AvaTrade Review » Best Low Fee Broker
AvaTrade is one of the best regulated Low Fees brokers for forex trading, CFD trading, and trading crypto against fiat currencies.
Best Low Fee Broker in 2021
AvaTrade is a fully regulated broker by the majority of financial regulatory bodies in the world.
That means when trading forex, CFD, cryptocurrency, and coins, you are protected by law.
Since the Covid pandemic, we see more and more people looking for extra income and go for trading. If you are one of them, make sure you will open your account with a regulated trading platform like AvaTrade.
AvaTrade started offering trading services in 2006 and gained a reputation as one of the best forex brokers internationally and a trusted online broker with a solid Forex and Contract for Difference portfolio. The trading fees are low, and there is no extra fee for withdrawal.
This year, we have excluded 1318 scam platforms and only shortlisted the regulated brokers here. Now let’s get you started with your interesting trading journey and help you open an account with AvaTrade and make your first trade.
Tip for Newbies: Decide what type of account is best for you.
To begin trading with AvaTrade, you need to decide what types of account you should open. Good news is that opening an account with AvaTrade takes just about a minute. Once your account is approved, You can begin trading Forex, CFD, or even get busy buying and selling bitcoin or any other cryptocurrency that you like.
How to open an “Demo Trading Account”?
For beginners, I suggest opening a demo account on AvaTrade, which is great for practicing. Once you feel confident you can upgrade to real trading account which allows you to trade in real financial market
How to open “Real Trading Account”?
Once you’ve upgrade your account to real trading account and got it approved, you can begin trading. If you wish to work with real money, the best option is to open a real trading account on AvaTrade and deposit $100 to get started.
Watch the Video:
AvaTrade offers CFDs, Foreign currency exchange platform & Crypto trading opportunity to all traders. Like many other AvaTrade alternatives, you can use this online trading platform in all 3 forms of web trading, mobile apps trading, and desktop trading platform. You have access to charting features with decent customization capability.
Not only the brokerage company is safe to trade with. In fact, AvaTrade is fully regulated in the majority of jurisdictions, including:
- (ASIC) in Australia, also known as the Australian Securities and Investments Commission
- (FSCA) in South Africa, which is known as Financial Sector Conduct Authority
- In Japan, they are governed by both (FSA) the financial service agency and (FFAJ) Financial Futures Association of Japan.
- The Central bank of Ireland and B.V.I from the British Virgin Islands
Even though AvaTrade is not publicly listed on any stock exchange, its leadership maintains its reputation as a safe and trusted broker since top-tier financial authorities regulate it.
After carefully reviewing and testing AvaTrade, we found their services good for both beginners and professional traders. Hence, our ranking for this online broker is as follows:
There is $50 Inactivity fee, yet the CFD fees are fair.
If you want to know whether AvaTrade is a good broker for online trading, you must know that You can not set the leverage to one and trade other real stocks and ETFs.
The fees for S&P 500 CFD, Europe 50 CFD, EUR USD are built into the spreads.
- ✓ For S&P 500 CFD, the fee is 0.5 average spread, which is considered below average.
- ✓ For Europe 50 CFD, the fee is 1 pip average spread cost, which is considered low.
- ✕ For EURUSD, the fee is 0.9 pips average spread.
- There will be a $50/m inactivity fees if you leave the account dormant for at least a quarter.
Lets deep dive and have a look at AvaTrade’s fees for forex and CFD trading. In the tables below, we will also compare AvaTrade and two alternative brokers to show you their fee.
This comparison scenario is running this way: A typical trade here means buying a leveraged position, then holding it for 7 days, and only sell after that period. (Let’s consider this scenario for illustrative purpose as prices may always change in the real market)
* Volume: a $2,000 position for the stock Index
* Volume: a $2,000 position for CFD
* Volume: $20,000 for the forex transactions.
The leverage in these scenarios are:
• 20:1 stock index CFDs
• 5:1 CFD
• 30:1 forex
|S&P 500 index CFD fee||$0.9||$2.4||$2.1|
|Europe 50 index CFD fee||$0.6||$2.4||$1.3|
|Apple CFD fee||$4.1||$3.4||$8.9|
|Vodafone CFD fee||$6.1||$5.6||$7.6|
You need to keep an eye on other broker fees, such as trading fees and non-trading fees.
Trading fees are straightforward to understand. Those fees only apply when you trade CFDs or literally trade anything. These fees are relatively low when you choose interactive brokers.
When you talk to a frequent trader, you will always hear these terms because trading fees come in the forms of:
- hedging strategy
- Financial Rates
- Conversion Fees
(‘Plus500 does not offer hedging orders’)
There is also Non-trading fees:
These charges are not related to what currency or options you trade or what stock market you are looking after. They are broker’s fees such as withdrawal and inactivity fees.
How much is AvaTrade minimum deposit? It’s Simple, $100.
When you trade with AvaTrade, you can choose from these 5 base currencies: USD, EUR, CHF, AUD*, GBP**
• AUD currency is for Australian Clients*
• GBP Pound is only for clients from the UK.**
To start stock trading forex, AvaTrade charges you no fee for the initial deposit. You ought to remember that to deposit money, you have to use funding sources in your own name. If you are ready to trade, go ahead and use the live account; if not, this broker offers a demo account to practice which is very good for beginners.
If you decide to open your real trading account, you might have a chance to enjoy AvaTrade’s 20% trading bonus. In these cases, there is always terms and conditions that applies to withdrawing your cash. The minimum requirements to withdraw commission from AvaTrade is this: “In order to withdraw your bonus, you are required to execute a minimum trading volume of 10,000 in the account’s base currency, for every $1 bonus within six months.”
When trading with AvaTrade, you can choose from MT4, MT5, or Ava Options
As one of the best commission-free brokers, AvaTrade offers easy to use trading platforms for beginners and experienced traders. They uses MetaTrader as the main trading engine. MetaTrader4 broker & MetaTrader 5 enables you to fully customize your reports and charts.
You can trade on all three trading platforms:
Web trading platform is powered by Web Trader.
Desktop trading is available for windows and Mac users too.
Finally, AvaTrade’s mobile trading App which is called “AvaTradeGO” is available for Android and IOS users.
When we tested AvaTrade platforms, it was very easy to take control and navigate through. You can easily monitor the instruments, Fully control when to close or open your position, Review trading history, use technical analysis and more. In fact, the UI & UX of AvaTrade platform is unique and user-friendly.
At a glance it looks like this:
If you are interested in robo-advisors, and automated trading, then Zulu and Dupli Trade, and MQL 5 trading signals are your options. Luckily AvaTrade Offers these services to traders.
Even though the default language is English, trading with MetaTrader 4, MetaTrader 5, AvaOptions, and Web Trader supports the following languages: Arabic, Danish, Dutch, Finnish, French, German, Italian, Japanese, and many more.
By the way AvaTrade is one of the very limited brokers that accept PayPal. Besides, you can deposit to AvaTrade platform via any of these payment methods:
- Credit card
- Wire transfer (NatWest, Barclays, UniCredit)
- VoguePay (PraxisCC55)
- F2P CUP
- POLi (Australian clients only)
- Ideal –An Instant Bank Wire Transfer for Netherlands.
- Min deposit: 100 Euro
- Max 30K Euro
- Klarna (Sofort) – An Instant Bank Wire Transfer for Germany, Austria, Belgium, Netherlands, Italy, France, Poland, Hungary, Slovakia, Czech.
- Min deposit: 100 Euro
- Max 30K Euro
- Rapid Transfer
- Perfect money
- Offers Low Trading Fees
- Multiple Base Currencies
- Trade Crypto Against Money Currencies
- Regulated in many countries
- Free & Fast Withdrawal
- Investment protection is only available in the EU Countries
- You will be charges "Administrative and Inactivity" fees
- Web trading platform is not that user-friendly
At first let’s have a look at all three types of trading accounts that you can open with AvaTrade.
For beginners I suggest to use this link to open Demo account on AvaTrade which is great for practicing. If you know your business and you are a professional trader then open real trading account on AvaTrade and deposit $100 to get started.
What broker should I open account as a Beginner?
- Like the other brokers, you can have a Standard Account as an individual.
- As a business or a legally registered entity, you can hold a Corporate Account.
- The third type of trading account is designed for Muslims who are interested in online trading. It is called Islamic Trading Account which doesn’t charge swaps for your account.
Tip*: you can open a Professional Trading Account by request, only if you can prove that you had hold half a million Euro portfolio in the past year.
You can expect a very easy, smooth and professional process to open your account with AvaTrade which takes only 1 day; It’s super easy to place an order and you will be guided throughout the process.
As for demo account, you can immediately open and begin using it
However, once you compare online brokers and decide to move forward as an online trader and work with real money and real shares with AvaTrade Platform, You must provide your passport copy or Gov-ID along with proof of residency (something like a utility bill or bank statement). Here is a list of AvaTrade account types:
- Account currencies: AUD, JPY, GBP, USD, EUR, CHF
- Minimum deposit: $100 | €100 | £100
- Maximum leverage: EU – Up to 30:1, Professional Client/ROW up to 400:1
- Minimum trade size: 1,000 units on Forex pairs
- Spreads: EUR/USD
- Retail spreads: as low as 0.90
- Pro Spreads + Canada: as low as 0.60
For BVI – as low as 0.90
- Spread betting: UK & Ireland (only in GBP Currency)
- Scalping – Millisecond trading
- Hedging – Open Buy & Sell positions simultaneously
- Free demo account – active for only 30 days
- Vanilla options (AvaOptions): Forex pairs, Gold & Silver
- VIP account: Yes
- Demo account: Yes
- Islamic account: Yes
- Segregated account: No
- Corporate account: Yes
- Managed account: Yes
- Institutional account: No
- Trading desk type: Dealing desk + Market maker
Most of trading instruments and products are CFDs. The portfolio is not that comprehensive.
Can you trade Forex & CFD on AvaTrade? The answer is very simple. The main options that are available to you at AvaTrade are:
- Stock Index CFD
- Foreign Exchange
- Bitcoin Cash.
- Bitcoin Gold.
- Other Contract for difference
Trading Advice: When you buy with no leverage (that means leverage=1), it actually means you buy real stocks and not contract for difference / CFDs. That’s why Non-leveraged buy positions for equities, ETFs and cryptocurrencies (also known as digital currency) are traded as real assets.
All other positions are kind of contract for difference (this applies to cfd traders). Let me give you an example. The leveraged buy positions and all sell positions of stocks, ETFs and cryptocurrency as well as all foreign currencies, commodities and indices positions.
(Be aware of the risks of price movements / we have no info at this moment about fiat currencies)
Changing the leverage manually is a very useful feature when you want to lower the risk of a trade. Unfortunately, You can not change the default leverage level of the products.
For instance, rather than trading with X:1 leverage (x higher than Y), only trade with Y:1 leverage for stock CFDs.
Although the minimum deposit seems high, the tools & materials are fair and good for beginners
When it comes to research and technical analysis tools, AvaTrade is above average. Generally, conducting technical analysis in CFD & Forex trading means you pay attention to the historical data and charts to make better decisions. In AvaTrade, you can access the following trends:
- Short term
- Intermediate term
- Long term trends
Put simply, whether you need a chart, or list of assets, you can easily generate all the reports you need and track your trading portfolio performance and be on top of the game. It’s kinda easy, and you can see a clear profit/loss or commissions paid reports.
As for education, if you are looking a lot of trading guides to begin with, our trading blog is a good resource to begin with since we have hundreds of investment guides and detailed reviews on brokers, tools, strategies, and more. (We do not offer investment advice and guarantees).
Having said that, when it comes to education, AvaTrade is the best broker for beginners and tutorials are pretty comprehensive. Not only you will get a demo account, you will also have access to in depth articles, and lots of videos (about trading software and trading strategies).
One other advantage you get is having access to SharpTrader. It provides you with around 200 articles and trading videos, and plenty of other educational tool, which is a great broker to start for beginners.
This is the summary of AvaTrade’s Research & Education:
• Daily Market commentary: Yes
• News (Top-Tier sources): Yes – MT5 Only
• AutoChartist: Yes
• Trading Central (Recognia): Yes
• Delkos Research: No
• Acuity trading: No
• Webinars: Yes
• Video education: Yes
• Economic Calendar: Yes
Overall, besides being a low fee broker in 2020, AvaTrade is a safe and regulated broker, it’s also one of market leaders in Fx trading and finance industry. Forex trading with AvaTrade is very cheap.
When it comes to online trading, customer service plays a significant role in trader satisfaction score. Overall, AvaTrade customer support team respond fast via email, phone calls, and live chat, but they have yet to establish a 24/7 support process (So don’t count on weekends).
Since AvaTrade allows trading cryptocurrencies against fiat currencies, It’s one of the best crypto brokers to buy bitcoin.
They have a good quality live chat system to help in English and the good thing about it is its short time queues.
Their negative side is on not having plenty of research tools and having high inactivity fees.
AvaTrade offers low fee trading options for both CFD and Forex trading. Maybe it does not have the best online trading platform but it you can easily trade using web, Mobile and desktop.
If you are ready to trade, just make sure you are aware of the risks. If not, it is a good platform to start with a demo account and then move to online trading, Remember, the minimum deposit is $100.
Yes, AvaTrade is regulated in Australia and UK regulation authorities :
The Financial Conduct Authority (FCA) and Investment Commission (ASIC).
Follow these steps to learn how to open trading account on FXCM:
1. Get ready with your email address
2. Select the country of residency.
3. Provide demographic data
4. Choose your preferred online trading platform
5. Select your account type & base currency.
6. Explain your trading experience and provide employment history
7. Provide identity and residency proof for activation.
The minimum deposit is $100.
- Offers Low Trading Fees
- Multiple Base Currencies
- Customisable Dashboard
- Regulated in many countries
- Free & Fast Withdrawal
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