AvaTrade Review
4.3
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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 reputable online trading platform that offers a wide range of financial instruments and innovative features to traders worldwide. With its user-friendly interface, comprehensive educational resources, and advanced trading tools.
AvaTrade has established itself as a trusted broker in the competitive financial market. In this review, we will delve into the key features, advantages, and considerations of using AvaTrade for your trading activities.
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Fee-free deposit and withdrawal options
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Protection against negative balances
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Quick and effortless account opening
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Majority of clients regulated by top-tier financial authority
Overview
Year founded
Minimum deposit
Withdrawal fee amount
Available Offerings
Platforms available
2006
100$
0$
Forex, CFD, Crypto
Desktop, Mobile, Web
Account Opening
Opening an account with AvaTrade is a seamless and fully digital process. AvaTrade welcomes clients from various countries, although there are a few exceptions such as the US, Canada, Belgium, and Iran. In Israel, AvaTrade operates under a different brand called Atrade. AvaTrade provides a range of account options to cater to different needs. These include the Standard account, which is owned by individuals, the Corporate account for legal entities, the AvaOptions account for FX options trading, the Spread betting account available in the UK and Ireland, the Islamic account, which is swap-free, and the Professional Trading account with higher leverage than the Standard account. To qualify for the Professional Trading account, you must have relevant financial sector experience, a history of sufficient trading activity in the past 12 months, and a portfolio value of at least €500,000. AvaTrade applies an inactivity fee if there is no activity on the account for three consecutive months, referred to as the "Inactivity Period." Subsequently, for each subsequent Inactivity Period, an inactivity fee of $50, €50, or £50 will be deducted from the customer's trading account balance. For those who wish to explore the AvaTrade platform before committing real funds, a demo account is available. It offers $100,000 in virtual funds to practice trading. Creating an account with AvaTrade is quick and straightforward, involving three simple steps. Firstly, you provide basic personal information, which can be expedited by using existing profiles from Facebook or Google. Next, you fill in details about your employment, savings, and income status. You are also required to answer a few questions assessing your trading experience, knowledge, and goals. Finally, you need to verify your identity and residency by uploading a copy of your ID card, passport or driver's license, along with a recent utility bill or bank statement.
Safety
AvaTrade is subject to regulation by multiple financial authorities, signifying its commitment to operating within established guidelines. While it is a reputable and well-established brand, it is not publicly listed on any exchange and does not disclose its financial information. One notable feature offered by AvaTrade is negative balance protection, which safeguards retail clients from incurring losses beyond their deposited funds. AvaTrade is regulated by several authorities worldwide, ensuring compliance with financial regulations in different jurisdictions. These include the Financial Sector Conduct Authority (FSCA) in South Africa, the Financial Futures Association of Japan (FFAJ), the Japanese Financial Services Agency (FSA), the Abu Dhabi Global Market Authorities Financial Services Regulatory Authority (ADGM – FSRA), the B.V.I Financial Services Commission on the British Virgin Islands, the Israel Securities Authority (ISA), the Central Bank of Ireland, and the Australian Securities and Investments Commission (ASIC). It's important to note that AvaTrade operates various subsidiaries, and the specific subsidiary that serves you depends on your country of residency. This distinction is crucial because the level of investor protection and the regulatory framework may differ from one entity to another. Established in 2006, AvaTrade is headquartered in Ireland.
Risk Disclaimer
Trading securities carries a significant level of risk. When it comes to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is substantial exposure to various risks. These risks include, but are not limited to, leverage, creditworthiness, limited regulatory protection, and market volatility. They can have a significant impact on the price or liquidity of a currency or related instrument. It is important to note that the methods, techniques, or indicators provided in these products may not necessarily yield profits, and there is a possibility of incurring losses. For more information on the risks associated with forex trading, please refer to further resources.
Summary
AvaTrade is regulated by multiple global authorities, ensuring compliance and providing a sense of security for its clients. Account opening with AvaTrade is smooth and convenient, offering a Seamless experience. Additionally, AvaTrade provides a wide range of deposit and withdrawal options, all of which are free of charge.
However, it's important to note a couple of drawbacks with AvaTrade. Firstly, the product range is somewhat limited, focusing primarily on forex, CFDs, and cryptocurrencies. While these are popular options, the availability of other financial instruments may be limited. Secondly, AvaTrade charges a high fee for account inactivity, which is something to consider for individuals who may not trade frequently.
Overall, AvaTrade offers a regulated and user-friendly platform for trading, but it's important to be aware of its product limitations and associated fees.