Avatrade offers traders a range of trading platforms, including a dedicated options trading platform and a proprietary mobile app and social trading platform. The assets available present a balanced mix, providing clients with in-depth diversification from a commission-free pricing environment.
| Headquarters | Ireland |
|---|---|
| Regulators | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MIFID |
| Founded year | 2006 |
| Execution type | Market Maker |
| Minimum deposit | 100$ |
| Negative balance protection | Yes |
| Trading platforms | Other, MetaTrader 4, MetaTrader 5, Website |
| Minimum spread | None |
| Standard spread | 0.9 pip |
| Minimum commission fees | None |
Regulations and Security
Trading with a regulated broker limits the potential for fraud and errors. I always advise traders to check the regulation and verify it with the regulator by checking the license provided with their database. Avatrade presents to its clients seven well-regulated entities.
The regulatory environment at Avatrade is excellent and one of the most trustworthy in the industry. Avatrade segregates client deposits from company funds and offers negative balance protection. Select jurisdictions also maintain an investor compensation fund.
Trading fees
| Average transaction costs EUR/USD | 0.9 pip |
|---|---|
| Average transaction costs GBP/USD | 1.5 pip |
| Minimum spread | None |
| Standard spread | 0.9 pip |
| Minimum commission fees | None |
| Deposit fees | None |
| Withdrawal fees | None |
| Inactivity fees | $50 quarterly after 3 months |
Avatrade offers traders a free pricing environment, but it comes with higher spreads. EUR/USD starts at 0.9 pips or $9 for 1.0 standard lot.
Equity traders pay a minimum spread of 0.13%, also without commission. Some equity traders are able to achieve competitive pricing environments on selected assets, depending on trading volume and timing. Index and commodity traders get the best deals, as trading costs here rank among the best in the industry.
Trading assets
At Avatrade traders can trade a wide range of popular cryptocurrencies, such as 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 asset selection because it remains a balanced selection of trading instruments, suitable for all traders.
Leverage
Leverage at Avatrade depends on regulatory jurisdictions. Most retail traders get up to 1:30, in line with ESMA restrictions. Traders through the British Virgin Islands, South Africa and professional clients are eligible for maximum leverage up to 1:400.
Account types
I like that Avatrade offers the same trading account for all traders. An option to qualify for a professional account exists, but the requirements remain high, according to regulatory requirements, and most will not achieve this status. The minimum deposit is an acceptable $100 and the trading conditions guarantee it. Leverage depends on the jurisdiction of the Avatrade subsidiary, ranging from 1:30 to 1:400 for retail traders.
Demo account
A demo account is available but is restricted to 21 days, which is a bit on the short side. However, potential customers can contact customer support to extend testing or open a new demo account. I would like to see Avatrade offer an unlimited demo account for beginner traders and test strategies and algorithmic trading solutions.
Trading platforms
Avatrade offers traders a familiarity with MT4/MT5, is the leader in algorithmic trading and is equipped with an integrated copy trading platform. It also deployed its proprietary Webtrader and mobile application, where they embedded the services provided by the central exchange, available as MT4/MT5 trading platform.
I like that Avatrade invests in a proprietary social trading platform, Ava Social. It sees Avatrade monitor its trends and commit capital as needed to provide the services required by its clients. Another nice touch is the options trading platform, avaoptions, specifically for vanilla options traders.
Special features
Avatrade offers clients the in-house developed risk management tool Avaprotect, which insures against trades, for a fee, allowing traders a further option to hedge their risks. Surname.
Research and education
Quality research at Avatrade remains limited to services by Trading Center, which I find a smart solution. It frees up resources and allows Avatrade to focus on its core business while presenting customers with a trusted third-party solution. The Avatrade blog has brief market commentary, but nothing as valuable as Trading Central.
Avatrade shines when it comes to education and shows significant care for beginner traders. The broker's flagship education center, Avaacademy offers a wealth of high-quality training material, and it remains one of the best overall resources for new traders in the industry. Avaacademy offers about two dozen online trading courses, 150 lessons, and 50 quizzes, and I highly recommend that beginner traders take the time to explore this valuable resource.
Customer support
Much of the customer support at Avatrade consists of its FAQ section and chatbot. E-mail and phone support are equally available, and a multilingual customer support team is on hand during market hours. Avatrade explains its products and services well, and I think most will never need support. In case of need, Avatrade ensures easy access to customer support.
Opening an account
The account opening process at Avatrade for international traders only requires an e-mail and password. Some jurisdictions may require additional information. As Avatrade is a regulated broker, account verification is a mandatory final step, according to AML/KYC regulations. Most traders will satisfy it by submitting a copy of their ID and a proof of residence document. I like Avatrade's simple implementation here.
Minimum deposit
The minimum deposit at Avatrade is $100, a reasonable requirement but higher than some other forex brokers. I recommend depositing at least $200 to qualify for the deposit bonus for superior long-term portfolio growth.
Payment methods
The secure back office at Avatrade processes deposits and withdrawals. Avatrade does not charge internal fees for transactions, but third-party fees may apply. I recommend traders double check with their preferred payment processor about this. While Avatrade processes withdrawals within 24 hours, it can take up to ten business days for traders to receive their funds. The overall process is still quick, but I wish Avatrade added crypto as an option.
Conclusion
Avatrade deserves positive reviews. Fees are reasonably competitive for depositors, especially those trading stocks and shares wrapped as CFDs. The range of assets offered for trading is diverse, including even vanilla Forex options and several ETFs (exchange-traded funds), as well as a wide range of individual stocks and shares, making Avatrade becomes a more suitable broker for traders looking for diversification in the markets. Avatrade's reputation, located at the high end of the industry, with a long track record and good regulatory position in the European Union, is particularly impressive, not to mention its good position in Australia.
