AvaTrade Review 2022
AvaTrade is a privately held online forex and CFD broker that was founded in 2006 as AvaFX and advertises that it is "committed to empowering people to invest and trade, with confidence, in an innovative and reliable environment; supported by best-in-class personal service and uncompromising integrity".To get more news about
avatrade pros & cons, you can visit wikifx.com official website.
Headquartered in Dublin, Ireland, AvaTrade has satellite offices throughout Europe and the Asia-pacific region and is registered with multiple jurisdictions globally. Like many forex brokers, AvaTrade does not accept U.S. traders.
AvaTrade offers a broad variety of tradable instruments including forex, stocks, commodities, cryptocurrencies and indices, with industry standard spreads, on a "wide-selection of trading platforms for both manual and automated trading, across a variety of device types".
New traders can open accounts for as little as 100 units of the base currency and the broker offers dedicated educational and research resources that should get them up to speed quickly. Additionally, AvaTrade states that accounts across all jurisdictions do have negative balance protection and also offers AvaProtect which allows the client to take out insurance on a trade.
Of note, AvaTrade is not regulated by the Financial Conduct Authority (FCA), a highly regarded regulatory entity with a reputation for being strict in ensuring that market practices are fair for both individuals and businesses, which means that it is not subject to ESMA mandated client account protection and leverage restrictions.
Who AvaTrade Is For
AvaTrade is for the novice investor seeking to gain a basic understanding of forex and CFD trading. With a product suite that offers variety, reasonable spreads, and a choice of user interfaces, AvaTrade is ideal for new and undercapitalized traders seeking to build on limited skill sets.
Costs
The broker touts no commission trading which would mean that client trades "crossing" the bid/ask spread is the principal means by which AvaTrade generates revenues. Retail traders are charged higher spreads than professional traders but the requirements are such that few clients will be able to obtain that latter designation.
Experienced traders can qualify for a "professional" account which would allow them to increase their maximum leverage from 30:1 to 400:1 but the spreads remain the same. To qualify investors must meet at least 2 of the following criteria:
The "Trading Conditions & Charges" link under the "Trading Info" tab lists the spreads, available leverage, and margin requirements for all of AvaTrade's instrument offerings. The minimum advertised spreads for FX majors are inline with the industry average with EUR/USD at 0.9, USD/JPY and AUD/USD at 1.1, GBP/USD and USD/CHF at 1.6, NZD/USD at 1.8, and USD/CAD at 2.0. As is the norm in the FX industry, clients will be charged swap fees on positions that they hold overnight.
It takes just $100 to open an account and AvaTrade offers no volume discounts or guaranteed stop losses. They charge a $50 fee after three months of account inactivity and a $100 administration fee after one year of inactivity. As mentioned, no withdrawal or closure fees are listed in the marketing materials but the legal documents noted fees for bank transfers and credit card transactions. Withdrawal processing can be unusually slow, requiring as long as 10 business days to receive wire transfers. Islamic accounts are offered but they will incur wider spreads.
Trade Experience
While AvaTrade has discontinued RoboX and Mirror Trader social trading programs and AvaTradeAct, their dedicated platform and Metatrader alternative, it still offers a broad variety of platforms to cater to manual and automated traders.
WebTrader is its default interface that can be accessed via a browser. It is user-friendly and intuitive but rather plain and lacking some basic features that competitors offer. Clients executing traditional technical or fundamental trading strategies can also opt for the industry-standard Metatrader 4 (MT4) and the newer Metatrader 5 (MT5).
In a nod to transparency, AvaTrade lists other pertinent information in the "Trading Info" tab on its website, such as "Order Execution Policy", "Holiday trading hours", "Economic calendar", "CFD Rollover" information, and "Stocks Earnings Releases", to aid the client in their trading decision. Additionally, the "Forex Calculator" link informs the trader about the potential profits, losses and costs to trading, like overnight interest calculations.
