AvaTrade: Review, Analysis and Complete Guide
AvaTrade is an online Forex/CFD trading broker founded in 2006 and is regulated worldwide. Headquartered in the Republic of Ireland, it has a corporate structure consisting of several locations that match the largest volume of regulated trades: Australia, Japan, South Africa and the British Virgin Islands.
As of February 2020, AvaTrade is also regulated by the Abu Dhabi Financial Services Regulatory Authority, being the first foreign exchange broker to receive a 3A license in Abu Dhabi.
AvaTrade is offered as an online broker with extremely low spreads, regulated trading operations from registration through deposits to withdrawals and as a secure broker that complies with all global regulations.
In the following sections we will provide you with all the information about trading CFDs in the Forex market, crypto currencies such as Bitcoin, stock products, platforms, user opinions and everything that will allow you to decide if this broker is the right one for online trading.
Pros and Cons of AvaTrade
- Worldwide regulated and secure broker.
- Excellent reviews.
- Trading of Crypto currencies (Bitcoin, Litecoin, etc.)
- AvaTrade Go App for mobiles.
- Multilingual customer service.
- Withdrawal period up to 5 days.
- Demo account for 21 days only.
- Does not accept customers from the United States.
AvaTrade Financial Products
Stocks and financial products
When investing through an online broker, you need to consider all the assets you can trade, in addition to Forex, CFDs or Bitcoins, to diversify into other financial products.
AvaTrade offers the following trading instruments:
- Forex: FOREX stands for Foreign Exchange, also known as currency market because currencies are bought and sold from all over the world. In forex there are different types of contracts, below we present the 3 types of contracts that AvaTrade offers:
- Spot Contracts: contracts in which the parties agree to buy and sell a currency at the current market price This contract is executed immediately.
- Forward Contracts: are contracts for the purchase and sale of currencies in which a certain price is stipulated in which one currency must be exchanged for another in the future.
- Futures Contracts: are contracts in which currency trading is agreed to at a specific price on a specific date. The difference with previous ones is that futures contracts are binding on the parties.
AvaTrade trades over 55 currency pairs and crosses, including exotic currencies.
- CFDs: CFDs stands for Contract for Difference. A Contract for Difference is a contract by which two parties agree to exchange the difference between the entry price and the exit price of the underlying asset on which the CFD has been established.
The number of different underlying assets on which you can buy or sell CFDs is enormous. Today it is possible to trade CFDs with:
- Stock Indices: AvaTrade’s selection of 20 indices includes the most popular and most active indices of today: S&P, DJIA, NASDAQ, FTSE 100, DJ EURO STOXX 50, among others.
- Raw Materials: AvaTrade operates with a selection of 19 raw materials, with several soft commodities on offer and the most common energies.
- Stocks: AvaTrade offers over 100 stock options, including: APPLE, AMAZON, COCA-COLA, AT&T, GM, REPSOL, MASTERCARD, GOOGLE, etc.
- Treasury Bonds – Currently offered by AvaTrade: Euro-Bund and Japanese Government Bond.
Cryptocurrencies, such as Bitcoin or Ethereum, are digital currencies, designed to be traded through virtual transactions. Cryptocurrencies exist only as data and not as physical objects; you can’t hold a Bitcoin in your hand or keep an Ethereum in your safe.
The first crypto currency that was created was the Bitcoin, and to this day it remains the reference for the rest of the digital cryptomonies. Trading in cryptomonies is one of the ways to invest in these digital currencies without the need to invest much and diversify your investment portfolio.
CFDs offer the possibility to take advantage of price changes, i.e. when trading a CFD on Bitcoin, you are speculating on Bitcoin’s price movements and not buying it.
AvaTrade offers secure trading of Crypto-Currency CFDs such as Bitcoin, with several crypto-currencies available on its trading platform, with zero commissions and no bank charges on transactions, with generous leverage.
Another benefit offered by AvaTrade is the ability to use “stop loss” or “take profit” limits to determine the maximum amount you want to invest or to set a price at which you want to make a profit.
Unlike other markets, AvaTrade allows you to trade crypto-currencies versus trust money such as BITCOIN/USD. In AvaTrade you can trade the most popular cryptosystems:
- Bitcoin, Bitcoin Cash and Bitcoin Gold
AvaTrade offers a network of AvaTrade affiliates with more than 70,000 partners in over 150 countries worldwide. Partners in this program have many advantages, including
- Over $250,000,000 paid in commissions
- 6 jurisdictions and regulators on 5 continents
- Innovative membership strategies
- Fast and accurate payments
- Multilingual Platforms
- A personal account manager
CFD Trading by Stellar Lumens
AvaTrade offers crypto currency trading through CFDs, through which you simply speculate on the price of the asset and are not actually buying crypto currencies; thus, you do not need to worry about the loss or theft of your crypts when trading.
With AvaTrade, you do not need an electronic wallet to trade crypto-currencies, which simplifies the trading process. Being regulated by eight authorities on five continents, it offers a secure trading environment.
This broker does not restrict its clients to only exchange cryptos, its clients can exchange crypts against a wide variety of trust currencies.
How to Open an Account in AvaTrade
According to users’ opinions, opening an account with AvaTrade is a simple, fast and secure process. Once you start the opening process, you can start trading the same day, just follow a few steps and choose the type of account that best suits your needs.
AvaTrade offers only two account types for regular clients: a standard account and a demo account. But it also offers a special account for professional traders who need to manage several trading accounts for their clients.
This “Multi-Account Manager” (MAM) has the following features, among others:
- Expert advisors
- All types of orders such as MT4, stop, limit and close
- Placing orders for multiple accounts or from a master account
- Possibility to create several commercial subgroups
- Access to all your customer information
Requirements and verification
The minimum deposit amount on the standard account depends on the base currency of your account.
As with other online brokers that are regulated, it is essential that new customers verify their identity and provide details of their place of residence. The entire process is fully digitized.
To verify the account, the following documents must be provided:
- Proof of Identification – A color copy of a valid government issued ID, containing the following information: name, photograph and date of birth.
- Proof of Address – A utility bill for address verification containing the following information: name, address, date, no more than six months.
One of the possibilities offered by AvaTrade is the free demo account that allows the user to practice and try out different strategies in the trades they want to make without risking their money and test how the platform works.
This broker offers the possibility to practice before investing through a live account. Thanks to the demo you can learn how to better use the different trading tools and feel more confident when trading with real money.
First, you need to register for free on the AvaTrade website in just a few minutes. The site offers two options, the live account (green button) and a button that says “Try Free Demo”. After completing the form you will have access to $100,000 for 21 days.
After choosing the “Create Account” button you can start using it and get to know all the options and the more than 250 financial assets available. You will also be able to access information about trading, training programs and information about the company.
You will then be redirected to your user interface which will show you your login details and the server to log in and use all the functions of the platform. User feedback confirms the effectiveness of the demo account.
AvaTrade is a multinational company with regional offices in cities such as Paris, Dublin, Milan, Madrid, Tokyo and Sydney. The headquarters are located in Dublin, Ireland.
AvaTrade operates in every country in the world except the United States, New Zealand and Belgium.
In just a few years AvaTrade has grown exponentially, reaching more than 200,000 registered users worldwide generating more than two million transactions per month.
How to Use AvaTrade
For trading and investing in a secure format, AvaTrade offers a wide selection of trading platforms, both for automated and manual trading. Each platform offers a different trading experience, with a range of financial instruments to trade and various analytical tools, indicators and charts.
With AvaTrade’s platforms you can invest in the Forex markets (EUR/USD, GBP/JPY, USD/CHF, EUR/GBP) and bitcoin CFDs, indices such as the IBEX 35, commodities such as gold and many other financial products.
Desktop, web and mobile platforms do not use second factor authentication, but account holders can use Metatrader’s one-time passwords (OTP).
AvaTrade offers eight different platforms:
- MetaTrader 4 Platform (MT4)
- MetaTrader Platform for Mac
- MetaTrader platform for mobile trading
- MetaTrader platform for floating spreads
- MetaTrader Web Platform
- The AvaTradeAct proprietary platform for forex and CFDs
- Platforms for Automated Trading
This broker offers a set of automated trading platforms for novice traders. Traders with little trading experience can use the automated trading platforms to mimic trades made by more experienced traders.
AvaTrade also provides platforms for mobile devices. It supports Android and iOS technology (iPhone and iPad) in a secure environment. AvaTrade clients can choose between the MetaTrader platform and AvaTradeACT.
AvaTrade has its own mobile application, AvaTradeGO. Working with AvaTradeGO will allow you to enjoy all the powerful features of MT4 to invest, as well as carry out additional actions such as registration, deposits, social trading notifications, among other operations.
Research and Visualization Tools
AvaTrade provides you with all the trading information you need, including rates, spreads, leverage, trading strategies, technical analysis tools and other trading terms.
On its page you can access AvaTrade’s World Economic Calendar with regular financial events affecting the stock markets. Experienced investors anticipate these events and plan their trades accordingly to invest accurately.
AvaTrade also has a stock calculator that will provide you with all the risks for your next trade before you execute it. The result of the calculator will allow you to decide whether and when to open positions at the best possible relevant time for your position, margin requirements, spread, swaps and other essential information.
The broker’s website offers a “beginner‘s trading” section that contains several accurate articles explaining basic concepts and procedures of Forex and CFD trading. This will make those who are just starting out feel more confident.
AvaTrade has created its own “trading academy” known as “Sharp Trader”, exclusive, restricted, members only, which includes videos with various trading topics. Sharp Trader is good by the standards of the academies created by the Forex / CFD brokerage houses. It also includes some research content.
AvaTrade Deposits, Withdrawals, Rates and Limits
Deposit Methods and Minimum Deposit
Any client of AvaTrade can choose between the two methods of depositing funds available:
- Bank transfer
- Credit card login
In addition, for AvaTrade clients outside the European Union and Australia, we offer the possibility of making deposits through electronic payment systems such as: Skrill, Webmoney and Neteller.
The minimum deposit that must be made to open an account with AvaTrade depends on the base currency of your account, as well as the method you choose to deposit your funds, which can be by credit card or bank transfer.
For credit card deposits, these are the minimum amounts according to the base currency of the account:
- In USD: $100
- In EUR: EUR 100
- In GBP: £100
- In AUD: AUD $100
For income of funds through bank transfers, these are the minimum amounts. For accounts:
- In USD: $500
- In EUR: 500
- In GBP: £500
- Een AUD: AUD $500
To access the withdrawal of funds in AvaTrade you need to complete an online form, which you can find in your MY AVA account. Once located, the process is very easy and you only have to follow a few steps to complete the withdrawal request.
The most important requirement for withdrawing funds is that the account must be verified and accepted. This process usually takes one or two business days. However, the funds may take several extra days to appear in your bank account/credit card/electronic payment system due to the processes of these firms.
According to some users’ opinions, the withdrawal of funds can take up to five working days.
Fees and Commissions
AvaTrade does not charge commissions to open and close a trade. The average cost of a trade in the EUR/USD Forex currency pair is 0.9 pips. This spread is more competitive the lower the minimum deposit of $100.
The average rates and costs for other CFD instruments, such as commodities, individual stocks and stock indices, are generally a little better than the industry average. Stocks and individual shares are subject to a margin of 0.13% of the nominal trading value.
AvaTrade imposes an inactivity fee of $50 per quarter, only if you have had an inactivity of at least three months.
In order to withdraw a bonus, you need to execute a minimum trading volume of 10,000 in the base currency of the account, for every $1 bonus within six months. The bonus will be paid upon receipt of verification documents.
The deposit level required to receive the bonus is in the base currency of your AvaTrade account. If you do not trade the required amount within the given time period, your bonus will be cancelled and removed from your Trading Account.
There are also limits to leverage. For retail clients the legal limit is the EU-imposed 1:30 limit on Forex instruments, while professional clients can use up to 1:400 leverage on Forex instruments.
Is AvaTrade Safe?
AvaTrade is a secure broker, primarily because it is licensed and regulated. It is regulated by the Central Bank of Ireland, the Australian Securities and Investment Commission (ASIC) and the Financial Services Commission (British Virgin Islands).
In Japan AvaTrade is regulated with several agencies, such as the Financial Services Agency, the Financial Futures Association of Japan and the Commodity Futures Association of Japan.
In addition, this broker is governed by strict regulatory requirements designed to protect its clients’ interests when investing their money.
AvaTrade is a member of the Investor Compensation Scheme, established by ICCL (Investor Compensation Company) in accordance with Irish law. This also makes it a secure intermediary.
Through ICCL, clients have account protection of up to 20,000 EUR, but AvaTrade does not offer any additional insurance. This broker provides negative balance protection, which is mandatory under EU financial regulations.
The company maintains client funds in a segregated account. Australian operations are regulated through the Australian Securities and Investment Commission (ASIC).
Users’ opinions generally agree that AvaTrade’s customer service is efficient, with a good response to most inquiries. The support is multilingual, which makes the task of traders much easier.
AvaTrade offers 24/5 phone and chat support, but also has social networking channels and online forms. According to some opinions, the access to chat is not too fluid but they respond.
The broker has business offices with local telephone contact in several jurisdictions and an international telephone number.
Customer support operates during trading hours, on business days, basically if the Forex market is working, support is available.
What AvaTrade is saying
User reviews are generally good and recommend all AvaTrade platforms as a secure broker for trading and with many financial product options. Below are some of those reviews:
One of the opinions is offered by Camila R. who says: “AvaTrade has helped me a lot in my investment decisions in the Forex market. I don’t have much experience in the subject but they have guided me correctly to invest. I recommend them.”
Another opinion is that of Sebastian S. who said: “Although I think the period of retirement is a little long, the service is good in general and the information provided is very precise. Very good advice about Bitcoins”.
Finally, in another of the opinions expressed by users, Juan G. expressed: “AvaTrade has an excellent service, precise information of the Forex market that favors analysis and decision making on a daily basis”.
AvaTrade’s Alternatives and Competitors
If after reading all the features and reviews about AvaTrade you still need to know the reviews about other service options, it is also possible to choose among other brokers. Currently, there are several companies that offer the online broker service.
Here are some reviews from other brokers so you can rate and compare features and opinions:
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AvaTrade is an ideal online broker for traders looking to invest in the Forex market and trade a wide variety of currency, CFD and crypto currency offerings. Its customer service is highlighted with more than 15 languages available.
In addition, AvaTrade offers generally competitive spreads and excellent information resources that favor the guidance of novice or inexperienced traders. Although the 5-day withdrawal period is a bit long, trading is usually fast.
Rates are also reasonably competitive for depositors, especially those who trade individual shares and CFDs. The period of use of the demo account is only 21 days, when some brokers offer longer periods.
AvaTrade’s reputation among competitors is very good and it is considered safe, with a long track record, excellent opinions and good regulation in the European Union and Australia. This broker does not accept clients from the United States.
AvaTrade Datasheet and Features
|Countries where it is regulated||150|
|Time to open account||1 day|
|Bank card deposit|
|Deposit with electronic wallet|
|Demo account available?|
|Easy to use platform?|
Frequently Asked Questions about AvaTrade
AvaTrade is an online broker with more than 200,000 registered users worldwide who generate more than two million transactions per month. The company offers a wide variety of trading instruments, including Forex, CFDs, crypto-currencies, stocks, commodities and indices.
It is possible to start trading with a demo or a live account. To open a live account, you must first provide your personal and banking information in a secure manner, without any commissions or fees. Then you can make the first trade.
Once you have conducted your analysis and/or consulted with AvaTrade’s expert team, you should choose the trading platform and open a position on a specific instrument, such as with cryptosystems such as Litecoin, Ripple and Bitcoin or Bitcoin Cash.
Once the trade is open, you must monitor the investment and be aware of the performance.
One of the trading options in AvaTrade is that it offers Forex, that is, trading one currency in exchange for another. For example, you can sell euros and buy dollars or vice versa. In this operation you can use leverage, that is, the possibility of trading with more money than you actually have.
You can use direct buy/sell, stock indices, CFDs, stock futures. Here the trading platform used to trade the shares is very important.
Starting to make money with AvaTrade is not complicated at all. It’s just a matter of analyzing trends and buying or selling the asset that we know will go down or up in price.
We must learn to wait long enough to make a profit and know when to withdraw to cut losses. This is what the demo account and all the instructions offered by this online broker are for.
We can say that AvaTrade is safe. It is able to provide its traders with a secure and regulated trading environment where they can trade with peace of mind. The feedback from its users proves this.
He has won a variety of awards in recognition of his achievements, such as “Best Customer Support”, “Best Alert System” and “Best Derivative Financial Trading Provider”.
AvaTrade is regulated by the Central Bank of Ireland (Reference: C53877) and by the Australian Securities and Investment Commission (ASIC) and the Financial Services Commission (British Virgin Islands).
It is regulated by several regulatory agencies in Japan such as the Financial Services Agency, the Financial Futures Association and the Commodity Futures Association.