AvaTrade ReviewOpen Demo Account
Founded in 2006 by financial professionals and web-commerce gurus, Avatrade is an online forex and CFD broker based in Dublin, Ireland. The company is regulated and adheres to the guidelines set by the Central Bank of Ireland. They state that their goal is to provide investors with a full technological experience that combines top-level security, integrity and fairness.
In addition to its headquarters in Ireland, the company has locally-regulated offices in South Africa, Japan, the British Virgin Islands, Canada and Australia. They also offer over 250 tradable assets, including forex, cryptocurrencies, indices, stocks and commodities. Their website can be translated into over 20 languages.
- Opening an account requires a low minimum deposit.
- Several different options for automated trading.
- They provide a free demo account.
- They are an internationally-regulated and licensed brand.
- Wide range of ETFs available to trade as CFDs.
- Their online tutorial videos lack depth.
- The product portfolio is somewhat limited.
- There are some less-than-favourable client reviews.
What can you trade?
AvaTrade Forex Review
When it comes to currencies, the company allows you to trade all of the major pairs as well as some of the more minor and exotic currencies. These include EURCAD, GBPAUD, USDZAR and EURNOK, to name a few. One currency that is (surprisingly) tradeable is the Israeli Shekel. This market is not widely available among retail trading companies.
The company also offers competitive spreads that start at 0.8 pips, and are on a par with other the top brokerages in the market. Concerning leverage, its E.U. offices can only offer up to 30:1 leverage to European clients due to strict E.U. regulations. However, its offshore office in the British Virgin Islands may provide leverage of up to 400:1.
You can trade currencies in amounts as small as 0.01 of a standard lot, and you only need a minimum deposit of $100 to get started with a basic account.
In terms of client coverage, the company mainly caters to retail traders and corporations. They offer their clients educational assistance and other features for beginners and experts alike.
They provide access to the user-friendly MT4 and MT5 platforms for forex trading. Low spreads and a decent range of currency pairs makes it a viable option for most traders.
AvaTrade CFD Review
AvaTrade offers a wide variety of Contracts For Difference instruments, including commodities, indices, ETFs, stocks, bonds and cryptocurrencies such as Bitcoin and Ethereum. They do not provide equity trading on single stocks, so you can only trade individual stocks via CFDs.
A quick comparison will show that the company is one of the few that offer “Exchange Traded Funds” (ETF) on its trading platform. It is a type of investment fund that tracks assets like currencies, bonds and commodities, and puts them into a single basket. In this form, they can be traded on exchanges just like stocks.
AvaTrade Social Trading Review
The company allows the use of leading platforms for copy trading, including ZuluTrade and Duplitrade who provide an extensive range of signal providers. The company also supports MT4’s trade copying facility.
After you open the MT4 platform, you can register for social/auto trading by selecting ‘Auto Trading’. You then click the signals tab in the toolbox window at the bottom of MT4’s default display screen to view a selection of trading signals you can follow. Choosing any signal allows you to start copying that trader’s positions in real-time.
Although some MT4 signals are free of charge, most good traders who provide signals via the service do charge subscribers for the privilege of copying their trades.
AvaTrade Cryptocurrency Review
Moving on to cryptocurrencies, they offer you a wide variety of digital coins to trade that are available to on a 24/7 basis, some of these include including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP) and EOS.
The company allows cryptocurrency leverage that ranges from 2:1 for E.U. residents and up to 25:1 for non-E.U. residents.
Most cryptocurrency brokers allow you to buy and sell coins against other coins. AvaTrade also enables you to trade cryptocurrencies against major fiat currencies, such as the USD, GBP, EUR, and JPY. The company also charges no commissions or bank fees on cryptocurrency transactions.
What did our traders think after reviewing the key criteria?
Avatrade clients will only need to pay the dealing spread whenever they open a position, and they do not charge a commission on trades. Spreads for the majority of assets are variable, but gold, silver and crude oil all have fixed dealing spreads.
It means that the bid-offer spread can vary for most products, depending on liquidity and trading conditions in the market at that time. In general, higher liquidity results in a tighter dealing spread.
Hence, timing a trade is essential since liquidity issues will mean traders will see a broader spread on a Sunday night when fewer traders are active. Basically, during the working day, trading volumes are much more substantial, so dealing spreads tighten.
Another factor to consider is the overnight interest charges that traders incur as swap or rollover fees. Traders who hold a position past the New York market close have to pay a small fee for doing so.
Finally, the broker does also charge an inactivity fee if you fail to make a trade for an extended period. The cost is $25 for three months of inactivity and $100 if you go without trading for over a year.
The company offers a decent variety of trading account types that should suit the needs of most traders. All types provide traders with a dedicated account manager on a 24/5 basis.
In addition to a free demo that you can use to practice trading and test strategies, you can choose from the following list at AvaTrade:
- Silver: This account is a basic format for beginners which requires a minimum deposit of $100.
- Gold: A minimum deposit of $1,000 is required, and daily trading signals are provided in this package.
- Platinum: There is a minimum deposit of $10,000 required. Benefits include access to the direct dealing room for enhanced trading performance.
- Ava Select: This premium account includes all of the available features and facilities mentioned above and requires an initial deposit of $100,000. Holders also get access to senior analysts, flexible trading conditions and a 24-hour withdrawal processing time.
- Islamic: It complies with Sharia law and is for Muslims whose religion forbids the charging of interest. It is a standard account, but swap fees or interest are not credited or debited.
Other perks given to live account holders include mobile trading, live market news and informative financial blogs. The company also offers trading-related courses to suit traders, whether they have a high level of experience or not.
AvaTrade does not charge for the trading platforms it provides to its clients. It does, however, lack the variety in trading software that some other top online trading platforms offer.
Most notably, they support the popular, sophisticated and straightforward-to-use MT4 and MT5 trading platforms. In addition to their desktop platforms, MT4/5 each have mobile and web-based versions so you can trade away from your desk or laptop.
The company also supports MT4’s Multi-Account Manager (MAM) terminal for traders looking to manage multiple sub-accounts for clients. MT4 also supports social trading via its signals tab.
The company also offers AvaOptions software that is similar to MT4. It has specific features such as a profit calculator, breakpoint, and pips graphics that make it quite a useful platform.
There’s also a mobile version of the firm’s trading software called AvaTradeGo that puts everything the desktop version has in the palm of a trader’s hands. It has a real-time assistant and is available in more than 20 languages.
The app has a market trend analysis for every available asset, as well as information about what the community is trading.
On their website, there are features such as an economic calendar powered by TradingView, an earnings releases calendar, a forex trading calculator and various fundamental and technical analysis tools and they also provide their users with market news and analysis, as well as video tutorials.
Their official website has a clean and straightforward format that is regularly updated to reflect the latest market news and new trading features. On the home page, the visuals are well arranged and convey a professional feel.
The website features a lot of tutorials and general explanations of trading terminology aimed at beginners, as well as training e-books and videos. All of these materials help new and inexperienced traders to get to grips with financial markets.
Customers are provided with a range of contact options for technical issues and general enquiries. These include a live chat function, a direct phone line to country offices and an FAQ page. The broker also has a contact page shown below with a form where you can write out your support request. Usually, a confirmation email is sent immediately after the message is submitted, although a reply may not arrive until the next business day.
Included on the Contact Us page is information about how to get in touch with company representatives in offices across the world by telephone. Avatrade has a presence in more than 35 nations, although, be sure to check local business hours before calling. The FAQ page has information on 150 topics and is an excellent way to obtain answers for routine questions.
The live chat service works during the trading week from Sunday evening to Friday afternoon New York time. However, there is no support coverage outside of those hours. While customer service representatives won’t know everything about the company, they will do their best to point you in the right direction.
As a global company, it provides several payment channels to suit the needs of its clients so that they can deposit funds into their trading account. It limits the potential for problems related to international transactions. U.K. traders can make deposits directly in pounds sterling (GBP) and can hold that currency on the trading platform. The acceptable payment methods are listed below:
- Card payments: Card transactions are processed instantly. The minimum deposit for card transactions is $100, and the maximum deposit is $20,000. This method involves no charges. Canadian residents cannot use this method.
- Debit MasterCard: MasterCard offers an easy way to withdraw profits. It is currently only available for U.S. dollars.
- Bank wire transfer: Wire transfers are used globally and have no transaction limits. A 2020 trading review of the wire transfer process revealed that the transaction fees incurred reflect the level of the correspondent banks. Processing of transactions using this method typically takes 2-7 days.
- E-wallets: The company supports the use of e-wallets such as Webmoney, Skrill, and Neteller. The minimum deposit when using this method is $100, and the maximum is $5,000. Transaction funds are credited to you within 24 hours. Please note that this option is not available for Australian or E.U. based clients.
AvaTrade currently offers a new sign-up bonus to clients that can significantly increase your initial balance. When opening a new account, you can get £200 for each £1,000 deposited or £2000 for each £10,000 deposited. To determine the exact amount of the deposit bonus you can expect to get, check out the bonus calculator on the broker’s website.
Furthermore, the company has a friend referral program that offers $250 for each referral that opens a live account and has met the qualifying conditions.
They also offer a demo platform for traders that want to test the water before putting their capital at risk. Beginners mostly use these for learning purposes, although experienced traders may use the demo service as a way of testing new strategies. The demo platform uses actual market prices and provides all of the features available on the live. The only thing that you need to open a demo account is a valid email address.
They have a substantial library of educational materials. It includes information on CFDs, a Forex eBook and a trading course for different assets.
The company also has several active social media outlets. Its Facebook Page presently has over 100,000 followers, while on Twitter it has over 10,000 followers, and its YouTube channel has 2,400 subscribers.
Regulation and Deposit Protection
AvaTrade is a legitimate multinational company based in Dublin, Ireland that operates under the regulatory authority of the Central Bank of Ireland and must comply with the Markets in Financial Instruments Directive II (MiFID II) due to Ireland being in the European Union. The broker was founded in 2006 and has opened regional offices in Paris, Milan, Tokyo, and Sydney. It demonstrates a respectable history of operation and ongoing growth.
In Australia, Ava Capital Markets is regulated by the Australian Securities and Investments Commission (ASIC). The company is also governed by the FSB in South Africa, and the FSA and the FFAJ in Japan. The company’s offshore entity, Ava Trade Ltd, is registered in the British Virgin Islands and is regulated by the British Virgin Islands Financial Services Commission.
The company segregates its funds from those of its clients, adhering to regulations set by many regulatory bodies. Their data protection system includes 256-bit SSL website encryption, True-Site seal, and it is WebTrust compliant, according to the American Institute of Certified Public Accountants.
Registration will require you to provide a government identification document, such as a passport, and documents with a physical address. The company has comprehensive anti-money laundering procedures and makes sure traders are adults when signing up. To avoid money-laundering, they will only release funds to the same source that made the original deposit.
The company is a sponsor of Manchester City Football Club. Both organizations linked up in 2018 to make AvaTrade the official online trading partner of the club. They have a good relationship with the media and have been awarded several prizes.
DailyForex.com awarded them the Most Reliable Broker three times: in 2009, 2011 and 2015. In total, they have won 22 awards since 2009.
Meanwhile, they have received awards for safety and reliability from DailyForex.com and the Money Summit. Regarding quality, the company won The Excellence Award by IBTimes in 2010, 2014 and 2016, and Best Forex Execution house for the Middle East in 2010, 2014 and 2016. FXEmpire awarded AvaTrade Best Affiliation Program in 2010, 2014 and 2016. The company won the Bitcoin award as the Bitcoin CFD Trading Provider of the year in 2012 and 2015. In early 2018, they won the Best Trading Experience prize from FXEmpire for being “One of the pioneering Forex and CFD brokers in the trading arena.”
Yes, AvaTrade is a legitimate broker given that it has been operational since 2006 and is licensed by the Central Bank of Ireland. The company has offices in several other countries where it is also regulated such as Australia, where it is licensed by Australia’s Securities & Investments Commission (ASIC). It is also licensed in Japan, Poland, South Africa, and its home market of Ireland.
You can close your Avatrade account by following the two steps below.
- Withdraw any funds that might still be in the account.
- Email your account manager with the request to close your account.
- You can also email our support team if you do not have an account manager.
- Follow the steps outlined by your account manager, or the support team.
AvaTrade withdrawals are processed quickly within 24-48 hours on weekdays as the firm’s offices remain closed on weekends and public holidays. Card and e-wallet withdrawals are processed the fastest and you should receive your funds shortly after processing. Bank wire transfers are also processed quickly but your funds will reach you within 3-7 business days depending on your bank. The broker does not charge a fee on deposits and withdrawals.
The minimum deposit at AvaTrade is £100, which allows you to trade all the instruments offered by the broker, including Forex pairs, CFDs, cryptocurrencies and to participate in social trading. However, the minimum deposit you can make via bank wire transfer is £500.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.