AvaTrade vs Plus500
This broker comparison pits two of the industry's most established brokers, AvaTrade and Plus500, against each other in a standoff to see which offers the best services. Both brokers advertise commission-free trading, catering to the same target market of new retail traders, featuring proprietary trading platforms. The former has executed its business strategy quietly. 71.0% of AvaTrade's retail traders operate at a loss. Plus500 is lacking research and education divisions but does have a very solid proprietary trading platform. 77% of Plus500 traders manage portfolios of a loss.
This broker comparison will focus on the following four aspects plus an ultimate verdict:
|Feature||AvaTrade (visit site)||Plus500 (visit site)|
|Central Bank of Ireland, FSC, ASIC, FSCA, FSA||FCA, CySEC, ASIC, FSCA, FSA, MAS|
Type of Broker:
|Market Maker||Market Maker|
U.S. Clients Allowed:
|£100 or a currency equivalent||£100|
|1:30||EU - 1:30/ASIC - 1:30|
Commissions / Spreads:
|Spread Betting (the UK only)|
86% of retail CFD accounts lose money
Features and Platforms
The most outstanding feature at AvaTrade is the selection of trading platforms to suit various trading styles. At the core are proprietary trading platforms WebTrader, AVA TradeGo, and AVAOptions, which is exclusively designed for option traders. The popular MT4 trading platform, together with the failed successor MT5, are equally available and enhanced with the Autochartist plugin. Social trading is supported through market-leader ZuluTrade and as an alternative, DupliTrade.
AVA Trade opted to offer its trading academy, Sharp Trader, as a separate service, but the website features additional educational content. The demo-account is restricted to just 21 days, below the industry standard of unlimited demos, but still ample time to see how things work. The AVAProtect offering is an insurance policy covering a predefined period against losses, where the fee increases with the requested time of protection.
AvaTrade offers a great choice of offerings and trading tools for traders at all levels.
Traders of Plus500 are offered the company's proprietary platform only, offered as a desktop version, webtrader, or mobile version. The background of the founding team is in technology, and the company tries to offer a solid technological offering. Still, in the face off between AvaTrade and Plus500 on the technological level, AvaTrade is the clear winner, since it offers much more to traders with varying needs than Plus500's singular, limited, proprietary trading platform.
When it comes to educational offerings, AvaTrade also beats Plus500 in this area. Failure to provide proper research and education divisions stands out, especially with new retail traders as the primary target group. Plus500 features isolated articles inspired by marketing and started to add video content, but proper education is unavailable.
A sub-par trading platform and the absence of essential auxiliary trading services create an uncompetitive trading environment.
|Type of Platform :||MT4, MT5, AVAOptions, AVA TradeGo||Proprietary trading platform|
Guaranteed Stop Loss:
Interest on Margin:
AVA Trade provides traders with 250 core assets, and over 1,000, including more the 700 equity CFDs and options contracts. Sixteen commodity and eleven cryptocurrencies offer primary cross-asset diversification, while two bonds and five ETFs merely serving marketing purposes. Plus500 maintains over 2,000 CFDs across seven asset classes. Through 49 commodities and 27 cryptocurrencies, portfolio managers can diversify suitably. 189 ETFs offer an excellent introduction to passive trading. Asset selection is the only category where Plus 500 achieves proper execution as a brokerage.
Typical Spreads and Fees
The core pricing environment for traders is more competitive at Plus500, where assets have no minimum markup as Plus500 implements dynamic spreads dependent on market conditions. AVA Trade lists minimum spreads from 0.9 pips. Equity CFDs are advertised as commission-free by both brokers. Certain commodities incur a fee at AvaTrade, while assets are generally priced higher at Plus500. Both brokers are market makers.
Swap rates on overnight leveraged positions apply, where reports indicate that Plus500 imposes a more excessive fee than competing brokers. Corporate actions like dividends and mergers, which impact equity and index CFDs, are passed on to traders. AVA Trade carries an inactivity and administration fee after three and twelve months of €50 and €100 or a currency equivalent. Plus500 charges a $10 inactivity fee per month, while an up to 0.7% currency conversion fee is present. Third-party processing fees apply, but both brokers waive internal charges. AvaTrade has a slight overall advantage against Plus500 regarding trading fees.
Plus500 grants traders lower spreads, but the overall pricing environment is uncompetitive.
Security and Trust
All client funds deposited with Plus500’s Cyprus subsidiary are held in segregated client bank accounts in accordance with the Cyprus Security and Exchange Commission’s (CySEC) client funds rules. Plus500AU Pty Ltd holds client money in a segregated trust account, in accordance with the Australian legal requirements.The Central Bank of Ireland provides the primary regulatory environment for AVA Trade. Client funds are fully segregated and protected under the ICCL (Investor Compensation Company LTD), up to €20,000. Six additional jurisdictions complete the regulatory network. ATrade, the Israeli subsidiary, was fined two times in 2019 for providing unlicensed services to traders. Overall, AVA Trade has a clean regulatory record and represents a trustworthy broker.
Plus500 is primarily regulated by the UK Financial Conduct Authority (FCA), while five alternative regulators provide additional oversight. The Financial Services Compensation Scheme (FSCS) protects deposits up to £85,000 in case of default, and funds remain segregated. In 2012, the FCA fined this broker for not reporting transactions accurately. In the 2017 annual report to shareholders, no profits or losses from client trading activity for 2015 through 2017 were reported. In February of 2019, a revision revealed a $103 million loss for 2017 alone. When it comes to regulation, both brokers have a solid regulatory framework, but AvaTrade has a cleaner long-term record.
AVA Trade has a clean regulatory record aside from two fines in 2019 against its Israeli subsidiary ATrade.
Plus500 had regulation in multiple reliable jurisdictions.
AvaTrade Vs Plus500 – Verdict
AVA Trade maintains an excellent choice of trading platforms, where over 1,000 assets are available in a largely commission-free cost-structure. New traders have access to a sound trading academy and a 21-day demo trading account. Plus500 merely offers its WebTrader platform, where core features are notably missing. Automated trading is not supported, and this broker lacks a research section. Isolated marketing-inspired educational content is unacceptable. Traders are left with over 2,000 reasonably priced assets in a below-average trading platform. While both brokers have advantages and certainly they both have disadvantages, AVA Trade offers a superior and more trustworthy trading environment.
Which broker is better for beginner traders?
AvaTrade extends its advantage over Plus500 in the beginner traders category. Plus500 does not support the MT4 trading platform and fails to offer educational content to new traders. The sole benefit remains a deposits bonus structure, which is also available at AvaTrade. New traders also receive an in-depth educational section, strategies, and videos, plus market commentary on the AvaTrade blog.
Which trading platform is better: AvaTrade or Plus500?
AvaTrade enjoys a notable advantage when it comes to the quality of its trading platforms. Besides the MT4 and MT5 trading platforms, AvaTrade maintains its proprietary WebTrader, AvaOptions, and AvaTradeGO, together with three social trading platforms. Plus500 only offers its below-average proprietary trading platform, placing traders at a disadvantage and granting AvaTrade an edge.
Does AvaTrade or Plus500 offer lower pricing?
Both brokers offer commission-free CFD trading, but the minimum spread of 0.9 pips at AvaTrade trails the 0.8 pips at Plus500. Extending the lower pricing advantage at Plus500 is the unacceptable $50 inactivity fee at AvaTrade. While the difference in mark-up remains minimal on an individual basis, high-frequency traders will achieve a notable more beneficial cost structure at Plus500 over time.
What about MetaTrader and copy trading?
Plus500 neither supports the MT4 or MT5 trading platforms nor any social trading or copy trading options. AvaTrade offers traders the MT4 and MT5 trading platforms alike, but only the out-of-the-box versions, without necessary third-party upgrades. With three copy trading options, ZuluTrade, DupliTrade, and MQL5 Signal Service, AvaTrade grants traders competitive choices, not just compared to Plus500, but across the online broker industry.