AvaTrade

avatrade
Min Deposit

$100

Min Spread

1

Regulation

FSB

AvaTrade has been in the market since 2006, but no efforts to provide good quality services and operations can be witnessed from the broker’s side. The brokerage is more into the CFD trading, which poses risks and does not help anyone. However, AvaTrade is hiding the fact and pushing people market players into a crater. These activities would only help the broker and not the investor. Moreover, compromised design and ethic of the brokerage company is not helping the cause of a trader. The following AvaTrade review will discuss each aspect that is a warning sign to not trade with the broker.

AvaTrade Scam or safe?

AvaTrade is spread across different countries unevenly. In some countries, the broker claims to be regulated by top regulators; there are local regulations in others. But nothing about licensing policy is mentioned on the website. This creates extreme suspicion. The broker states names of various regulations without any license numbers or hoes those regulations relate to AvaTrade. Moreover, the whole multiple regulation thing seems pretty plastic and overdone. Therefore, we cannot say that it is safe to trade with the broker. Please think twice before investing your hard-earned money. 

Also, the information mentioned on the website is unverified. There’s no evidence about the tall claims it is making throughout. The doubts only get grave with such implausible activities.

Unrealistic website and claims 

When you visit the website of AvaTrade, all you can see are boastful claims without any data to back those claims. On the main homepage, all you can see are numerous positive (actually unrealistically positive) reviews that say things like how trading with AvaTrade made them huge profits in a short period of time. How is that even possible? You need to understand the market, put effort and capital to make a consistent profit. Such sayings do not make sense. AvaTrade also claims that it has catered to about 3,00,000 happy customers till now, but it does not mention how it happened. There is nothing to back up such an obscene claim. 

Account Types 

We do not find any major information on the account types rendered by AvaTrade. There is no tab for account types on the website. But when you dig deeper, all you find are the details regarding the demo account and Islamic account. There is no information like spreads, leverage, features of the main accounts. It cannot be found anywhere. The broker must provide information regarding the account types for traders to decide which account type suits them the best. 

Luckily, we could find some information regarding the professional account AvaTrade offers. But again, the whole functioning of the professional account was quite disappointing. Such an account can only cater to exclusive and wealthy traders. Also, the demo account is available for only 21 days. 

Limited Trading Instruments

AvaTrade only provides trade-in forex and cryptocurrencies. It lacks trade in primary instruments like stocks and commodities. There is no way you can make a diversified portfolio and mitigate your trading risks just by trading and investing in currencies. Both cryptocurrencies and forex products are highly volatile instruments, and one needs to trade in other less volatile products to mitigate the overall risks. Moreover, offering trade-in just two instruments restrict the profit-making opportunities for traders. 

Commission and fees 

Forex trading fees are awfully high when you trade with AvaTrade. The commission is charged per lot and can eat up a major chunk of any trader’s profit if we look at the big picture. Also, when the trading account is inactive for some time, heavy inactivity fees are implied. So, when massive charges are affixed with already competitive financial markets, it creates additional pressures on a trader and discourages he/her to withdraw from the process of bidding and trading. 

Deposit and withdrawal 

There are very sparse options available for depositing and withdrawing the funds. Moreover, heavy withdrawing charges are associated, and withdrawal can take up to many days, depending on the method chosen. Also, the peril of losing money while depositing or withdrawing always hover on your head. 

Research and education 

For research purposes, we do not see anything mentioned on the website. There are no tools, calculators, or calendars available with the broker. For the education of traders, limited tutorials are available that does not help the cause and investors find it extremely difficult to cope up with the broker. There are no VODs, webinars, ebooks, available. 

It seems like AvaTrade does not care about educating its clients and traders. 

Account Opening 

When you click on the registration tab of the AvaTrade website, a signup page appears asking for email and password. That is all. No one knows what comes next. This leads to hesitation among clients, and they might not want to further with the process. It would have been better if the broker set up a clear account opening on its website. 

Customer Service 

The customer service of the broker seems pretty off. You do not receive any replies to the emails. No one picks up your calls, which disappoints traders and investors. Even the live chat feature seldom works. Hence, it is too bad. This can become one major drawback when you instantly need some customer support from AvaTrade. 

Cons of trading with AvaTrade

Here is a summarised list that infers all the reasons why AvaTrade is not right for you:

  • Multiple fees, charges, and high commissions along with the minimum deposit of 100 dollars 
  • Low leverage of 1:30
  • Only crypto and forex trade available 
  • No distinction and clarification of account types 
  • Unclear account opening process 
  • Poor user interface 
  • Indecent regulations 

Conclusion 

We do not think AvaTrade is the right choice for any kind of trader or investor. The charges and fees seem pretty high compared to the service offered. Why not go with other brokers like HFTrading, PrimeFin, TradeATF who offer better services and lower rates. These brokers are highly reputable and regulated. They offer a trade in a wide range of instruments with minimal deposits. 

AvaTrade looks pretty boastful and may not actually be safe to pursue trading with.

FAQ

The broker states names of various regulations without any license numbers or hoes those regulations relate to AvaTrade. Moreover, the whole multiple regulation thing seems pretty plastic and overdone. Therefore, we cannot say that it is safe to trade with the broker.

We do not find any major information on the account types rendered by AvaTrade. There is no tab for account types on the website. But when you dig deeper, all you find are the details regarding the demo account and Islamic account.

It is not easy to do that. When the traders want to make a trade, they just have to request the broker to exercise their choice of leverage-based transactions. It has to be kept in mind that the trades based on leverage can also go wrong. Trade wisely.

AvaTrade provides CFD trading on forex, cryptocurrencies, metals, indices, stocks and a lot more. Each of these asset classes has many assets that can be traded with the broker.

Usually we don’t recommend CFD brokers for beginners unless they want to trade currencies. For beginners looking to trade mostly stocks, we recommend choosing a stockbroker where you can buy the actual shares of a company instead of a CFD contract for the stock.

Leverage limits are now capped at 30:1 – 2:1

Yes, it offers MT4 and MT5

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