Broker to Trading

AvaTrade is relatively distinctive in that it has a potentially broad appeal. Some CFD providers focus on automated trading, others on self-directed trading and some on copy trading, though there can be crossover. However, AvaTrade covers these different types of trading in its platform and feature offering. AvaTrade has a relatively wide offering of platforms, and features focused in one main account type and we shall explore these in more detail.

For now, the trader can consider that AvaTrade can offer a path from demo trading to self-directed trading then if desired automated trading or copy trading. Traders may stick with one type of trading, but may also wish to try others and this is possible with AvaTrade. What this also means is that AvaTrade does not necessarily specialize in these different types of trading as some brokers do, so this is a factor to be considered as well.

What is AvaTrade?

AvaTrade if a CFD provider (commonly called 'CFD broker') which is regulated in 9 different jurisdictions. This is a relatively wide range of regions, compared with other CFD providers. This means that AvaTrade's feature offering can vary in different countries as availability is subject to regulations.

However there is a commonality of offering across all regions. This can be summed up as support for self-directed traders (who plan and execute their own trades) and provision for automated traders, who use online trading robots to trade for them.

AvaTrade also has support for copy traders, who copy the trades of other traders into their own account. AvaTrade has also been around for a relatively long time, as it was founded in 2006. This is at the earlier end of CFD broker foundations, comparatively speaking.

Platforms - pros and cons

AvaTrade's platform offering can be considered a 'pro' in and of itself. It is a wide offering, as AvaTrade provides MetaTrader 4 (MT4), MetaTrader 5 (MT5), its WebTrader, a dedicated mobile app (AvaTradeGO), an options CFD platform (AvaOptions) and AvaSocial (for copy trading).

MT4 and MT5 are third party platforms while AvaSocial is a branded platform offered through Pelican Trading. DupliTrade is a third party copy trading platform which AvaTrade also supports. MT4 and MT5 offer online trading with robots, and these are available on the desktop download. There is also a web trader for each of these platforms and a mobile app.

AvaOptions has a desktop version and a dedicated mobile app. AvaOptions offers Options CFDs on Forex and Gold. For self-directed traders, the WebTrader and AvaTradeGO offer support for desktop and mobile trading. The proprietary WebTrader is a user friendly, attractive interface with 1250+ markets to trade.

AvaTradeGO is built for mobile trading and is user friendly and clear. This can also be said for the MT5 mobile app, as well. There isn't really a 'con' in AvaTrade's platform offering, unless the trader is looking for specific platforms such as cTrader or TradingView. AvaTrade MT4/MT5

Markets to trade - pros and cons

The market offering of a CFD provider is important as it defines what it is the trade can trade. As all of these are CFDs, the trader is never trading real markets, rather is exchanging contracts with the CFD provider. CFDs mirror the value of the underlying markets and allow the trade to go long or short and to use leverage (increasing leverage increases risk).

AvaTrade has a relatively wide offering of CFD markets. It provides Forex, Stocks, ETFs, Indices, Energy, Metals, Bonds & Treasuries, Options and Cryptocurrency CFDs (Cryptocurrency CFDs are restricted on some regions), for a total of 1250+. This total is for the WebTrader, AvaTradeGO and MT5. AvaOptions offers 40+ CFDs while MT4 has 250+ CFDs.

The reason for the difference in markets between MT4 and MT5 is because MT5 is the successor to MT4 (it is the current release of the MetaTrader platform) and is designed to be a multi-asset platform, in fact it has won awards for precisely this capability (the prestigious FMLS Award as 'Best Multi-Asset Platform' for 2022 and 2023). The impressive thing about MT5 from a trader's perspective is it takes the powerful features of MT4, expands them and adds in a wide market offering.

In terms of 'cons' some traders may want more markets to trade, as some providers can offer many more than 1250+. However this extensive offering tends to be mostly Stocks CFDs, so unless the trader wants to find more obscure or wider flung Stocks CFDs, they may find AvaTrade's offering sufficient. A larger market offering can also mean that there is more in categories such as Commodities, but again, it is up to the trader to decide of they wish to have a wider offering of markets.

Comparatively speaking, 1250+ is at the middle to higher end of CFD provider offering, though as we said some can provide many more than this. A significant 'pro' of AvaTrade's market offering is the wide range and the provision of Options CFDs on a dedicated platform as well as the wide coverage of types of markets.

Demo trading

AvTrade offers a demo account where the trader can test out this CFD provider. This is a good way to get a sense of this broker's offering without needing to deposit. When ready, the trader can then open a live account. AvaTrade Demo

AvaTrade account types - pros and cons

AvaTrade does not have a wide range of different account types. Some CFD providers do, while other focus on a main account type. It could be said that AvaTrade offers a wide range of features and platforms, rather than types of accounts. There are generally two main types of account offering.

Firstly there are account types with different features, secondly there are account types reflecting types of trading. The second type is normally found in CFD providers who focus on automated trading and scaling, for example they may have account with or without a commission charge. AvaTrade does not charge commissions and focuses on a wide range of features in one account type.

This said there is a VIP account. AvaTrade calls its main account the 'Trader' account and the VIP account 'AvaTrade Premium Membership'. The VIP account offers all the features of the Trader account, but additionally provides interest on available margin/deposits, special trading conditions, front of queue for live agent support, front of queue in Chat, speedy withdrawals and deposits, direct phone details of the customer support manager, a VIP market update newsletter and VIP hospitality. There is also an advanced version of Guardian Angel (which offers trading stats and analysis). Membership is based on Tier levels (which are shown in the trader's account), which are themselves based on accumulated deposits.

Types of trading - pros and cons

As we have seen, AvaTrade supports self-directed trading, automated trading, copy trading and has a dedicated Options CFD platform. Given the range of CFD markets available, a wide range of types of trading from Stocks to Forex trading are offered. These can be traded by the trader or may be traded by robots (on MT4 and MT5).

For a self-directed trader, there are plenty of 'pros' but for automated traders, some may wish to have a dedicated account, with spreads from 0, plus a commission charge. The reason for this is that some automated strategies are based on placing a large number of trades which can accumulate spread costs (although a commission charge is also part of the cost of a trade).

Additional features - pros and cons

AvaTrade offers some additional features. One striking example is AvaProtect. This is a risk management tool which protects trades. The trader can choose to protect a trade in a given time frame for losses up to 1 million dollars, in exchange for a hedging cost taken at the time it is purchased. The trader is reimbursed for losing trades, T&Cs apply. AvaProtect is available on the WebTrader and AvaTradeGO. To initiate a protected trade, the trader selects 'AvaProtect' when creating a Buy or Sell order.

Minimum deposit - pros and cons

The minimum deposit to open an account (the Trader account) is $100, £100, AUD100 or €100. This is a moderate minimum deposit requirement compared with other CFD providers. Some have lower or no minimum deposit requirement. However no minimum deposit simply ads flexibility as the trader still needs to send something (and the payment provider may itself have a minimum).

AvaTrade's core offering of payment methods is Wire Transfer, Credit/Debit Cards and e-Wallets (including Skrill and Neteller) but specific availability can vary depending on the trader's region which is fairly typical, however some CFD providers can offer more payment methods. To trade with a very small minimum deposit, the trader needs something like a Cent account, which AvaTrade does not offer. AvaTrade recommends a starting balance of $1000-$2000.

Summary - AvaTrade pros and cons

AvaTrade can be seen as a CFD provider which aims to provide a wide range of features and platforms to its traders, supporting different types of trading from self-directed to automated, with the caveat that some traders may want accounts specialised for automated trading and scalping.

The wide range of markets may appeal to a wide range of traders, including the offering of a dedicated FX Options CFDs platform, with the caveat that some traders may wish to have a larger offering. AvaTrade is regulated in 9 different jurisdictions, which is particularly wide for a CFD provider.

TL;DR: Traders looking for a regulated CFD broker which offers a wide range of choices and support for different types of trading, may well wish to consider AvaTrade.