AvaTrade Forex Broker Review

AvaTrade Review: This is how the evaluation is made

The international forex and CFD broker AvaTrade is one of the companies that have been active for many years. The broker was founded in 2006 under the name AvaFX, with a focus on forex trading. Since 2013, the provider has been operating under the company name AvaTrade with an expanded trading offering that also includes CFDs on numerous underlying assets.

AvaTrade is based in Ireland but has a holding company in the British Virgin Islands and offices in Tokyo, Milan, Paris, Sydney, Shanghai, and Ulaanbaatar. Customers of the broker gain experience with a broad portfolio, trade on various first-class platforms and, thanks to the good educational offer, can prepare well for real money trading. Therefore, the provider always scores well in the assessment. More about fees, underlying values ​​and services in the following review.

Avatrade pros and cons

► Forex and CFD broker headquartered in Ireland with numerous international offices
► Extensive portfolio, transparent conditions
► Initial payments of 100 euros or more are also aimed at small investors
► Competent customer support, also in other languages, demo account and educational resources

► Comparatively high spreads

How does the AvaTrade appraisal work?

The review includes different, always the same evaluation criteria over predetermined categories. Our editorial team’s experience comes into play here, as do the reviews of traders. We also consult possible awards and reviews in the trade press in order to be able to include the most extensive experience possible. In addition to a careful look at the fees and the tradable values, the editors also test the educational resources that the broker makes available and the services of the support.

With this procedure based on a uniform system, the trial results should be made understandable for interested traders. In addition, good comparability of the results is guaranteed. AvaTrade scores well in the assessment thanks to its extensive forex portfolio, but the tradable share CFDs also support a positive rating. The low initial deposit and the transparent conditions make the broker a suitable partner even for beginners. There is only a small deduction for the limitation of the demo account.

AvaTrade offers a wide range of Forex, stock CFDs and options

There are around 55 currency pairs available for trading. The Forex majors and minors are offered, i.e. currency pairs on the US dollar or euro, Swiss franc and British pound. This can also be found with other brokers, but there is also the possibility of speculating on interesting exotic currencies. This clearly sets the provider apart in the forex broker comparison . As traders gain trading experience, they value emerging market currencies. Exotics prove to be riskier in trade, but they also offer attractive potential returns. Traders will find the following values ​​at the broker for example in the course of the exchange rate against US dollars, euros or British pounds:

► Mexican peso
► Polish zloty
► Israeli shekel
► Turkish lira
► Chilean peso
► Singapore dollar

AvaTrade fees in Forex trading

The costs incurred in trading result, as experience with AvaTrade quickly shows, from the market maker business model. So traders trade against the broker who quotes the prices. These are a little above the market average, but are still cheap enough. The trading costs make up the spreads, there are no further commissions in forex trading. Depending on the liquidity of the underlying asset, the spreads start at less than 1 pip. For selected currency pairs they are:

► EUR / USD 0.9 pips
► GBP / USD 1.6 pips
► AUD / USD 1.1 pips
► USD / JPY 1.1 pips

There are no other fees, and there are no processing costs for deposits and withdrawals at AvaTrade – only an inactivity fee is charged if you are absent for more than 90 days.

AvaTrade trading crypto CFDs

The forex portfolio at AvaTrade is complemented by the possibility of speculating on cryptocurrencies. With CFDs, traders can participate in the price development of the most famous crypto coins against US dollars, but also against the euro or Japanese yen. The broker goes beyond the usual top five and offers its customers, in addition to Bitcoin, Bitcoin Cash, Ethereum, Litecoin and Ripple, other coins and tokens such as EOS, DASH and MIOTA. The Krypto10 index is also available as a base value for CFD trading. With the index, traders trade a bundle of the ten strongest cryptocurrencies by market capitalization with a single CFD. Customers who want to experience trading in this interesting asset class can buy Bitcoin using a credit cardwithout the need for special client software or a crypto wallet.

AvaTrade Assessment of Spreads on Crypto CFDs

Since trading in cryptocurrencies at AvaTrade takes place via CFDs, traders only pay the spread here as well. The spreads on the values ​​offered can be viewed thanks to a table on the broker’s website. The spreads are provided with an over-market premium, which is as follows for the best-known values:

► BTC / USD 0.28%
► ETH / USD 0.45%
► BCH / USD 1.25%

Customers will find comparable trading costs with a relatively large crypto offer in the context of their AxiTrader experience .

CFD trading at AvaTrade: Wide range of stocks

CFD trading is the Irish broker’s second mainstay alongside forex trading. Here traders will find a portfolio that does not consist of thousands of underlying assets, but is extensive and versatile enough for a wealth of trading strategies. The following are tradable, for example:

More than 600 shares of well-known companies, including US companies such as Microsoft, Facebook and Apple, as well as European shares such as the shares of Intesa San Paolo, Telecom Italia, Credit Agricole, and also German DAX companies

► Over 20 global indices, including the DAX and its subsidiary indices, are represented
► Bonds such as Euro bonds and Japanese government bonds
► Around 60 ETFs from well-known issuers such as Invesco, iShares, Direxion Daily and MSCI products
► Crude oil and gas
► Silver, gold, platinum, palladium and copper
► Agricultural commodities
► Overview of CFD trading costs

AvaTrade adds a surcharge to the spreads when trading CFDs. Interested readers can view these surcharges in detail on the broker’s website. When trading CFDs on stocks and ETFs, a commission is charged, as is done by most brokers. This depends on the trading volume and amounts to a value between 0.13% and 0.16%. Index CFDs are subject to a mark-up on the market spread, which is 1.50 for a DAX CFD. Gold traders can trade against a spread of 0.34.

AvaTrade Options: Trade call and put options

An interesting component of the trading offer at AvaTrade, which not every broker can offer in the CFD broker comparison , is option trading. With call and put options, AvaTrade customers can experience speculation on the prices of the most liquid forex pairs and the price of gold and silver in the spot market. The terms of the options offered cover the whole range from one day to one year. Trading is done using software called AvaOptions, specially designed for options trading. Traders gain access to options trading via the platform, for example on the EUREX and the Chicago Board Options Exchange, and with appropriate preparation and experience can exploit the potential returns of these instruments.

Options Trading Costs at AvaTrade: Commissions on Stock CFDs

Trading takes place via the in-house AvaOptions platform; the forex options offered are European standard options. The so-called option premium is given in the second currency and is deducted from the balance on the trading account when the option is purchased. So this has to exceed the required margin. After an option is sold, the proceeds are again credited to the trading account. Short sales are possible, options can be traded up to 24 hours before expiry.

The trading conditions: This is where AxiTrader shows itself to be decent in the standard and pro account

As a look at the broker’s accounts and conditions shows, AvaTrade is a so-called market maker – the broker maps the market for his customers and sets the prices himself. When trading, therefore, only those spreads are charged for most of the underlyings that are a little above the market average. The broker certainly copes with the challenge of covering his profit without burdening the trader with excessively high spreads, so you can not find rip-offs at AvaTrade.

There are only commissions, as is customary in the industry, when trading share CFDs and contracts on ETFs. The minimum trade sizes in forex trading start at 0.01 lot. A maximum position size is not specified. The first deposit is at the lowest level at 100 euros, which also makes it easier for small investors to access trading. There are no hidden costs, but the broker charges a monthly fee of 50 euros after more than 90 days of inactivity. As this is clearly communicated in the terms and conditions, AvaTrade cannot be accused of fraud.

Leverage and order types at AvaTrade

The leverage factors that can be used for private customers correspond to the requirements of ESMA. Limiting the leverage is intended to prevent traders from becoming indebted. In fact, the leverage is nothing more than a short term loan from the broker that can be used to increase trading volume and returns. The leverage is for

► Forex Principal Values ​​30: 1
► Forex small caps, major indices and gold 20: 1
► Secondary indices and commodities 10: 1
► Stocks, bonds and ETF 5: 1
► Cryptocurrencies 2: 1

Thanks to the ability to use market and limit orders, traders can protect themselves against losses and take profits. Stop and entry orders, trailing stops, If Done, OCO orders and Take Profit orders can also be used.

The AvaTrade account types: accounts for private and professional traders

As for the account models available, AvaTrade makes it easy for users to choose. A professional account is offered, which is aimed at full-time traders. The requirements for opening an account are high, so candidates must have professional experience in the financial sector as well as trading experience. While professional traders can use very high leverage of up to 1: 400, the majority of investors will prefer to open a retail account with this broker.

As already described, the leverage here is limited due to the requirements of the market surveillance authority ESMA. The amount of the first deposit is 100 euros, but the broker recommends a balance of at least 1,000 to 2,000 euros on the trading account for sensible trading strategies. Traders will find a similarly low minimum deposit in the course of the Admiral Markets experience . Immediately after setting up the account, traders can access all of their services. An Islamic account is also offered to enable trading at AvaTrade for those interested in the Muslim faith.

Thanks to the demo account, which is also available, interested users can form their own opinion and subject both the trading platforms and the services of the broker to their own assessment. Registration for both the demo and the live account takes place online and takes just a few steps. For a real money account, verification is part of the process.

The trading platforms at AvaTrade: MetaTrader, Options Platform and Social Trading

The quality and choice of trading platforms is undoubtedly one of their great strengths. Experiences for beginners are particularly intuitive with the broker’s proprietary WebTrader, whose clear and yet highly functional design is also quickly understood by beginners. The software can be used from the web browser on all end devices and operating systems and can therefore be described as a particularly flexible solution.

MetaTrader is also offered in both versions. The well-known trading platform is probably the most popular software worldwide, advanced traders will have already used the MetaTrader and do not have to change. At AvaTrade you can choose between MetaTrader 4 and the newer version 5. The latter is based on a different programming language and is therefore even more stable and faster than the MT4 in practice. In general, both versions are justifiably popular because of their range of features. The platform can largely be configured according to your own wishes and adapted through extensions. It convinces with the integrated tools and indicators for technical analysis, as well as the possibility of integrating Expert Advisors for the automation of trading.

The AvaOptions platform is its own software specially designed for options trading. Mobile apps for tablets and smartphones are also offered, both for MetaTrader and in the form of the AvaGO app. With AvaSocial, the broker presents an app for first AvaTrade experiences with social trading. Via the app, a joint offer with Pelican Trading, users can follow their role models and trade more profitably themselves by copying strategies.

AvaTrade Payment Methods: There are no fees

The payment options offered are also the subject of the evaluation in the broker trial. On the one hand, traders want to be able to capitalise their trading account quickly and easily, but on the other hand they also want to pay off the returns they have achieved later without high processing costs. If there are difficulties, high fees or disproportionate withdrawal limits, this is one of the main reasons for switching providers.

The experiences with AvaTrade are mostly pleasant in this regard. However, it turns out that customers within the EU can only use two payment methods – only payment by credit card and bank transfer are offered. The credit card must first be verified. Only customers outside the EU can use the popular e-wallets Neteller and Skrill. It is gratifying that the broker waives deposit fees.

Traders must apply for withdrawals from the trading account using a withdrawal form provided for this purpose. The form can be downloaded and filled out in the personal customer area. It will then be emailed to AvaTrade. The broker also does not charge any fees for withdrawals and does not set any limits. However, withdrawals must be made in the same way as the previous deposit.

The minimum deposit when using the credit card is 100 euros, but those who make their first deposit by bank transfer must deposit 500 euros. In the case of card payments, the value date is immediate; in the case of a bank transfer, it can take one to three working days until the credit is available for trading.

Unlike the majority of Forex and CFD brokers, AvaTrade also accepts deposits from third parties – in this case, however, only if the third person can also be verified by providing the usual documents.

The AvaTrade website: clear and informative

Interested customers probably get their first experience with AvaTrade via the website of the Irish Forex and CFD broker. The design of the website is therefore of particular importance for the first impression. This is where potential new customers want to find answers to the question “What is AvaTrade?” And find out more about the broker’s products and services.

The start page provides the most important information at a glance. Visitors can access further information with one click via the tidy menu

► Forex trading
► CFD trading
► Crypto currencies
► Trading platforms
► Trade info
► Learn to trade
► About AvaTrade

The tradable values, including the spreads, can be viewed in a tabular overview under Trading Info. Even before deciding on a trading account, visitors get an idea of ​​the possibilities and costs of trading with this broker. The website also provides information about the software and additional offers, including educational resources.

The information on the contact options and access to the Broker’s Help Center are located in the header, as are the buttons with which an account can be set up or a login is possible. Interested readers can find important information on licenses and regulations at the individual locations in the footer.

The website is entirely available in other languages, so there are no language difficulties whatsoever. The search function makes it easier to find information in the FAQ area and to answer the most common questions.

Additional AvaTrade Benefits: Demo Accounts, Social Trading, and Strong Educational Resources

The international forex and CFD broker also does not spoil the additional offers. It starts with the possibility to get your own impression without obligation with the help of the free demo account. The demo is not only offered for MetaTrader 4, but also for MT5. Interested users can first develop a feeling for the tradable values ​​and the functionality of the platforms with virtual capital in a realistic trading environment. However, even advanced traders appreciate such a demo to be able to check the services of the broker.

By registering for a demo account, traders can use the broker’s educational offers. The most important knowledge of financial instruments, trading processes and risk management are conveyed here in a variety of formats. Trading webinars, online courses, video tutorials on how to use the platforms, plus a free forex e-book and real-time news from the markets ensure that traders receive the information essential to trading success. Market analyses, an economic calendar, forex calculator and an overview of trading hours are also offered.

The fact that AvaTrade brings its customers closer to social trading is particularly advantageous for beginners. The connection of social networks with the trading software enables beginners to follow experienced signallers and learn by observing the role models. Strategies can be copied, if you take the time to analyse successes and failures, this accelerates your own learning curve and ensures that the first trading successes are achieved more quickly.

AvaTrade customer support: Good contact, FAQ and Help Center

How much a broker cares about customers can be seen in the educational offers and, of course, in the support. Sooner or later every trader needs the support of the support team, so contacting them should be free and easy. With regard to the contact options, AvaTrade is serious and accommodating. In the header of the website, traders can find the telephone support number as well as the link that leads to the Help Center.

The FAQ area is extremely extensive and can therefore answer most common questions exhaustively. Visitors can find the desired topics quickly thanks to the integrated search bar, but also via the thematic categories. If you can’t find what you are looking for here or need technical help, you can contact telephone support around the clock on workdays – or use the live chat module on the website.

You can contact us in writing by email. In all cases, traders report prompt, friendly and competent processing of their inquiries by the broker’s support team. Fortunately, there is a European-speaking customer service available, so that there are no communication problems. With its support offer, the broker proves that customer orientation has priority here and that there is no AvaTrade fraud to be feared.

Regulation and deposit protection at AvaTrade: Serious thanks to multiple regulations

The type of licensing, but also the regulatory financial supervisory authority, allow conclusions to be drawn about how correctly a financial service provider is doing. Because the supervisory authority ensures that business processes are carried out properly and that customer deposits are protected. Properly regulated forex and CFD brokers must keep traders’ funds in separate accounts, separate from the broker’s assets. Membership in a deposit protection fund is usually part of the requirements. AvaTrade refers to several regulations in the footer of the website, as the broker has numerous international branches in addition to its headquarters in Ireland:

► AVA Trade EU Ltd .: Central Bank of Ireland (No.C53877)
► AVA Trade Ltd: BVI Financial Services Commission (No. SIBA / L / 13/1049)
► Ava Capital Markets Australia Pty Ltd: ASIC (No. 406684) regulated.
► Ava Capital Markets Pty: Financial Sector Conduct Authority (FSCA No.45984) regulated
► Ava Trade Japan KK: Financial Services Agency (license number: 1662) and Financial Futures Association of Japan (license number: 1574)
► AVA Trade Middle East Ltd: Financial Services Regulatory Authority Abu Dhabi Global Market (No.190018)

European traders enjoy the protection of regulation by the Irish Central Bank when trading with AvaTrade. In the event of the broker’s bankruptcy, the Irish ICCL steps in and pays at least partial compensation to the traders. The information on licenses, regulations and existing deposit protection measures are communicated in detail and transparently on the AvaTrade website.

AvaTrade awards and reviews

Brokers who have been in business for many years can often point to a number of awards – if their offer deserves it. Insightful and prestigious awards are often presented on a separate page on the website because they create trust. They have also received numerous awards since its inception and lists them for visitors to the website. These include predicates such as

► Broker No. 1
► Best Forex Broker
► Best Bitcoin CFD Trading Provider of the Year
► Best affiliate program

They have has also received various awards for trade execution, training and innovation. It is interesting that the broker has received awards for its products, but also for its services, including customer service. This confirms the assessment in the areas already discussed, which are included in the broker review.

The broker’s awards go back more than ten years to 2009. They were awarded by European and international business magazines and platforms.

AvaTrade FAQs

► Is AvaTrade legitimate?

Yes, in any case. The CFD broker, AvaTrade, is regulated by various authorities, including the FSCA, the ASIC and the ICCL. In addition, they also has a proper deposit protection for customer funds.

► AvaTrade demo account?

Yes, they even offer a demo account with which both versions of MetaTrader can be tested risk-free with virtual credit. This is especially important for beginners to get to know day trading , but professionals can also use it to simulate various trading decisions in advance.

► What payment methods does AvaTrade offer?

They offer two payment options within the EU. These are credit cards and wire transfers. Customers outside the EU can also make payments via Neteller and Skrill.

► What can you trade on AvaTrade?

AvaTrade offers a wide range of tradable financial instruments. Forex pairs, stock CFDs and options are offered here, for example.

Conclusion on AvaTrade: Versatile Irish broker with a varied range of trades

In the broker appraisal, the AvaTrade experiences with the tradable financial products, but also with the services offered, are very convincing. The broker’s portfolio is not huge, but large and varied – in addition to hundreds of stocks, cryptocurrencies can be found among the underlying assets, and options trading is also possible.

The overview of the financial instruments and the costs associated with trading are quickly possible thanks to the table integrated in the website. This is where the market maker’s spreads prove to be competitive.

The educational resources are also of high quality in terms of the preparation and quality of the content and allow theoretical preparation for the trade. For the first practical steps, a free demo account is available with which both versions of MetaTrader can be tested.

The range of services is supplemented by social trading and easily accessible, competent customer support, which is also offered in multi-languages. It is therefore not surprising that the Irish Forex and CFD broker can boast numerous international awards.

Starting trading and implementing advanced strategies with this broker is equally pleasant for beginners and experienced traders. Only with the payment methods offered would one want a little more choice for customers within the EU.