Editor’s Verdict

Irish-headquartered AvaTrade grew into one of the most trusted and well-known brokers. The success of its educational division, SharpTrader, drove growth and resulted in a spin-out. AvaTrade focuses on growing its market share behind an excellent choice of trading platforms and a wide choice of assets. I reviewed AvaTrade to determine if its advertised next generation of trading tools provide traders with a competitive edge. Does AvaTrade deserve your deposits?

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Overall
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Fees
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Deposit and withdrawal
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Asset selection
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Ease of account opening
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Regulation and security
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Pros
  • High-quality educational offering via SharpTrader

  • 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

Cons
  • Trading costs competitive but nothing special

Overview

AvaTrade Overview - A Trusted Broker with Excellent Educational Resources

HeadquartersIreland
RegulatedCentral Bank of Ireland, ASIC, BVI, FFAJ, FSCA
Year Established2006
Execution TypeMarket Maker
Minimum Deposit$100
Trading Platforms(s)MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based
Signals
US Persons Accepted?
Islamic Account
Segregated Account
Managed Accounts
Support HoursUnspecified (market hours noted)
Customer Supportemail-support chat-support
Demo Account

AvaTrade offers traders a broad range of trading platforms, including a dedicated options trading platform and its proprietary mobile app and social trading platform. The available assets present a balanced mix, offering clients in-depth cross-asset diversification from a commission-free pricing environment.

AvaTrade Main Features

Retail Loss Rate
71.00%
Regulation
Yes
Minimum Raw Spreads
Not applicable
Minimum Standard Spreads
0.9pips
Minimum Commission for Forex
Commission-free
Commission for CFDs/DMA
Commission-free
Commission Rebates
Not applicable
Minimum Deposit
$100
Demo Account
Yes
Managed Account
No
Islamic Account
Yes
Inactivity Fee
$50 after three months, recurring
Deposit Fee
No
Withdrawal Fee
Third-party
Funding Methods
5

Regulation and Security

Trading with a regulated broker will limit the potential for fraud and malpractice. I always recommend traders to check for regulation and verify it with the regulator by checking the provided license with their database. AvaTrade presents clients with seven well-regulated entities.

Country of the Regulator
Name of the Regulator
Regulatory License Number
Ireland
Central Bank of Ireland
Reference Number C53877
The British Virgin Islands
Financial Services Commission
License Number SIBA/L/13/1049
Australia
Australian Securities and Investments Commission
License Number 406684
South Africa
South African Financial Sector Conduct Authority
License Number 45984
Japan
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
Israel Securities Authority
License Number 514666577

The regulatory environment at AvaTrade is outstanding and one of the most trusted industry wide. AvaTrade segregates client deposits from corporate funds and offers negative balance protection. Select jurisdictions also maintain an investor compensation fund.

I want to note that the trading environments offered by these seven jurisdictions are significantly different, as the relevant regulators have varying degrees of restrictions. Since most international traders have choices, I recommend selecting the one, if possible, that is best suited to achieve your trading goals. While most beginner traders will find each regulatory environment equally satisfactory, the British Virgin Islands or South Africa may be the best suited for committed, active traders requiring higher maximum leverage.

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Fees

Commissions/SpreadsSpread
Withdrawal options
  • :
  • Deposit options
  • :
  • AvaTrade offers traders a commission-free pricing environment, but it comes with higher spreads. The EUR/USD starts with 0.9 pips or $9 per 1.0 standard lot.

    Equity traders pay a minimum spread of 0.13%, also commission-free. Some equity traders may achieve a competitive pricing environment on select assets, dependent on trading volume and duration. Index and commodity traders get the best offer, as trading costs here rank among the best industry wide.

    AvaTrade Forex Spreads

    AvaTrade Forex spreads remain relatively higher compared to fully commission-based brokers.

    Minimum Forex
    Commission per Round Lot
    Cost per 1.0 Standard Lot
    0.9 pips (minimum)
    $0.00
    $9.00
    1.5 pips (average)
    $0.00
    $15.00

    One of the most ignored trading costs is swap rates on leveraged overnight positions. Depending on the trading strategy, it may become the most significant fee per trade. I always recommend that traders check them before evaluating the total trading costs.

    MT4/MT5 traders can easily access swap rates from their platform by following these steps:

    1. Right-click on the desired symbol in the Market Watch window and select Specification.

    2. Scroll down until you see Swap Long and Swap Short.

    Below is a list of trading cost examples for buying and selling the EUR/USD, holding the trade for one night and seven nights, in the commission-free AvaTrade account.

    Taking a 1 standard lot buy/sell position, in the EUR/USD at the tightest spread and holding it for one night will cost the following:

    Minimum Spread
    Commission per Round Lot
    Swap Long
    Swap Short
    Total Trading Costs
    0.9 pips
    $0.00
    -$7.58
    X
    $16.58
    0.9 pips
    $0.00
    X
    -$3.62
    $12.62

    Taking a 1 standard lot buy/sell position, in the EUR/USD at the tightest spread and holding it for seven nights will cost the following:

    Minimum Spread
    Commission per Round Lot
    Swap Long
    Swap Short
    Total Trading Costs
    0.9 pips
    $0.00
    -$53.06
    X
    $62.06
    0.9 pips
    $0.00
    X
    $25.34
    $34.34

    Traders must consider if the product and services portfolio at AvaTrade warrants higher trading costs, which remains an individual decision. I also want to point out the recurring inactivity fee of $50 after three months of dormancy, faster than most brokers but not an issue for active traders. After twelve months of inactivity, an administration fee of $100 applies.

    What Can I Trade

    AvaTrade has 55 currency pairs, 16 cryptocurrency pairs, 27 commodities, and 31 index CFDs. Equity traders get 614 assets and 58 ETFs, while 44 options and two bond CFDs complete the asset list. I like the asset selection as it remains a well-balanced choice of trading instruments, suitable for all traders.

    Asset List and Leverage Overview

    Commodities
    Metals:
    Indices
    CFDs
    Oil
    Gold
    ETFs

    AvaTrade Leverage

    The leverage at AvaTrade depends on the regulatory jurisdictions. Most retail traders get a maximum of 1:30, in line with ESMA restrictions. Traders through the British Virgin Islands, South Africa, and professional clients qualify for maximum leverage up to 1:400.

    AvaTrade Trading Hours (GMT)

    Asset Class
    From
    To
    Cryptocurrencies
    Monday 00:00
    Sunday 24:00
    Forex
    Monday 00:00
    Friday 24:00
    Commodities
    Sunday 22:00
    Friday 20:59
    European CFDs
    Monday 07:00
    Friday 15:59
    US CFDs
    Monday 13:30
    Friday 19:59

    Please note that equity markets open and close each trading and are not operational continuously like Forex and cryptocurrencies.

    I recommend the following step for MT4/MT5 traders to access trading hours:

    1. Right-click on the desired symbol in the Market Watch window and select Specification.

    2. Scroll down until you see Sessions.

    Account Types

    I like that AvaTrade offers the same trading account to all traders. An option to qualify for a professional account exists, but the requirements remain high, per regulatory stipulations, and most will not achieve this status. The minimum deposit is an acceptable $100, and the trading conditions warrant it. Leverage depends on the regulatory jurisdiction of the AvaTrade subsidiary, ranging between 1:30 to 1:400 for retail traders.

    AvaTrade Demo Account

    A demo account is available but restricted to 21 days, which is a little on the short side. However, potential clients may contact customer support to extend the trial or open a new demo account. I would like to see AvaTrade provide an unlimited demo account for beginner traders and those testing strategies and algorithmic trading solutions.

    AvaTrade Demo Account

    Trading Platforms

    AvaTrade offers traders a familiarity with MT4/MT5, is a leader in algorithmic trading, and is equipped with an integrated copy trading platform. It also deploys its proprietary WebTrader and mobile app AvaTradeGO, where it embeds services provided by Trading Central, additionally available as an MT4/MT5 plugin.

    I like that AvaTrade invested in a proprietary social trading platform, Ava Social. It shows that AvaTrade monitors its trends and commits capital where necessary to deliver the services its client-base requests. Another nice touch is the options trading platform, AvaOptions, dedicated to vanilla options traders.

    Overview of Trading Platforms

    Platform Languages
      • English
  • OS Compatibility
      • Mac
      • Windows
      • Linux
      • Mobile
      • Web
      • iPhone
      • iPad
  • Charting Package
    Scalping
    Hedging
    Mobile Alerts
    E-mail Alerts
    Guaranteed Limit Orders
    Guaranteed Execution
    One-click Execution
    OCO Orders
    Interest on Margin
    Web-based Trading
    Mobile Trading
    MT4
    MT5
    cTrader
    Proprietary Platform
    Automated Trading
    Guaranteed Stop Loss

    Unique Features

    Besides services by Trading Central, ideal for beginner traders and those unable to conduct broad-based market analytics, I like the Trading Position Calculator AvaTrade maintains on its website. It presents an excellent risk management tool, provides vital trading information, and allows traders to plan and maintain their portfolios.

    Another fact I want to note is the superb transparency at AvaTrade, which ensures all necessary information for each trading instrument is publicly available on its website.

    AvaTrade Trading Position Calculator

    Research and Education

    Quality research at AvaTrade remains limited to services by Trading Central, which I find an intelligent solution. It frees up resources and allows AvaTrade to focus on its core business while presenting clients with a trusted third-party solution. The AvaTrade blog features brief market commentary, but nothing as valuable as Trading Central.

    AvaTrade shines when it comes to education and displays care for beginner traders. While the official website featured content, the primary service is available at SharpTrader. AvaTrade spun out the educational section amid tremendous success, and it remains one of the best overall resources for new traders across the industry. SharpTrader delivers over 40 courses and 200 videos, and I highly recommend beginner traders to take their time with valuable lessons.

    SharpTrader by AvaTrade

    Customer Support

    Support HoursUnspecified (market hours noted)
    Customer Supportemail-support chat-support
    Website Languages
      • English
      • Spanish
      • Arabic
      • Italian
      • French
      • German
      • Japanese
      • Chinese
      • Russian
      • Portuguese
      • Swedish
      • Finnish
  • The bulk of customer support at AvaTrade consists of its FAQ section and its chatbot. E-mail and phone support are equally available, and the multi-lingual customer support team stands by during market hours. AvaTrade explains its products and services well, and I think most will never require assistance. In case the need arises, AvaTrade ensures easy access to customer support.

    AvaTrade Customer Support

    Bonuses and Promotions

    Bonuses and promotions at AvaTrade are available at select subsidiaries, dependent on the regulator. Where available, AvaTrade presents traders with a deposit bonus and a refer-a-friend program. Terms and conditions apply, and I recommend traders read and understand them before requesting a bonus.

    AvaTrade Deposit Bonus

    AvaTrade Refer-a-Friend Program

    Opening an Account

    The account opening process at AvaTrade for international traders requires only an e-mail and password. Some jurisdictions may require additional information. As AvaTrade is a regulated broker, account verification is a mandatory final step, per AML/KYC stipulations. Most traders will satisfy it by sending a copy of their ID and one proof of residency document. I like the simplicity AvaTrade deploys here.

    AvaTrade Account Opening Form

    AvaTrade Account Verification

    Minimum Deposit

    The minimum deposit at AvaTrade is $100, a reasonable request but higher than at some other Forex brokers. I recommend depositing at least $200 to qualify for the deposit bonus for superior long-term portfolio growth.

    Payment Methods

    AvaTrade offers bank wires, credit/debit cards, Skrill, Neteller, and PayPal. I think most traders will find them suitable.

    Accepted Countries

    AvaTrade caters to most international traders, including the UK, South Africa, Malaysia, Canada, and India. AvaTrade does not accept traders who are US persons.

    Deposits and Withdrawals

    The secure back office at AvaTrade processes deposits and withdrawals. AvaTrade does not levy internal costs on transactions, but third-party fees may apply. I recommend traders double-check with their preferred payment processor about this. While AvaTrade processes withdrawal within 24 hours, it may take up to ten business days for traders to receive their funds. The overall process remains swift, but I would like AvaTrade to add cryptocurrencies as an option.

    AvaTrade Deposit Methods

    AvaTrade Withdrawal Processing Times

    Summary

    I like the trading environment at AvaTrade as it presents a range of trading platforms and enough assets suitable for most investors and traders. It also offers one of the best choices for beginner traders and a secure and trustworthy trading environment with a high level of transparency. Overall, I rank AvaTrade as one of the best retail brokers available.

    AvaTrade deserves a positive review. Fees are reasonably competitive for depositors, especially those trading individual stocks and shares wrapped as CFDs. The range of assets offered for trading is unusually diverse, including even Forex vanilla options and several ETFs (exchange traded funds), as well as a large range of individual stocks and shares, making AvaTrade a more suitable broker for traders seeking diversification across markets. AvaTrade’s reputation is right up at the high end of the industry, with a lengthy track record and good regulatory standing in the European Union, which is particularly impressive, not to mention its good standing in Australia.

    AvaTrade alternative brokers & comparison

    FAQs

    Is AvaTrade legitimate?

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    Yes, AvaTrade is legitimate. AvaTrade was founded in 2006 and became one of the most trusted and transparent Forex brokers worldwide

    How long does it take to withdraw money from AvaTrade?

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    AvaTrade processes withdrawals within 24 hours, but it may take up to ten business days for traders to receive funds.

    Is AvaTrade good for beginners?

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    AvaTrade is one of the best brokers for beginners due to its trading academy, SharpTrader.

    Is it safe to trade with AvaTrade?

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    AvaTrade has seven regulators, extensive experience, and remains one of the most transparent brokers. Therefore, it is safe to trade with AvaTrade.

    About the Author

    DailyForex.com Team
    The DailyForex.com team is comprised of analysts and researchers from around the world who watch the market throughout the day to provide you with unique perspectives and helpful analysis that can help improve your Forex trading.