Is AvaTrade a good broker? What are the opinions held by its clients? Is AvaFX a scam or is it a reliable broker for investing? Is it cheap or does it charge high commissions? Does its trading platform allow for easy trading and does it have useful features? Many traders ask themselves these sensible questions, and we will answer them all in order to determine whether or not AvaTrade is a good broker for trading in Forex and CFDs. If you would like to know our opinion, we think that it is one of the best brokerage firms around in 2019 (CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money).
In the article that follows, we will analyze some key factors upon which we have based our review. Among these factors is safety, something which will allow us to dedicate ourselves to trading without being worried about whether the broker we are using is a scam. Later on we will look at other very relevant aspects such as bonuses, the trading platform as well as the opinions made by other traders which we were able to find on internet forums dedicated to CFD trading.
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Is AvaTrade a Scam? Is it Reliable?
All throughout this article we will be looking at those characteristics of AvaFX which have given us such a positive opinion of this broker.
In the first place, let us just say that AvaTrade is neither a scam, nor a fraudulent site, nothing like that. We certainly can’t say for sure, but the fact that this broker is overseen and regulated by some of the main regulatory bodies of the European Union – like the Central Bank of Ireland – and that it is registered with the Spanish CNMV.
On top of this, as we will see shortly, their spreads are highly competitive, and they do not charge any commissions for trading. What’s more, traders have a very favorable opinion of this broker, since the fact that they do not charge any commission saves them a lot of money.
Another of their most appreciated features is the enormous leverage allowed by this broker, which can reach 1:30 (like Plus500). You should be aware that operating with leverage involves high risks, but in our opinion, for traders with experience who know the risks they are taking, this offers them a great opportunity. Thanks to this level of leverage it is possible to invest 30 times the money you have invested. Taking into account that the minimum deposit is only 100 euros/dollars, in reality you will be able to trade with up to 3.000.
Safety, Fees and Comments
We already mentioned this fact, but we are going to expand on it further. AvaTrade is regulated and overseen by the Central Bank of Ireland, since it is an Irish broker. It is also overseen by the Spanish CNMV. You can trade without any concerns when you are dealing with a safe and reliable broker.
There is another aspect which is in AvaTrade’s favor, that is the fact that the broker is Irish. The majority of CFD providers for stock shares, Forex and commodities are from Cyprus. Being from Cyprus is not a bad thing in itself, it belongs to the European Union, which makes it safe and reliable. However, comments by traders seem to agree that being from Ireland places this broker at a higher level of confidence.
Another thing to highlight about AvaTrade is that they do not charge any commissions, and the only costs that traders have are spreads. That is to say, if we are trading CFDs on stock market shares or currency pairs on the Forex market, we will not be charged any money for each trade. However, since the brokers themselves need to earn money, they will impose a small difference in price between what the CFDs can be bought and sold for, the broker will receive the difference. The lower this differential, the better for the client.
Here, there is another element to keep in mind, that is that the spreads are dependent on the trading platform that is used as well as on market conditions. As a general rule though, spreads tend to remain fairly constant over time. For the platform which everybody knows, Meta Trader 4, the minimum spread on the Forex market is 0.3 pips, this is the same as on the broker’s proprietary platform.
There are other things we shouldn’t forget to mention about AvaTrade, like the fact that it allows CFD trading on Bitcoin. Another thing worth mentioning is that is makes available several trading platforms. On top of MetaTrader 4, it has its own proprietary platform – AvaOptions – which allows for OverTheCounter (OTC) trading, with puts and calls. Thanks to AvaOptions we are able to cover our Forex positions in a synergistic way when trading with AvaTrade.
So that it is perfectly clear, we are sure that AvaTrade pays out correctly and without difficulties and that it is a serious company. This is why you will be able to make a withdrawal request whenever you want and be paid in a matter of days.
Physical Presence in Ireland
AvaTrade is one of the few brokers to have a physical office location which can be visited in Ireland. It is certain that trading online only requires opening an account and using a trading platform, but it can not be denied that when choosing a broker, many clients are afraid of being scammed, that is to say of choosing an online broker that has nothing to substantiate it. This is not the case with AvaTrade, that has physical locations in Irlenad, and it is possible to personally acquaint oneself with the people who manage and operate the brokerage in Dublin.
It goes without saying that it is possible to ask for a meeting in person to discuss different investment options and tools. This is why we can claim that in terms of customer service, AvaTrade is one of the best brokers available in the Englishlanguage.
As of 2019, the offices of AvaTrade in Ireland are located in Dublin, but it is possible that in 2020 they will be opening new offices. Moreover, while in the Irish offices formative courses are offered, there is also much free learning material available online.
Open a Demo Account
If you are interested in trading with real money right away, you can skip over to the next point in this article. On the other hand, if you would prefer to start out on a simulator, AvaTrade offers you the option of opening a free demo account with which you can try trading in a virtual currency. In this way, if you don’t know much about trading and want to see how news items can influence the price of different assets (stock shares, commodities, currency pairs, indexes, and ETFs), you can try your hand with the demo account.
Another possible reason for experimenting with a demo account if you don’t have much experience, is that you probably won’t know in advance how the trading platform operates. What’s more, AvaTrade offers its own proprietary platform as well as the one commonly used by traders – Meta Trader 4. For this reason, if you would like to learn how the proprietary platform works so that you don’t commit errors in the future, it is a good idea to gain some experience by trading with the virtual currency.
Creating an Account and Final Rating
To end this review we will summarize some key points about AvaTrade and give it a final rating – you can already see from the image above that our final rating is for 5 stars. The advantages offered by AvaTrade which have influenced our decision to classify it as one of the best brokers of 2019 are as follows:
The regulation to which it is subject is very stringent. It has physical office locations in Ireland. It offers one of the best free demo accounts on the market. It has its own platform as well as the possibility of trading with MetaTrader 4 and both are capable of working on mobile phones. It does not charge any commissions and the spreads are low. For all these reasons, we think AvaTrade deserves a 5 star rating.
If you would like to create an account, follow these few simple steps:
1st step: Visit AvaTrade’s website by clicking here.
2nd step: Once on the website, click on the second image:
3rd step: You need to fill out the screen with your personal information. You will also need to indicate the trading platform and currency of your choice.
4th step: The final step is making a minimum deposit of 100 euros or dollars in order to start trading.
If you would like to receive more information or open a real money account, you can do so by visiting the official website (CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money).