How does avatrade make money?

Written By: Ehsan Jahandarpour

AvaTrade makes money by offering CFDs on over 250 financial instruments, including exchange-traded funds (ETFs), forex, indices, bonds, stocks, cryptocurrencies, and more. AvaTrade was one of the first online brokers to offer Forex and CFD trading (for those who understand how CFDs work), giving individual traders access to a range of markets that weren’t made available to them before offering %26 less CFD trading fees.

Overnight Fee

AvaTrade revenue is from commissions. THe online broker also earns money with overnight fees, spreads, inactivity fees, and with its currency conversion fees. Let us dwell on each of these points in more detail. Spread prices are derived from stock exchanges and various external market data providers from Avatrade itself. Brokers allow traders to use leveraged trading to increase the available position size of each trade while investing a small amount of capital.


By trading on margin, the amount you either win or lose appears very high in relation to what you have invested. The web versions of Metatrader and AvaOptions offer integration with desktop platforms, and AvaTradeGO with AvaProtect now offers an Android and iOS alternative to the simple Metatrader 4 mobile. AvaTrade overlays strike prices on a chart, so traders can easily change the strike price simply by pulling it up or down — a feature I found incredibly helpful.

avatrade dashboard
avatrade trading dashboard

Most traders can benefit from a wide range of trading platform options that Avatrade offers in various ways of trading. This happens with a few traders, while the majority of traders lose money, which turns into profit in return for AvaTrade. AvaTrade does not offer two-factor authentication (2FA) or biometric authentication for its desktop, web and mobile platforms, although the user is logged out due to inactivity and account holders can use MT4’s One Time Passwords (OTP). We’ve rated AvaTrade’s fee levels as low, average, or high, depending on how they compare to all vetted brokers.

AvaTrade offers negative account balance protection in all countries in which it operates, regardless of the supervisory authority, which is a huge plus. Please note that AvaTrade may require additional verification documents. Once all requirements are met, your withdrawal will be processed immediately. AvaTrade WebTrader also offers some important features like AvaProtect, a risk management tool that helps traders protect the trades from the probability of losing money. Avatrade is a trusted global brand that is best known for its expanded range of trading platforms for Forex and CFD traders.


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