Is AvaTrade really free?
AvaTrade does not provide access to real stock trading on US markets. If you are looking for a zero-commission broker to trade on US stock exchanges, you can check our article detailing the best apps offered in this category of brokers. If you wish to stick with AvaTrade though, then you will find the fees they charge below.
Overview of AvaTrade fees and charges
When it comes to brokerage fees, AvaTrade is a mixed bag. To see how they may affect you, first you need to figure out your approach to trading - i.e. whether you are more of a buy-and-hold investor or if you want to trade frequently; or what type of assets and in what volumes you'll want to trade. Alternatively, use our questionnaire to help you tell whether AvaTrade fees are beneficial for you. Continue reading about AvaTrade fees and charges to see if this is the right broker for you, or if a similar broker like ATFX or HYCM might suit you better.
Here's a high-level overview of AvaTrade's fees
|Assets||Fee level||Fee terms|
|US stock fee||-||Not available|
|EURUSD fee||Average||The fees are built into the spread, 0.9 pips is the average spread cost during peak trading hours.|
|US mutual fund fees||-||Not available|
|Inactivity fee||High||$50 per quarter after 3 months of inactivity; after 12 straight months of non-use, a futher annual administration fee of $100 applies|
AvaTrade fees explained
Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely because online brokerages' businesses can be much better scaled: from a purely technical standpoint, it doesn't make that much of a difference for them if they have 100 or 5,000 clients.
This is not to say, however, that they don't charge any fees at all. They make money by charging you various rates for various actions or events. Usually you need to keep an eye on the following three types of fees:
- Trading fees - these are brokerage fees that you pay when you actually carry out a trade, like buying an Apple share or an ETF. What you pay is either a commission, a spread or a financing rate. Some brokers apply all of these.
- A commission is either fixed or based on the traded volume.
- A spread is the difference between the buy price and the sell price.
- A financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
- Non-trading fees. These are usually related to some operations you carry out in your account, such as depositing money, withdrawing money, or not trading for an extended period.
We compare AvaTrade fees with its closest competitors, ATFX and HYCM.
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AvaTrade trading fees
AvaTrade's trading fees are low, which makes it suitable for you even if you trade often (i.e. several times a week).
Let's break down trading fees according to the different asset classes available at AvaTrade.
AvaTrade's trading fees are average.
AvaTrade's forex fees are average.
|EURUSD benchmark fee||$10.3||$7.3||$7.1|
|EURGBP benchmark fee||$12.1||$7.5||$11.5|
AvaTrade has low CFD trading fees.
AvaTrade non-trading fees
Some of AvaTrade's non-trading fees are average.
Non-trading fees include various brokerage fees and charges at AvaTrade that are not related to buying or selling assets. This can be a withdrawal fee, deposit fee, inactivity fee or account fee.
AvaTrade deposit fee
Usually, brokers don't charge anything for deposits, and AvaTrade is no different.
AvaTrade withdrawal fee
AvaTrade generally doesn't charge a withdrawal fee.
|Withdrawal fee for bank transfer||$0||$0||$0|
AvaTrade inactivity fee
AvaTrade does apply an inactivity fee and it is $50 per quarter after 3 months of inactivity; after 12 straight months of non-use, a futher annual administration fee of $100 applies. Keep this in mind to avoid getting charged after a longer idle period. The fact that AvaTrade charges an inactivity fee makes it less ideal for you if you are a buy-and-hold investor.
The inactivity fee charged by AvaTrade is high.
|Inactivity fee||$50 per quarter after 3 months of inactivity; after 12 straight months of non-use, a futher annual administration fee of $100 applies||No inactivity fee||$10 each month after 90 days of inactivity|