AvaTrade

Established in 2006, AvaTrade is an experienced brokerage that provides average-to-low spreads alongside a nice variety of trading instruments, including Forex, vanilla options, cryptocurrencies, and CFDs on commodities, indices, bonds, and exchange-traded funds. Customers have a choice from several platforms including the widely used MT4 and MT5.

The company managed to significantly expand its operations within a few short years, currently reaching more than 200,000 registered clients who collectively execute over $2 million trades each month. This reliable brokerage house boasts an impressive monthly trading volume that exceeds $60 billion.

Clients of AvaTrade enjoy professional multilingual customer support at all times and get to choose from several distinct account types, based on their experience level and instrument of choice. This is a global company that accepts traders from most countries worldwide, with few exceptions.

AvaTrade is a multinational firm that has regional offices in major financial centers like Sydney, Tokyo, Paris, Milan, and Dublin. The brokerage has won nine industry awards over the past ten years, which further goes to show it offers a trustworthy and high-end trading experience.

Regulations

AvaTrade is recognized as a multi-national brokerage company that runs its operations in strict compliance with the requirements of its numerous regulators. The broker has acquired licenses across five continents, consolidating its presence on the global trading market.

Its European outfit falls under the regulations of the Central Bank of Ireland, with administrative headquarters based in the capital Dublin. The firm is also regulated in Australia where its operations are overseen by the Australian Securities and Investments Commission, ASIC.

Most jurisdictions have their own AvaTrade outfits that are regulated under separate laws. The Canadian subsidiary is governed by rules laid out by the Investment Industry Regulatory Organization of Canada (IIROC).

The Financial Services Agency (FSA) and the Financial Futures Association of Japan are responsible for AvaTrade’s oversight in the country of the rising sun. The company is operational in South Africa as well, thanks to a license acquired from the South African Financial Sector Conduct Authority (FSCA). Another license has been granted by the British Virgin Islands Financial Services Commission.

Trading Instruments

Customers of AvaTrade can take advantage of many different instruments, including foreign exchange, vanilla options, cryptocurrencies, and CFD trading with commodities, bonds, indices, stocks, and exchange-traded funds. This versatility works to the benefit of versed traders who are looking for portfolio diversification. Let’s have a closer look at the instruments available at AvaTrade.

Forex Trading

Foreign exchange trading, commonly referred to as Forex trading, enjoys massive popularity among layman and professional traders alike because it comes with high liquidity and round-the-clock operating hours during business days.

This instrument offers plenty of opportunities for great investments, boasting a daily trading volume that surpasses $5 trillion. The market is driven by the broad variety of participants who trade with foreign currencies, including brokerages, central banking institutions, casual traders, and speculators.

At AvaTrade, Forex traders have a choice from more than 50 currency pairs, including majors like EUR/USD, USD/JPY, GBP/USD, and USD/CAD. Minors and exotics are also readily available. Retail customers can take advantage of the broker’s competitive spreads, with leverage restricted to 30:1.
Those who are new to Forex trading will benefit from various educational materials and regular market analysis. The broker does not charge extra commissions for currency trading. All associated costs are built into the spread. Both the margins and the spreads are flexible and depend on what currency pairs you trade.

Cryptocurrency Trading

The brokerage gives its clients the option to trade with a variety of leading decentralized cryptocurrencies such as Bitcoin and Bitcoin Cash, EOS, Litecoin, Ethereum, Ripple, Dash, Neo, Iota, and Stellar.

Unlike conventional transactions with fiat currencies, the transfers that involve cryptocurrencies are not handled or governed by central banks and other financial institutions. Instead, all transfers are recorded on digital ledges known as blockchains.

This gives many advantages to cryptocurrency owners and traders alike. For example, it is an exciting instrument to trade with because of the market’s significant volatility. These markets often remain open 24/7 because they are not governed by centralized financial institutions. Other benefits include improved liquidity and the option to go both long and short.

At AvaTrade, you can trade cryptocurrencies against standard fiat currencies like EUR, USD, GBP, JPY and more. Clients get the chance to boost their initial capital with the help of leverage of 2:1 for EU-based customers and up to 25:1 for residents outside the EU.

Trading with CFDs

AvaTrade provides a nice range of options for seasoned customers looking to trade with contracts for difference (CFDs). This is a more complex, advanced trading instrument that enables you to speculate on the price movements of different underlying assets without actually owning them.

It is possible to profit from the rise and fall of the assets’ value, as long as the market moves in your chosen direction. CFDs are the instrument of choice of many experienced investors because they can significantly magnify the profits realized from successful trades.

However, this also applies to the potential losses CFD traders can suffer. They increase due to leverage which causes as much as 71% of CFD retail traders to incur rapid loses at AvaTrade. Before you experiment with this advanced instrument, make sure you possess sufficient knowledge about how it works. Consider whether you can afford to take the high risks associated with CFD trading.

At AvaTrade, experienced traders have a choice from a long list of CFD options, including shares, bonds, indices, ETFs, and stocks. Commodities are also available, including Brent oil, cocoa, coffee, copper, corn, cotton, gasoline, gold, heating oil, natural gas, palladium, silver, platinum, soybeans, wheat, and sugar.

Contracts for difference are accepted across all major index markets such as Dow Jones, Germany’s DAX 30, the Footsie, Nasdaq, Nikkei 225, the S&P 500, and the IBEX 35 Index.

Stock traders can speculate with the price movements of the world’s biggest companies, with some of the options from this category being Apple, Amazon, Disney, Facebook, Bayer, BMW, Tesco, and Siemens. The maximum leverage for CFDs at AvaTrade is limited to 20:1 for retail accounts.

Vanilla Options

At AvaTrade, more experienced clients have the chance to trade with vanilla options. This type of contract enables them to purchase or sell certain amounts of different trading instruments at a predetermined price and time.

You can trade vanilla options for one day, one week, several months, and even a year. This way, you can control all aspects of your trading experience. Both call and put options are available for trading with this brokerage.

When a client purchases options, they pay the predetermined premium, i.e. the price upfront from their cash balance and can enjoy potentially limitless earnings. When selling options, the premium is credited to the customer’s balance in advance but there is a significant risk of huge losses if the market moves in an unfavorable direction. AvaTrade customers are recommended to set stop losses when trading vanilla options to limit their risk.

Trading Platforms

AvaTrade provides customers with a choice from several trading platforms, ensuring hassle-free access via most desktop and mobile devices. There is the option to use MetaQuotes’ MetaTrader 4 or MetaTrader 5 although the brokerage also offers another software called AvaOptions. Trading directly in your browser without additional software installation is also possible.

MetaTrader 4 and MetaTrader 5

One of the options for AvaTrade customers is to download the third-party MetaTrader 4 (MT4) platform by the Russian company MetaQuotes Software. MT4 is the platform of choice of millions of traders worldwide because it is easy to use and highly customizable.

Those who use it have access to trading signals directly from leading providers. Algorithmic trading and advanced technical analysis are possible thanks to the availability of the so-called Expert Advisors (EA). Traders can better control their risk through hedging. They have a choice from multiple timeframes, various analytical objects, and highly interactive charts.

The brokerage also offers a free download of MT4’s successor, MetaTrader 5 (MT5). This one is mostly geared toward the needs of experienced traders looking to exploit volatility through CFDs. One thing to keep in mind, though, is that MetaTrader 5 is unavailable in some regions.

Other than that, it comes with a newer and better interface and 38 technical indicators that enable customers to detect the latest market trends. There is also a personalized tool for feedback called Guardian Angel that helps you with decision making and risk control. It enables traders to easily spot their mistakes.

AvaOptions

More advanced customers looking to trade with options should feel free to use the AvaOptions platform. This would give them access to 13 spot, call, put, and combination strategies, including risk reversals, strangles, and many more.

The platform is compatible with both desktop and mobile devices. It comes with a fully customizable interface that allows customers to create trading screens that best correspond to their personal style. They can combine various charts, diagrams, and live-risk reports.

Web Trading

If you are reluctant to install additional software on your device, the brokerage gives you the option to trade straight from your browser via the innovative WebTrader platform. This alternative is more suitable for novice traders as it comes with a modern, yet intuitive interface. It is accessible via any device you choose as long as it is connected to the internet.

The platform helps you make better-informed trading decisions on the basis of live market sentiments. It supports a variety of languages including English, German, Portuguese, Spanish, Turkish, and Russian. The web version is equipped with three different chart types – candlesticks, bars, and lines. Customers can create portfolios of their favorite markets and choose from ten timeframes.

Mobile Trading Apps

AvaTrade enables trading on the fly with the availability of the dedicated AvaTradeGO mobile application. There are tons of benefits for mobile users starting with the user-friendly dashboard that ensures a smooth trading experience on portable devices.

You can switch between demo and live accounts and have instant access to customer support via live chat. The charts are easy to read on mobile, allowing smartphone users to zoom in to see all the details. The app is also equipped with numerous technical indicators, analytical objects, and several timeframes. You can download it for free from Google Play or the App Store.

Payment Methods

This brokerage enables its customers to trade with confidence, knowing their money is well-protected and kept in segregated bank accounts. AvaTrade works with numerous deposit solutions including major debit and credit cards by Visa and Mastercard, Skrill, Boleto, WebMoney, Neteller, and wire transfers.

The availability of certain payment options depends on your location. Just log into your live AvaTrade account and click the tab labeled “Fund your account” to see the supported deposit methods for your country. The minimum amount you need to transfer to set up a live account stands at $100 or the currency equivalent.

Speaking of currencies, live accounts can be registered in USD, EUR, AUD, and GBP. Note that only customers based in the UK and Australia are allowed to open accounts in GBP and AUD, respectively. The brokerage recommends a minimum starting balance of $1,000 to $2,000.

As for withdrawals, the brokerage follows strict anti-money laundering policies, which is why customers’ withdrawals are returned via the same payment method used for deposits. You can use cards, e-wallets, and wire transfers to cash out, with the requests being processed within 1 working day.

Once the withdrawal is approved and released from your balance, you will have to wait up to 5 working days with cards, up to 24 hours with an e-wallet, and up to 10 business days with wire transfers.

There are two types of fees customers might incur. The first one is the administration fee of $100 per month, deducted from your balance after twelve months of inactivity. Those who have not logged into their AvaTrade accounts for a period exceeding three months are charged with $50 for inactivity.

Account Types

AvaTrading gives new customers the chance to open demo accounts that mirror the prices and trading conditions of live accounts. Basically, the only difference between the two is that the demo account uses virtual instead of real money.

The demo is topped up with $100,000 so that beginner traders have enough margin to practice. The practice account remains valid for a period of 21 days but you can extend this timeframe by contacting the customer support before the expiry takes place.

Once you feel confident enough in your trading skills, you can switch to a live account. They will require you to undergo obligatory verification by uploading photos or scans of some documentation. The leverage of retail live accounts is restricted to 30:1.

Well-versed customers have the option to apply for professional accounts. They will have to meet various criteria since this alternative is available only to clients who have generated considerable trading activity within the past twelve months.

You need sufficient experience at trading on the relative derivative markets such as leveraged contracts for difference, foreign exchange, and spread betting. Additionally, you are expected to have held a professional position in the financial sector for at least a year.

Last but not least, prospective professional account holders must have a significant portfolio of financial instruments that comprises investments exceeding the $500,000 threshold. As professional customers boast considerable experience at trading with derivatives, they are offered much higher leverage of up to 400:1. The spreads for all account types are fixed.

Muslim customers are catered to with the availability of Islamic accounts that operate in compliance with the Sharia Law. These are swap-free accounts, which is to say customers cannot pay or receive interest for their trades.

Note that you first need to set up a standard live account and send all the necessary relevant documents for verification. You can apply for the swap-free option after you fund your balance. Your request needs to be reviewed and approved first, which usually happens within 1 or 2 business days.

Customer Support

AvaTrade stands out with an excellent customer support service, available in 15 different languages. The English support desk, in particular, is operational from Monday through Friday between 4 am and 9 pm GMT. The brokerage offers native support in Russian, German, Spanish, French, Arabic, Portuguese, and Italian, with representatives on standby from 6 am to 3 pm.

The service is available via a convenient live chat that allows for quick assistance in urgent situations. As a matter of fact, they will contact you themselves after you register an account to inquire whether you need help and further clarification about trading with this brokerage.

If you wish, you can fill in the form on the website so they can contact you back with the response via email. This method is slower, especially when there are many new traders joining the brokerage. Calling over the phone is also possible. There are many different lines for customers dialing from different countries. Some of them are:

  • Russia: +(7)4950493908
  • Ireland: +(35)3766705834
  • United Kingdom: +(44)2039661934
  • Australia: +(61)272018721
  • South Africa: +(27)105941353
  • Mexico: +(52)5585250780
  • Germany: +(49)8006644879
  • France: +(33)170702052

Conclusion

AvaTrade is the perfect solution for traders who insist on flexibility. The brokerage provides them with a choice from multiple platforms and a motley crew of financial instruments. Different account types are available for clients of all experience levels. The brokerage is exceptionally well-regulated in top-tier jurisdictions like Australia and Ireland, which further adds to its credibility.