AvaTrade Review8-min read

AvaTrade, one of the world’s top online forex, CFD brokers, and cryptocurrency brokers, has carved a niche for itself within the global financial marketplace. This review will present a comprehensive analysis tailored specifically for Indian investors, helping you make an informed decision about this trading platform.

Founded in 2006, AvaTrade has grown exponentially, boasting over 200,000 registered clients worldwide and executing more than 2 million trades a month. With a diverse trading offering, AvaTrade provides multiple platforms to cater to various trading preferences.

In This Review:

1. Features and Tools
2. Strengths
3. Areas for Consideration
4. Feedback on AvaTrade from Customers
5. How to Open an Account on AvaTrade in August 2023: A Quick Tutorial
6. Is AvaTrade Available in India?
7. Regulatory Compliance and Safety of AvaTrade
8. AvaProtect: An Overview
9. Trading Conditions with AvaTrade
10. AvaTrade’s Cryptocurrency Trading Framework
11. AvaTrade’s Array of Trading Platforms
12. Transparency and Costs
13. Protection and Regulations
14. Review of Support and Service for Traders
15. AvaTrade Academy’s Comprehensive Resources
16. Mobile Trading Experience
17. AvaTrade Financial Operations Overview
18. Conclusion
19. FAQs

Features and Tools

1. Variety of Trading Platforms: AvaTrade offers a wide range of trading platforms such as MetaTrader 4, MetaTrader 5, and their proprietary AvaTradeGo mobile app. This gives traders the flexibility to trade according to their preference and expertise.

2. Educational Resources: The platform is committed to empowering traders. It offers comprehensive educational materials including videos, webinars, and eBooks, ensuring traders are well-informed and can strategise effectively.

3. Multi-Lingual Support: Recognizing the global nature of trading, AvaTrade provides 24/5 customer support in 14 languages, including Hindi, making it convenient for Indian investors.

4. Regulatory Compliance: The brokerage adheres to stringent regulatory standards. AvaTrade is regulated in the European Union, Australia, Japan, South Africa, and the British Virgin Islands.

Strengths

• Diverse Financial Instruments: AvaTrade offers a vast range of instruments, including forex, commodities, indices, stocks, and cryptocurrencies.
• Security: Investor funds are held in segregated accounts, ensuring safety and transparency.
• Competitive Spreads: AvaTrade boasts competitive spreads, providing traders with an edge in the market.

Areas for Consideration

While AvaTrade has many strengths, potential investors should also be aware of a few aspects:

• Withdrawal Process: Some users have reported a longer-than-usual withdrawal process, although the majority have had seamless experiences.
• Platform Interface: Beginners might find the user interface slightly overwhelming initially. However, with the educational resources provided, this learning curve can be managed effectively.

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Feedback on AvaTrade from Customers

With a robust track record spanning over 17 years, AvaTrade has cemented its position in the trading industry. This assertion is underscored by impressive ratings on Trustpilot, where it scores a remarkable 4.7 out of 5 from over 7,700 reviews. Additionally, in its trophy cabinet, AvaTrade has clinched over 100 global awards. Notably, in 2023, the platform was recognised as the ‘Most Trusted Broker’ and was also acknowledged among the top brands of the year.

How to Open an Account on AvaTrade in May 2024: A Quick Tutorial

Overview:

• AvaTrade offers a streamlined and digital account opening process that’s faster than many competitors.
• The entire process, from start to finish, can be completed within approximately 5 minutes.
• Indian traders are welcome, provided they meet the 100-unit currency minimum deposit.

Steps to Open an Account:

1. Start Registration: On AvaTrade’s main page, click “Register now”. You’ll have the choice of a Real or Demo account. Opt for “Real Account”.
2. Basic Details: Fill out the intake form with your name, email, and decide between an individual or joint account.
3. Financial Assessment: AvaTrade requires a brief questionnaire assessing your financial status and trading knowledge. This step, often skipped by other brokers, ensures client protection.
4. Documentation: For individual clients, submit:
   • Proof of Identification: A valid, coloured scan of a passport, ID card, or driving license.
   • Proof of Address: A bank statement or utility bill (dated within the last 6 months) with visible name and address.
5. Account Activation: Post document verification, accounts are typically activated and ready for trading within minutes.

Key Takeaways:

• AvaTrade emphasises quick and hassle-free account creation, enhanced by digital processes.
• A distinctive touch is their customer service, which may reach out to assist during setup.
• Their commitment to client safety is highlighted by their financial assessment step during registration.

Is AvaTrade Available in India?

Yes, AvaTrade is available for Indian retail investors.

• Eligibility: Indian traders can open accounts with AvaTrade.
• Minimum Deposit: Ensure a deposit of at least 100 units of your chosen currency to activate the account.

Always ensure you’re aware of any additional regulations or requirements specific to your region when engaging in financial activities.

Regulatory Compliance and Safety of AvaTrade

Ensuring regulatory compliance is imperative when selecting an online broker. In the digital age, it’s essential to discern genuine brokers from fraudulent entities. AvaTrade stands out as a paragon of regulation, boasting credentials from more than six regulatory authorities.

The company’s regulatory umbrella encompasses the following:

• IIROC (Canada)
• Central Bank of Ireland
• FSA and FFAJ (Japan)
• ASIC (Australia)
• FSCA (South Africa)
• BVI (British Virgin Islands)
• ADGM (United Arab Emirates)
• CySec (Cyprus)
• ISA (Israel)

To bolster its credibility, AvaTrade has also partnered with global football giants, Manchester City. This collaboration further exemplifies its commitment to transparency and trustworthiness.

Client Fund Safety

A distinguishing feature of AvaTrade is the segregation of client funds. The broker collaborates with multiple banking institutions and refrains from leveraging client funds for hedging or other investment activities. Punctual deposits and withdrawals underscore its operational efficacy. Furthermore, choosing to operate under the Central Bank of Ireland provides traders with an additional safety net, thanks to the ICCL Investor Compensation Company Ltd, which guarantees funds exceeding 20,000€.

Highlight: AvaTrade assures the safety of client funds and provides protection against negative balances.

AvaProtect: An Overview

AvaProtect stands out as a unique offering from AvaTrade, designed to shield traders from potential trade losses. While it does entail additional fees based on risk, volatility, and protection duration, it’s an invaluable tool for risk mitigation. With AvaProtect, traders can secure trades up to a value of one million dollars over a specific period. If a trade doesn’t pan out as expected, AvaTrade compensates the loss directly into the trader’s account in the form of liquid cash without any withdrawal constraints.

Trading Conditions with AvaTrade

AvaTrade offers a plethora of trading options, encompassing over 1,250 distinct assets and markets. Prospective traders can opt between fixed and variable spread accounts, with the provision to initiate trades with as little as $100. Additionally, AvaTrade offers a free demo account, although it does come with a 21-day expiration period.

From forex, stocks, and commodities to cryptocurrencies and other CFDs, AvaTrade facilitates trades with competitive spreads starting from 0.8 and leverage up to 1:400. Platforms available for trading include MetaTrader 4/5, AvaOptions, a dedicated mobile app, and a social trading platform.

Insight: Choosing a variable spread account can prove economical in many scenarios, especially during times of significant news or high volatility.

Trading Offerings

1. Cryptocurrencies: AvaTrade is a premier platform for crypto trading, offering numerous digital currencies for trading with leverage. It trumps conventional crypto exchanges with swift trade execution, zero commissions, low spreads, and opportunities for short selling.
2. Forex Trading: Forex remains a favourite among retail traders. AvaTrade offers over 45 currency pairs with competitive spreads sans added commissions.
3. Stocks, Indices, and ETFs: AvaTrade boasts a comprehensive suite of stocks, indices, and ETFs, amounting to over 1,000 markets. With leverage up to 1:5, traders can engage in both long and short trades.
4. Commodities: Be it oil, gold, or even exotic commodities like orange juice, AvaTrade offers various trading opportunities via CFDs or futures contracts, all facilitated by the comprehensive MetaTrader 5 platform.

AvaTrade’s Cryptocurrency Trading Framework

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When delving into the intricate realm of cryptocurrency trading, AvaTrade stands out with its unique offerings tailored to cater to both novice and experienced traders.

No Commission on Cryptocurrency Trades

One of the primary advantages of choosing AvaTrade for cryptocurrency trading is the absence of commission charges. This feature ensures traders retain a larger share of their gains, maximizing profitability.

Advanced yet User-Friendly Tools

A distinct competitive edge that AvaTrade possesses over many of its counterparts is its suite of sophisticated yet user-friendly trading tools. These tools empower traders with advanced functionalities without compromising on ease of use, making it an ideal platform for traders at all proficiency levels.

Flexible Trade Expiration Dates

Understanding that traders have diverse strategies and time horizons, AvaTrade offers a broad spectrum of trade expiration dates. Traders can configure their trades with expiration dates ranging from overnight to as long as a year, and this can be done on any business day. Moreover, AvaTrade allows traders the flexibility to set any strike price, aligning with their specific trading strategy.

Competitive Spreads and Reliable Execution

A hallmark of AvaTrade’s commitment to offering its traders a seamless experience is its low spreads. By ensuring minimal spreads, AvaTrade ensures traders can capitalise on even the smallest market movements. Coupled with this is the platform’s robust order execution infrastructure. AvaTrade’s traders can rely on the platform to execute their trades promptly and accurately, thereby reducing the risk of slippage.

AvaTrade’s Array of Trading Platforms

1. MetaTrader 4 (MT4) and MetaTrader 5 (MT5):
   • Predominantly used for trading forex and CFDs.
   • Highly popular among online brokers, with 80% of them offering MetaTrader.
   • Comprehensive toolkit for professional trading, supporting both automated trading and expert signals.
   • MetaTrader 5 is recommended due to its advanced functionalities and user-friendliness.
2. WebTrader:
   • Ideal for beginners, offering a simplistic and intuitive interface.
   • Features easy currency conversion, customizable alerts, and access to an economic calendar.
3. AvaOptions:
   • Exclusive for trading FX options.
   • Enables trading on over 40 currency pairs.
   • Features risk management tools and provides a display of potential risks and rewards.
   • Useful for hedging forex positions with options.
4. AvaTradeGo App:
   • Designed for mobile trading.
   • Features an easy-to-understand interface and supports multi-account management.
5. AvaSocial App:
   • Launched in 2020, AvaSocial is dedicated to social trading.
   • Enables traders to connect their accounts with others and either copy or be copied.
   • Exclusively available on mobile devices.

Key Takeaways:

• MetaTrader 4/5:
  • Available for desktop, mobile devices, and web browsers.
  • Supports automated trading, expert signals, and a wide range of tools for technical analysis.
• WebTrader:
  • One of the most beginner-friendly platforms available, with easy-to-use functionalities.
• AvaOptions:
  • Provides automated displays of risk and rewards, volatility curves, and professional risk management tools.
• AvaTradeGo App:
  • Enables traders to manage their portfolios anytime and anywhere.
• AvaSocial App:
  • A platform to learn from experienced traders and share trading insights.

Transparency and Costs

AvaTrade prioritises transparency, ensuring that traders are well-aware of potential costs. The broker mainly earns from the market spread. Other fees to be mindful of include the overnight premium fee, inactivity fee after three consecutive months of platform non-usage, and an annual administration fee after 12 months of consecutive inactivity.

Protection and Regulations

One of the cornerstones of AvaTrade’s operations is ensuring trader security. The platform provides negative balance protection, irrespective of the regulator chosen. This ensures that traders won’t fall into a negative balance, with the broker automatically stopping out positions by a margin limit.

Review of Support and Service for Traders

A critical aspect to consider is the quality of support and service offered to users. AvaTrade provides 24-hour support in over 15 languages. You can reach out to their team through phone, chat, or email. Feedback suggests their team is prompt and offers insightful solutions to queries.

Key Features of the Support:

• 24-hour assistance
• Access via phone, chat, and email
• Support through Whatsapp
• Assistance available in over 27 languages

Additionally, the company has an extensive FAQ and tutorial section on its website. Here, users can find comprehensive information about the platform and trading in general.

AvaTrade Academy’s Comprehensive Resources

AvaTrade doesn’t just offer a basic education center. They conduct daily webinars that delve into current market situations and provide professional analysis that might inspire trading ideas. Moreover, AvaTrade’s team is well-versed in educating users, helping them navigate and understand the nuances of financial markets.

Service Highlights:

• Detailed FAQ section
• Comprehensive education resources
• Video tutorials on strategies
• Regular webinars and market analysis
• Dedicated account managers for support

Mobile Trading Experience

AvaTrade’s proprietary mobile apps are designed to cater to most traders. While they might not outshine apps from leaders like Saxo Bank or TD Ameritrade, AvaTrade is constantly enhancing their mobile offerings. The company offers mobile platforms like AvaTradeGO and AvaOptions, along with the complete MetaTrader suite for Android and iOS.

AvaTrade Mobile App Highlights:

• AvaTradeGo: This app mirrors its web version with features like syncing watchlists and a volatility protection mechanism termed AvaProtect. Charting within the app supports 93 indicators, but accessing them can be slightly cumbersome.
• AvaOptions: This unique app overlays strike prices on a chart, permitting easy adjustments. It also comes with 14 default options-trading strategies.

AvaTrade Mobile App Features:

• Android and Apple iOS Apps: Available
• Basic Mobile Alerts: Available
• Total Watchlist Fields: 7
• Watchlist Syncing: Available
• Charting Indicators/Studies: 80 in total
• Drawing Tools in Charting: 13 in total
• Trendline Drawing on Mobile Charts: Available
• Multiple Time Frames in Mobile Charting: Available
• Forex Calendar: Available

AvaTrade Financial Operations Overview

1. Withdrawals at AvaTrade:

   • Duration: Withdrawal requests typically take one to two business days, aligning with many forex brokers.
   • Variability: The exact time can differ based on the selected withdrawal method.
   • Important Note: Ensure your account details remain updated. Although initial verification is done upon account creation, AvaTrade might request updated proofs of ID and address, especially if significant time has elapsed since the last update.

2. Minimum Deposit:

   • Amount: The general minimum deposit is 100 units of the account’s currency. For instance, a USD account requires a minimum of $100, irrespective of funding via wire transfer or credit card.
   • Recommendation: While the minimum is set at 100 units, AvaTrade suggests starting with 1,000 to 2,000 units of your chosen base currency for an all-inclusive experience across their product range. They support EUR, GBP, and AUD among other options.

3. Safety of Funds at AvaTrade:

   • Assurance: Funds are as secure with AvaTrade as with any globally regulated online broker. They’re authorised to manage client funds, and their reputation is bolstered by over 400,000 customers and millions of dollars in deposits.
   • Regulation and Compliance: AvaTrade is governed by multiple bodies, including the Central Bank of Ireland. It separates all client funds from its operational finances and adheres to WebTrust standards, prioritizing client information security and robust cybersecurity measures.

Conclusion

AvaTrade has proven itself to be a broker that understands both the needs of novice and experienced traders alike. Their easy and speedy account creation process, combined with a robust support system available 24/7 in multiple languages, showcases their commitment to offering a seamless trading experience. Furthermore, their diverse investment offerings cater to a broad range of interests, with the added assurance of top-tier regulation ensuring peace of mind for traders.

The broker’s emphasis on education, with resources like AvaTrade Academy and regular webinars, makes it evident that they want their clients to succeed. However, like any platform, they have room for improvement, especially when it comes to certain features on their mobile apps. But overall, the positives substantially outweigh the negatives, making AvaTrade a commendable choice for those looking to delve into the world of online trading.

Key Takeaways:

• Swift and hassle-free account opening process.
• Robust 24/7 support in over 15 languages.
• Wide range of investment options.
• Emphasis on trader education and resources.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. CFDs trades also pose significant risk if investing more than you can afford to potentially lose.