AvaTrade vs Plus500

Variable vs Stable Spreads

Plus500 advertises lower spreads, but there's a catch: they're highly variable. Here's what this means in practice.

Normal Market Conditions

During calm markets (Asian session, midweek), Plus500 may indeed offer 0.6 pip EUR/USD spreads compared to AvaTrade's 0.9 pips. On these trades, Plus500 is cheaper.

During News/Volatility

When NFP releases, central bank announcements happen, or markets spike - Plus500 spreads can jump to 3-5+ pips temporarily. AvaTrade's spreads also widen but typically less dramatically because they use fixed-spread account types.

Guaranteed Stop Orders

Plus500 offers guaranteed stop orders - your stop will execute at exactly your specified price regardless of slippage or gaps. This costs extra (built into the spread), but provides certainty. AvaTrade doesn't offer this, so your stops may slip during gaps.

The Inactivity Trap

Plus500 wins on inactivity fees: $10/month after 3 months vs AvaTrade's $50/quarter after 3 months. If you trade sporadically, Plus500 charges less for dormant accounts. However, if you're active, this is irrelevant.

Real-World Cost Comparison

For an active day trader executing 10 standard lots per week on forex, AvaTrade's consistent spreads likely cost about the same as Plus500 in the long run - volatility spikes on Plus500 offset their base spread advantage.

Evaluating Broker Safety

Plus500 being publicly listed on the London Stock Exchange is often cited as a safety advantage. Let's examine this objectively.

The Public Company Advantage

Plus500 must publish quarterly financial reports, annual statements, and material announcements. Their financials are audited. This transparency is valuable - you can literally check their balance sheet and see how much cash they hold.

The Regulatory Advantage (AvaTrade)

AvaTrade holds more regulatory licenses across more jurisdictions. Each regulator adds oversight. The Central Bank of Ireland (AvaTrade's primary regulator) is arguably stricter than CySEC (Plus500's primary for EU). More licenses = more regulatory oversight.

Both Are Safe

Let's be clear: both brokers are well-regulated, established, and safe for retail trading. Neither is likely to run off with your money. The differences are in degree of transparency (Plus500 wins) vs breadth of regulation (AvaTrade wins).

Client Fund Protection

Both offer segregated client funds, negative balance protection, and access to compensation schemes (FSCS in UK, etc.). In practice, your funds are similarly protected at either broker.