AvaTrade Review 2020

Stock index CFD fees are low, but otherwise AvaTrade has rather average trading fees. Withdrawals are free of charge, but inactivity fees are quite high.

We ranked AvaTrade's fee levels as low, average or high based on how they compare to those of all reviewed brokers.

To get things rolling, let's go over some lingo related to broker fees. What you need to keep an eye on trading fees, and non-trading fees.

• Trading fees occur when you trade. These can be commissions, spreads, financing rates and conversion fees.
• Non-trading fees include charges not directly related to trading, like withdrawal fees or inactivity fees.

Below you will find the most relevant fees of AvaTrade for each asset class. For example, in the case of forex and stock index trading spreads, commissions and financing rates are the most important fees.

We also compared AvaTrade's fees with those of two similar brokers we selected, XM and Plus500. This selection is based on objective factors such as products offered, client profile, fee structure, etc. See a more detailed rundown of AvaTrade alternatives.

To have a clear overview of AvaTrade, let's start with the trading fees.

AvaTrade trading fees

AvaTrade trading fees are average. The fee structure is very transparent and trading costs are easy to calculate. However, if fee levels are your most important factor, then there are better alternatives.

We know it is hard to compare trading fees for CFD brokers. So how did we approach the problem of making their fees clear and comparable? We compare brokers by calculating all fees of a typical trade for selected products.

We have chosen popular instruments within each asset class:

• Stock index CFDs: SPX and EUSTX50
• Stock CFDs: Apple and Vodafone
• Forex: EURUSD, GBPUSD, AUDUSD, EURCHF and EURGBP

A typical trade means buying a leveraged position, holding it for one week and then selling. For the volume, we chose a $2,000 position for the stock index and stock CFDs and $20,000 for the forex transactions. The leverage we used was

• 20:1 for stock index CFDs
• 5:1 for stock CFDs
• 30:1 for forex

These catch-all benchmark fees include spreads, commissions and financing costs for all brokers. Let's see the verdict for AvaTrade fees.

CFD fees

AvaTrade has low CFD trading fees for indexes, comparing favorably to the fees charged by its main competitors, XM and Plus500. At the same time, individual stock CFD trading fees are rather average.

Forex fees

AvaTrade forex fees are average.

For all major currency pairs we compared above, AvaTrade fees are average when benchmarked to their competitiors. Forex trading fees are built into the spreads.

Forex fees at AvaTrade are transparent. The company supports this clarity with a Forex Calculator that allows you to calculate your next forex position in 5 simple steps:

1. Enter the instrument you wish to trade

2. Set your account currency

3. Choose the leverage level

4. Select whether to buy or sell

5. Select the trading platform (MetaTrader4 or AvaTradeGO)

Non-trading fees

AvaTrade has mixed non-trading fees.

AvaTrade doesn't charge any account fees, while deposits and withdrawals are also free of charge. On the negative side, AvaTrade has an inactivity fee of $50 per quarter after 3 straight months of inactivity. On top of that, after 12 consecutive months of non-use, an annual administration fee of $100 will be deducted. When added up, these inactivity-related fees are high compared with AvaTrade's peers.

Account opening at AvaTrade is seamless and fully digital. You can start trading literally in minutes.

Can you open an account?

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Almost all countries are accepted by AvaTrade, with some exceptions including the US, Belgium and Iran. AvaTrade operates under a different brand, Atrade in Israel, though we have not tested their services.

What is the minimum deposit at AvaTrade?

The required AvaTrade minimum deposit is $100 for credit/debit cards and e-wallets. Although it is stated as $500, live chat told us that the minimum deposit is $100 by bank transfer as well.

Account types

The types of accounts available at AvaTrade are:

• Retail account (EU) / Standard account (Rest of the world) - account is owned by an individual
• Corporate account - account is owned by a legal entity
• Options account - to trade FX options
• Spread betting account - offered only in the UK and Ireland
• Islamic account - swap-free account

If you are an experienced trader, you can request AvaTrade to open a Professional Trading account for you, where the leverage is higher than in the Standard account. This requires that you have relevant experience in the financial sector and sufficient trading activity in the past 12 months, and hold at least €500k portfolio value.

A demo account is also offered.

In this review, we tested the EU retail account.

How to open your account

Creating an account is quick and easy, just like with most other CFD/Forex brokers:

1. Enter some of your basic personal data (you can use one of your social media profiles like Facebook or Google, too)
2. Answer a couple of questions assessing your level of understanding of trading
3. Verify your identity and residency by uploading a copy of your ID card, driver's license or passport; as well as a copy of a recent utility bill or bank statement.

AvaTrade offers several free options for deposit and withdrawal. On the negative side, withdrawal took us 3 business days, and debit card deposits can also be slow.

Account base currencies

At AvaTrade, you can choose from the following base currencies: USD, EUR, GBP, CHF and AUD. AUD is only available for Australian clients, while GBP is only available for clients from the UK.

Why does this matter? For two reasons. First, if you fund your account in the same currency as your bank account, you won't be charged a currency conversion fee. Second, if you trade assets in the same currency as your account base currency, you will not have to pay a conversion fee.

A convenient way to save on currency conversion fees is by opening a multi-currency bank account at a digital bank. They usually offer bank accounts in several currencies with great currency exchange rates, as well as free or cheap international bank transfers. Opening an account only takes a few minutes on your phone.

Compare digital banks

Deposit fees and options

AvaTrade charges no deposit fees. In addition to making a deposit by bank transfer or credit/debit cards, you can also use the following electronic wallets (though some country restrictions may apply):

• Neteller
• Skrill
• Klarna
• Webmoney
• POLi for Australians

The minimum amount you can deposit is $100 or 100 units in any of the other base currencies. Although it is stated as $500, live chat told us that the minimum deposit by bank transfer is likewise $100 (or equivalent).

When we deposited by using a debit card, it took 4-5 hours for the money to arrive. AvaTrade said it took that much time because they had to verify the deposit. This is something of a drawback, as credit/debit card deposit with most other brokers is instant.

If you prefer depositing via bank transfer, it can take several business days. You can only deposit money from accounts that are in your name.

Withdrawal fees and options

AvaTrade doesn't charge any withdrawal fees. You can use the same options for withdrawal as for deposits.

While credit/debit card withdrawals are free, there is an upper limit to such withdrawals, defined as 200% of the amount you have deposited over a certain period. To withdraw more than this amount, you have to use bank transfer.

How long does it take to withdraw money from AvaTrade? We tested debit card withdrawal and it took 3 business days.

You can only withdraw money to accounts that are in your name.

How do you withdraw money from AvaTrade? You can withdraw money from AvaTrade by following these steps:

• Log in to your AvaTrade account
• Go to 'Withdraw Funds'
• Select the withdrawal method
• Add the amount you wish to withdraw

Compare to other brokers

AvaTrade's web platform is user-friendly, well-designed, and has a unique order type to protect you from losses. However, it lacks customizability, two-step login and price alerts.

AvaTrade offers several trading platforms to choose from:

• WebTrader, AvaTrade's own trading platform
• MetaTrader 4, a third-party trading platform
• MetaTrader 5, a third-party trading platform
• AvaOptions, AvaTrade's own trading platform for forex options

In this review, we tested WebTrader and MetaTrader 4 as these are the most popular among customers. Our scoring and Pro/Con list are based on our assessment of the WebTrader platform.

Note that most ETF CFDs and individual stock CFDs can be traded only on the MT5 platform and not on MT4 or the WebTrader platform.

Webtrader 

Webtrader is available in several languages: English, German, Spanish, Portuguese, Italian and Russian.

Look and feel

Webtrader is user-friendly and well-designed. Even first-timers can easily handle the platform. However it's not customizable; for example, you can't change the size and position of the tabs.

Login and security

WebTrader only offers one-step login. A two-step login procedure would be more secure.

Search functions

The platform's search functions work well. You can search by starting to type an asset's name or by clicking one of the asset categories.

Placing orders

You can use only basic order types:

• Market
• Limit
• Stop

To get a better understanding of these terms, read this overview of order types. There is also a Good 'til time (GTT) order time limit you can use to set an exact date and time for the expiry of an order.

A unique feature offered by AvaTrade is AvaProtect : it's basically a hedge/insurance you can buy, for a pre-determined fee depending on how long you want your trade to be insured (1 hour, 1 day, etc.) Should you have any losses on that trade, AvaTrade will reimburse your losses. Note that you can't use this feature on limit orders, only on market orders.

Alerts and notifications

Unfortunately, you can't set price alerts and notifications.

Portfolio and fee reports

AvaTrade provides clear portfolio and fee reports. You can find them under the 'History' section. Also, if you click on your positions, you can see the swaps charged.

MetaTrader 4

MetaTrader 4 is available in an exceptionally large number of languages.

Look and feel

MetaTrader 4 has great customizability. You can easily change the size and the position of the tabs.

However, the platform feels outdated and some features are hard to find. For example, it took us a while to figure out how to add an asset to the watchlist.

Login and security

Just like the WebTrader platform, MetaTrader 4 provides only one-step login. Two-step authentication would be more secure.

Search functions

The search functions are OK. You can find assets grouped into categories. However, we missed the usual search function where you can type an asset's name manually.

Placing orders

You can use the basic order types. You will not find very sophisticated orders like the 'one cancels the other' order. The following order types are available:

• Market
• Limit
• Stop

If you are not familiar with order types, read this overview.

There are also order time limits you can use:

• Good 'til cancelled (GTC)
• Good 'til time (GTT)

Alerts and notifications

You can't set alerts and notifications on MetaTrader 4 web trading platform. This feature is available only on the mobile app and the desktop trading platform.

Portfolio and fee reports

MetaTrader 4 has clear portfolio and fee reports. You can easily see your profit-loss balance and the commissions you paid. These reports can be found under the 'History' tab. We didn't find a way to download them, though.

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AvaTradeGo is a modern, easy-to-use app with a decent set of features, including the AvaProtect insurance scheme. However, order types are limited and the app comes only in English.

AvaTrade offers three trading platforms:

• AvaTradeGO, AvaTrade's own mobile trading platform
• AvaOptions, AvaTrade's own mobile trading platform for trading forex options
• MetaTrader 4, a well-established third-party trading platform.

In this review, we tested AvaTradeGO, the platform used by most clients. It is available for both Android and iOS. We tested on Android. 

In contrast with MetaTrader trading platforms, it is available only in English.

Look and feel

The AvaTrade mobile trading platform looks nice and is user-friendly.

Beyond the usual mobile functions such as search or alerts, even education videos and customer support chat are available right inside the app.

Login and security

AvaTrade provides only one-step login.  For added convenience, you can also set up fingerprint authentication.

Search functions

The search functions are good. When you search by typing an asset's name, a list of relevant results appears. Another way is to browse the various categories.

Placing orders

Similarly to the web trading platform, you can use only basic order types:

• Market
• Limit
• Stop

Similarly to the web platform, the mobile app also offers the AvaProtect insurance feature.

There are also order time limits you can use:

• Good 'til canceled (GTC)
• Good 'til time (GTT)

Alerts and notifications

You can set price alerts that will send you push notifications. Additionally, you can also set an expiration to these alerts and notifications.

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In design and function, AvaTrade's MetaTrader 4 desktop platform is almost the same as the MT4 web platform. A big difference is that you can set price alerts on the desktop platform.

You can use MetaTrader 4, MetaTrader 5 and AvaOptions as desktop trading platforms. The latter is only for trading forex options.

In this review, we tested the MetaTrader 4 desktop trading platform, as it offers more assets to trade, not just forex options.

It has the same design, is available in the same languages, offers the same order types, has the same search functions, and offers the same portfolio and fee reports as the MT4 web trading platform.

The major difference is that you can set alerts and notifications in the form of mobile push and email notifications on the desktop trading platform. To set email or mobile notifications, you have to add your email address and mobile MetaQuotes ID (you can find it in the MT4 mobile app's settings). You can add them if you go to 'Tools' and then 'Options.'

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AvaTrade offers only forex and CFDs, such as stock, index, forex and commodity CFDs. It doesn't offer other popular asset classes such as real stocks, bonds or mutual funds.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

AvaTrade is a forex broker but it also offers some CFDs. To learn more about CFDs, read our CFD trading tips.

AvaTrade's currency pair selection is OK, in the same ballpark as its closest competitors, XM and Plus500.

CFD coverage of individual stocks and ETFs is rather average, trailing behind some of the company's closest competitors. Moreover, most of these can only be traded on the MT5 platform and not on the MT4 or WebTrader platforms.

Bond CFDs include Japanese and European government bonds. Unlike at many brokers, at AvaTrade you can also trade the VIX index.

Additionally, FX options are available through the AvaOptions platform. For this, you'll need a separate account from the main account.

Note that the number of tradable instruments also depends on your jurisdiction. We tested AvaTrade's services offered for EU clients.

At AvaTrade you cannot change the default leverage level of the products. We think this is something you should be in control of. Changing leverage is a very useful feature when you want to lower the risk of your trade. Be careful with forex and CFD trading, as preset leverage levels may be too high.

Social Trading

AvaTrade offers social trading through two third parties, DupliTrade and ZuluTrade. Both services allow you to copy other traders' activities.

The minimum deposit for using ZuluTrade is $500, while a $2,000 deposit is needed to start trading with DupliTrade.

In addition, AvaTrade also has a social trading mobile app called AvaSocial. With AvaSocial, you can follow and chat with other traders and copy their trades with a simple tap. This service is offered in partnership with a third-party provider, FCA-regulated Pelican Trading.

AvaTrade has user-friendly research tools, from trading ideas to an upgraded newsfeed. The only thing we missed was fundamental data on stocks.

AvaTrade provides research tools in different places:

• WebTrader trading platform
• MetaTrader trading platform
• AvaOptions trading platform
• Website 

We tested AvaTrade's research tools on WebTrader, as they're the best ones in our opinion. Research tools are user-friendly and available in the same languages as the WebTrader trading platform. 

Trading ideas

AvaTrade provides trading ideas through Trading Central, a third-party research provider. The ideas are based purely on technical analysis, and cover certain commodities, stock indices, as well as most FX pairs. You can find them if you click 'Trading Central', then 'Analysts Views' or 'Forex Featured Ideas'.

Fundamental data

The best place to access fundamental data is AvaTrade's economic calendar. We really liked the feature that allows you to gauge historical volatility and trends: for example, if you see that a Bank of Canada interest rate decision is coming up, you can click the 'impact' button and see how the USD/CAD price evolved after recent decisions.

We missed fundamental data on stocks, however.

Charting

AvaTrade has good charting tools. You can easily edit the charts, and the interface has a great design. There are 90 technical indicators you can use, which we thought was more than enough.

News feed

We liked AvaTrade's news feeds, provided by Trading Central. You can find them under the 'Market Buzz' section.

Not only can you filter the news feeds for a specific asset, but you are also shown a sentiment score for that asset. For example, if all the articles are bullish/positive, then a 100% positive score is given.

Additionally, there's a tool called Trend Analysis that bluntly says if the asset "might fall" or "might rise" x or y%. The somewhat sensationalist headline is based on technical analysis by AI software that is also presented among trading ideas.

Overall, we wouldn't say that the quality of the information presented in 'Market Buzz' is good enough to base your trading decisions on, but it's still much more useful compared with other MetaTrader brokers' news feeds.

Additionally, AvaTrade has a blog that posts daily market updates. It has the kind of content you can find at many similar outlets: news (current events, both politics and economy), as well as regular market commentary presented in videos, where they also show some technical analysis and setups.

Compare research pros and cons

AvaTrade has great customer support, giving fast and relevant answers in many local languages. On the negative side, support is not available 24/7, only 24/5.

You can contact AvaTrade via:

• live chat
• phone
• email

AvaTrade has a great live chat. There were no long waiting times; we were able to reach a customer support agent almost immediately.

We got relevant and detailed answers. Besides English, you can chat in many other languages including Arabic, Chinese, French, Italian, German or Russian, among others.

AvaTrade phone support is OK. On the website, you can find a long list of local telephone numbers for most countries, so you don't have to dial an international number.  We had mixed results when trying to call customer service: sometimes we could immediately speak to an agent (in English); however, at another time, the phone call was disconnected after 3+ minutes of waiting time.

We received answers to our emails within a day, which is quite fast. On one occasion, though, the response we received didn't directly answer our question, but merely referred to a link.

We missed 24/7 availability. AvaTrade customer support is only available 24/5, which is still considered quite good.

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AvaTrade is packed with lots of quality materials to educate yourself, and also offers a demo account.

AvaTrade's education section is great, offering several learning opportunities when it comes to trading basics, economic indicators or charting.

You can learn in the following ways:

• Demo account
• Platform tutorial videos
• General educational videos
• Quality educational articles
• Webinars

Within the video library, you'll find a good number of videos, most of which are great quality. AvaTrade also provides webinars on a regular basis.

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AvaTrade is overseen by a number of regulators. It's a well-established brand but is not listed on any exchange, does not disclose financial information and does not have a bank parent.

Is AvaTrade regulated? Yes, it is regulated by numerous authorities across the world, including some top-tier ones:

• the Central Bank of Ireland
• the B.V.I Financial Services Commission on the British Virgin Islands
• the Australian Securities and Investments Commission (ASIC)
• the Financial Sector Conduct Authority (FSCA) in South Africa
• the Japanese Financial Services Agency (FSA)
• the Financial Futures Association of Japan (FFAJ)
• the Abu Dhabi Global Market Authorities Financial Services Regulatory Authority (ADGM – FSRA)

Also, AVA Trade EU Ltd operates a Polish Branch under the AvaTrade EU authorization, which has been approved by the Polish Financial Supervision Authority.

AvaTrade is based in Ireland and was founded in 2006. Is AvaTrade safe? To be certain, it is best to check two things: how you are protected if something goes wrong and what the background of the broker is.

How you are protected

AvaTrade operates several subsidiaries; which one of these will serve you depends on your residency. This is important for you because the investor protection amount and the regulator differ from entity to entity.

AvaTrade provides negative balance protection in all countries where it operates, regardless of the regulator, which is a great plus.

Background

AvaTrade was established in 2006. The longer the track record of a broker, the more proof we have that it has successfully survived previous financial crises.

Having a long track record and being regulated by several authorities, including some top-tier ones, are all great signs for AvaTrade's safety.

Find your safe broker

AvaTrade is regulated by several authorities globally, including the top-tier Central Bank of Ireland and the Australian Securities and Investments Commission (ASIC), therefore it is considered safe.

We liked the seamless and hassle-free account opening. You can use a lot of deposit and withdrawal options, all free of charge. We also liked that you can use many user-friendly tools for research.

AvaTrade has some drawbacks though. The product range is limited to forex, CFDs, and cryptos, and there is a high fee charged for inactivity. Lastly, there are better alternatives if forex trading fees are your main concern.

As there is only a small minimum deposit, and your account will be ready for trading quickly, feel free to try AvaTrade.

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