In this AvaTrade Review, We will cover most of the important information that traders need to know before deciding their broker. AvaTrade was established in 2006 in the name of AvaFX before rebranding into its current name to reflect the shift to multi-asset trading as its product range has grown into markets beyond the forex industry. AvaTrade brand currently has offices in 11 countries and provides multiple trading platforms for web and mobile devices, offering spot forex, forex options and CFDs on multiple asset classes, including cryptocurrencies.
Clients of AvaTrade can sign up for on the 2 account types consisting of a fixed spread account and a floating spread account, provided solely on the MT4. Both account types are commission-free and offer to trade in micro lots. Traders who are willing to invest more funds are offered extra benefits such as if a clients usage is minimum deposit of $1000 are provided with daily signals and charting tools by Trading Central and for those with at least $10000 or more gain access to Direct Dealing room and clients who have deposited $100 000 or more will be able to access express withdrawals, customized trading terms, and special gifts.
The Company & Safety 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, South Africa, 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 registered 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.
Commissions & Spreads
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 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.
Leverage is a controversial part of forex trading. Higher leverage ratios may multiply your earnings on a small deposit, but they may also lead to losses, exceeding initial investments. That is why a number of authorities have imposed restrictions with regards to the use of leverage.
Generally, the maximum leverage rates at AvaTrade are up to 1:400, which is considered comparatively high. However, the maximum leverage ratio provided by the broker for EU retail clients is up to 1:30, which is in line with the latest measures introduced by the EU financial regulator, ESMA.
AvaTrade offers multiple third-party trading platforms such as AvaTraderAct, ZuluTrade, DupliTrade MirrorTrader, and RoboX by Tradency, as well as the popular MetaTrader4 web and desktop platform from MetaQuotes Software Corporation. The ZuluTrade and Tradency platforms are primarily for social copy trading.
A major change for the broker in 2017 was the shift away from the AvaTraderAct desktop which is no longer front-and-center alongside the broker’s main list of platforms, leaving just the web version available. However, it is worth noting that the process of logging into the WebTrader version too was not straight forward as demo accounts default to MT4, making the firm primarily an MT4-broker, although multiple social-copy trading platforms help elevate its offering.
Deposit & Withdrawal
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).
From this AvaTrade Review, we have listed important information for traders to see. With recognition through their many awards and their longevity of over 10 years in the industry, AvaTrade stands out from other brokers in more than one respect. If a trader emphasizes safety above everything else, this regulated and authorized broker, operating as a part of an international financial group with market capitalization will clearly make an outstanding choice.