Avatrade Review 2020 - Verified Customer Reviews

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3.8
User Rating
4.3
(23)
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Avatrade Review

Updated September 25, 2020
3.8
Score breakdown
Pricing: 3
Regulation: 5
Popularity: 3
User Rating: 4.3 (23)

Avatrade overall score rank: 9 out of 34

AvaTrade forex broker review
KEY TAKEAWAYS

✔️ Great offering of worldwide stocks for trading
✔️ Several trading platforms available
✔️ Regulated in Ireland, Australia, Japan, UAE and South Africa
✔️ No fees on deposits & withdrawals

Regulations and Money Protection

5.0 


Entity Name Regulation Client Money Protection Deposit Compensation Scheme Negative Balance Protection
Ava Trade Ltd (BVI) BVI FSC License ✔️ - segregated client money ✔️
Ava Trade EU Ltd (EU) Central Bank of Ireland License  ✔️ - segregated client money ✔️ - up to €20,000 ✔️
Ava Capital Markets Australia Pty Ltd (AU) Australia ASIC License ✔️ - segregated client money ✔️
Ava Trade Japan K.K. (JP) Japan FSA License ✔️ - segregated client money ✔️
Ava Capital Markets Pty (South Africa) South Africa FSCA License ✔️ - segregated client money ✔️
Ava Trade Middle East Ltd (Abu Dhabi) Abu Dhabi FRSA License ✔️ - segregated client money ✔️

Regulation

  • Ava Trade Ltd will be the counterparty for International customers. This entity, with registered address at Euro American Trust Building, PO Box 3483, Road Town, Tortola, British Virgin Islands, is regulated by the BVI Financial Services Commission with license no. SIBA/L/13/1049.

  • Ava Trade EU Ltd, with registered address at AvaTrade Financial Centre, Five Lamps Place, Amiens Street, Dublin 1, is incorporated in Ireland and is regulated by the Central Bank of Ireland. AVA Trade EU Ltd is a licensed investment firm compliant with the Markets in Financial Instruments Directive (MiFID).

  • Ava Capital Markets Australia Pty Ltd (ACN 143 340 907), located at Level 13, 2 Park Street, Sydney NSW 2000 Australia, is licensed by the Australian Securities & Investments Commission (ASIC) with license number ASFL 406684. Ava Capital Markets Australia Pty Ltd is registered to carry out financial services business in Australia, limited to the financial services covered by its AFSL license.

  • Ava Trade Japan K.K. with address at Minatoku Akasaka 2-18-1, Akasaka Hillside Building (4th Floor), Tokyo, Japan, is licensed and regulated in Japan by the Financial Services Agency with license number 1662 and by the Financial Futures Association of Japan with license number 1574.

  • Ava Capital Markets Pty, registered in South Africa with company number 2015/074039/07 and with registered address at 70 Grayston Drive, 2nd Floor, Sandton, Johannesburg, South Africa 2196, is authorized and regulated by South Africa's Financial Sector Conduct Authority (FSCA) with a financial services provider license number 45984.

  • Ava Trade Middle East Ltd, located at 2424, 24th Floor, Al Sila Tower, Abu Dhabi Global Market Square, Al Maryah Island, Abu Dhabi, UAE, is regulated by the Abu Dhabi Global Markets (ADGM) Financial Regulatory Services Authority (FRSA) with a Financial Services Permission Number 190018.

Client Money Protection

  • AvaTrade complies with the highest safety standards for client's funds. For this reason, AvaTrade client's funds are kept in top-tier international banks, such as ANZ Bank, Danska Bank, NatWest Bank, fully segregated from the company’s funds.

  • AvaTrade also complies with the client money handling rules and employs strict policies and procedures regarding the maintenance and operation of these accounts. AvaTrade holds client's money separately to the company funds and does not use these funds for any operational expenses or purposes.

Deposit Compensation Scheme

Ava Trade EU Ltd is a member of the Investor Compensation Scheme (ICS). The ICS protects clients of an investment firm that goes out of business. The scheme pays compensation when an investment firm authorised by the Central Bank is unable to return money or investment instruments it owes to consumers who invested with it. If Ava Trade EU Ltd is unable to pay claims against it in the event the firm has stopped trading or has declared to be in default, clients might be entitled to compensation of 90% of their net loss, up to a maximum of €20,000 per claim.

Negative Balance Protection

For accounts opened via any entity of the Ava Trade Group, there is a default Negative Balance Protection mechanism in place, for the sake of no negative balance. With NBP, AvaTrade customers are protected from any losses bigger than their original investments, in cases of extreme market volatility.

Accounts, Instruments and Platforms

Accounts Instruments Platforms Social trading Maximum Leverage
✔️ - Standard 
✔️ - Pro 
✔️ - Swap-free Islamic Accounts
✔️ - Forex
✔️ - Indices
✔️ - Stocks 
✔️ - Futures 
✔️ - ETFs
✔️ - Bonds 
✔️ - Commodities
✔️ - Cryptocurrencies
Metatrader 4 Metatrader 5 AvaTradeGO ZuluTrade 
DupliTrade
30:1 EU 
400:1
Rest of World

Account types and currencies

  • AvaTrade has just two trading account types; Standard and Pro. A special note here. The Pro account is reserved only to professional traders that meet the required profile to qualify*. AvaTrade also offers swap-free accounts for any traders of Islamic belief.

  • AvaTrade allows for social trading, including copy trading, available through DupliTrade and ZuluTrade.

  • AvaTrade does not offer PAMM accounts alternatives for money managers.

  • AvaTrade maximum leverage is 30:1 for accounts opened in Europe and up to 400:1 for accounts opened in other countries around the world.

  • Currently, AvaTrade trading accounts are only available in AUD, EUR, GBP, JPY and USD.
     * To be eligible for a professional account traders need to meet at least 2 of the following criteria:
  1.    Sufficient trading activity in the last 12 months
  2.    Relevant experience in the financial services sector
  3.    Financial instrument portfolio of over €500,000 (including cash saving and financial instruments)

Financial instruments

Trading with AvaTrade can be done via the Metatrader 4, Metatrader 5 platforms (available on desktop and mobile trading versions) and AvaTradeGO, AvaTrade's own proprietary platform, available on web, Android and iOS versions. AvaTrade offers a great selection of assets to trade, including Forex, indices, stocks, ETFs, commodities and cryptocurrencies.

  • FX market - 60 currency pairs (including Minor and Exotic crosses).

  • Indices - 23 world indices, including CAC 40, FTSE 100, Nikkei 225 and NASDAQ 100.

  • Stocks - 600+ stocks CFDs from worldwide top companies and banks, such as Harley Davidson, Ryanair, Lloyds or Ferrari. Also provided by AvaTrade, 31 ETFs and 2 bonds Euro-bund and Japan Govt. Bond).

  • Commodities - 26 commodities CFDs available for trading; 5 metals (Silver and Gold included), 5 energies including UK Oil, US Oil and Nat Gas and 7 soft commodities including Sugar, Coffee and Cocoa. To complete the commodities offering AvaTrade has also 9 Futures contracts; 4 metals and 5 energies.

  • Cryptocurrencies - 13 CFDs crosses for trading, including Bitcoin, Ripple, Stellar, Dash, Eos and Litecoin.

Pricing

3.0  


Pricing/
Account
Standard Pro
Spread EUR/USD from 0.9 pip from 0.6 pip
Commissions
Minimum Deposit from 100 USD N/A

Spreads

AvaTrade trading spreads are not the most competitive in the market, for the entry-level account (Standard account). AvaTrade applies a fixed spread type to it's Standard account with no commissions. For the most traded pair, the EUR/USD, the average spread is 0.9 pip. With a Pro account, the EUR/USD average spread is 0.6 pip, also with no commissions.

To benefit from the lower Pro account spreads there’s a cost. Traders need to qualify as professionals. The only problem? To qualify traders will need 12 months trading history and a financial instrument portfolio of over €500.000 (including cash savings and financial instruments) or work or have worked in the financial sector for at least one year in a professional position requiring knowledge of CFDs trading. Regarding the overall cost of trading with this broker, we consider AvaTrade to be slightly higher compared with other FX brokers, even without added trading commissions.

Rollover Rates

AvaTrade swap rates, as of 07-08-2020 for the EUR/USD stand at -7.54 USD for holding overnight a 1 lot long contract and at -3.61 USD for holding overnight a 1 lot short contract. AvaTrade swap rates are amongst the highest when compared with the rollover rates offered by other top Forex brokers.

Deposits/Withdrawals and Other Fees

  • Deposit fees - Trading accounts can be opened in 5 different currencies and maintained via 5 different funding methods, including cards, bank wires and e-payments such as Webmoney, Neteller and Skrill. Deposited funds are available almost instantly (with credit and debit cards). AvaTrade does not charge any fees for deposits.

  • Withdrawals fees - Same policy applies for withdrawals (processing times vary depending on the withdrawal method chosen, it can take between 1-10 working days). Traders can only withdraw after passing the verification process. For more information, please visit the AvaTrade deposit and withdrawals dedicated page.

  • Inactivity fee - AvaTrade charges an inactivity fee after 3 consecutive months (called the Inactivity Period) of no trading activity on the account. An inactivity fee of $50 will be deducted from the customer's trading account balance (and for every successive Inactivity Periods of 3 months). This fee is subjected to the customer's relevant currency base account. After 12 consecutive months of non-use an Administration fee of $100 will be deducted.

Popularity

3.0 


Forex Education Deposit Options Deposit/Withdrawals Fees Non expiring demo account Customer Support
FX Courses
Trading Videos
eBook
Trading Strategies
Market Analysis
Cards
Bank Wire
E-payments
✔️ Multi language
24/5 Support
Live Chat

The popularity of AvaTrade with traders scores a neutral 3.0 out of 5.0, especially because of their lack of trading accounts. Still, AvaTrade should be considered a sound option if traders are looking for an alternative broker with strong regulations and safety of funds in place.

With currently 200,000 registered traders around the globe (according to their corporate website) and operating in various countries for the past 10 years, AvaTrade seems to have their fair market share, but still is failing to capture the attention of more traders.

Top marks for AvaTrade's own trading platform, AvaTradeGO. Available also for Android and iOS, AvaTradeGo offers a connection to global markets with live feeds and social trends, a sophisticated dashboard, completed with a set of intuitive management tools, clear charts, zoom for details, and many more helpful features unique to this app.

Also popular with options traders, AvaTrade AvaOptions trading platform, also available for Android and iOS. AvaOptions is dedicated to the options trader, with more than 40 currency pairs and any combination of call and put options in one account to create an optimal portfolio. AvaOptions includes professional risk management tools, portfolio simulations and much more. Both desktop and mobile platforms offer unparalleled power to any trader.

  • Trading accounts - The AvaTrade Standard trading account is not a very popular choice with traders looking to save on trading costs trading costs. With a fixed spread of 0.9 (that can widen on extreme volatility or news events), even without commissions, this account is just average when compared with other brokers. Still, some extra popularity points for AvaTrade's policy of no fees on deposits or withdrawals.

  • Forex education - AvaTrade earns a couple of popularity points for their range of Forex education materials available on the Education tab. Traders can find and enroll on FX courses, watch and learn with trading videos, download eBooks, practise with some trading strategies, read and follow AvaTrade market analysis.

Funding Methods Bank Wire, Credit Card, Neteller, Paypal, Skrill (Moneybookers), Webmoney, Boleto Bancario
Support Languages Arabic, Chinese, English, French, German, Indonesian, Italian, Korean, Polish, Portuguese, Russian, Spanish, Thai, Turkish


  • Minimum deposit - Opening a trading account with AvaTrade is quite easy and fast, taking around 15 minutes to complete all the forms with the required information. The minimum deposit requirement for the Standard account is 100 currency units. If traders are funding their accounts via bank wire, then the minimum deposit is 500 units of the denominated account currency. 

  • Customer support - AvaTrade's multi language customer support service is available 24 hours, 5 days a week, in 14 languages. AvaTrade's support is available via global phone numbers (depending on jurisdiction), email and live chat directly from the broker's website.

Broker Profile

Founded in 2006 as a multi-national company, AvaTrade has regional offices and sales centres in Paris, Dublin, Milan, Tokyo and Sydney with the administrative headquarters in Dublin. The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders. 

Ava Capital Markets Ltd is incorporated in Ireland and is regulated by the Central Bank of Ireland. The Ava Group holds licenses and is regulated in various countries; by the ASIC in Australia, the FSCA in South Africa, FSA and FFAJ in Japan and by the ADGM in Abu Dhabi.

AvaTrade’s wide scope includes a full spectrum of trading instruments; CFDs in Forex, stocks, commodities, ETFs, indices, bonds and crypto currencies. From its 24-hour multilingual support desks to its broad range of platforms and services, AvaTrade has created the optimal trading environment for every level of trader. 

Their advanced Forex trading platform provides access to the most recent and deep analysis of the Forex market, current news, technical analysis tools, up-to-date economic (Forex) calendar, online trading charts and many other useful trading tools. AvaTrade is wholly dedicated to building up the unique online trading environment which caters both for retail and institutional traders.

Overall, on our AvaTrade review, the broker scores 3.9 out of 5. On the plus side it is a good choice for traders looking for a reputable broker with good regulations in place and safety of funds. The variety of trading platforms, available for mobile trading has the potential to satisfy more customers. On the minus side, the overall cost of trading with AvaTrade could be improved (spreads and swap fees) to match the lower trading costs of other top brokers.



Data supplied in partnership with CashBackForex - Forex Rebates places AvaTrade on the top 30 brokers for popularity with traders opening an account in 2020.


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4.3
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Avatrade user rating score rank: 6 out of 34

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Avatrade Products

Forex
Bonds
Cryptocurrencies
Indices
Metals
Bitcoin
Oil/Energies
Commodities (coffee, sugar...)
Shares/Equities
ETFs