AvaTrade Review 2024

Trust

AvaTrade Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker. This allows us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about the seven entities operating under the AvaTrade trade name:

• AVA Trade EU Ltd is licensed and regulated by the Central Bank of Ireland (CBI) under license number C53877. We rate the CBI as a Tier-1 regulator.
• Ava Trade Markets Ltd is licensed and regulated by the British Virgin Islands Financial Services Commission (BVIFSC) under license number SIBA/L/13/1049. We rate the BVIFSC as a Tier-3 regulator.
• Ava Capital Markets Australia Pty Ltd is licensed and regulated by the Australian Securities and Investments Commission (ASIC) under license number 406684. We rate ASIC as a Tier-1 regulator.
• Ava Capital Markets Pty is licensed and regulated by the Financial Sector Conduct Authority (FSCA) of South Africa under license number 45984. We rate the FSCA as a Tier-2 regulator.
• Ava Trade Japan K.K. is licensed and regulated by the Japanese Financial Services Agency (JFSA) under license number 1662. We rate the JFSA as a Tier-1 regulator. The entity is also authorized and regulated by the Financial Futures Association of Japan under license number 1574.
• Ava Trade Middle East Ltd is licensed and regulated by the Abu Dhabi Global Markets (ADGM) Financial Regulatory Services Authority (FRSA) under license number 190018. We rate the ADGM as a Tier-2 regulator.
• ATrade Ltd is licensed and regulated by the Israel Securities Authority (ISA) under license number 514666577. We rate ISA as a Tier-2 regulator.

We have summarized the most essential aspects of AvaTrade in terms of regulation and safety in the table below:

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities because it allows them to serve clients worldwide. However, licenses obtained by regulators in different jurisdictions do not always entail the same degree of protection. Some regulators mandate compliance with the strictest financial frameworks, whereas others are less rigid. That is why traders need to familiarize themselves with the safety mechanisms ensured by the entity they want to open an account with beforehand.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All AvaTrade entities ensure segregated client funds.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. This is especially important in volatile markets. Most of AvaTrade’s entities offer negative balance protection to their clients, except for those regulated by the JFSA and BVIFSC.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities in the unlikely event that the company becomes insolvent. Only clients of AVA Trade EU Ltd can be compensated by up to EUR 20,000 under the Investor Compensation Fund (ICF).
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The British Virgin Islands entity of AvaTrade offers the highest retail leverage of 1:400.

Is AvaTrade Safe to Trade With?

AvaTrade complies with essential safety requirements, such as segregated funds and negative balance protection. It has also developed an innovative AvaProtect tool and a robust client categorization system that allows inexperienced traders to avoid unnecessary trading risks.

Moreover, the broker has implemented a ‘best execution policy,’ ensuring clients receive optimal price quotes consistently. Given all mentioned above, I assess AvaTrade as indeed a safe broker to trade with.

Stability and Transparency

In our Trust category tests, we also evaluate factors related to stability and transparency, focusing on the broker’s longevity, company size, and the availability of transparent information.

I checked AvaTrade’s transparency by going over its legal documents. I assessed that the broker provides ample information about its various services without the use of any misleading language or notable discrepancies.

I also evaluated AvaTrade’s fee transparency by making sure that the spread rates listed on the website matched the live quotes on the platform. I did not see any discrepancies, and everything seemed in order.

In summary, my research indicates that AvaTrade can be regarded as having a very high level of trust and stability due to the following factors:

• Tightly regulated globally
• Developed an innovative risk-management tool
• Transparent legal docs
• Best execution policy
• Client categorization policy

Fees

AvaTrade Trading Fees

AvaTrade Spreads

I tested AvaTrade’s spreads during the most actively traded times – the London open at 8:00 a.m. GMT and just after the U.S. open at 2:45 p.m. GMT. The test was conducted on the 30th of January 2024. The results are shown in the table below:

Broken down by asset class and compared to the broader industry, AvaTrade offers low spreads on share CFDs, low-to-average spreads on currency pairs and commodities, average spreads on indices, and high spreads on cryptocurrencies.

AvaTrade Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full contract (100,000 units) of the base currency.

My findings indicate that AvaTrade’s low swaps accommodate the execution of day trading and position trading strategies, which require multiple days to complete.

Swap-free trading is also possible via AvaTrade’s Islamic accounts.

AvaTrade’s Non-Trading Fees

The broker does not charge a handling fee for deposits or withdrawals. However, third-party banking fees may apply depending on the chosen payment method.

I also discovered that the broker charges a relatively high inactivity fee. After three months of inactivity, the dormant account is charged $50 (or the base currency equivalent). The fee is charged monthly until activity resumes or the account balance drops to zero. After twelve months of inactivity, AvaTrade charges an administration fee of $100.

Are AvaTrade’s Fees Competitive?

Based on my findings regarding AvaTrade’s spreads, commissions, and swaps, I estimated that its trading fees are indeed competitive. The broker’s pricing mechanism is suitable for high-frequency trading when trading instruments from certain asset classes (most FX pairs and share CFDs, some commodities, etc).

The pricing mechanism is also geared towards longer-term trading because of AvaTrade’s low swap charges.

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees on AvaTrade’s retail account type and the industry average. It illustrates the spreads and commissions I have recorded for the EUR/USD pair and compared against the typical costs for ECN and STP accounts in the industry at large.

The table demonstrates how much you would have to pay to trade 1 full lot (100,000 units) in EUR/USD with a pip value of $10 for each account.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

My tests indicate that AvaTrade’s standard account type offers more competitive conditions than the average STP account but slightly worse-off conditions compared to the typical ECN account. This varies depending on the instrument traded.

Platforms and Tools

AvaTrade Platforms Walkthrough

AvaTrade’s Web Trader platform is a great choice for technical traders interested in price action examination. Its charts are light and flexible, allowing traders to study even minute changes in price action behavior in detail.

The platform incorporates actionable trading ideas directly on its interface, however, it notably lacks some essential features, such as the Elliott Wave drawing tool and alert setting option.

AvaTrade enhances the trading experience with several tools, including the Guardian Angel Suite, an advanced risk management tool that integrates seamlessly with both MT4 and MT5 platforms. The suit is available to AvaTrade clients for free.

AvaTrade’s Web Trader Platform

General Ease of Use

I quite enjoyed exploring the various features of the AvaTrade Web Trader. The platform has a sophisticated instruments search bar for quick and easy search. Its charts are light and detailed, affording traders an intricate glimpse into price action behavior.

Charts

I consider the chart screen a platform’s most important feature. It facilitates technical analysis by providing an overview of price action behavior. Chart artists use many analytical tools and chart configuration possibilities to examine it from multiple angles. In my experience, the really important aspect of a chart is how easy it is to scale price action up and down.

I have broken down the available analytical tools and chart configurations below

• 80 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next. The assortment of 80 technical indicators exceeds the industry average.
• 13 drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels. I was a bit surprised by the relatively low range of drawing tools, and the notable absence of the Elliott Waves tool. Especially given the otherwise very pleasant feel to the charts screen.
• 9 timeframes. The Web Trader allows multi-timeframe analysis of price action behavior. The greater the number of timeframes, the more intricate examinations that can be carried out across the short-term and long-term. The platform’s lowest time frame is 1 minute, which is rather insufficient for successful high-frequency trading (e.g. scalping).
• 3 chart types. Price action can be represented as a line, bars, or candlesticks. This diversity makes it possible to examine potential trading opportunities from different angles.

Orders

I have broken down the available order types on the Web Trader platform below:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order gets filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

My Key Takeaways After Testing the Web Trader Platform

In my estimation, AvaTrade’s Web Trader platform is an ideal choice for chart artists interested in careful examination of price action behavior. It features a light and easy-to-navigate interface and multiple technical indicators.

The platform also incorporates trading ideas directly from TradingCentral, which saves traders time and energy. Moreover, the platform features the innovative AvaProtect tool, providing traders with the ability to hedge any given position.

AvaTrade’s AvaTradeGO Mobile App

The AvaTradeGO mobile app affords traders quick and easy access to the market on the go. It is very useful for monitoring and adjusting open trades. The market is volatile and ever-changing, which is why it is so essential to stay on top of things at all times.

You can use the app to place market, limit, and stop orders, as well as to adjust the exposure of your open trades. Additionally, the app is very convenient for assessing trading signals by TradingCentral.

My Key Takeaways After Testing AvaTradeGO App

I appreciated AvaTrade’s mobile app for its light and easy-to-navigate design, and I think it’s a great tool for staying informed of the latest market developments. However, since mobile apps are run on low-resolution devices, they are not ideal for carrying out sophisticated technical analyses. In that respect, it is somewhat surprising that the AvaTradeGO app features a greater number of technical indicators compared to the Web Trader.

Tradable Instruments

Compared to the industry average, AvaTrade offers an average amount of currency pairs and cryptocurrencies, and a high amount of commodities, share CFDs, and indices.

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the underlying asset’s price without physical delivery. For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars. One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With AvaTrade?

I have broken down the available instruments with AvaTrade below:

Forex	Commodities
EURUSD | GBPJPY | USDCHF | USDCAD | EURJPY | GBPNOK	Gold | Crude Oil | Wheat | Sugar | Natural Gas | Palladium | Coffee | Brent Oil

Share CFDs	Indices
Apple | Tesla | Microsoft | Netflix | Barclays | Tellus | Siemens | Bayer	Dow Jones 30 | Germany 40 | Japan 225 | Honk Kong 50 | Australia 200 | China 50

Cryptocurrencies	ETFs
Bitcoin | Ethereum | Litecoin | Doge Coin | Ripple | Cardano | Polygon | Stellar	MSCI Emerging Markets Index Fund | Energy Select Sector SPDR | TR Gold Miners

Bonds	FX Options
EURO BUND | JAPAN BOND	EURUSD | AUDUSD | XAUUSD | USTECH100 | Italy 40 | Japan 225

My Key Takeaways After Exploring AvaTrade’s Instruments Offering

AvaTrade offers a very decent range of tradable instruments – both lower-risk securities and higher-yield/risk assets. This diversity is suitable for the implementation of a wide range of trading strategies. This is also afforded by the inclusion of CFDs and vanilla option contracts.

Customer Support

Customer Support Test

When we test a broker’s customer support team, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I conducted my customer support test on 29 January at around 4:00 p.m. CET via live chat, and an agent connected almost instantaneously.

Initially, when I asked about AvaTrade’s average execution speeds, the agent struggled to understand my question, admitting it wasn’t his area of expertise and promising to forward it to the relevant department for an email response. However, for simpler questions like AvaTrade’s maximum retail leverage, the agent provided quick and accurate answers, being polite and helpful.

Deposit and Withdrawal

AvaTrade Deposit Methods

AvaTrade Withdrawal Methods

Account Types and Terms

Why is Choosing the Right Account Type Important?

Your account should reflect your goals, needs, and ambitions on the market. You should take into consideration several factors, such as whether the account type has a minimum deposit requirement, its spreads and commissions, the execution method, and more.

What Account Types Does AvaTrade Offer?

I have broken down the features of AvaTrade’s retail account type below:

AvaTrade’s account is affordable and equally suitable for high-frequency trading and longer-term day and position trading. It accommodates the execution of all kinds of strategies, including scalping, hedging, and algorithmic trading.

What is CFD Leverage?

The leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of the leverage. Essentially, the broker lends the trader money so that the latter can open bigger positions. The leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

AvaTrade’s Execution Model

AvaTrade operates as a market maker with a dealing desk. The benefit of market makers is typically faster order execution, as they can fill orders internally.

AvaTrade’s Account Opening Process

The account creation process with AvaTrade is straightforward and quick. You can go at your own pace and be done with everything within an hour. I have summarized the step-by-step process below:

• Step 1. Click ‘Create Account’ at the top-right corner of the main page.
• Step 2. Provide an email address and choose a password.
• Step 3. Enter your personal details, including your name, date of birth, address, etc.
• Step 4. State your financial information, including your personal wealth and trading experience.
• Step 5. Confirm your email address.
• Step 6. Verify your account by uploading proof of ID and address.

Why is a Demo Account Important?

AvaTrade offers demo accounts that introduce traders to the broker’s services and allow them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account for yourself alongside your live CFD account.

AvaTrade Accepted Countries

AVA Trade EU Ltd accepts clients from the European Union and the European Economic Area (EEA).

Research

I have broken down AvaTrade’s most important research content by type below.

TradingCentral Content

I appreciated that trading signals are integrated directly into the Web Trader platform. They can be accessed from the left-hand side of the main panel and appear on the right-hand side. There is usually an active signal for most of the available instruments.

Each signal consists of an anticipated direction for the price of the underlying asset and duration. Additionally, you are provided with an entry-level for a trade, a take-profit, and stop-loss levels.

News Screener

The news screener section of the platform contains detailed breakdowns of the latest market developments. Each article has a strong economic focus and provides the reader with an insight into what is driving the market at present.

I quite liked that each article highlights an instrument that is likely to be impacted by the news. This helps traders gauge the likelihood of upsurges in volatility.

Economic Calendar

The economic calendar is an essential tool in a trader’s arsenal. It informs traders of upcoming market events and releases that have the potential to stir price action, thereby creating viable trading opportunities.

I appreciated the ‘Event Chart’ feature of AvaTrade’s calendar, which is rather uncommon though not unique. It visualizes the previously released numbers for a given economic indicator.

Analysts Views

AvaTrade also offers market analyses developed in-house. They represent a combination of senior market experts’ opinions and algorithmic signals. This type of content is only available to funded accounts.

Market Sentiment

The MarketBuzz feature is a market sentiment tool powered by TradingCentral. It helps the trader see how other market participants are viewing current market developments. The MarketBuzz feature, too, is only available to funded accounts.

Weekly Expectations

AvaTrade publishes weekly market expectations in video format on the broker’s YouTube channel. Each analysis contains a technical and a fundamental aspect, affording the trader multiple perspectives.

My Key Takeaways After Exploring AvaTrade’s Research Content

I liked AvaTrade’s research content and think it is suitable for beginners and seasoned traders alike. It strikes a fine balance between practicality and insightfulness.

By having TC’s signals integrated directly into the platform, newbies can quickly and effortlessly understand what is being said, whereas more experienced traders can keep track of the ever-evolving trading opportunities.

Education

I have broken down the available educational materials by type below.

Academy

The Academy section of the website contains over 150 lessons with a duration of over 5 hours of study time – one of the most impressive collections I have ever seen. Most attention is paid to the intricacies of technical analysis and how to trade specific asset classes.

Tutorials

More than a dozen educational videos are available from the platform. They cover topics such as different order types, essential trading concepts, and more. Each video lasts several minutes and is geared towards first-time traders.

Blog

The blog section of the website is updated once every few months. Each article represents a broader and somewhat more abstract take on various trading and economic topics. At the moment of writing, the blog contained around 50 articles.

Webinars

Hundreds of past webinars are available from AvaTrade’s YouTube channel. I found them highly informative and covering a wide array of topics.

The Bottom Line

AvaTrade is a well-balanced broker catering to the needs of first-time traders and seasoned experts alike. Founded in 2006 and headquartered in Ireland, Ava is licensed in multiple jurisdictions and adheres to all safety requirements.

The broker has developed several highly functional platforms and apps suitable for different kinds of trading. It also incorporates DupliTrade for social trading and the Guardian Angel Suit for enhanced risk management on MT4 and MT5.

AvaTrade stands out with its innovative risk management service AvaProtect, a wide collection of platforms, below-average costs, and diverse instrument offerings. Traders can choose between hundreds of CFDs and vanilla options.

In conclusion, I assessed that AvaTrade is a perfect choice for technical traders of all experience levels. As a market maker, it accommodates high-frequency trading, though I think it is even better suited for day trading and position trading because of its low swaps.

FAQ