Abstract：AvaTrade is a forex and CFD broker who was initially established in Ireland in 2006, and now has offices in 37 countries all over the world after 27 years of development. The company is currently regulated by 6 supervisory authorities by ASIC, FSA, FFAJ, ADGM, CBI, and FSCA in several countries.
AvaTrade is a forex and CFD broker who was initially established in Ireland in 2006, and now has offices in 37 countries all over the world after 27 years of development. The company is currently regulated by 6 supervisory authorities by ASIC, FSA, FFAJ, ADGM, CBI, and FSCA in several countries.
AvaTrade's trading products mainly include CFDs on forex, indices, commodities, cryptos, stocks, ETFs, bonds, and FX options.
The broker offers a demo account for practicing and a Standard live account with an affordable minimum deposit of $100. You can upgrade to a professional VIP account for higher leverage and lower margin.
Trades are executed on the industry-leading MetaTrader 4 and 5, as well as the broker's proprietary AvaTrade platform. Moreover, the broker features abundant educational resources for clients to equip them with essential knowledge and skills for successful trading.
However, there's still room for improvement on the broker's trading conditions and operational efficiency due to some negative exposures recorded on WikiFX.
AvaTrade Pros & Cons
AvaTrade Regulation & Security
Is AvaTrade safe? When reviewing AvaTrade, one of the primary concerns for beginners is the platform's safety and security. This is a question that almost all newcomers to investing prioritize. To address this concern, we will explore it from two crucial aspects: regulations and protection measures.
AvaTrade Regulations
AvaTrade is currently regulated in different countries by 6 major financial authorities:
- Australia Securities & Investment Commission (ASIC) in Australia
- Financial Services Agency (FSA) in Japan
- The Financial Futures Association of Japan (FFAJ) in Japan
- Abu Dhabi Global Market (ADGM) in United Arab Emirates
- Central Bank of Ireland (CBI) in Ireland
- Financial Sector Conduct Authority (FSCA) in South Africa
These regulatory bodies are authoritative in the industry, to some extent guarantees AvaTrade's stringent compliance to industry standards. When there are disputes, there will be intermediary reconciliation from these institutions.
You can always verify AvaTrade's regulatory status and explore its more details on WikiFX. WikiFX has the world's largest database of forex brokers, covering essential aspects such as company qualifications, regulatory status, historical performance, user reviews, and risk ratings, all rigorously verified. With over 60 regulatory agencies included, WikiFX provides a comprehensive resource for assessing the credibility of brokers like AvaTrade.
Security Measures
AvaTrade takes its own actions to protect both user information and funds to ensure a healthy circle of their services.
- 256-bit SSL Encryption: Encrypts all data transmitted on the website to protect personal and financial information from hackers.
- McAfee Secure (HackerSafe): AvaTrade employs McAfee Secure technology to protect users from credit card fraud, hacking, and identity theft, by regularly scanning their website for vulnerabilities.
- Segregation of Client Funds: All client funds are kept in separate accounts from AvaTrade's business funds, ensuring that client money will not be used for the company's operations or liabilities so clients can get their money back even when the company goes bankruptcy.
AvaTrade is not only backed by strong regulatory oversight to ensure legitimate financial activities, but also employs robust security measures to protect client funds and safeguard daily operations.
Market Instruments
AvaTrade offers a wide range of trading products across multiple asset classes, enabling traders to seize numerous market opportunities.
In Forex, users can trade a variety of currency pairs with competitive spreads. The broker also offers Indices like the S&P 500, Commodities such as Oil and Gold, and Crypto CFDs, allowing traders to speculate on digital assets without owning them.
AvaTrade also provides access to Stocks, ETFs, and Bonds, which are prefereable to both equity investors and those seeking fixed-income opportunities. Additionally, FX Options are available for greater flexibility in Forex trading.
For those interested in Futures, AvaTrade includes popular contracts for Oil, Gold, S&P 500, Treasuries, and more, expanding the range of trading opportunities.
AvaTrade Account Review
Account Types
AvaTrade offers a range of account options with attractive features for both new and experienced traders. For those who need to comply to Sharia laws, Islamic versions of these accounts are available to keep positions open for a maximum of 5 days without incurring the overnight fee.
For those just starting out, AvaTrade provides a demo account for user to practice trading and get familiar witht the platform without financial risk.
For retail clients engaged in live trading, the broker offers a Standard account with a minimum deposit of $100, accessible and acceptable for most traders.
- Professional Trading Account:
AvaTrade offers a Professional Trading Account for experienced traders seeking more flexibility, lower margin and higher leverage. To qualify, traders must meet at least two of the following criteria:
- A history of significant trading activity (at least 10 trades per quarter for the past year)
- Relevant professional experience in the financial services sector for more than one year
- Financial instrument portfolio of over €500,000 (including cash saving and financial instruments)
Proof of these requirements, such as trading account statements or employer letters are necessary.
Note: Professional account is only applicable in Austria, Italy, Belgium, Latvia, Bulgaria, Lithuania, Croatia, Luxembourg, Cyprus, Malta, Czech Republic, Netherlands, Denmark, Poland, Estonia, Portugal, Finland, Romania, France, Slovakia, Germany, Slovenia, Greece, Spain, Hungary, Sweden, Ireland and United Kingdom.
New Account Bonus Package
AvaTrade initiated a new account bonus program. However, you need to deposit at least $200 to be qualified for the first deposit bonus, which is available for clients with accounts in USD, EUR, AUD, and GBP base currencies.
The first deposit bonus for new clients can be up to $50,000 on their first deposit (deposits via Skrill and Neteller are not eligible for this bonus). Once the bonus is credited, it can be used to trade, but it is not withdrawable until your trading volume reaches 20,000 times the bonus amount (e.g., a $2,000 bonus requires 40,000,000 in trading volume).
-- The bonus will be canceled if you dont meet the required trading volume within 6 months.
-- The program is restricted in European countries, Canada, Japan, European countries, Canada, Japan, Bangladesh, China, Hong Kong, Indonesia, Iran, Macao, Malaysia, Mongolia, Pakistan, Taiwan, Thailand, Vietnam, United Kingdom, ADGM Regulation clients or UAE Clients under ADGM Regulation, and Australia.
--The bonus will be canceled if you withdraw your deposit before the bonus is liquidated.
AvaTrade's account options are limited for retail clients, with only one option. And you need to meet a series of rigorous requirements to upgrade to a professional account.
The bonus promotions might be appealing, particularly for new traders looking to get started with a smaller deposit. But you need to meet the trading volume requirements within the 6-month periodto fully access the bonus funds, which is harsh condition for those with limited capital and new to investment.
AvaProtect™
AvaProtect™ is an exclusive fee-based risk management tool offered by AvaTrade, designed to protect traders from losing trades. With AvaProtect, you can safeguard a specific trade against losses for up to one million dollars over a chosen time frame, in exchange for a modest premium (hedging fee). This protection is available on FX, Gold, and Silver trades through AvaTrades platforms: the AvaTradeGO app and WebTrader.
Once activated, AvaProtect shields your trade from adverse market movements. If trade incurs a loss within the protection period, AvaTrade reimburses the full loss (excluding the hedging fee) directly into your account. AvaProtect offers flexible timeframes ranging from 1 hour to 2 days, and you maintain control over your position, including the option to close or set stop-loss/take-profit orders.
The premium of AvaProtect is calculated according to the expected volatility (EV) of your underlying position, over the time frame of the contract in question. Fee details need to be checked with the broker directly.
AvaTrade Trading Platforms
AvaTrade offers several platforms for trading and market analysis, each with its own features for trading flexibility and accessibility.
AvaTrade
AvaTrade offers a proprietary trading platform called “AvaTrade”. It is versatile for its clients with access to over 1,000 instruments and comes an app version downloadable from iOS and Android phones as well as a web version.
This entry-level platform provides real-time market information and analysis, being friendly beginners.
AvaOptions
AvaOptionsis designed for those wanting to dive into forex options trading, with an app version available on iOS and Android devices.
It offers intuitive visual interface and advanced risk management tools to make complex options strategies accessible. Real-time pricing and risk analysis tools like Delta, Theta, and Vega allow traders to manage positions effectively. The app also features 13 option strategies, including spot, call, call spread, call ratio, put, put spread, put ratio, straddle, straddle, butterfly, condo, risk reversal, and seagull option strategies.
MetaTrader 4
MetaTrader 4is a long-standing favorite for Forex and CFD traders, renowned for its user-friendly interface and powerful charting tools. The platform is lightweight and stable, providing a great experience on web, MacOS, desktop and mobile phones.
With its ability to run custom indicators and Expert Advisors (EAs), MT4 is perfect for those who want automated trading.
MetaTrader 5
MetaTrader 5 takes the features of MT4 and expands them into a multi-asset trading powerhouse. In addition to Forex, MT5 supports stocks, commodities, indices, and cryptocurrencies. The improved charting and advanced order types give traders more tools to succeed. Algorithmic traders will appreciate the MQL5 programming language, which allows for more sophisticated trading strategies.
Overall, MT5 is ideal for traders looking for a more versatile platform with a professional edge.
AvaSocial
AvaSocial is a platform for those looking to trade socially. It connects you with a community of skilled traders, allowing you to copy trades and strategies via the app. This is perfect for beginners who want to learn by mirroring experts or those with limited time to trade.
AvaSocials real-time performance tracking, community interactions, and diverse assets make it an accessible and collaborative way to approach trading. It simplifies the trading experience, though it may not suit those who prefer full control over their trades.
DupliTrade
DupliTrade allows for hands-free automated trading and is suitable for those who want to replicate expert strategies without constant monitoring. The platform curates a selection of top traders to follow, and the trades will be automatically executed in your AvaTrade account. Those who are looking for a low-effort, high-reward trading solution will find this platform perfect for them.
However, its crucial to choose the right traders to copy, as performance can vary. And the high minimum deposit of $2,000 to access DupliTrade is overwhelming for many traders, especially those with limited capital.
AvaTrade Interest Rates
With AvaTrade, traders can earn passive incomes and with their available free funds in their accounts through the broker's attractive interest rates by becoming a premium member of the broker. The interest rates are tiered, with higher returns available for higher VIP levels.
Interest is paid monthly, based on an annualized rate. However, to start earning interest, traders must have a minimum equity of $10,000 in their accounts. Islamic accounts, unfortunately, are excluded from this feature.
AvaTrade Fees Review
AvaTrade generates revenue primarily through the Buy/Sell (Bid/Ask) spread, which is incorporated into the quoted rates when opening a position. This spread is not an additional charge or fee; rather, it is part of the price quoted for the instrument. So far spread for the major currency pair EURUSD is 0.9 pips, more details can be found on https://www.avatrade.com/trading-info/financial-instruments-index/forex.
Besides, the broker also charges overnight premium and inactivity fees.
Education
AvaTrade features comprehensive and structured educational resources to enhance trading knowledge and skills.
- Trading Videos: Step-by-step tutorials on technical analysis, market navigation, and strategy application.
- Beginner Guides: Covers concepts like CFDs, Forex basics, leverage, margin, trade execution etc.
- Technical Analysis: Detailed guides on indicators like RSI, MACD, Bollinger Bands, and Fibonacci retracements.
- Economic Indicators: Explains GDP, inflation, unemployment data, and their market impacts.
- Order Types: Tutorials on market, limit, stop-loss, and trailing stop orders.
- Blog: Regular updates on market trends, news, and actionable insights.
- Trading Strategies: Beginner to advanced strategies, including trend-following, indicator-based, and algorithmic methods.
These resources provide actionable and clearly defined insights for traders seeking to deepen their expertise and refine their strategies.
User Feedback on WiKiFX
WikiFX exposure section is a prism to reflect a broker's performance where traders can release their opinions and feelings trading with brokers. So far, 70 traders have left their footprint and shared their trading experience with this broker, with 16 expressed their satisfaction with the broker's responsiveness, profitability and service efficiency.
However, there's no such thing like perfection in the world, it's same case with AvaTrade. 46 negative reviews are recorded on WikiFX at the same time, with most complaints are about price manipulation and withdrawal issues. Some traders expressed concerns about unsatisfactory earnings and difficulties with withdrawals. If these issues are not addressed promptly and effectively, they could significantly impact the overall customer experience. Therefore, the broker needs to go further on optimizing trading conditions enhancing the withdrawal process.
Traders are encouraged to interact with each other and share their trading experience within WikiFX community through the exposure section. Our professional team is here to give hands anytime if you encounter problems and report awkward issues in this area.
Compare to Similar Brokerages
The Bottom Line
In a word, AvaTrade is a well-regulated broker with formidable regulatory background supported by ASIC, FSA, FFAJ, ADGM, CBI, and FSCA in several countries. With diverse offerings, no matter the accessible threshold requirements, rich educational resources, and the versatile trading platforms, AvaTrade behaves better than average brokers.
However, there's still room for improvement due to negative reviews regarding unpleasant yeilds and withdrawal issues are recorded on WikiFX.
