AvaTrade Review: Complete Analysis

/AvaTrade Review: Complete Analysis

AvaTrade Review: Complete Analysis 2018-05-24T13:44:15+00:00
AvaTrade Review: Complete Analysis

AvaTrade: Forex, CFD Trading – Full Guide

Quick inner navigation:

  1. What is Avatrade?
  2. How Avatrade works
  3. Avatrade Cryptocurrencies Trading- how it works?
  4. Avatrade Fees
  5. Avatrade accounts and verification
  6. Is Avatrade safe?

Trading the financial market is not for the faint at heart. To be successful as a trader you must be very patient and have the ability to think critically before making any decision. For those who have chosen this very rewarding but perilous occupation, it’s important to be prepared to make losses sometimes. Fortunately, some trading websites also provide leveraged trading to ensure you make high profits even when your balances are low.

Leverage trading allows you to gain access to trade instruments your actual balance cannot afford. This can also be referred to as Margin trading. The account created for the trader become greatly amplified through the leverage benefits provided and such trader can now easily make trades across all instruments. Avatrade is one of the very few CFDs brokers that offers generous leverage rate to its traders.

What is Avatrade?

AvaTrade is a CFDs broker that has been serving financial market traders since 2006. The website is headquarters in Dublin, Ireland. Since its launch by a team of traders led by Emanuel Kronitz and Negev Shekel Nosatzki, they have recorded over 200,000 registered clients and over 2 million trades yearly. With Avatrades you will be able to trade over 250 financial instruments with the majority of being currency pairs. AvaTrade accepts over 59 minor and popular currency pairs to trade on the platform, you should be ready to go.

Ava Trade offers trades in the following instrument sections;

  • Stocks – The CFDs broker offers stock trades on 67 stocks from leading companies like Apple, Telefonica, HSBC, and others.
  • Indices– a total of 19 indices are being offered by this broker which makes it very convenient for you to diversify your trade accurately.
  • ETFs– Avatrade ETFs instruments are not that impressive. With just 6 ETFs instrument there is little you can do. Example of ETFs available includes; S&P 500, VIX, Short-Term Futures,  ETN,  MSCI,  Brazil Index Fund
  • FX Options – With this you would be able to make HIGH and LOW traded on all currency pairs offered and Spot GOLD and Spot SILVER.
  • Bonds– Avatrade is one of the very few CFDs brokers that offer to trade on Bonds. They offer trades on 5 Year US T-NOTES, 10 Year US T-NOTES, and 3 others.
  • Cryptocurrency – Avatrade offers trades on all major Cryptocurrencies such as Bitcoin, Litecoin, DASH, Ethereum, Ripple etc.

How Avatrade works

Avatrade is a CFDs broker, which means whatever buy or sell position entered by a trader doesn’t mean they have the right of ownership to the asset they bought or sold. Traders are only making bets on the possible outcomes of the instruments price. The exchange also provides their traders with a leverage of up to 400:1 on Forex pairs while that of Cryptocurrency is about 20:1. This leverage makes it quite possible for traders to be able to buy assets that are way priced beyond their actual account balance. This way a trader can buy or sell as much as their leverage can carry.

Avatrade regulations

Avatrade broker is regulated by five regulatory bodies:

  • The Central Bank of Ireland (No.C53877)
  • The B.V.I Financial Services Commission
  • The ASIC (No.406684)
  • The South African Financial Services Board (FSP No.45984)
  • The FSA (No.1662) and the FFAJ (No.1574)

It should be noted that these bodies are not well known to take reports seriously and they rarely give sanctions. So always have that at the back of your mind while dealing with Avatrade.

Avatrade Cryptocurrencies Trading- how it works?

2017 was a great year for Cryptocurrencies traders. Based on the Avatrade bitcoin review done so far, AvaTrade has taken hold of this opportunity to allow their traders the chance to take a bet on whether a Cryptocurrency will rise or fall, without having to own the token or coin. This has allowed many people to get on the crypto trading train and make some money for themselves, while others have lost in the process also. Avatrade offers a leverage of up to 20:1 on Cryptocurrencies trade with a minimum deposit of $100. On Avatrade, Bitcoin trading is the most popular, followed by Ripple and Ethereum.

Available Cryptocurrencies on Avatrade

Avatrade Cryptocurrency section is made up of these currencies: ETHEREUM, BTC/USD, BTC/EUR, BTC/JPY, BITCOIN CASH, BCH/USD, LITECOIN, LTC Mini, RIPPLE, XRP, BITCOIN GOLD, BTG’USD, and EOS.

Avatrade Fees

  • Spreads– Avatrade fees is basically focused on the spread rates offered on each currency pairs at each time a trade is made on the platform. A spread is basically defined as the difference in actual market price of a particular trading instrument being set by the broker who is to execute the trades.
  • Overnight trade commission– Another fee charged by Avatrades is the overnight trade fee. This fee is charged on long trade being held overnight. Short trades, on the other hand, do not attract any fee. The maximum rate set for overnight fees per one standard lot on Avatrade is $5. Apart from these two fees, Avatrade is known not to charge for anything else.

Avatrade accounts and verification

The two main account type offered by Avatrade is the demo account and the live account (which is broken down into different sections);

  • Demo trading account

The main purpose of a demo trading account is to provide a perfect training ground for all traders as well as for testing out a new strategy or system. Avatrade offers a demo account with a balance of $100,000. From experience, it is not always advised that you start demo account with money as much as this, as it might be a little bit difficult to translate into an account you can actually afford.

  • Real live account

For those that have taken their time to practice well in the demo account section, the next phase is always to move to a real live account. This is where you will be able to do real trading and make money or even lose money. It is the account that exposes you to the market risk. The Avatrade real account is separated into standard and premium. The Standard account is further grouped into (Silver, Gold, and Platinum) and a premium account with a minimum deposit of $250.

Special Futures and bonus offers

Giving a bonus to traders on deposit, or after reaching a set milestone is a common thing among CFDs brokers, and Avatrade is no exception to this. Avatrade offers the best deals when it comes to deposit bonus. With a bonus that can reach up to $16,000, this broker is quite generous. Avatrade also supports automated trading, with a comprehensive in-house charting application. They are also well synchronized with the trade copying platform, Zulutrade which allows you to be able to copy the trades of experts.

Is Avatrade safe?

  • Community trust

Everything about Avatrade looks good when you search online for an Avatrade review, but the thing you will not hear is they are notorious for taking quite a long time before they process a withdrawal request. Also, it’s hard to get a response from their customer care service when it has to do with them parting with money. You only get a fast response when you are just about to register with them or trying to make a deposit into your account. All this has garnered them a bad reputation on community forums. It is not uncommon to have a bad press but if the bad review far out passes the good ones on the same points, then something is not right.

  • Security

Avatrade understands that a trader’s account is more or less an online wallet. So they know the significance of making sure this account is well preserved. This is done by making sure that money deposited is held in a segregated account that is under the supervision of a tier one bank. So, in other words, your trading account is claimed to be as secure as a bank account. Their website also employs security protocol to prevent hacking attempts and other attacks that might lead to their traders kissing their money goodbye.

  • Customers support

Customer support is one major thing a broker cannot really do without. A bad customer service will not only damage the reputation of a good broker, but it will also chase away potential customers. This is very much evident in the case of avatrade. Their customer care service is very well known to be unresponsive when you are making a request for your money, which is the whole point of trading in the first place. Apart from this, they offer a variety of methods to reach them, which includes live chats, emails, phone calls and you can also request a callback. They also support more than 32 languages on their customer care service, which is a lot and more than the standard rate for a CFDs broker. So if you are comfortable with your money related enquires getting a delayed response, Avatrade is for you.

  • Handling speed

Avatrade trades assure traders of zero slippage during normal market conditions and also you get to make use of a well designed and very buoyant auto trade with a copy trading tool. All your trade goes directly to the dealing desk and it is more or less a near zero seconds process. So you can rest assured your trade will get booked at the price you entered it

Account creation

  1. Demo accounts

A demo account on Avatrade can be opened in about 5 minutes, with the only verification necessary being to confirm ownership of the email address used for registration.

  1. Real live account

Just like you would expect from a top tier CFDs broker, account creation might be a little bit time-consuming. Avatrade initial account creation involves filling out some online forms spaces with your personal information, after which you undergo a short questioning session to determine your level of trading experience. After successful creation of this account, you move to the second stage that has to do with submitting recognized personal identification documents like a; National ID card, international passport, Driver license etc. You also need to confirm that your house address is a valid one by submitting a document to back that up. This document includes; utility bill and bank statements.

  1. Deposit

Avatrade offers a wider means of depositing money into your account. The following methods of funding your trading account are accepted:

  • Debit and Credit cards
  • Bank Transfer
  • Electonic wallets – PayPal, Payoneer, Neteller

It should be noted that the higher the amount deposited, the higher the bonus you can get from the broker.

  1. Downloading and choosing of the trading terminal

Avatrade offers an in-house trading app for a mobile and web. They also offer support for MT4 trading terminal, currenesse, ZuluTrader, AutoTrader, Algorithmic trading and several API support. This makes Avatrade a powerhouse for traders who are more technologically inclined and would love to use the advanced trading software. With all the options available for trading finding one that would fit well with your agenda shouldn’t be a problem.

  • Making your trade

Making your trade on Avatrade is quite easy. With a terminal that allows you to switch from a complex view to a more simplified view entering your trades accurately shouldn’t be an issue even for a total beginner. As simple as this sound, it is very much advised that you do all your practice in a demo account, as a simple mistake in a live account can cost you all your funds.

In A Nutshell

Pros:

  • Bonus sizes

When it comes to giving deposit bonuses, Avatrade outranks most CFDs brokers in its league. With a bonus that can reach up to $16,000, you are sure to have your own share of the “free money”.

  • Countries covered

With over 160 countries being served by Avatrades, there is no shortage of clients from every nooks and cranny of the world. The customer care with 32 languages being supported is proof that they truly mean business when it comes to worldwide coverage.

  • Very low and highly competitive spreads rate

Avatrade offers one of the lowest spread rates for a CFDs broker and they also do not charge any form of fees or commission on trades being made.

  • Trading terminal options

Avatrade offers a large variety of terminal for traders to execute their trades on. This means there is always something for everyone to select from. Since trading is all about freedom and choice, this is a great selling point for Avatrade.

Cons

  • Lengthy registration and verification process

The first stage of account registration is quite easy and straightforward. The second stage is where the issues appear. There are reports of Avatrade taking more than 9 days to verify an account. In our experience, it took about 39 hours to get the whole thing done. So if you are the type that loves to get things done very fast, you will need to relax a bit on this.

  • Lack of well-known regulations

Most of the regulatory bodies that certified Avatrade are no that well known, which means their methods and processes might not be very clear.

  • Bad reputation on online community forums

Avatrade has a bad reputation on online forms and group for not wanting to pay traders their hard earned money, especially for bonus funds. As a rule of thumb, we always advise traders to stay clear of bonuses offered by brokers.

Thank you for reading our AvaTrade exchange review above. If you enjoyed, scroll through our website for more informative exchange reviews and guides.

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