AvaTrade Forex Broker Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the AvaTrade broker is in this AvaTrade Forex Broker Review.
AvaTrade Forex Broker Review
Clients of AvaTrade can sign up for one of 2 available account types, depending on the spread offered: a fixed spread account, offered on both available platforms, and a floating spread account, provided solely on the MT4. Both account types are commission-free and offer trading in micro lots.
Traders, willing to invest more funds are offered extra benefits: accounts with a minimum of $1000 are provided with daily signals and charting tools by Trading Central, those with at least $10000 balance – access to Direct Dealing room and clients who have deposited $100 000, get express withdrawals, customized trading terms, and special gifts.
In addition, this broker provides Islamic (swap-free) services to Muslim clients.
The Company. Security of Funds
AvaTrade (formerly AvaFX) is was established in 2006 and is a part of the Ava Group, an international company offering more than 200 instruments for trade: more than 50 currency pairs, a wide range of CFDs on indices, stock, commodities, precious metals, ETFs, Bitcoin, Litecoin and others. Headquartered in Ireland’s Dublin, the Group has a global presence, servicing its customers worldwide through its offices in France, Spain, Italy, Australia, Japan, China, and Mongolia.
All companies within the group are duly licensed and regulated by the respective authorities:
– Dublin-based Ava Trade EU Ltd. is licensed by the Central Bank of Ireland and regulated by MiFID in the European Union;
– Ava Capital Markets Australia Pty Ltd. headquartered in Australia, is regulated by ASIC;
– Ava Trade Ltd. is licensed in the British Virgin Islands, and
– Japan-based Ava Trade Japan K.K. is regulated by the Financial Services Agency and the Financial Futures Association of Japan.
In February 2016, AvaTrade has set up a unit in South Africa, regulated by the Financial Services Board and in April 2016 it has also established a new subsidiary to take charge of its business and clients in Israel.
So clients of AvaTrade need not worry about the security of their funds.
Trading Conditions
Minimum Initial Deposit
Traders are required to deposit $100 in order to open an account with AvaTrade, which is an average minimum initial amount. In comparison, XM, also Licensed in the EU and Australia, requires just $5 and leading global broker FXCM –$50.
Average spreads & Commissions
There are both fixed and variable spreads in this broker’s portfolio. AvaTrade’s fixed spreads amount to 1.9 pips on EUR/USD, which is a competitive pricing. While fixed spreads can protect you from the spread widening which may occur at the close of markets or during major news releases, we would much rather trade with a broker offering capped variable spreads.
Provided solely on the MT4 platform, AvaTrade’s floating spreads are averaged 1.5 pips on EUR/USD, which is on the upper end of average. The good news is that traders can benefit from commission-free trading, as this broker gets its compensation through the spread.
In comparison, FXCM provides variable spreads averaged to 0,4 pips for the EUR/USD pair and charges a commission of $8 per lot round turn. So basically average trading costs with this broker amount to around 1.2 pips, commission included. For further information, you may look up real-time spreads of 15 leading brokers may be viewed here.
Leverage
The maximum leverage rates at AvaTrade are up to 1:400, which is considered comparatively high, however many other brokers offer similar or higher leverage rates: FXCM provides leverage up to 1:200, and FxPro – up to 1:500. More forex brokers offering leverage equal to or exceeding 1:500 can be viewed here.
Higher leverage ratios may multiply your earnings on a small deposit, but they may also lead to losses, exceeding initial investments. That is why we advise traders to exercise caution.
Trading Platforms
When trading with AvaTrade, you will be offered their proprietary AvaTrader and the popular Metatrader 4 (MT4).
AvaTrader is simple and easy to use forex and CFD trading platform, offering 200+ financial instruments at fixed spreads, more than 30 built-in indicators, comprehensive range of orders, alerts & charting tools. It is available as desktop, web, and mobile versions.
AvaTrader platform
We have tried the AvaTrader platform and we find it to be a bit cluttered and unresponsive, so we would rather opt in for the MT4. Metatrader 4 is preferred by most experienced traders, because it is equipped with an advanced charting package, a number of technical indicators, a variety of Expert Advisors (EAs) and extensive back-testing environment.
Speaking of automated strategies, we should point out that AvaTrader’s automated trading package is remarkably rich. It includes ZuluTrade system, Mirror Trader, Signal Trader, and AvaTrade’s own Ava AutoTrader, which also enables algorithmic trading through your API interface.
What is more, AvaTrader is one of the few brokers offering spread betting on MT4, the profits of which are exempt from Capital Gains Tax & Stamp Duty.
Promotions
At the time of writing this review, the broker offered the following bonus schemes:
– Welcome bonus on first deposit from $40 (for deposits amounting to a minimum of $200) up to $ 10 000;
– Refer a friend bonus for each friend who opens a live account from $75 up to $400, depending on the referred person’s initial deposit amount.
Methods of Payment
Clients of AvaTrade can make deposits to and withdrawals from their accounts via credit/debit cards (Visa, MasterCard, Maestro), bank wire, Skrill and Neteller.
Accepted currencies: EUR and USD, as well as GBP (only available for clients from the UK), and AUD (only available for Australian clients).
Part of a Global group, AvaTrade is a reputable award-winning broker with 10 years of experience, offering numerous trading solutions to the FX community.
AvaTrade Forex Broker ReviewConclusion
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