AvaTrade Review 2023

Trust

Why is Choosing the Right Entity Important?

The location of a broker will dictate the level of regulatory oversight and protections offered to investors. Due to regulatory changes from tier 1 regulators such as the FCA, CySEC and ASIC, many brokers have moved offshore so it’s worthwhile doing your due diligence.

We look for several things when analysing the safety and trust of a broker. This includes:

1. Segregation of client funds from company funds. Having client funds segregated from company funds is always important as you don’t want your broker to use your funds to run their business!
2. A negative balance protection policy. This means that your account cannot go into a negative balance from adverse movements in the market.
3. Compensation scheme. Does the entity or regulator provide access to compensation in the event a broker goes bust?
4. Are additional safeguards put in place by the broker even when they are not required to do so? This is a great measure of just how serious your broker takes your safety!

Some financial regulators make it a regulatory requirement to offer some of these features, while others do not.

We found that AvaTrade is very transparent in what protections you have and don’t have based on where you open an account.

AvaTrade also offers stability as they have been in business since 2006 and have managed to successfully navigate major changes in the industry.

However, the broker has had a few warnings in the past which includes:

1. An agreed settlement in 2017 of EUR 175,000 between AvaTrade EU Ltd and the Financial Services Market Authority (FSMA) for not providing a prospectus to residents in Belgian territory as required.
2. A fine in 2017 from the Israeli Securities Authority (ISA) for AvaTrade’s Israel entity, ATrade, for misleading advertising. This was based on a video ad that said it was safer to trade with ATrade now that it has received a licence from ISA.
3. In 2021, the Polish Financial Supervision Authority (KNF), placed AvaTrade on its warning list as the AvaTrade EU Limited entity and Polish branch of the broker is not registered in Poland and cannot provide services to Polish clients.

AvaTrade Regulations

AvaTrade operates eight different entities around the world:

• Ava Trade EU Ltd – authorised and regulated by tier 2 regulator, the Central Bank of Ireland (CBI).
• Ava Trade Markets Ltd – authorised and regulated by tier 3 regulator the British Virgin Islands Financial Services Commission (BVI. FSC).
• Ava Capital Markets Australia Pty Ltd – authorised and regulated by tier 1 regulator, the Australian Securities and Investments Commission (ASIC).
• Ava Capital Markets Pty Ltd – authorised and regulated by tier 2 regulator, the South Africa Financial Sector Conduct Authority (FSCA).
• Ava Trade Japan K.K – authorised and regulated by tier 1 regulator, the Japan Financial Services Agency (FSA).
• Ava Trade Middle East Ltd – authorised and regulated by tier 2 regulator, the Abu Dhabi Financial Services Regulatory Authority (FSRA).
• ATrade Ltd – authorised and regulated by tier 2 regulator, the Israel Securities Authority (ISA).
• DT Direct Investment Hub Ltd – authorised and regulated by tier 1 regulator, the Cyprus Securities and Investments Commission (CySEC).

 It is a regulatory requirement for brokers regulated in Europe and Australia to segregate client funds from their own and to provide a negative balance protection policy so you can’t lose more than you deposit.

AvaTrade goes one step further and provides these protections for all of its entities regulated around the world. This is a step that is above the industry average which is great to see.

Although, traders classed as professionals will not receive a negative balance protection policy.

We have confirmed each of the licences and regulations in the relevant jurisdictions as these can be viewed on the regulator’s online register.

For example, below is the confirmation that the Ava Trade EU Ltd entity is authorised and regulated by the Central Bank of Ireland.

Fees

There are a variety of different fees to look at when choosing a broker.

• Trading fees are those associated with buying and selling a financial instrument and include:
  • Commission – The cost to enter and exit a trade.
  • Spread – The cost between the buy price and sell price
  • Overnight swap fee – The cost of holding a leveraged position overnight.
  • Conversion fees – The cost to convert your base currency into the currency of the asset you are trading, if it is different.

• Non-trading fees are charges that are not related to buying and selling a financial instrument and include:
  • Deposit and withdrawal fees (discussed further down this review)
  • Inactivity fees – The cost to have a trading account opened with zero activity on it.

AvaTrade Trading Fees

In our live trading test for fees, we used the commission-free, retail CFD trading account from the Ava Trade EU Ltd operating entity. This account only has spreads and overnight trading fees.

We viewed the live spread for Forex, indices and commodities at two different times of the day – around 8 am and 2 pm London time on 26 November 2021 and at 2.45 pm London which is just after the US stock market has opened. These times generally cover the most active sessions of the day.

What did we find? AvaTrade’s spreads for Forex and commodities are competitive while the spreads for indices and stocks are less competitive when compared to the industry average.

The overnight swap fees were also in line with the industry average. This fee is important for long-term traders, as overnight fees can add up if you are holding trades for a long period of time.

Are AvaTrade Trading Fees Good?

Overall AvaTrade scored fairly well in this category. The fees for trading Forex and commodities are the most competitive and better than the industry average.

The fees for stock indices and individual stocks are less competitive compared to the industry average. For example, the spread for the DAX40 index came in at 2 points which is average. A spread of 1 point and below would be better than the industry average.

However, the fees for stock indices and individual stocks are still competitive when you take into consideration there is no additional commission to buy and sell. Some brokers will advertise a low spread but may also have another commission to buy and sell.

AvaTrade Non-Trading Fees

Some brokers impose an inactivity fee on trading accounts if there is no activity on your account, such as the buying and selling of an instrument, deposits and withdrawals, for a certain period of time.

With AvaTrade, you will be charged an inactivity fee of 50 EUR/GBP/USD if there is no trading activity for 3 months.

If there is no trading activity after 12 consecutive months you will be charged 100 EUR/GBP/USD.

The 3-month timeframe imposed and the fee amount are well above the industry average and are considered to be high.

Platforms and Tools

AvaTrade provides the ability to trade on the MetaTrader suite of trading platforms. These are considered to be the most popular trading platforms in the world. Many brokers offer these platforms to their clients. With AvaTrade, you can trade on the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms for desktop, web and mobile.

Beginner traders will be best off using the AvaTradeGO mobile trading app. It is simple to use, easy to navigate and has good inbuilt technical tools and features. The AvaSocial mobile app is also great if you’re interested in social trading and copying the trades of other traders.

AvaTrade UK operates an in-house dealing desk model which means they make the market in which you trade. While this type of dealing has a bad reputation, all UK spread betting providers will operate this model. Some brokers will also offer a Direct Market Access solution but this will mainly be for professionals.

AvaTrade Desktop/Web Platform

The AvaTrade Web platform is simple to use, easy to navigate and the fastest way to trade for beginners. Advanced traders can also use the MetaTrader 4 and MetaTrader 5 platforms for desktop and web but beginner traders will have a learning curve to use them.

For our live testing, we used the AvaTrade Web platform. When you log in to your account you are immediately redirected to the platform.

Charts

The AvaTrade Web platform has clean and responsive charts. You can access 3 chart types including Bars, Candles and Line charts. There are also 10 different timeframes you can use to view charts and you can access nearly 100 technical trading indicators.

Below is a screenshot of the AvaTrade Web platform:

Orders

You can access a variety of order types from the AvaTrade web 5 platform. Market orders will open a trade at whatever the current market price is. Pending orders allow you to set an order at a specific price level so when the market price gets to your order level it will open your trade.

Unfortunately, you can’t set any alerts on the web platform.

General Ease of Use

The web platform is simple to use, easy to navigate and great for beginner traders. Everything is laid out clearly and you can access all the different markets, view your positions, access charts and indicators and manage your whole account from the web platform.

The web platform is mainly designed to be able to trade the market as quickly and simply as possible.

Other Features

Most of the advanced features are not on the web platform and advanced traders may find it to be limiting. However, you can also access the MetaTrader 4 or MetaTrader 5 trading platforms for algorithmic trading, customised indicators and more charting capabilities such as viewing multiple charts at once.

AvaTradeGO Mobile App

The AvaTradeGO mobile app is packed with a lot of different features. Not only is it simple to use and easy to navigate but you can access trading ideas, market news and analyst views from the app. However, there is a lack of technical and drawing indicators.

AvaTrade offers several mobile apps. AvaTradeGO to trade Forex and CFDs, AvaTrade Options for options trading and AvaSocial for copy trading.

Devices

You can download the AvaTradeGO mobile app for both Android and iOS devices directly from the app store. In our test, we downloaded the AvaTradeGO mobile app for iOS.

Charts

The charts in the mobile app are very clean and responsive. You can view a good range of different timeframes and chart types. There is also a sentiment indicator showing how many traders are buyers or sellers.

However, technical analysis is limited as there is no capability to access technical indicators or drawing tools.

Below are some screenshots of the AvaTradeGO mobile app for iOS devices:

Orders

The mobile app allows you to place pending trades or enter live at the market. Unfortunately, you cannot add expiries or set alerts.

General Ease of Use

The AvaTradeGO mobile app is simple to use with a clear interface to navigate between the different sections of the app. The icons at the bottom of the app can direct you to the following screens: Home, Search, Balance, Trades and Settings.

The settings tab allows you to manage your different trading accounts, as well as access additional features such as educational videos, an economic calendar, analyst views and trading ideas provided by third-party analytical company Trading Central.

The search tab allows you to search for all the different assets available to trade on from the app. You can learn more about each of the instruments by clicking on the ‘instrument details’ at the bottom of the screen which will show the trading hours, margin, spread and overnight swap fees.

The charts are easy to navigate and the sentiment indicator is a useful feature.

Other Features

From the mobile app, you can access a unique risk management tool called AvaProtect. This tool helps to protect you from adverse moves in the market. AvaTrade will reimburse you for losing trades at the end of the protected period.

There is a fee to pay for this service which differs on each instrument and trade. But it is a very useful feature in managing your trading account.

Tradable Instruments

The range of instruments available is great for beginner and advanced traders and is above the industry average.

Having a good range of instruments to trade on is key to successful trading as it enables you to follow market themes across different asset classes.

What are CFDs?

CFDs, or Contracts for Difference, is a derivative product that allows you to speculate on the price direction of a financial instrument allowing you to profit from rising and falling markets. You can also trade on margin which means you can control a large position with a smaller deposit, amplifying both gains and losses.

What Can You Trade with AvaTrade?

With the AvaTrade you can trade on:

• 700+ stocks
  • All major stock exchanges including NYSE, Nasdaq, LSE
• 60 ETFs
  • Covering global regions, sectors and themes
• 55 Forex CFD pairs
  • Major, minor and exotic
• 43 Forex options
  • Major, minor and exotic
• 33 indices
  • Global stock indices
• 27 commodities
  • Metal, energy and softs
• 20 cryptocurrencies
  • Major and altcoins
• 2 bonds
  • European and Japan

Below is a list of just some of the available markets for trading:

*Details regarding the available assets are taken from the AvaTrade trading platform and website and are correct at the time of this review.

Customer Support

You can access customer support via live chat, phone and email in a variety of languages which includes English, German, French, Spanish, Dutch, Malaysian, Chinese, Arabic and many others.

Customer support is available from Sunday 9 pm GMT to Friday 9 pm GMT, 24 hours a day. You can access customer support via live chat, telephone or email.

Why is customer support important? If you need help with your platform, or question a trade execution or have any administration issues you want to know that you can contact your broker as fast as possible when you want!

AvaTrade Customer Support Test

In our customer support live test, we contacted the broker via telephone and live chat. We were connected by live agents very quickly. The agents were knowledgeable and helpful when responding to technical questions regarding their platform, fees and regulation.

The live chat first uses a bot to help you with your question. You can connect to an agent in just a few seconds by typing ‘chat with agent.’ The agent was very helpful and responsive.

We also phoned the UK telephone number on the contact us page and were connected to a live agent within 20 seconds which is very fast. The live agent on the phone was also very helpful and knowledgeable.

The accessibility and quality of AvaTrade’s customer support is above the industry average and is why they scored near-maximum points in this category.

Deposit and Withdrawal

Deposit and withdrawal methods include bank wire transfer, debit/credit cards and e-wallets such as Neteller, WebMoney and Skrill.

You can deposit funds in a variety of currencies including USD, EUR, GBP, AUD and CHF, depending on your region.

Unfortunately, European clients can only deposit and withdraw funds using bank wire transfers or credit/debit cards. Deposits via bank transfers have a minimum of 500 units of currency ($500, £500, etc). This is lower than the average of what the industry provides.

AvaTrade Deposit Methods

With AvaTrade you can deposit funds fee-free using a variety of methods. The full range of methods are highlighted in the client portal area.

* For all available deposit options refer to the broker’s Deposits & Withdrawals page.

AvaTrade Withdrawal Methods

You can also withdraw your funds fee-free but can only withdraw back to the payment method used for depositing. 100% of the deposit transaction must be withdrawn to your credit/debit card and then you can use other payments after this.

* For all available deposit options refer to the broker’s Deposits & Withdrawals page.

Account Types and Terms

The range of account types offered by AvaTrade is higher than the industry average. For example, only very few retail CFD brokers will offer access to an account to trade Forex Options which is a product mainly geared towards professionals.

The CFD, Spread Betting and Professional Account are commission-free with just spreads and swaps (overnight fees) payable on a trade. The Islamic account is also commission-free with just spreads payable and no overnight fees.

For our live test, we managed to open an account in just a few minutes. Once you have opened an account you receive access to the client portal area which is a great feature as you can manage everything from this one place.

AvaTrade does not accept clients from the United States and certain other countries, such as Iran, Syria and North Korea.

Why is Choosing the Right Account Type Important?

Choosing the right account type is important as it will impact nearly every aspect of your trading. Different accounts may have different fees, instruments, minimum deposits, platforms, etc. so choosing the right one for your own needs is important.

What Account Types does AvaTrade Offer?

AvaTrade offers the following accounts with some of the features highlighted below:

• Retail Account – This includes access to CFD trading and Spread Betting (UK only).
• Professional Account – This includes access to CFD trading and Spread Betting (UK only) but with the ability to access higher leverage (if you meet certain regulatory criteria).
• Standard Account – This refers to CFD accounts opened with AvaTrade’s entities outside of Europe.
• Islamic Account – This is a swap-free account where there are no overnight charges to comply with Sharia law.
• Options Account – This refers to an account to trade Forex options.

All accounts are commission-free and require a minimum deposit of just $100. However, the Options Account will charge a premium and a spread when trading which is standard across the industry.

Beginner traders will enjoy easy access to trade the markets from the Retail account if in Europe or the Standard account if outside of Europe.

One of the main differences between the accounts and the AvaTrade entities is the access to leverage you have. Retail traders in Europe can access a maximum of 30:1 leverage due to regulatory restrictions, whereas Professionals can access up to 400:1 leverage. Outside of Europe, all traders can access higher leverage.

Why is an AvaTrade Demo Account Important?

With AvaTrade you can open a free demo trading account. Why is this important? A demo account allows you to practice your trading ideas and get comfortable on the trading platform with zero risk as you simply trade in a virtual environment.

It’s a great way to test all of the tools the broker provides you and get comfortable with the platform and different markets (stocks, currencies, indices, etc). When you are comfortable trading on an AvaTrade demo account it is easy to transition to a live account with real money.

What is CFD Leverage?

CFD, or Contracts for Difference, trading allows you to open a large position with a smaller deposit. For example, a 30:1 trading leverage means you can have $30,000 exposure with only a $1,000 investment. A 500:1 trading leverage means you can have a $500,000 exposure with only a $1,000 investment.

Leverage is a double-edged sword as it can amplify your winning and losing trades. This is one reason regulators such as CySEC, ASIC and the FCA cut the leverage brokers can offer retail traders – to make it safer for beginners.

How to Open an Account with AvaTrade

In our testing, we opened a Retail Account with AvaTrade’s European entity. It was a simple process, with everything completed online in less than 4 minutes.

All regulated brokers will need to verify your identity and address for Anti-Money Laundering rules. For verification, you need to submit proof of identity and proof of address documentation. This can include a driver’s licence or passport and a utility or bank statement.

Here is the step by step process we used to open an account with AvaTrade.

• Step 1: Fill in a registration form that asks for name, address, trading experience, trading knowledge (a test with trading questions) and password.
• Step 2: From the application form, choose the platform you want to trade from (MetaTrader 4, MetaTrader 5, AvaOptions) and the base currency of your account (USD, EUR, GBP, CHF).
• Step 3: Submit ID and verification documents and wait to be fully verified which in our test was done in under 24 hours.
• Step 4: Once verified you can deposit funds and start trading.

From the AvaTrade client portal area, you can upload your documents, access your trading accounts, access platform downloads and deposit/withdrawal options.

Research

You can access regular market updates through the AvaTrade YouTube channel. The inhouse market analyst records these videos which cover a wide range of different topics.

From the AvaTrade web platform, you can also access more research from third-party provider Trading Central, an investment analytics company.

From here, you can access a customisable economic calendar, analyst views and featured ideas for real-time actionable trading ideas.

The research tools provided are great for beginner and advanced traders. Beginners will enjoy the regular market update videos, while advanced traders will enjoy the third-party analytical tools provided by Trading Central. However, this is only available to funded account holders.

Education

With AvaTrade, you can access a wide range of educational materials through articles and videos. From our review, these are high quality and informative. The videos cover a wide range of topics and are several minutes in length.

The written articles are detailed and cover important topics which are explained well, using diagrams. 

The materials are mainly focused on beginner traders. However, advanced traders will enjoy the education materials regarding AvaOptions and how the options market works. Overall, the offering is better than the industry average.

The Bottom Line

If you are looking for a fast, easy and safe way to trade on more than 1,250 financial markets from a globally regulated broker then AvaTrade could be for you. While the offering is focused on beginner traders, there is plenty for advanced traders to enjoy.

The range of account types gives a lot of good options for beginner and advanced traders. The commission-free trading accounts are aimed at beginners while access to options trading accounts are aimed at advanced traders.

While the trading platforms offered, MetaTrader 4 and MetaTrader 5 are geared towards advanced traders, the AvaTrade Web Platform is easy to access and simple to navigate, as is the AvaTradeGO mobile app.

With a wealth of research and education available, along with fast and helpful customer support, AvaTrade is worthwhile considering.

FAQ