading tools|
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||AvaTrade||Interactive Brokers|
Commodities and Metals:
Options, Futures, and Synthetics:
Maximum Retail Leverage:
Maximum Pro Leverage:
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 & Fees||AvaTrade||Interactive Brokers|
Minimum Raw Spreads:
|Not applicable||0.1 pips|
Minimum Standard Spreads:
|0.9 pips||Not applicable|
Minimum Commission for Forex:
|Commission-free||$2.00 per round lot|
Commission for Equities:
|Commission-free||0.05% per trade|
|Market Maker||Market 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
|Country of the Regulator||Name of the Regulator||License Number|
|US Securities and Exchange Commission (SEC)||Undisclosed|
|Investment Industry Regulatory Organization of Canada (IIROC)||Undisclosed|
|Financial Conduct Authority (FCA)||208159|
|Commission de Surveillance du Secteur Financier (CSSF)||Undisclosed|
|Central Bank of Ireland (CBI)||C423427|
|Central Bank of Hungary (MNB)||H-EN-III-623/2020|
|Australian Securities and Investments Commission (ASIC)||453554|
|Hong Kong Securities and Futures Commission (SFC)||Undisclosed|
|Securities and Exchange Board of India (SEBI)||INZ000217730|
|Japan Securities Dealers Association (JSDA)||187|
|Monetary Authority of Singapore (MAS)||CMS100917|
|Country of the Regulator||Name of the Regulator||License Number|
|Central Bank of Ireland||Reference Number C53877|
The British Virgin Islands
|Financial Services Commission||License Number SIBA/L/13/1049|
|Australian Securities and Investments Commission||License Number 406684|
|South African Financial Sector Conduct Authority||License Number 45984|
|Financial Services Agency /Financial Futures Association||License Number 1662 / License Number 1574|
United Arab Emirates (Abu Dhabi)
|ADGM - Financial Regulatory Services Authority||License Number 190018|
|Israel Securities Authority||License 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
|Cutting-edge proprietary trading platforms with support for algorithmic trading||Limited 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|
|High-quality educational offering via SharpTrader||Higher 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.
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.