An introduction to Avatrade
Full AvaTrade broker review for trading in 2020. Is AvaTrade the right broker for you? Let us help you to decide, with our in-depth traders’ guide and analytical review of AvaTrade.
|Minimum Deposit:||$100 USD|
|Trading Platforms:||MT4, MT5, WebTrader, Mobile|
|Trading Options:||CFDs, Forex, Stocks, Crypto|
|Demo Account:||Yes, $100,000 USD in virtual funds|
|Regulating Authorities:||ASIC, BVI, CySec, FSA, FSP, MiFID II|
AvaTrade – Pros
- Global Presence
- Regulated by multiple prominent authorities
- Unique features and trading platforms
AvaTrade – Cons
- Limited retail client leverage
- Vague account types (limited)
- Reduced analytics research tools
With a trading ethos based on core values like integrity and fairness, AvaTrade is an established international Forex broker that provides trading services in over 20 languages and aims to serve a broad range of traders, from beginners to established veterans.
AvaTrade is regulated in many of the major prominent jurisdictions around the world, with an offering that includes over 1,250 financial instruments — Forex and CFDs on cryptocurrencies, stocks, indices, commodities, bonds, vanilla options and ETFs.
As of 2020, AvaTrade boasts a client list of more than 200,000 registered traders. They execute more than 2 million trading orders each month and have a trading volume of over £60 billion monthly. AvaTrade launched operations in 2006 in Dublin, Ireland, and since then have expanded gradually all over the world. They have satellite offices across five continents, with a swathe of entities established in places like Japan, Australia, the British Virgin Islands and South Africa.
This AvaTrade Forex review will identify some advantages that often attract the attention of potential clients. These include AvaTrade’s competitive spreads, a good selection of instruments, a variety of customisable trading platforms, plus their trading academy and automated trading offers.
AvaTrade uses MetaTrader’s family of platforms as their trading platform, as well as their own proprietary platform AvaTradeGo. They’re regulated by authorities like the Central Bank of Ireland, FSA, ASIC, BVIFSC, FFAJ, FSC and FRSA.
A long list of awards confirms AvaTrade’s success in achieving and exceeding traders’ expectations. In 2019 alone they received: The Most Regulated Broker and the Best Forex Broker awarded by The European; the Best Forex Broker awarded by daytrading.com; and the Most Innovative CFD Broker awarded by International Business Magazine.
Safety and Regulation
The safety of a fund is a primary concern for every trader. Strong regulations thus provide a high level of trust and credibility. AvaTrade excels at this aspect, being one of the most regulated brokers in the world. In practical terms, they are regulated in each country they are active in.
AvaTrade is accredited by:
- The Central Bank of Ireland in Ireland, with the license number C53877 for AVA Trade EU Ltd
- The Australian Securities and Investments Commission (ASIC) in Australia, with the license number 406684 for Ava Capital Markets Australia Pty Ltd
- The Japanese Financial Services Agency (FSA) and the Financial Futures Association of Japan (FFAJ) in Japan, with license numbers No. 1662 and No. 1574 for Ava Trade Japan K.K.
- The South African Financial Services Board (FSP) in South Africa, with the license FSP No. 45984 for Ava Capital Markets Pty
- B.V.I Financial Services Commission in the British Virgin Islands, for AVA Trade Ltd.
- Abu Dhabi’s Financial Services Regulatory Authority, in the United Arab Emirates with the license number 190018 for Ava Trade Middle East Limited. This is the first Forex broker to receive the 3A license in the United Arab Emirates allowing them to provide retail Forex trading services and professional trading services.
- MiFID II in Europe (Directive on Markets in Financial Instruments 2014/65/EU) compliant thanks to the license received in Ireland
AvaTrade provides their services to Canadian clients thanks to a partnership with Friedberg Direct, part of the Friedberg Mercantile Group which is an active member of the Canadian Investor Protection Fund (CIPF) and Investment Industry Regulatory Organization of Canada (IIROC).
In terms of fund protection and security, AvaTrade offers segregated accounts and negative balance protection for all of their clients.
Segregated accounts means that clients’ funds are kept in separate accounts to those of the enterprise. In the event of the company facing financial issues, the clients’ accounts will not be affected.
Negative balance protection means that a trader cannot lose more than his account balance.
Due to tougher regulations, European retail clients benefit also from a compensation scheme via the ICCL Investor Compensation Company Ltd.
AvaTrade is not a company listed on the stock exchange, thus they do not make their financial information public and do not operate a bank
AvaTrade offers their clients a selection of over 1,250 trading assets. All instruments are CFDs, with Forex currencies, stocks, indices, commodities, bonds, ETFs, Forex options and cryptocurrencies as support, as well as spread betting assets.
In terms of variety, the number of instruments offered by AvaTrade would be considered average as compared to the rest of the market.
AvaTrade’s most popular instruments are stocks like Amazon, Berkshire Hathaway and Apple; Forex pairs like EURUSD and USDJPY; cryptocurrencies like Bitcoin and ETFs like VIX.
As of September 2020, the AvaTrade offer comprises the following instruments:
- Forex – CFDs on 55 Forex currency pairs – majors, minors and crosses with leverage of 1:20 and 1:30.
- Stocks – CFDs on 637 individual stocks with leverage of 1:5, US stocks, UK stocks and shares of the most prominent European enterprises.
- Commodities – CFDs on 17 commodities, including precious metals, energies and agricultural products.
- Indices – a select collection of 20 of the most traded equity indices in the world, including China A50 and a Cannabis Index, with leverage of 1:10 and 1:20.
- ETFs – 5 ETFs – MSCI Emerging Markets Index Fund, S&P 500 VIX Short-Term Futures ETN – Series B, MSCI Brazil Index Fund, Energy Select Sector SPDR, Market Vectors TR Gold Miners
- FXOptions – 54 vanilla options (European type calls and puts) of Forex pairs, spot gold and spot silver, with leverage of 1:20 and 1:30.
- Bonds – 2 bonds: Euro-Bond and Japan-Govt Bond with leverage of 1:5
- Cryptocurrencies – 13 cryptocurrencies, including Bitcoin, Ripple, Litecoin, Bitcoin Gold, Ethereum, Dash, EOS, with leverage of 1:2. When trading cryptocurrencies with AvaTrade, maximum limits for orders apply. For example, for BTC Pairs the maximum limit is $600,000.
It’s worth noting that the leverage level cannot be modified by the trader. A trader can only use the default level of leverage stated for the respective instrument.
The selection of financial instruments proposed by AvaTrade offers high diversification with a good selection of CFDs on stocks, bonds, options and cryptocurrencies. However, it does not offer the possibility to buy stocks as assets and mutual funds.
Each broker, and especially the world’s top brokers, strive to come up with characteristics that differentiate them from the competition.
AvaTrade boasts several such unique features:
- Options and AvaOptions
- Social trading
- CFDs rollover
- Spread betting
- Earning releases
AvaProtect is a brand new service which is available when using AvaTrade’s proprietary application AvaTradeGO.
AvaProtect allows you to undo a trade after a certain period of time (defined before launching the trade).
It costs a supplementary fee but does mean a trader can delete a trade within a specified interval if it enters the negative territory.
AvaProtect is essentially a sort of protection, or insurance, for a trade. You can launch a trade and purchase protection over the trade for a period of time.
After your AvaProtect expires AvaTrade will reimburse you if your order lost money. Read more about AvaProtect here.
Options and AvaOptions
One of AvaTrade’s most attractive characteristics is the ability to trade vanilla options on more than 50 instruments.
AvaTrade allows you to call options, put options, and put in place a wide variety of trading strategies based on options like strangles, straddles, risk reversals, etc.
While trading options, AvaTrade gives you the opportunity to properly manage the risks associated with your portfolio; buy options as part of a hedging strategy for risk minimization; and sell options for a profit. AvaTrade puts at your disposal any level of price that you consider appropriate and allows expiry terms from one day to one year.
AvaOptions is AvaTrade’s flawless, intuitive and user-friendly platform that allows you to trade options. It includes a series of valuable features to support options trading activity, such as portfolio simulations, risk management tools, flexible orders, trade strategies and the capacity to trade on multiple accounts, among other things.
It also has a fully customisable interface, interactive risk management and a money manager.
The social trading capacity is another interesting feature of AvaTrade. It enables traders the ability to copy trading signals or trading strategies from other successful traders.
AvaTrade provides several options of automated trading, plus trading with expert advisors through DupliTrade, Zulutrade and MQL5 Service Signals.
DupliTrade is one of the most used platforms for social trading and is MetaTrader compatible. It allows traders to automatically follow more experienced and successful traders and mirror their trading signals in real time. DupliTrade is well known for its intuitive interface.
ZuluTrade is another popular social trading platform that permits traders to copy the trades of other traders. You have the ability to select the traders that you are interested in following and their trading strategy will be automatically executed in your trading account with AvaTrade. The service is provided around the clock, together with an interface that executes trades even when a device is shut down.
MQL5 is a service integrated with MetaTrader which can be used to subscribe to signals from traders across the globe directly from MT4.
AvaTrader also allows traders to develop their own automated trading system and run it through their API interface, while you also have free access to AvaTrader API Libraries.
AutoChartist is a MetaTrader add-on that automatically scans the markets using a complex recognition engine in order to identify profitable trading opportunities. It has several important capabilities, like previewing how various instruments react to price movements; recognising chart patterns; Fibonacci patterns; and key levels of support and resistance.
AvaTradeGO is the proprietary platform of AvaTrade and aims to provide a simpler trading experience than any other trading platform.
AvaTrade Go comes equipped with clear charts; a comprehensive dashboard; easily understandable management tools; embedded guidance and feedback on your trading activity.
It also allows traders the possibility to manage several accounts from one common dashboard and to switch among real accounts and demo ones.
An outstanding feature of AvaTradeGO is “Market Trends”.
AvaTradeGO Market Trends allows traders to keep an eye on the social trends developing inside the AvaTrade’s community, as well as get insights on trading behaviour and what instruments are trending for buying and selling.
Watch the video below for more on the AvaTradeGO product or see it in action on the AvaTrade website, here.
AvaTrade provides retail clients with their services worldwide, with the notable exception of the United States and jurisdictions where trading is not permitted.
AvaTrade provides support in 14 languages and ensures that traders all over the world are placed under the regulation of a prominent authority, no matter where they live.
AvaTrade does not provide clear information on their website about different account types on offer. A potential trader will need to hunt for information and pull together the different types of account from the various sections on the website.
Depending on a trader’s region of residence they may be able to access several different types of accounts, however overall the offer of types of account is limited. Essentially, AvaTrade’s offering is composed of a Retail Account and a Professional Account for the residents of the European Union. For non-EU residents, however, only the Retail Account is available. Residents of Ireland and the United Kingdom have a supplementary option for a Spread Betting Account.
To qualify for a Professional Account, a trader must:
Possess a portfolio of €500.000 minimum. Have relevant experience in the financial industry – minimum one year in a related field to trading. Be able to show significant trading activity in the past year with at least 10 transactions per quarter.
he major difference between the Retail Account and Professional Account is the size of the leverage. For the Retail Account, the maximum leverage available is 1:30 as per European regulations. For the Professional Account, leverage may reach 1:400.
The difference between the regular Retail Account and the Spread Betting account is essentially based on the manner of measuring the size of orders. The other conditions – costs, leverage and access – are the same for both accounts.
The execution of orders is processed via the AvaTrade dealing desk for all accounts. Spreads are variable for all types of accounts. All styles of trading are approved, including hedging, automated trading, scalping, etc.
Muslim traders may also opt for an Islamic Account, which functions under the rules of Sharia law. Essentially this means swaps are not charged or paid on this type of account. The Islamic Account also does not allow crypto trading, has fewer FX pairs available and tends to have higher spreads.
Opening an account with AvaTrade is a simple and easy process, very similar to those used by other top Forex brokers.
To open an account you just need to follow the instructions below and provide the requested data:
Enter your email, chose a password and click on “Create My Account”
Complete your name, phone and email address, or use an existing social profile on Google or Facebook.
Answer a short questionnaire concerning your trading experience
Verify your identity by uploading an ID card, passport or driving license and prove your residency via a bank statement or utility bill
Usually, the verification procedure is smooth and there a decent chance of having your account opened and verified on the same day.
Once your account is approved, you will be able to fund your trading account and begin trading.
AvaTrade – Open Account
AvaTrade – Sign-Up and open an account
With AvaTrade you are given the option of opening a demo account which takes just a few clicks to set up.
On the main AvaTrade page find the button “Open Account” and choose the option “Demo Account”. An open demo account has a validity of 21 days and maybe extended if you contact the support department. It is loaded with $100,000 worth of virtual funds.
Before choosing AvaTrade as your broker, we highly recommend trying a demo account to test the quality of their services. It’s highly recommended to do this with any broker you might be interested in, as the demo account is an exact mirror of a real account.
When you’re trading in financial markets, the quality of your broker’s services makes or breaks your success. This is why you should clearly establish the criteria that your broker should meet based on your own goals and experience.
If you are just beginning as a trader then it should be compulsory to use a demo account to get a feel and better understanding of what trading really involves in financial markets. Trading is a high-risk activity. It has huge profit potential, but you may also lose all your invested funds. That’s why it’s always better to learn the basics first, use a demo account for training and get used to trading financial instruments. Demo accounts are free and you can learn without risking your capital.
Be patient, learn as much as you can and practice as much as you can. When you’re comfortable then you can begin trading on a real account with small steps. Always use only the funds that you can afford to lose.
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Price Currency: USD
Operating System: Windows 7", "Windows 10", "OSX 10.6", "Android 1.6", "iOS"
Application Category: Trading Platform