Is AvaTrade a suitable trader for all of your trading needs? This review will give you the information you need to make a decision.
AvaTrade was established in 2006 and has been operating successfully since. The company was one of the first leading brokerages and has kept its position over time. You can make use of this brokerage if you want to trade Forex or CFDs. AvaTrade’s headquarters are located in Ireland.
Like other brokers, AvaTrade offers a range of trading instruments for you to choose from. Further on these will be listed, along with other important details such as regulation, accounts, education, etc.
Is AvaTrade reliable? (Regulation)
One thing AvaTrade is not is fraudulent. There are 6 jurisdictions that regulate this broker, making it extremely safe and reliable. The trader’s location will determine what offerings will be available to them. This is due to the multi-jurisdictional nature of AvaTrade. Regulation can be quite difficult to acquire for brokers. Therefore, the fact that AvaTrade has more than the average brokerage, shows their dedication to satisfying their customer’s needs. From this, we can deduce that AvaTrade is a safe brokerage to trust with your trades.
One of the main priorities when choosing a brokerage is finding out what assets are available for you to trade. If you are a new trader, you may be considering trading individual stocks. However, a more experienced trader may look at a more diverse range of trading instruments such as indices, commodities, stocks, Forex, etc. Here is what you can expect your options to be if you choose AvaTrade as your brokerage:
- Forex: There are exotic currencies, crosses, and pairs available, with over 55 to choose from.
- Commodities: You can trade from a selection of 19 commodities.
- Stocks: AvaTrade offers 500 major stocks to choose from.
- Indices: 20 indices are available for trade.
- Cryptocurrencies: Have access to 14 major cryptocurrencies, which is inclusive of the most popular 5 cryptocurrencies.
- ETFs: There are 5 choices.
- Bonds: Limited to 2 major bonds.
- Options: The major precious metal gold as well as 46 currency pairs are available.
Fees are one of the most essential determining factors in whether or not a broker is suitable for you. Naturally, you need a broker that is low-cost without any extra fees. Whether you prefer spreads or commission is a preference of each trader.
AvaTrade does not charge a commission, instead, they take a spread fee. With the common currency for trading EUR/USD, the average cost is 0.9 pips. Of course, the spread will become more competitive the closer you get to the $100 minimum deposit. Traders who trade with higher values, usually exceeding a few thousand dollars, can possibly find brokers with lower spreads and an equal or similar amount of regulation.
If you trade with CFDs, the fees are better than the average of other brokers. Individual stocks and shares also have an impressive spread cost.
If you are familiar with trading and have experienced fees associated with brokers, you are aware of overnight financing costs which are often overlooked. This fee can make the difference between whether your trade is expensive or not. The fact that AvaTrade is transparent with their overnight fees adds to their level of trustworthiness. You can also expect an inactivity fee if you do not trade for more than three months. This is $50 per quarter.
It is imperative that the broker you choose has an account that is specifically beneficial for your trading needs. There is a wide range of accounts available if you choose to trade with AvaTrade. Each account differs according to leverage, minimum deposits, and specific usage such as the crypto account which is for traders wishing to trade cryptocurrencies. Spreads are also variable according to the account type. All account types have automated trading through expert advisors and allow scalping and hedging.
You can use MetaTrader 4 or 5 for trading with AvaTrade. The only exception is their options trading, which requires the usage of the Ava Options trading platform. This is ideal for many traders as they can have access to charts wherever they are. These platforms can be used on any device whether it is mobile, PC, tablet or web-based.
AvaTrade also offers their clients a portal called AvaTradeGo which is a great way to easily track your account. It works with MetaTrader4 and does allow you to place trades on the portal, through the underlying platform.
Although education is not always a necessary feature to have through your broker, it can be enlightening and helpful. It may be an important factor for new traders who are looking for a broker to educate them to trade successfully.
One of the first resources they offer is called “trading for beginners” which dives into detail about all the important trading concepts. It is a collection of articles that give specific insight into different aspects of trading.
We can see how important educating traders is to AvaTrade as they have even created their own academy called “Sharp Trader” which has a wide range of resources for subscribers to make use of. This academy is considered quite good in terms of educational programs provided by brokerages.
It does not end there. AvaTrade also has other free resources such as ebooks and glossaries with information that is essential for traders to learn.
If at any time you do need to contact someone for help, you can be assured that someone will assist you at AvaTrade. The support given by AvaTrade is of good reputation. They offer services in over 15 languages. Like other brokers, their trading hours are limited to business hours. If the Forex market is open for trading, AvaTrade’s customer support is available for usage.
Opening an account
The process of opening an account is very simple and fast. Majority of the time your account will be open on the same day you register. You will need proof of identity and residence when opening your account with AvaTrade.