AvaTrade Pros & Cons
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
Trading costs competitive but nothing special
Headquarters Ireland Regulators ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID Tier 1 Regulator(s)? Owned by Public Company? Year Established 2006 Execution Type(s) Market Maker Minimum Deposit $100 Negative Balance Protection Trading Platforms(s) Other, MetaTrader 4, MetaTrader 5, Web-based Average Trading Cost EUR/USD 0.9 pips Average Trading Cost GBP/USD 1.5 pips Average Trading Cost WTI Crude Oil $0.03 Average Trading Cost Gold $0.29 Average Trading Cost Bitcoin $39 Retail Loss Rate 77.82% Minimum Raw Spreads Not applicable Minimum Standard Spreads 0.9 pips Minimum Commission for Forex Commission-free Funding Methods 5(Bank wires, credit/debit cards, Skrill, Neteller, PayPalAvaTrade) Islamic Account Signals US Persons Accepted? Managed Accounts
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 Regulation and Security
|Country of the Regulator||United Arab Emirates, Australia, Ireland, Israel, Japan, British Virgin Islands, South Africa|
|Name of the Regulator||ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID|
|Regulatory License Number||C53877, SIBA/L/13/1049, 406684, 45984, 1662, 190018, 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.
AvaTrade Fees and Commissions
|Average Trading Cost EUR/USD||0.9 pips|
|Average Trading Cost GBP/USD||1.5 pips|
|Average Trading Cost WTI Crude Oil||$0.03|
|Average Trading Cost Gold||$0.29|
|Average Trading Cost Bitcoin||$39|
|Minimum Raw Spreads||Not applicable|
|Minimum Standard Spreads||0.9 pips|
|Minimum Commission for Forex||Commission-free|
|Inactivity Fee||$50 quarterly after 3 months|
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 remain relatively higher compared to fully commission-based brokers.
Commission per Round Lot
Cost per 1.0 Standard Lot
0.9 pips (minimum)
1.5 pips (average)
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:
Commission per Round Lot
Total Trading Costs
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:
Commission per Round Lot
Total Trading Costs
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 on AvaTrade?
At Avatrade traders can trade a range of popular cryptocurrencies, like Bitcoin plus Bitcoin Cash, Litecoin and Ethereum.
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
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)
|Currency Pairs||Monday 00:00||Friday 24:00|
|Cryptocurrencies||Monday 00:00||Sunday 24:00|
|Commodities||Sunday 22:00||Friday 20:59|
|Crude Oil||Sunday 22:00||Friday 21:00|
|Gold||Sunday 22:00||Friday 21:00|
|Metals||Sunday 22:00||Friday 20:59|
|Equity Indices||Monday 07:00||Sunday 19:59|
|Bonds||Sunday 23:45||Friday 20:59|
|ETFs||Monday 07:00||Sunday 19:59|
AvaTrade 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 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 trading platforms.
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
|Guaranteed Stop Loss|
|Interest on Margin|
AvaTrade offers clients its in-house developed risk management tool AvaProtect, which insures against losing trades, for a fee, allowing traders a further option to hedge their risk.
How to activate AvaProtect?
AvaProtect is available on every asset AvaProtect covers, marked by a yellow shield, displayed between the bid and ask price.
Here is how to activate AvaProtect:
- Select an asset covered by AvaProtect
- Click the AvaProtect icon
- Choose the duration of your protection
- Evaluate the fee and expiry date
- Execute your AvaProtect trade
How much does AvaProtect cost?
The cost depends on the asset, expected volatility, and duration. AvaTrade will display the fee, which it deducts from your account balance when you execute your trade, and traders agree to it by taking the position.
What protection timeframes are available with AvaProtect?
AvaProtect has 1-day and 2-days timeframes, with 1-hour, 3-hour, 6-hour, and 12-hour sub-periods.
How does AvaProtect work?
Traders pay a fee for the protection period, and if they close their trade with a profit, they keep it. Traders who close their position at a loss during the protection period get automatically reimbursed by AvaTrade but face the loss if they exit it after AvaProtect expires.
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.
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.
|Customer Support Methods|
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.
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 Opening 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.
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.
AvaTrade caters to most international traders, including:
- South Africa
AvaTrade does not accept traders who are US persons.
AvaTrade Deposit and Withdrawal Methods
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.
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.