AvaTrade is a well-established brokerage house which has a lengthy track record of conducting
business ever since 2006. It has its headquarters in Dublin, Ireland with subsidiaries in other
countries such as Australia, British Virgin Islands, Japan, and South Africa. It has more than
200,000 registered customers and offers trading services in about 150 countries. AvaTrade users
can trade up to 55 different currency pairs, about 17 commodity CFDs, 14 digital currencies, and
CFDs on about 66 individual stocks. AvaTrade’s primary aim is to provide services to traders of
all skill level while simultaneously offering an adaptable trading platform.
AvaTrade was originally established as AvaFX in 2006. It was among the first brokerages in the
retail Forex/ CFD sphere. Having survived the financial crisis, AvaTrade has secured the trust of
users worldwide. Additionally, it has a long track record of being regulated by several regulators
including top-tier ones. Currently, it offers average to competitive spreads and a broad variety of
trading instruments across six jurisdictions on five continents. The platform allows beginner
traders to start investing with as little as $100. Additionally, they have a dedicated education
platform with free courses, videos, and market analysis to help get beginners up to speed as
quickly as possible.
AvaTrade Advantages and Disadvantages
- It has low trading fees
- The account opening process is easy and fast.
- It offers multiple deposit and withdrawal options.
- It offers a variety of Forex, CFD, and cryptocurrency offerings
- Offers some unique social trading features.
- It has an impressive educational platform to get newbies up to speed.
- Its offers are limited to Forex, CFDs, and digital currencies.
- It has very limited research tools
- Customer support doesn’t work over the phone.
- The platform has some hidden fees that are not openly disclosed.
- The trading platform lacks news and research functionality.
How to Register and Trade with AvaTrade
Fortunately, the registration process on AvaTrade is extremely simple and speedy. You can
acquire your account ready and active the same day that you start registration. You only need to
navigate through a few screens as you submit your personal details. It’s worth noting that in
addition to providing your personal details, you’ll have to verify your identity and place of residence. Unfortunately, AvaTrade doesn’t accept clients from the United States along with a
few other countries such as Belgium, New Zealand, Israel, and Iran.
Here’s how to quickly set up an account on AvaTrade:
- The first step is to input some of your basic personal information. There is provision to
use your social profile such as a Facebook or Google account.
- Answer a few questions that are designed to test your understanding of trading.
- Lastly, you just have to verify your identity and residency. You can do this by uploading
a copy of your ID, driver’s license, or passport along with a copy of a recent utility bill.
- Thereafter, you can proceed to deposit some cash into the account. The minimum deposit
is $100 with credit cards and $500 via bank transfers.
Accounts available on AvaTrade include:
- Standard account- This is an account owned by an individual.
- Corporate account- This is an account owned by a legal entity such as a company.
- Islamic account- This account is a swap free account. It doesn’t charge swaps for the account.
Deposit and Withdrawals
Deposits and withdrawals on AvaTrade are cost-friendly and can be done in a number of ways.
However, note that withdrawal takes about 3 business days to complete. Additionally, the
platform doesn’t have any deposit or withdrawal fees. You can use either a credit/ debit card to
deposit. If both options are not available to you, you can use an electronic wallet such as Skrill or Neteller. The minimum amount you can deposit is $100. Deposit by credit or debit card takes
about 4-5 hours while deposit via bank transfer takes several business days.
AvaTrade charges no fee for withdrawals. You can use any of the options you used to deposit to
withdraw. With a credit or debit card, you can only with draw up to 200% of the money that you
initially deposited. Additionally, you have to use bank transfer to do so, which takes a gruesome
three business days to reflect in your account. Plus, you can only withdraw to accounts in your
AvaTrade Trading Platform
AvaTrade’s trading platforms are set to appeal to traders of all skill levels and knowledge.
Whether manual or automated, the platforms offer access to over 250 trading instruments,
multiple analytical tools, charts, and trade indicators. The platform is also fully customizable and
allows for single-click trading on any financial instrument from a single screen. Other features
include live feeds, live analysis, and advanced charting. Additionally, auto-trading software
within the platform allows traders to duplicate the trades of other skilled traders at any time.
Regulation and Safety
As reiterated before, AvaTrade has its headquarters in Dublin, Ireland. It has also several sales centers in other areas such as Johannesburg, Tokyo, Mongolia, Nigeria, Santiago, Beijing,
Madrid, Sydney, Paris and Milan. AvaTrade is regulated in all these areas as well and thus
enjoys an extremely strong level of regulation. The mere fact that AvaTrade is based in Ireland,
appeals to many as the Republic of Ireland has a high level of regulation in the financial services
It’s worth noting that acquiring several jurisdictions in several regions is not an easy task for any forex broker. Therefore, AvaTrade’s several successful regulations in different regions just goes to show how dedicated it is in providing a secure trading experience for all its customers. Additionally, it has been in operation since 2006, that’s over 100 years of service along with an established reputation of safety and investor protection.
Authority bodies that regulate AvaTrade in different jurisdictions include:
- The Central Bank of Ireland
- The Japanese Financial Services Agency (JFSA)
- The Financial Futures Association of Japan (FFA)
- The Australian Securities and Investments Commission (ASIC)
- The B.V.I Financial Services Commission on the British Virgin Islands
- The Financial Sector Conduct Authority (FCSA), South Africa.
AvaTrade Fees and Limits
As mentioned before, it only takes $100 to open an account with AvaTrade. There are no
withdrawal or closure fees listed in their marketing materials. However, legal documents showed
that there are fees for bank transfers and credit/debit card transactions. They do charge an
inactivity fee of 50 units in the account’s currency, whether it’s USD, EUR, or GBP after three
months of inactivity. The fee applies to each inactivity period.
They also charge an administration fee of 100 units of the account’s currency after a whole year
of inactivity. Therefore, if your account currency is in USD and you happened not to use the
account for a whole year, you’d be charged a collective amount of $300. That’s a hefty amount
for potentially doing nothing. Apart from inactivity fees, there are also maturity rollover fees
and overnight interest calculations that can be found on a page list on their site.
They offer a lists of all the spreads available for tradable instruments. However, they only list fixed spreads. There’s no documentation of floating spread averages or minimums. It seems that
information is buried deep into the FAQ page along with content about account types and the
relative costs associated with each account type. Moreover, there’s no documentation on the
actual spread for Islamic accounts.
It was found out that there are some discrepancies on fee disclosures and spreads. Apparently,
there are some hidden withdrawal fees. Furthermore, they charge commission on some account
types. Unfortunately, these account types were not disclosed. AvaTrade can easily remedy the situation by releasing more detailed information regarding the above as well as a side-by-side
account comparison of the account types, particularly fixed versus floating.
AvaTrade Customer Support
AvaTrade offers 24/5 phone support as well as social media portals and an online entry form.
Unfortunately, trying to connect with customer support via chat is extremely difficult. You can
connect with support via chat only three times a day at different designated times whereby, it
takes the live representative about 8 minutes to get to you. However, since the firm has several
international offices, it has provided several international numbers that cater to each individual’s
jurisdiction. Therefore, customers can contact local support via phone without any problem.
Additionally, they have a comprehensive FAQ page that addresses most inquiries quickly.
Therefore, if you are having difficulty getting to support, you can check out their FAQ page.
AvaTrade’s most salient feature is their incredibly diverse and rich automated trading package
that comes integrated into their trading software. It offers free Forex trading APIs that cost
hundreds of dollars in the market. Not to mention, you only pay the spreads for trading and no
other additional cost for access to their advanced and sophisticated auto-trading tools.
Moreover, AvaTrade offers its customers access to a professional designation that allows higher
leverage. Unfortunately, only a few customers can access this as it requires a large trading
account and financial industry experience to qualify. Other features include the fixed and floating
spread accounts along with an Islamic account.
For copy and social trading, customers can access third-party platforms. The AutoChartist
feature for Metatrader adds technical functionality. However, it requires a minimum of $500 in
the account which locks out small or beginner traders. Their automated trading package comes
with ZuluTrade syatem and Ava AutoTrader which allows algorithmic trading as well as an
advanced variety of APIs that allow you to create your own forex automation solutions. This is a
standout feature that’s not available on most Forex trading platforms.
Another standout feature of AvaTrade is AvaOptions that allows you access to trade Vanilla
Forex options along with options in Gold. With this feature, you can trade any combination of
call and put options, allowing you to construct sophisticated options trading strategies such as
straddles, strangles, and spreads. Retail access to Forex options in this kind of manner is most
appealing to traders as it’s the most profitable long-term trading strategy in currency trading.
Apart from allowing its customers to trade Forex options, AvaTrade has a strong regulatory
regime in two major industry centers that enjoy high levels of regulatory protection. They
include the republic of Ireland and Australia. For instance, under the Republic of Ireland,
depositors are protected by deposit insurance in cases of insolvency up to the high amount of
20,000 pounds per depositor.
Is AvaTrade Safe?
Although AvaTrade isn’t traded publicly and doesn’t operate a parent bank, it’s absolutely safe. For starters, AvaTrade is regulated by 3 tier-1 regulators, 1 tier-2 regulator, and 2 tier-3 regulators. The trust level for tier-1, tier-2, and tier-3 regulators is high, average, and low respectively. The tier-1 regulators that authorize AvaTrade include: the ASIC (Australian Securities and Investment Commission), the JFSA (Japanese Financial Services Authority), and via Friedberg Direct, the .IIROC (Investment Industry Regulatory Organization of Canada). This makes AvaTrade a low-risk trading platform.
AvaTrade has been assisting traders make trade investments for over a decade. If anything, their
many awards for their services in the industry speaks on their behalf. Additionally, the firm
stands-out from other brokers in more than one aspect. For starters, they offer a nice range of
financial instruments such as forex vanilla options and ETFs with relatively small initial deposit
Moreover, their intuitive and easy-to-master user interface is beginner-friendly and suits traders
of all skills. Their fees are also reasonably competitive. Lastly, they are in good regulatory
standing with several jurisdictions worldwide, which adds a layer of trust and confidence in their
platform. It doesn’t take much to see that AvaTrade is an outstanding choice in an industry filled
with scams and untrustworthy brokers.
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