AVATRADE

Charges

AvaTrade clients can choose from a number of different account options – ‘Silver’, ‘Gold’, ‘Platinum’ and ‘VIP’. Each has a corresponding minimum deposit level.

–          Silver – £60

–          Gold – £600

–          Platinum – £6,000

–          VIP – £30,000

AvaTrade does not charge commission fees, nor depositing fees, nor withdrawal fees. However, costs can be levied for account inactivity and corporate actions – and all trades can be subject to overnight interest fees.

Margins

AvaTrade requires traders to calculate their own margins, by dividing the units of the base currency by their leverage.

History

AvaTrade is a Forex and CFD broker. Using its online interface, clients can trade on a number of different financial instruments (including commodities, currencies, stock indices, individual equities and bonds).

According to its published figures, AvaTrade has a client base of more than 200,000, who conduct over 2 million trades monthly.

AvaTrade is regulated in Europe by MiFID.

Financials

AvaTrade has not published publicly accessible financial statements for 2013.

Platform Features

Clients who deposit over £60,000 into their trading accounts, or who surpass £60M in trade volume, are granted access to ‘Ava Select’. Members qualifying for this feature are afforded numerous benefits, including customised trading benefits and express withdrawal services.

‘Gold’ clients are given direct access to the virtual dealing room, and can apply to have FX and market alerts sent to their mobile phones signals sent to mobile. ‘Platinum’ clients are granted access to private dealers.

Using AvaTrade’s ‘Floating Spreads’ provision, traders can access low spreads, sourced from the interbankl exchange.  The ‘AvaOptions’ combines access to the options and spot markets on a single platform. Clients can also choose to ‘Auto Trade’ for periods, meaning their account will trade for them unattended. This also reduces the scope for periods of account inactivity.

Mobile Dealing

AvaTrade offers clients twomobile apps for free download; a branded app which utilises the MetaTrader 4 interface, and a dedicated AvaTrader app with a unique operating system. Using the dedicated AvaTrader app, clients can trade on over 200 FX and CFD instruments.

Educational Material

AvaTrade clients can access a number of training resources free of charge. There are numerous online guides to FX concepts and vocabulary, and best trading practice. In addition, a comprehensive eBook on FX trading strategies is available for download. A bank of video tutorials can be viewed, and live webinars offer clients in-depth analysis and discussion of key market concepts.

AvaTrade also operates a 24-hour helpdesk, offering support to clients in a number of different languages.

Pros

AvaTrade is one of the few online FX platforms that allows clients to hedge and scalp; it is also one of the few web brokers that allows clients to trade Bitcoins. As the broker offers users direct access to the market, rapid-fire trading is easy, traders can respond to market changes effectively and quickly. The vast array of trading assets available is also notable.

Cons

AvaTrade’s emphasis is very much on position trading. This means the broker’s service are not well-suited to day-traders. Spreads are, additionally, only fixed for certain markets, meaning a degree of care is necessary to avoid confusion or error. Furthermore, withdrawals take five days to effect.

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

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