Previously known as AvaFx, AvaTrade begun operations in 2006 in Dublin, and is regulated by the Central Bank of Ireland.
Headquartered in Dublin, the operator has since opened offices in China, Japan, Australia, Mongolia, Italy, the U.S, and France. They have a global presence and authorities of the countries they operate in are happy to regulate them. According to their website, their total trading volume surpasses $60 billion per month. From such numbers, it’s obvious AvaTrade is a giant in the industry. The only way they could have achieved what they have today is by adopting honest, professional practices.
Nonetheless, at Avatrade it’s possible to lose more than your account balance. Different brokers have different methods when it comes to securing an account from a negative account balance. But at Avatrade, they have chosen to let the customer bear the risk. It’s quite difficult to recommend a broker who lets you carry your trading risks besides the possibility of a negative account balance.
Security of Funds
The clients’ money is held in a segregated account or rather separated from AvaTrade’s funds. In a scenario where AvaTrade goes bankrupt, the outcome does not affect the customers’ cash as it’s secured in a different bank. A broker regulated by the FCA in Britain also falls under the Financial Services Compensation Scheme (FSCS). Under this arrangement, up to 20,000 EUR of your money is secured.
Avatrade offers the following financial products:
- Stock indices
AvaTrade has covered most markets with a wide range of products. The everyday trader can never lack something to trade.
AvaTrade offers two trading platforms – their own web-based platform which doesn’t require a download, alongside the popular Meta Trader4. AvaTrade platforms are also available on Android and iOS. But the platform is rigid and lacks options to customize to the users’ needs. The main language of the platform is in English. Since the broker has a global clientele, it would be better if the platform could be in the main language of the respective countries where they operate.
The charting package at AvaWeb trader is not user-friendly. For instance, it’s impossible to drag the chart both horizontally and vertically. This makes it difficult to zoom inwards or outwards. You can only view the graph as a bar graph, candlestick graph or line graph. Nonetheless, it’s difficult to get a Renko graph which is popular with traders. There are 27 indicators and the most popular are contained. Generally, the platform is somewhat outdated and an update would freshen things up.
Trading on AvaTrade
You can sign up for one of the two available account types in respect to the spread on offer. A fixed spread account is available on both platforms while a floating spread account is only available on the MT4. Both account types are commission-free and trading is in micro lots. For novice traders or traders who don’t want to trade themselves, automated trading using Zulu Trade and Mirror Trader is available.
The standard account is the lowest account and requires a minimum deposit of $100 to begin trading. Leverage can go as high as 400:1 on MT4. Available orders include Market orders, Limit orders, Entry Limits, Stop Loss Orders, Entry Stops, and Trailing Stops. In comparison to their competitors, AvaTrade spreads are significantly higher than the rest. The exception is Crude Oil where they have a low spread. If you’re an active trader in Oil, AvaTrade could be a wise choice to consider.
AvaTrade also offers a demo account which is easy and fast to open. However, it has a time limit of 21 days which can be annoying for some customers especially when it comes to applying for a renewal.
AvaTrade customer service is at a high level, offering 24-hour support on weekdays. It’s available on both website and live chat. They also have local numbers in the countries they have representatives. This is an advantage to traders from the respective countries as they can gain assistance in their local language.
AvaTrade provides training materials using online video tutorials, webinars, and an online glossary. The online tutorials help beginners learn about MT4, trading terms, trading strategies, how to read a Forex chart, about CFDs, options, and technical analysis. You also have access to live market news integrated into the trading platforms.
AvaTrade offers many bonuses and is guilty of using them in most of their marketing. From a marketing point of view, this is getting old as all they seem to communicate is “free money”. It’s a bit suspicious when a broker’s main marketing tool is to attract new traders with bonuses. It’s even worse when the bonus itself is difficult to realize.
How to Trade Profitably with AvaTrade
AvaTrade is infamous for making accusations of arbitrage to revoke the profits of clients who trade in high volatility conditions. This is occurs more often during news releases. In a nutshell, you can lose all your money and have your profits canceled if you’re falsely accused.
- Do not trade during high volatility. This is when rapid spikes occur and under some conditions, could result in being falsely accused of arbitrage trading
- Avoid using Expert Advisors during news releases’. Your legit EA could be mistakenly considered an arbitrage EA
- Request a confirmation in writing on whether they allow the use of a specific Expert Advisor
- When trading with large amounts, avoid withdrawing all at once. For dishonest brokers, large sums are more difficult to withdraw than several smaller amounts
- Withdraw regularly
- Before you open an account with any broker, read and understand the Terms and Conditions
- Make sure you understand the terms and conditions of the bonus or other promotional benefits before accepting. It would be a wise decision not to take up any bonus
AvaTrade has won various awards over the years. They have definitely proven they’re reliable and well respected in the industry. The number of solutions they provide traders with is also commendable. In a nutshell, there are both advantages and disadvantages with regards to this broker.
Overnight fee -0.0694%
Minimum Spread, Pips
$20.00 over market
The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.
Min. Deposit: €/£/$100
20:1 Stocks, Bitcoin, ETFs
Margin: From 0.25 %
Forex, CFDs, Stocks, Bitcoin, Litecoin, Commodities, ETFs, Treasuries, Indices, Agriculturals, Bonds
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