AvaTrade review

AvaTrade Review

AvaTrade is an international forex broker for beginner investors, particularly those interested in CFD cryptocurrencies.
  • Great cryptocurrency offerings
  • Superior educational resources
  • Negative balance protection
  • Excellent reputation
  • No FCA regulation
  • Limited country availability
  • Limited phone support
  • High inactivity fees

AvaTrade – Review Introduction

Are you looking for exciting investment opportunities that break away from the traditional stock market? If so, cryptocurrency may be the right thing for you.

Cryptocurrency is still a relatively new concept, so knowing where to buy and sell it can be difficult. Mainstream platforms that focus on traditional investing have limited crypto abilities or fail to offer them altogether.

That’s where platforms like AvaTrade step in. In this guide, we’ll review AvaTrade and discuss its pros, cons, and features. Read on to learn how to use AvaTrade and discover if this platform is suited for your cryptocurrency endeavours.

Avatrade Review

AvaTrade Quick Summary

AvaTrade is a privately held trading platform that operates in multiple countries worldwide. It has satellite offices in the Asia-Pacific region and Europe and registers with several global jurisdictions.

It offers both automatic and manual trading options across various devices. The platform also offers several account types to account for users’ diverse needs, including a Retail and Pro account.

When you use this broker, you can trade various financial instruments, including stocks, forex, commodities, indices, and CFD cryptocurrencies.

Who Is AvaTrade For?

Anyone can use this broker, but we highly recommend it for novice investors interested in learning more about CFD and forex trading.

CFD trading is particularly attractive to new investors who may not have a lot of capital to work with. A CFD is a contract you enter where you only pay the difference in price movement. You’ll never have to pay for an entire asset at one time. This setup makes it easier to profit off of successful, highly-priced cryptocurrencies like Bitcoin and Ethereum. You’ll never have to own the actual unit; instead, you can benefit from price fluctuations.

AvaTrade is an excellent introductory experience into the crypto world. This broker platform exists to empower people to trade responsibly and with confidence. This commitment to ethical trading doesn’t mean you shouldn’t exercise caution as you start investing.

CFD trading presents unique risks (like a lack of liquidity), so you should only invest what you can afford to lose.

Who's avatrade for?

AvaTrade Company Information

As we dive deeper into this AvaTrade review, we’d like to offer you some history of the company.

It began as Ava FX, and its founders Negev Nosatzki and Emanuel Kronitz released the brand in 2006. For the next several years, they worked to build the platform as a forex broker centered on customer service. In 2013, they changed the platform’s name to AvaTrade to reflect its developing utility. It soon offered additional financial services like indices, stocks, government bonds, commodities, and, more recently, cryptocurrency.

The company itself isn’t listed on the stock market, so you cannot buy AvaTrade stock and become a partial owner. However, you can sign up for an account that meets your financial goals and start trading assets and CFD cryptocurrencies.

AvaTrade Pros

  • Social trading: When it comes to discussing “What is AvaTrade”, we can’t leave out its superior social trading capabilities. As a newer trader, you might not feel confident in your investment decisions. Instead of playing a guessing game, you can mimic the activity of top traders and replicate their returns.
  • Quick account verification time: The AvaTrade verification time is impressive. Once you upload all necessary documents to your AvaTrade brokerage account, the support team will review and verify them within one business day.
  • Negative balance protection: Not every broker has precautions in place to promote negative balance protection, but AvaTrade does. This safeguard ensures that investors don’t lose more money than they deposit.
  • Excellent educational resources: Trading CFD cryptos is a learning curve, and this broker wants to promote responsible trading strategies. It offers a diverse library of educational resources for traders to revisit as often as they’d like.

AvaTrade Cons

  • High inactivity fees: If you plan to not use your account for a while, be prepared to pay some serious fees. You’ll have to pay $50 for every three months of inactivity. After one year, the platform will charge $100 for inactivity. These fees aren’t present on a lot of other platforms and can add up over time.
  • Lack of FCA regulation: Unfortunately, the FCA (Financial Conduct Authority) doesn’t regulate this broker. Some users see this lack of FCA regulation as a red flag, but AvaTrade has other security measures in place (more on those later).
  • No signup bonuses: Some investing platforms offer users free stock to incentivise them to sign up. Unfortunately, AvaTrade free stock in the UK isn’t available, as it doesn’t comply with the area’s regulations.
  • Lack of country availability: AvaTrade is available in various countries but not all of them. One major country that it excludes is the US. However, forex brokers aren’t strangers to banning US clients, so this exclusion is to be expected.

AvaTrade Usability

So, how does AvaTrade work? Casual investors can enjoy experimenting on the platform as they please. You can try switching between the Demo and Retail accounts to grow more confident with investing.

The Pro version provides investors with enhanced capabilities and a more seamless trading experience. To offer a brief AvaTrade Pro review, this version of the platform lets you:

  • Trade with minimal margin requirements
  • Trade with maximum leverage
  • Participate in hedging and scalping more easily

AvaTrade Trade Experience

This broker offers tight spreads and impressively fast trade execution speeds. All these features mean you can perform more trades at accurate rates.

Are you not confident with your trading abilities? The AvaTrade paper trading features will be perfect for you. This convenience lets you practice trading without any risk. You can learn to recognise patterns, develop strategies, and optimise your performance when it comes time to invest real money.

AvaTrade Crypto Trading

Stocks, indices, commodities, you name it. This platform offers diverse types of trading, but we’d like to focus on its crypto trading abilities in our Avatrade review.

Technically, this broker only offers CFDs and not physical cryptocurrencies. However, you can still make some serious profits if you speculate future price movements correctly.

One of the most common inquiries we hear from new investors is how to buy Bitcoin on AvaTrade. The process is quite simple — once you fund your account, all you have to do is initiate an order and select “Buy by Market.”

Avatrade regulated broker

AvaTrade App For Mobile

Some investors prefer the traditional AvaTrade for desktop setup, but more traders are turning to the AvaTradeGo platform. Here’s a quick AvaTrade app review and the benefits you can expect:

  • Risk management features (like limit orders and stop-loss calls)
  • Support of AvaProtect (which offers up to $1 million of trading loss protections)
  • Watchlists, charting tools, and news

Deposits and Withdrawals

You can make a deposit or withdrawal via an online payment processor, credit or debit card, or bank transfer. The broker never charges withdrawal or deposit fees.

AvaTrade Fees

This broker doesn’t charge traditional commission fees for any buy/sell transactions that take place. However, you’ll still have to pay a fee per trade. It has tight, fixed spreads in place that start at 0.9 pips (percent in point).

AvaTrade Account

It’s completely free to create a Retail account with this broker. This account type is well suited for new investors who want to test the waters and become more comfortable with trading.

Are you interested in more advanced features? A Pro account may be right for you. Here’s an AvaTrade Pro review of all the requirements you’ll have to meet before getting a Pro account:

  • Heavy trading activity over the past year
  • Work experience in the financial services sector
  • A portfolio of at least €500,000 (financial instruments and cash)

AvaTrade Educational Resources

This platform has many educational resources for its users. For example, you can view news articles and live economic calendars. The broker also grants its users access to Sharptrader.com (for training videos) and AutoChartist (for performing technical analysis research).

What makes AvaTrade diffrent?

AvaTrade Customer Service

This broker’s customer service is adequate, but it’s nothing special.

It does offer multilingual customer support available Sunday through Friday. You can reach the staff via:

  • Live chat: The live chat features are your best bet for general questions, as you will receive answers almost immediately.
  • Email: Choose email as your communication channel if you have an account-specific inquiry. One of the broker’s team members will usually reply within one business day.
  • Phone: Calling the broker’s phone number is not the best option. The phone support team has a slow response time (usually up to ten minutes or longer), and customers often receive less-than-ideal assistance.

AvaTrade Reviews and Reputation

AvaTrade has been in operation for around 15 years, so it has built a solid reputation. It has an impressive 4.7 out of 5 stars on Trustpilot, and the majority of the broker’s 4,900 reviews classify the company as “excellent” or “great.”

AvaTrade Security

If you’re going to be investing your hard-earned money into this broker, you may be wondering How secure is AvaTrade?

From our experience, we’ve found this broker to be very secure. It protects all customers’ information via SSL encryption on its mobile and desktop platforms. To take an additional step and protect yourself as an investor, always look for the SSL security sign when you’re using the broker’s website.

Is avatrade secure?

Final Verdict — Is AvaTrade Right for You?

Now that you’ve read through our Avatrade exchange review, you should realise all the amazing benefits this broker has to offer. It provides a safe way for newer investors to trade CFD cryptos and other assets. You can do so reliably on a mobile or desktop platform, benefit from commission-free trades, and explore the platform’s numerous educational resources.

Sign up for an account today to start trading CFD cryptocurrencies and benefit from commission-free transactions.

FAQ

Is AvaTrade safe or a scam?

As you’re deciding on which crypto platform to use, you may naturally ask, yourself Is AvaTrade legit?
The authentic AvaTrade platform is safe to use. However, you should be wary of scam companies that try to pass themselves as the genuine brand. If you suspect a scam, send the team a message on the site’s Contact page.

What can I trade on AvaTrade?  

This broker doesn’t offer physical cryptocurrencies, but you can trade more than 700 CFD cryptos. You can also trade more than 50 forex pairs and stocks, indices, and commodities.

Can you make money with AvaTrade?

Everyone has the potential to make money with this broker, but you must be wise with your investing approach. Whether you gain or lose money will depend on which assets you trade and your risk tolerance. However, the platform’s commission-free structure makes generating a profit an attainable venture.

How secure is AvaTrade?  

This broker is incredibly secure. It has authorisation from three tier-1 financial regulators: the Investment Industry Regulatory Organisation of Canada (IIROC), the Japanese Financial Services Authority (JFSA), and the Australian Securities & Investment Commission (ASIC). 

Is AvaTrade regulated?

This broker is regulated in Australia, Japan, the EU, South Africa, the UK, the British Virgin Islands, and the UAE.

How do I withdraw money from AvaTrade?

As you’re reading through our AvaTrade.com review, you’re likely thinking of all the money you’re going to make from CFDs. How are you supposed to withdraw it when the time comes?
The process is very simple — all you have to do is follow these steps:
1. Log into your brokerage account.
2. Navigate to the Withdrawal section.
3. Fill out and submit an online withdrawal form (you’ll include the requested amount and the target account the funds will go to).
4. Wait for your withdrawal to reach your chosen account. It may take up to 1 business day for the withdrawal to process.

Where is AvaTrade based?

The company’s headquarters are located in Dublin, Ireland.

How does AvaTrade make money?

This broker doesn’t charge commissions. Instead, it makes money via spreads (the difference between the bid and ask price for any given trade).

How can I deposit into an AvaTrade account?

This platform makes depositing simple, as you can do so through methods like wire transfers and credit cards. Some customers (depending on their country location) can use e-payments like WebMoney, Neteller, and Skrill.

What is the minimum lot size at AvaTrade?

The minimum lot size is 0.01 Lot.

When does a margin call take place at AvaTrade?

A margin call takes place whenever your margin hits 50%.

What is the maximum leverage offered by AvaTrade?

The maximum leverage is 400:1.

How do I open an account with AvaTrade?

Open an account with this broker by following these steps:
1. Visit the broker’s official website.
2. Select the “Register Now” button.
3. Provide an email address you use regularly and create a strong password.
4. Check your email account for a confirmation email and click on the link to complete the registration process.
5. Log into the broker’s client portal.
6. Make a deposit and start trading CFDs.

What trading platforms does AvaTrade offer?

This broker offers the following trading platforms:
– AvaTrade UK retail account (for beginners)
– Avatrade Pro (for professionals)
– Demo account (for practising)
– Islamic account (meant for Muslim investors who want to abide by Sharia law)

Is AvaTrade an ISA?

No, you cannot get an ISA directly through this platform.

Do I pay tax on AvaTrade?

If you retain one thing from this AvaTrade review, let it be this — you must pay taxes on all profits you earn on the platform. The only exception is if your returns are less than the UK’s capital gains tax allowance (which was around £12,300 in 2020).
If you’re not from the UK, you must abide by your country’s tax regulations.

Is AvaTrade legal in the US?

No. The platform isn’t regulated in the US, so it won’t accept customers from here. It also won’t accept any money that originates in the US.

Is AvaTrade legal in the UK?

Can you use AvaTrade in the UK? Yes, the platform is regulated and legal in the UK. 

How much is the AvaTrade minimum deposit?

The minimum deposit for this platform is 100 units of the base currency (for example, £100 in the UK).

What are the AvaTrade market hours?

The platform offers cryptocurrency trading 24/7. So, its market hours are 00:01 to 00:00. It operates on a Sunday-Friday schedule for other types of trading.