Abstract：This article reveals several important aspects of AvaTrade, including trading products offered, trading costs, spreads and commissions, trading platforms, deposit and withdrawal, pros and cons for your reference.
Overview
1. Introduction
2. Regulation
3. WikiFX Field Survey
4. Market Instruments
5. Account Types
6. Fees, Commissions and Spreads
7. Deposit & Withdrawal
8. Trading Platforms
9. Customer Support
10. Eduacational Resources
11. Conclusion
A Brief Introduction
To help you decide if AvaTrade is a good fit for your trading needs, this review examines the pros and cons of this global forex brokerage, including the trading products offered, trading expenses, spreads and commissions, trading platforms, deposit and withdrawal and more.
About AvaTrade
Established in 2006, AvaTrade is an online forex and CFD broker belonging to the AvaTrade Group of financial companies, headquartered in Ireland, with its operations in Japan, Australia, and the British Virgin Islands. AvaTrade has now grown to offering retail investors Forex trading, Cryptocurrencies trading, Commodities trading, Indices trading, Stocks trading, Bonds trading, Vanilla Options trading, ETFs trading, CFDs trading, Spread Betting trading, and Social trading. AvaTrade gives its clients access to a wide selection of trading platforms, multilingual customer support.
A Glance of Basic Information of AvaTrade:
On the WikiFX website, AvaTrade gets an overall score of 8.04 based on five indexes: License Index, Business Index, Risk Management Index, Software Index and Regulatory Index.
AvaTrade is on the list of 2022 10 Best Forex Brokers in the world, for being well-regulated, offering access to a wide selection of trading platforms, transparent and fair cost structure, excellent for copy trading, convenient deposit and withdrawal process.
View more details from the following video:
Pros and Cons of AvaTrade
The advantage and disadvantage of AvaTrade are listed below:
WikiFX Field Survey
To see if the physical location of AvaTrade's licensed company is consistent with the address on its official license. As scheduled, members of the WikiFX Field Survey team traveled to Tokyo, Japan, to meet with representatives from the dealer AVATRADE. To verify that the dealer has a physical location, look for the dealer's emblem on the street address that is visible to the public. After being welcomed by firm employees and the president, investigators were given permission to take images inside the business. However, investors are advised to make a well-informed decision based on this field survey.
Regulation
WikiFX shows that AvaTrade has five entities regulated in respective jurisdictions. We should also point out that this brokerage is not regulated by the FCA, the UK's tier-one regulatory agency, which may be a major con in terms of regulation.
Market Instruments
AvaTrade provides access to more than 1250 trading instruments across different asset classes, including Forex Exchange, Commodities, Precious Metals, Cryptocurrencies, Indices, Bonds, Stock, ETFs, Options
Account Types
A Standard account and a demo account are the only two account types available to most traders at AvaTrade, with minimum initial deposit to open this account from $100 via credit cards, $500 via wire transfer.
professional traders can open MAM accounts so that they can simply handle several accounts on behalf of their clients. For a professional account, you must meet two of the following requirements:
✅A sufficient volume of transactions has taken place throughout the last year.
✅Relevant financial services sector experience
✅A portfolio of over €500,000 (including cash saving and financial instruments)
For Muslim traders, AvaTrade offers “swap free accounts” that function in conformity with Islamic Sharia Principles of overnight interest-free trading.
Negative balance protection is also available at AvaTrade. This assures that customers will not lose more than the amount in their accounts.
Fees, Commissions and Spreads
As a commission-free broker, AvaTrade does not charge a fixed fee for trading. Whatever you trade on AvaTrade, this is true.
However, AvaTrade is not completely free. Spread is charged on every transaction. For example, if you qualify as a professional trader, the spread cost for EURUSD is 0.6 pips instead of the standard 0.9 pips.
Forex-The forex trading is based on the standard spread in normal market conditions, with spread cost= spread*trade size. The spread cost for a 3,000 EUR/USD trade with 3 pips spread is $0.90 (0.0003*3000).
Commodities - Trading in commodities is governed by the Standard Spread, sometimes known as the “Spread Over Market.” Gold's spread costs 0.29, while Platinum's costs $1.10 above market value.
Cryptocurrencies - The spread for BTCUSD is 0.20% over market, and for Etherum, it is 0.25% over market.
Equities -Except when mentioned, individual stocks trading is subject to 'Spread Over Market'; that is, the current market spread is marked up. There is a 0.13 percent spread cost on Apple and Amazon stock.
Additionally, interest is levied daily for any open position that remains open at the overnight rate. According to the Daily Overnight Interest Buy(or Sell) rate of 0.0%, a fee of €0.11 for the aforementioned 2,000 EUR/USD exchange is calculated as 2,000*0.00%= 0.000055. (Quoted in primary currency).
In terms of GBP/USD and USD/JPY, the average spread costs are 1.16 and 1.11.
Lastly, after three months of inactivity, AvaTrade charges a $50 quarterly inactivity fee. In addition, a $100 annual administration charge will be withheld after 12 months of non-use.
Deposit & Withdrawal
AvaTrade allows standard payment options, such as debit card, credit card, e-wallet (Neteller, Skrill, and WebMoney), and bank transfer. If you fill your account via debit, credit, or e-wallet, the minimum deposit required by AvaTrade is only $100. When funding an account via direct deposit, the minimum amount increases to $500. If you deposit at least $1,000 into your account, AvaTrade will assign you a personal account manager to help you get started.
If the account verification process has been completed and accepted by AvaTrade, a withdrawal request will be processed within 24 to 48 hours. Credit cards, debit cards, and e-money all go through this process. While Transferring money by wire transfer can take up to 10 business days to show up in your account.
Trading Platforms
Traders with AvaTrade are given a wide selection of trading platform options, including two proprietary trading platforms (AvaTrade WebTrader and AvaOptions), the full MetaTrader suite (MT4 & MT5), ZuluTrade, and DupliTrade (accessible via WebTrader).
AvaOptions: AvaTrade offers AvaOptions, for PC and mobile, to options traders who deposit at least $1,000. Microsoft's.NET Framework 3.5 SP1 is required to run the desktop version on Windows. The platform's interface to be difficult to navigate even for an experienced trader. AvaSocial, the broker's social trading and copy trading tool, is also available to AvaTrade customers. The smartphone app, which is available on both iOS and Android devices, allows users to copy the trade of successful traders.
AvaTradeGO is a trading app offered by AvaTrade, asy to track social trading with its intuitive features. AvaTradeGO provides an excellent user experience, and its notification, price alerts, and charting features assist traders get key financial information for clear market analysis, according to customer reviews.
Automated Trading AvaTrade also offers automated trading platforms like ZuluTrade and DupliTrade. Traders can follow in the footsteps of more experienced traders by using these tools to replicate their trades. AvaTrade features a variety of auto trading tools for experienced traders, as well as a team of advisors who can help you.
Customer Support
AvaTrade's customer care representatives are on call around the clock, five days a week, during regular business hours, whenever the markets are open.
Live chat, phone, and email options are available for clients to get in touch with the company. Traders can get help in a variety of languages, including 21 different countries throughout Europe, 2 countries in Africa, 6 countries across Asia, 4 countries across South America, 2 countries in the Middle East and Australia.
Educational Resources
AvaTrade provides a variety of educational resources, which enables clients to trade confidently. This library of ebooks, videos, articles, and webinars will benefit traders of all levels. A demo trading account is also available to AvaTrade users, allowing them to practice trading without risking their own money.
Some of the trading courses and other educational materials offered through AvaTrade include :
Concusion
Regulated by multiple regulatory authorities, AvaTrade offers no-fee withdrawals and deposits, cheap trading costs, and a risk-free test account. When it comes to research and education, AvaTrade has plenty to offer. The high non-trading costs, currency conversion fees, and non 7x 24 customer care might be substantial drawbacks despite the many benefits. Investors should make a comprehensive consideration before trading with this brokerage.
