What is AvaTrade broker? Should you invest?

AvaTrade is an exchange that offers a wide range of platforms, including automated copy trading, allowing for forex options, CFDs (including cryptocurrencies) across multiple markets through offices. regulated in many large and emerging financial centers.

Overview

AvaTrade is an exchange that was founded in 2006 as AvaFX, then changed to AvaTrade. Currently, AvaTrade has representative offices in 11 different countries and offers multiple trading platforms on web, PC and mobile devices, offering forex and CFD options trading on a wide range of assets, including cryptocurrencies. AvaTrade is headquartered in Ireland, regulated by the Central Bank of Ireland and throughout the EU under MiFID regulation. In Australia, Ava Capital Markets Australia Pty Ltd is regulated and licensed by the Australian Securities and Investments Commission (ASIC). In Japan, Ava Trade Japan K.K. Licensed and regulated by Japan Financial Services Agency (JFSA) and Japan Financial Futures Association (FFAJ). In addition, AvaTrade has headquarters regulated in the British Virgin Islands (BVI) by the Financial Services Commission (FSC) and the Financial Services Regulatory Authority (FSCA) in South Africa. Then, in 2018, AvaTrade expanded its services to Canadian residents through a partnership with a Canadian regulated exchange, Friedberg Direct.

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AvaTrade platform operating license

AvaTrade is a company that is licensed and regulated in many different countries, giving clients peace of mind, proving that they are dealing with a trusted and reputable broker. AvaTrade is subject to strict compliance requirements, including how client assets are handled, safety of deposits, and regular financial reporting. Here are the details of AvaTrade’s licensing authorities:

 
AVA Trade EU Ltd is regulated by the Central Bank of Ireland. (No.C53877)
Ava Trade Markets Ltd. regulated by the BVI . Financial Services Commission
Ava Capital Markets Australia Pty Ltd is regulated by ASIC No.406684.
Ava Capital Markets Pty is regulated by the South African Financial Sector Regulatory Authority (FSCA No.45984).
Ava Trade Japan KK is licensed and regulated in Japan by the Financial Services Agency (License No: 1662), the Financial Futures Association of Japan (License No: 1574).
Ava Trade Middle East Ltd is regulated by the Abu Dhabi Global Markets Financial Services Regulatory Authority (ADGM) (FRSA) (No.190018).
DT Direct Investment Hub Ltd. regulated by the Cyprus Securities and Exchange Commission (No. 347/17).
ATrade Ltd is regulated in Israel by the Israel Securities Authority (No. 514666577).

Types of trading accounts at AvaTrade

AvaTrade only offers 2 main account types: Standard and Pro accounts.
 
Standard account: almost all traders can register to use this account type, but it will be more suitable for traders who already know how to trade and have experience in placing orders. Because the account requires a minimum deposit of up to 100 USD and the spread ranges from 0.9 pips for EUR/USD and maximum leverage is 1:400. These conditions are difficult for a new trader to enter boldly.
Pro account: not everyone can deposit and trade this type of account. AvaTrade only offers professional accounts to investors who meet the following criteria:
+ Full activity in the past 12 months including large transactions with an average frequency of 10 transactions per quarter over the previous four quarters. Provide proof of recent account statements.
+ At least one year of relevant experience in the financial sector in a professional position. Trader with a portfolio of financial instruments over 500,000 EUR.

Commissions and fees

AvaTrade’s spreads are close to the industry average at just under one pip (0.9 pips), yet are slightly higher than the spreads available on the entry-level accounts offered by CMC Markets and Tickmill. Professional traders: If you qualify as an elected professional trader, spreads on AvaTrade’s Professional account are competitive at 0.6 pips and comparable to FP Markets.

Minimum Deposit $100
Average Spread EUR/USD – Standard 0.92 info
All-in Cost EUR/USD – Active 0.61 info
Active Trader or VIP Discounts Yes
ACH or SEPA Transfers No
PayPal (Deposit/Withdraw) Yes
Skrill (Deposit/Withdraw) Yes
Visa/Mastercard (Credit/Debit) Yes
Bank Wire (Deposit/Withdraw) Yes

Lever

The maximum leverage that AvaTrade supports is 1:400, which is quite low compared to the general level of the market. In it, each product will be specified with a different leverage level.

Forex 1:400
Stock 1:10
Metal 1:200
Energy 1:100
Agricultural products 1:400
Cryptocurrency 1:25
Index 1:200
ETFs 1:20
Bond 1:20

Research

AvaTrade produces daily in-house research content in video and article format, and grants access to Trading Central research modules. While AvaTrade has made improvements in this category, its research offering can’t stack up against what the best forex brokers offer.
Research overview: Beyond AvaTrade’s support for ZuluTrade, AvaSocial, and DupliTrade for copy trading, the main highlight from AvaTrade’s research offering is Trading Central. Trading Central is directly integrated within the AvaTrade web platform and includes a variety of TC-powered features, such as its Market Buzz, Analyst Views, and Featured Ideas tools, as well as an economic calendar and streaming news (available in MT5).
Market news and analysis: AvaTrade provides daily market analysis articles on its blog, along with daily market video updates published to its Vimeo and YouTube channels.

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Final thoughts

AvaTrade pros & cons

Pros

  • Founded in 2006, AvaTrade is regulated in three tier-1 jurisdictions and four tier-2 jurisdictions, making it a safe broker (low-risk) for trading CFDs and forex.
  • Alongside MetaTrader, AvaTrade offers its proprietary platforms AvaTrade WebTrader and AvaTradeGO, with innovative features such as AvaProtect.
  • The AvaOptions app, powered by Sentry Derivatives, provides AvaTrade clients with an excellent forex options mobile trading platform.
  • AvaTrade offers 44 forex options, in addition to over 1,200 CFDs.
  • AvaTrade offers AvaSocial, along with ZuluTrade and DupliTrade for social copy trading, and finished Best in Class for 2023.
  • AvaTrade ranks Best in Class for Professional traders for 2022.

Cons

  • Pricing for retail accounts is in line with the industry average, but trails industry leaders.
  • The AvaOptions desktop platform is slow to load, and has an outdated design that doesn’t match up with the sleek responsive design of its mobile counterpart.
  • Out of 1,260 available symbols, at least 351 are on hold for both the MetaTrader and WebTrader platforms at AvaTrade.
  • Research is limited to Trading Central modules, and just one or two daily articles and videos.

AvaTrade stands out for its rich selection of trading platform options, and for its educational content for beginners – categories where it finished Best in Class. Its range of tradeable markets has nearly doubled year-over-year, and spreads for clients designated as Professional traders in the EU are quite competitive.