AvaTrade Review 2021 – What You Need to Know

BrokerAvaTrade
Web address https://www.avatrade.com/
Based2006
Head officeLondon
Service client+33 970731845
Type of supportChat, Email, Phone
LanguagesFR, EN, IT, ES, PL, AR, DE, PT, TK, IN
Minimum deposit100 €
Leverage1:30
Demo accountYes
Deposit methods  Bank transfer, credit card, PayPal, Skrill, WebMoney
RegulatedYes
Mobile appYes
Tablet appYes
General rating4.8/5

Summary

AvaTrade was founded in 2006 as AvaFX. It is a broker specialized in CFDs, but it also offers Forex trading through their various platforms. Regarding security, AvaTrade is regulated by the Central Bank of Ireland, which is a considerable advantage over several other brokers that are regulated in Cyprus.

We tested AvaTrade in different ways. Our tests focused on the assistance that AvaTrade provides to its customers, namely the quality of service, training, as well as the speed of customer support responses. AvaTrade’s offerings and platforms have also been scrutinized. Their various fees, whether non-trading fees or spreads, are generally acceptable.

With their comprehensive CFD offerings, AvaTrade gives you access to a variety of markets. After our analysis, we can say that it is an ideal broker to diversify your portfolio safely.

Account opening

A smooth account opening with a bonus offer.

Opening your account at AvaTrade is relatively quick. To open an AvaTrade account, click “Create an account” from the broker’s official website. Then continue with the account opening form and give your personal information. The platform will then ask you to verify your identity.

This procedure is part of the “Know your customer” policy or KYC. As you may already know, all financial institutions are required to verify the identity of their clients. This protects the financial system, including money laundering. Therefore, don’t be afraid to submit the requested documents for verification.

To verify your account, you will have to submit a scan of your ID card or passport, as well as proof of residence such as a utility bill or residence certificate. The data in your documents must match you entered when you entered in the system. Be sure to check them carefully before confirming. After verification, you can deposit funds on the AvaTrade platform.

Note that you will not be able to change the base currency of a trading account. So you have to make the right choice. However, you can add new accounts with different currencies and transfer funds to each other. The available base currencies are EUR, USD, GBP, and AUD.

AvaTrade offers a welcome bonus to its customers. The bonus offer requires a minimum deposit of up to $1,000. The bonus is in the form of additional trading capital credited to your account. In addition to your initial deposit, this greatly increases your margin. If you want a bonus, contact AvaTrade’s support to find out if you are eligible.

However, bonuses are subject to conditions! These may vary, but be aware that you will need to negotiate a certain volume on AvaTrade before you can withdraw the bonus. That’s why we recommend you don’t take any bonuses on AvaTrade.

Type of accounts

AvaTrade primarily offers 3 types of accounts: the standard account, the Pro account and the demo account.

The standard account is accessible to most traders. It is an account where the lever is limited to 1:30.  After the European Securities and Markets Authority (ESMA) tightened leverage rules in 2018, most CFD brokers now offer this type of account.

The main advantage of the standard account is the protection of your trading capital from the negative balance. Indeed, if you trade on margin, it is possible that your trading capital will fall below zero. AvaTrade reduces the risk of exposure to its customers by offering this type of account.

Traders in the Pro account can benefit from a lever of up to 1:400. Access to the Pro account, however, requires a condition: you must be a professional fund manager, and therefore manage large amounts of capital.

AvaTrade’s demo account  allows you to test the broker’s various platforms. AvaTrade has proprietary platforms, so it would be wise to start with a demo to get an idea of the different trading tools. The demo account gives you access to the same markets as the standard account. You can test your strategies in real time on AvaTrade.

Deposit and withdrawal

Rather limited deposit methods for European residents.

AvaTrade offers several means of deposit: bank transfer, card payment, as well as electronic transfers by PayPal, Neteller and WebMoney portfolios. However, deposits by these portfolios are not available to European residents who must limit themselves to bank transfer and card payment.

The minimum deposit for the bank transfer is €500 if the euro is the base currency of your account. If you opt for a card payment, the minimum deposit is only €100.

Card deposits are faster, your funds will be immediately available for trading after the transfer. However, your first deposit may be delayed by a few minutes for verification reasons. For a bank transfer, you will have to wait up to 3 working days before seeing your funds in your AvaTrade trading account.

Regarding withdrawals, you can always apply by bank transfer by providing your bank details on the platform. However, with other withdrawal methods, you can’t withdraw more than your initial deposit. If the amount of the withdrawal exceeds that of your initial deposit, the difference will be transferred to your bank account.

Suppose you make a deposit of €100 per credit card. After a few transactions, you manage to double your capital and then order a card withdrawal of €200. In this case, your initial €100 will be returned to your card and your winnings will be transferred to your bank account.

Trading fees

Trading fees at AvaTrade are affordable, but the broker charges an inactivity fee.

AvaTrade does not usually charge commissions. Positions are therefore subject only to a spread that is variable. It averages 1.3 pip on the EUR/USD. This is an advantageous commission-free spread, as it can climb to more than 2 pips in some brokers. 

The spread is expressed either in pip or as a percentage, we put in the table following the spreads of some of the most popular assets.

AssetsSpreads en pipsSpreads in %
EUR/USD1,3N/A
AppleN/A0,13
Or0,4N/A
BitcoinN/A0,75

AvaTrade charges a $50 fee from your account after 3 months of inactivity. In addition, a holding fee of $100 is deducted after 12 months of inactivity. The inactivity costs at AvaTrade are quite high. Consider making a withdrawal request when you are not trading for a period of time.

Other trading-related fees may also apply to your account such as overnight fees or rollover fees.

Trading platforms

In addition to Metatrader, AvaTrade has its own trading platforms.

To take advantage of financial markets, you need a trading platform. AvaTrade provides you with multiple platforms to analyze markets and develop your strategies. The broker offers Metatrader 4 as well as its proprietary platforms AvaOption and AvaTradeGo.

Metatrader 4

Metatrader 4 is a simple and easy-to-use platform. It incorporates all the features you need to successfully trade. Metatrader is suitable for both beginners and experienced traders. This is what makes it the most popular trading platform.

With the indicators built into it, you can use Metatrader 4 for your technical analysis. It is also easy to add new indicators or program them. Indeed, MT4 has a section dedicated to programming and its programming language is the MQL4. MT4 allows expert advisors to be added as a plugin. These are programs that automate your trading.

AvaOption

Avatrade AvaOption

AvaOption is a proprietary platform of AvaTrade dedicated to options trading. It is a very powerful platform for options trading. The platform provides extensive information on Forex currency pairs. It incorporates advanced risk management tools to protect the capital of AvaTrade’s options-interested clients.

AvaOption also has a graph that is built into it to conduct your technical analysis. However, this platform is more complex than Metatrader 4. But AvaTrade’s demo account allows you to discover its features without taking any risks.

AvaTradeGo

Avatrade AvaTradeGo

In addition to offering Metatrader 4 which has its mobile version, AvaTrade has developed its own trading application called AvaTradeGo. It is available on Android and the iOS system. It’s an application with a neat and intuitive design. 

In addition, AvaTradeGo also has a small chart that lets you track the fluctuation of assets you’re interested in when you’re on the go. The mobile platform  also offers the ability to create a pre-selection list of assets of your choice, as well as you’ll be able to access the information you need faster.

Markets and financial products

A diversified offer on CFDs suitable for all types of investors.

Through AvaTrade platforms, you can trade on Forex, CFD indices, stocks, ETFs, cryptocurrencies, commodities, as well as options. As for the latter, they are vanilla types. Vanilla options are derivatives that give the right to sell or buy an underlying asset at a price set in advance within a given time frame. Vanilla options are simpler than exotic or American options that have more settings apart from just buying or selling calls and puts.

Options on AvaTrade are mainly offered on Forex currency pairs, gold and silver. With AvaOption, you can use option strategies such as hedging, straddle or strangle. 

When it comes to CFD trading, you’ll find the following markets on AvaTrade:

  •  Indices: the SP500, the Nasdaq, the Russel, or the dollar index.
  •  Commodities: oil, gas, gold, silver, platinum, as well as some agricultural assets.
  •  Stocks: You can trade the CFDs of all the most traded stocks in the world.
  •  ETFs: some ETFs are also listed as CFDs.
  •  Cryptocurrencies: If you’re a fan of virtual currencies, you’ll find the most popular cryptocurrencies on AvaTrade: Bitcoin, Ripple, Ether, Dash or Litecoin.

Research

A dashboard well equipped with analysis and research tools.

AvaTrade has a resource-rich platform. You will find many analytical tools such as the economic calendar or Autochartist. The latter is an automated technical analysis tool compatible with Metatrader 4. Autochartist analyzes the market for you and detects the best trading opportunities.

Avatrade Research

If you have a preference for fundamental analysis, AvaTrade offers you another tool called Sharp Trader. This is a daily market news feed updated by AvaTrade’s team of analysts.

Customer support

Good customer support with multilingual telephone support.

AvaTrade tries to make a good impression with its customers or potential customers. Since its inception, the broker has continued to offer its assistance in new languages. They are one of a few brokers offering local-language telephone support in countries where they do not have offices.

You can contact them via online chat or email. Online chat is responsive and convenient enough to find answers to your questions related to AvaTrade’s trading platforms or other information about the brokerage service. Agents do not hesitate to pass you links to the resources available on the AvaTrade website for more information.

Training

Free online trading education with 56 videos.

AvaTrade offers free training on their website. This is relevant training that will help you understand all the basic aspects of financial markets and online trading. 

In addition, there is a version in the form of articles for those who prefer reading. In exchange for your email, AvaTrade offers you the training compiled in a PDF document.

Security

The broker uses advanced technologies to secure your transactions.

AvaTrade has registered with several regulatory bodies around the world. The broker is regulated in Ireland by the Irish Central Bank. It thus distinguishes itself from many brokers who are regulated only by CySec in Cyprus. 

In addition, the broker is licensed by the Australian Securities and Investments Commission (ASIC), which regulates its branch in Australia.

AvaTrade has offices in Japan where they are under the jurisdiction of the Financial Services Agency (FSA) and the Financial Futures Association of Japan (FFAJ). 

The broker is also present in South Africa where they are regulated by the South African Financial Sector Conduct Authority (FSCA). 

AvaTrade’s international branch is regulated by the British Virgin Islands Financial Services Commission in the British Virgin Islands.

With respect to transactions through its platform, AvaTrade used McAfee Secure technology to ensure the protection of their clients’ funds. Also note that AvaTrade’s receivables are segregated with the help of their various partner banks around the world.

Conclusion

We have a positive opinion of AvaTrade. When it comes to security, the broker easily convinces any trader, including regulation on all continents, the segregation of accounts and the use of the latest encryption tools to ensure the smooth flow of transactions on his platform.

Their offerings are diverse. AvaTrade offers not only complex instruments such as options, but also simple products such as stock or cryptocurrency CFDs. Customer support is available in French and is always ready to answer your questions.

FAQs

Is AvaTrade regulated?

AvaTrade is regulated by several regulatory bodies, including the Central Bank of Ireland and ASIC in Australia.

Is AvaTrade regulated by the FCA?

AvaTrade is not regulated by the FCA.

Can I deposit by card on AvaTrade?

AvaTrade accepts deposits by credit card.

What is the minimum deposit at AvaTrade?

The minimum deposit at AvaTrade is 100 euros for card payments and 500 euros for bank transfer.

Is AvaTrade reliable?

AvaTrade has been in the industry since 2006, has offices in 11 countries and is monitored by financial market regulators. It is a reliable broker.

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