AvaTrade Review Summary
AvaTrade Review Highlights
Pros & Cons
- Well-regulated in multiple jurisdictions.
- Variety of trading platforms to choose from.
- Bad customer support.
- Not enough educational material.
- Limited range of trading instruments.
AvaTrade offers two account types from two separate companies that are under its brand: Ava Trade Ltd and Ava Trade EU Ltd. The account types vary based on the jurisdictional regulations that these companies apply to. However, all the accounts allow users to access the same trading instruments, platforms and offer negative balance protection, but they do have different maximum leverage levels. For users who have multiple accounts, AvaTrade offers MAM accounts (Multi-Account Manager) which allows users to manage numerous accounts from a single login.
With AvaTrade Ltd (for non-EEA citizens) you can open either a Standard Account or an Options Account, while for AvaTrade EU Ltd users can open a Retail, Professional, Options or Spread Betting account. In addition to this AvaTrade offers swap-free (Islamic) accounts for those who abide by Sharia Law. AvaTrade does not accept U.S clients.
We found account opening with AvaTrade to be quite simple and straightforward, but you must choose your base currency sensibly as you will not be able to change it later. You can open your account in EUR, USD, GBP (only available for UK residents) or AUD (only available for Australian residents). The broker requires standard identity verification documents such as government-issued proof of identity (passport, ID or driver’s license) and proof of address (utility bill). AvaTrade’s minimum deposit when opening an account is $100.
AvaTrade offers over 150 tradeable instruments for trades that are in CFD form. The broker offers forex (+55 pairs), stocks, indices, bonds, commodities, ETFs and most importantly cryptocurrencies. We found that AvaTrade offers good swap rates for cryptocurrencies and has several currencies to choose from such as Bitcoin, Bitcoin Cash, Bitcoin Gold, Ripple, Litecoin, Ethereum, EOS, NEO and Dash. As per the most recent ESMA regulations, the leverage for cryptocurrencies is limited to 2:1.
Furthermore, AvaTrade features ‘vanilla options’ which allows traders to buy or sell an underlying asset at a fixed price within a certain timeframe.
AvaTrade is a market maker, however, we found that the broker doesn’t always offer the most competitive spreads. In addition to this, we believe the broker could certainly be more transparent in terms of fees, particularly in terms of CFDs. Mostly, AvaTrade does not charge commission but instead, it levies its trading fees into the spreads. The broker offers floating as well as fixed spreads – the broker offers spreads from 1.3 pips. Positions that are held overnight incur swap fees and the same applies when holding position during the weekend (3-day fee is charged). An inexperienced trader should pay attention to this as it may significantly affect their profitability.
Should your account remain inactive for 3 months, Avatrade will charge an inactivity fee of $50/€50/£50 (depending on what base currency you use). This fee is charged periodically, so every quarter. Moreover, the broker charges administration fees of $100/€100/£100 (depending on what base currency you use). This happens after 1 year of inactivity.
At AvaTrade users can deposit funds into their accounts through several options such as debit/credit cards, bank transfers and also popular e-wallets such as Neteller, Skrill, etc. There are no deposit fees, but the minimum deposit fee is $100. In terms of withdrawals, there are no withdrawal fees and we found the process to be quite simple – after you verify your account and select your preferred withdrawal method, the request is processed with five days depending on the method you chose.
We found that AvaTrade offers a variety of platforms for traders to use such as the popular, award-winning MT4 (MetaTrader 4) as well as the multifunctional MT5 (MetaTrader 5) that AvaTrade recently added to its list. This platform offers advance auto-trading tools as well as mirror trading. Both platforms are available as downloadable software, browser-based and on mobile both iOS and Android devices. In addition to this, AvaTrade supports ZuluTrade and DupliTrade for automated trading. In addition to this, AvaTrade accepts EAs (expert advisors) that are bots that can trade on your behalf.
AvaTrade also created its own proprietary platform called AvaOptions that is a browser-based platform. It is also available on mobile under the name of AvaTradeGO which is also available on both Android and iOS devices. We found the proprietary platform to have a decent, clean design but it was quite basic.
AvaTrade offers the technical analysis tool called Autocharist on the MT4 – this tool allows traders to identify trading opportunities. This tool is quite useful and popular among traders. The broker also features an Economic Calendar which helps traders plan their trading strategies based on the financial events that may affect the market. In addition to this, AvaTrade also provides clients with the earnings release schedule of many stock CFDs.
Avatrade offers a market analysis tool that is available when opening an account with the broker, that contains information such as forecasts, fundamental analysis, etc.
We found the education at AvaTrade to be quite mediocre. There is some information in forms of e-books and videos that may be helpful to new traders, but the information was not sufficient for more advanced brokers. In addition to this, the broker offers Economic Indicators which allow traders to predict economic performance in the future.
Customer support at AvaTrade is, once again, mediocre at best. Support is available in 30 languages through phone, email and live chat on a 24-hour, 6 day a week basis. We found it hard to reach the customer support team via phone and the wait time was quite long.
To conclude, AvaTrade was not our favorite broker due to some of the downside the broker has, for example, its limited range of trading instruments and it’s difficult to reach the customer support team. Despite that, as a regulated, longstanding broker, AvaTrade is trusted by traders who enjoy its platform and find that it fits their needs.
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