AvaTrade, the official partner of Manchester City, advertises particularly low spreads, multilingual support, regulation in 6 countries and crypto trading around the clock.
Enough statements for kryptoszene.de to take a closer look at the broker. What is the customer service like, what can be traded and how does Avatrade CFD trading work.
A good broker is not only characterised by its offer. The security standards and guarantees, the customer service and the fee model are also decisive.
However, other factors also flow into our evaluation. What tools does the broker provide you with? How useful is the AvaTrade app? What is required to start trading via AvaTrade? And how does AvaTrade protect you from fraud?
We have put all this and more under the microscope for you in our big AvaTrade review – and share our experiences with the broker with you below.
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AvaTrade advantages and disadvantages
- Trade Forex with AvaTrade or speculate with CFDs on Forex, Cryptocurrencies such as Bitcoin and others, Stocks, Indices & Commodities.
- Authorised and regulated in Europe by the CBI (Central Bank of Ireland).
- AvaTrade App for Apple and Android devices (“AvaTradeGo”)
- Free trading webinars, demo account available
- First deposit bonus of 20 per cent on deposits of up to a maximum of 10,000 euros (withdrawal subject to conditions)
- Limited range of cryptocurrencies on AvaTrade (Bitcoin, Bitcoin Cash, Ethereum, Ripple, Dash, Litecoin, Monero, Neo)
- Deposits by credit card and bank transfer only
What is AvaTrade?
AvaTrade was founded in 2006 under the name AvaFX as a sub-company of Dublin-based Ava Capital Markets Ltd. and specialises in trading forex as well as contracts for difference (CFDs) that can be applied to currency pairs, cryptocurrencies, stocks, commodities as well as indices. The company states on its website that it has offices in Dublin, Sydney, Tortola, Tokyo and South Africa.
AvaTrade Review – the offer
In our AvaTrade review, we use the online broker’s free demo account, which requires registration. Demo accounts enable you to test a broker’s offer in detail without having to take any financial risks.
Which instruments can actually be traded with the online broker AvaTrade? In our AvaTrade test, the wide range of tradable assets stands out positively. Cryptocurrencies such as Bitcoin can also be traded with leverage via CFDs on AvaTrade. If you want to buy cryptocurrencies, follow our link.
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What are CFDs? CFDs are sophisticated, high-risk investment instruments that you should not use carelessly. However, CFDs can generate high returns – even if the price of an investment falls. AvaTrade CFDs apply leverage to your trades (maximum 400:1), which increases your chances of winning, while at the same time increasing your risk of losing.
Under certain circumstances, your losses may far exceed your initial investment. Some brokers reset the negative balance of their customers to zero as a gesture of goodwill. Officially, however, the broker AvaTrade does not waive the margin call obligation – and thus keeps the margin calls open.
Please obtain detailed and thorough information about the functions and risks of trading with CFDs from an independent source. You should only invest money that you can afford to lose. In the CFD broker comparison, Ava Trade is right at the top.
With AvaTrade you can buy and sell the shares of the largest stock exchanges worldwide via CFDs. Stock exchanges such as XETRA, NYSE, NASDAQ, London Stock Exchange and others are available on the website. The fees associated with conventional stock trading are waived when trading with AvaTrade’s stock CFDs. Only the spread has to be paid. This makes it a real alternative even to the best share deposits 2021.
The conditions for equity CFDs are as follows:
According to its own information, AvaTrade’s range of CFD indices is one of the most extensive on the net and offers worldwide market coverage. Here, too, you can go long or short and make use of the broker’s leverage. The broker advertises low margins and reliable, fast execution of all trading orders.
The conditions for index CFDs are as follows:
|S&P500||20:1||5%||0.25 over market||3,491.50||3,492.00||-0.01|
|NASDAQ 100||20:1||5%||1.00 over market||11,994.50||11,995.75||0.22|
|DJ 30||20:1||5%||3.00 over market||28,534||28,538||0.00|
|CAC 40||20:1||5%||1.00 over market||5,007.5||5,009.0||0.20|
|DAX 30||20:1||5%||1.50 over market||13,041.5||13,043.0||-0.20|
|FTSE 100||20:1||5%||0.50 over market||5,975.0||5,976.0||-0.40|
|FTSEMIB||10:1||10%||10.00 over market||19,860||19,870||0.00|
|RUSSELL2000||10:1||10%||0.30 over market||1,570.8||1,571.1||0.00|
|DJ EURO STOXX50||20:1||5%||1.00 over market|
|SMI||10:1||10%||2.00 over market||10,169||10,172||0|
Investors interested in commodities can freely choose from the categories of precious metals, energy and agricultural products at AvaTrade on which substance they want to speculate by means of CFDs. Gold and palladium, oil and petrol, soy and wheat: the range of commodity CFDs available here can show themselves without shame. For a full list of ADATrade CFDs on commodities, follow this link.
The conditions for commodity CFDs are as follows:
Like most other online brokers, AvaTrade still has a fairly young and manageable range of cryptocurrency CFDs. The following cryptocurrencies are offered on AvaTrade:
- Bitcoin Cash
The conditions for cryptocurrencies CFDs are as follows:
|BITCOIN CASH||2:1||50%||0.8% Over-market||269.77||271.93||2.23|
|BITCOIN GOLD||2:1||50%||2% Over-market||9.76||9.96||2.56|
IOTA is a new generation cryptocurrency that was developed in 2015 to serve the needs of the IoT (Internet of Things) industry. The name IOTA was chosen with reference to this.
IOTA was designed to be less complex and easier to understand than other cryptocurrencies. This is to make the microtransactions generated by tens of billions of IoT devices as frictionless as possible.
A MIOTA (“mega”) corresponds to one million IOTAs. There is also the KIOTA (“Kilo”), which refers to one thousand IOTAs, and the GIOTA, which represents one billion IOTAs.
On AvaTrade, as with other cryptocurrencies, you can also trade MIOTA.
Ripple is an open payment system in beta that you can trade on AvaTrade. The goal is to free people from financial institutions such as banks, credit card companies and other networks that impose fees and encourage delays. Based on market capitalisation, Ripple is the third most powerful cryptocurrency, trumped only by Bitcoin and Ethereum.
Of course, you can also trade Bitcoin on AvaTrade. After all, Bitcoin is the world’s first digital currency and is becoming increasingly popular all over the world. With AvaTrade’s MetaTrader4 platform, you can trade the fast-growing currency against the USD around the clock.
Ethereum is proving to be one of the most beneficial technology investments of all time. The digital currency was developed in 2015 and has since grown by over 1000%. Ethereum trading is far more than just a digital currency – it is an open source network.
AvaTrade offers the following advantages when trading Ethereum:
- Short Selling
“Sell High, buy Low” describes short selling that allows the trader to profit from falling markets and then enter when they rise again. In other words, short selling is driven by the belief that the price will fall. One can buy again later when the price is very low.
- Large leverageThe
large leverage makes it possible to open much larger positions with a minimal investment.
- Auto Trading SoftwareWith the
Auto Trading Software, orders are automatically created and sent to the exchange. In this way, the system executes recurring tasks in a very fast way.
Trade Crypto on AvaTrade Now
A single ETF is available for CFD trading with AvaTrade: The VXX allows investors to speculate on the VIX and thus on the volatility of the US equity market. The fund is composed of VIX futures for the first and second month.
Its value models the returns that would be derived from holding the contracts during the periods between expiration dates. The VXX is reweighted daily, which can lead to a price decline.
This and a tendency to revert to the mean make trading the VXX highly risky and thus rather something for courageous investors. In a way, AvaTrade is also an ETF broker.
The conditions for ETF CFDs are as follows:
|MSCI Emerging Markets Index Fund||5:1||20%||0.13%||45.39||45.46||0.99|
|S&P 500 VIX Short-Term Futures ETN – Series B||5:1||20%||0.15%||26.40||26.53||3.14|
|MSCI Brazil Index Fund||5:1||20%||0.13%||30.61||30.68||3.59|
|Energy Select Sector SPDR||5:1||20%||0.13%||36.12||36.17||0.80|
|Market Vectors TR Gold Miners||5:1||20%||0.13%||41.89||41.94||3.10|
|MT5 MSCI EAFE Index Fund||5:1||0.2||0.0013||65.31||65.38||0.47|
|MT5 India Earnings Fund||5:1||0.2||0.0013||24.21||24.28||1.69|
|MT5 MSCI Australia Index Fund||5:1||0.2||0.0013||20.77||20.84||-0.05|
|MT5 MSCI Canada Index Fund||5:1||0.2||0.0013||28.91||28.98||-0.07|
|MT5 MSCI UK Index Fund||5:1||0.2||0.0013||30.18||30.25||0.4|
AvaTrade Forex trading carries more than 60 forex pairs on offer and allows spreads from 0.8 pips. A maximum leverage of 2:1 is applicable to forex trading with AvaTrade. Forex trading tools such as Robox, Expert Advisor and ZuluTrade are available to you here. Due to the extreme volume of positions in the forex market, there is usually a buyer or seller for every position.
A full list of all the pairs available for trading on AvaTrade can be found below our box. If you want to learn more about Forex trading, follow this link: Learn Forex Trading.
The conditions for Forex CFDs are as follows:
Forex currency pairs
Main currency pairs
Smaller currency pairs
Exotic currency pairs
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AvaTrade Experience: Account Fees & Conditions (Costs)
Fees apply on AvaTrade in the form of spreads, overnight fees, maturity extensions, corporate actions and an inactivity fee. Traders can open the profile free of charge. Forex and CFD trading options are commission-free; the AvaTrade fees are included in the spread of the contract. The conditions in the area of the spreads are more steep, as these are almost always between three and five pips, even for the FX majors.
AvaTrade’s currency spreads are also in step with the competition. For example, spreads of at least 1.0 pips apply to the EUR/USD currency pair on the platform. The CFD spreads vary greatly depending on the financial instrument. For example, an AvaTrade fee of only 0.1 pips is charged for the AEX market, while the FTSEMIB spread is a hefty 10 pips.
Overnight fees are incurred when open positions are held overnight. Holding a short position overnight will incur an AvaTrade fee of approximately 1.4 per cent per lot traded on the EUR/USD currency pair. A buy position is credited with 0.8 per cent.
|Overnight fee||For EUR/USD about 1.4 per cent per lot|
|Inactivity fee||40 euros per customer per year after 6 months|
After six months of trading pause, the broker charges its customers an inactivity fee of 40 euros per year. AvaTrades does not charge its own fees for deposits and withdrawals.
AvaTrade Experience: Payment Methods & Cashout Experience
AvaTrade offers two payment methods to transfer your investment capital to your broking account. The platform does not charge any fees for deposits or withdrawals. Unfortunately, Paypal is not one of the available payment methods. If you are looking for a broker that accepts Paypal, you will find the best AvaTrade alternative in our Exchanges comparison test.
It is important to note that the payment method you choose must also be used for withdrawals. Once you have logged in to AvaTrade and made your first transfer, you cannot retroactively choose a different payment method. This must be taken into account when making your choice.
Payment on AvaTrades only possible with credit card or bank transfer
In addition, AvaTrade may refuse withdrawals if the trading account has not been fully verified, open positions require the holding of margin or certain bonus conditions have not yet been met. We found user reports in forums according to which AvaTrade customers have had bad experiences with this.
As an AvaTrade customer, you must transfer at least 100 euros to fund your account. However, this only applies if you choose to deposit with a credit card.
For bank transfers, the minimum amount due is 500 euros. From other brokers we are used to being able to choose from a variety of payment options. AvaTrade only offers credit card payment and bank transfer. Transfers with Paypal, Neteller or Skrill are not possible.
|Instant bank transfer|
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AvaTrade Experience: Licence and security
Of course, the most important part of choosing the right online broker for you is security. You want to know that fraud damage cannot occur at AvaTrade under any circumstances. At this point, we will therefore address the crucial question: How does AvaTrade protect you from fraud?
What stands out in this segment is the segregation of corporate and retail funds, which we also know from some other brokers: All deposits are secured by AvaTrade in separate trust accounts at Danske Bank in Dublin. In the quite unlikely event of insolvency, it is thus ruled out that these funds become part of the insolvency estate.
AvaTrade Regulation: Authorised and verified by the CBI
AvaTrades is authorised and regulated by the Irish Central Bank (CBI). On the other continents where AvaTrades is active, regulation is carried out by other bodies.
This sounds good so far, but in view of the accumulation of forum entries mentioned at the beginning, in which customers complain about problems with AvaTrade such as the poor availability of customer service or pitfalls resulting from the bonus programmes, we remain sceptical at this point.
We do not receive more detailed information about the server performance and other security-relevant factors via the website, or at least we cannot find it in the confusing structure.
AvaTrade margin call
A margin must be deposited for CFD trading. Due to the leverage effects, losses can exceed the stake. In most cases, the positions are then closed by the CFD broker if the trader does not comply with the broker’s demands to inject additional capital.
In UK, it is de facto no longer legal to offer margin calls. BaFin issued a general ruling on 08.05.2017 prohibiting CFDs with margin calls. The ban has been in force since 10 August 2017.
As a result, there is no margin call at AvaTrade. This means that if losses lead to the account collateral no longer being sufficient for open positions, the client does not have to provide any additional funds.
Nevertheless, it is important to proceed strategically and to prepare the CFD trading strategy in advance. Risk management is essential to avoid total loss.
There are always bonuses when you open an account with AvaTrade. For example, you currently (as of December 2020) get a Christmas bonus. This means that with 12 “Christmas shares” the spread price is reduced by 50 percent.
In addition, the broker often offers its new customers other attractive bonuses. For example, new customers can receive a bonus of up to € 15,000 if they deposit at least € 50,000. With a deposit of € 500, you receive a bonus of € 150.
Depending on the deposit, new customers benefit from further advantages. Those who make a minimum deposit of € 1,000 receive a Gold Account. This account delivers the latest trends and market signals directly to your smartphone. From a deposit of at least €10,000, you get a Platinum account, which is equipped with additional extras.
However, as a new customer, the standard account is sufficient, as this has all the important functions you need for forex trading.
AvaTrade Experience: Customer Service, Contact & Support
A good customer service is an absolute must when choosing the right broker for you. After all, if there are problems with your platform, you want to know everything quickly.
If you hold open positions and lose access to the platform, minutes can decide whether a loss occurs. That’s why it’s important to check whether everything is right with the customer service before you register with your broker for the first time.
The AvaTrade customer service offers its support in more than 20 different languages. It can be reached by phone and via a contact form. A live chat, as offered by many other brokers, is also available here, but is not manned around the clock.
According to Customer Services, the live chat is available in German on weekdays from 09:00 to 18:00. However, during our AvaTrade review we found that we were unable to contact the live chat at 5pm on a Wednesday.
It is still unclear at what times the customer telephone is actually available for UK. AvaTrade customers report long waiting times and poor availability in forums. Other brokers look much better in this respect.
And even though the sections on the various financial instruments that can be traded on AvaTrade explain a lot to us excellently, we sorely miss an FAQ that can answer our particularly frequently asked questions in a straightforward manner.
|Phone||+49 (0) 800 66 44 879|
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Step by step guide: Account registration at Avatrade
Step 1: The registration
In order to trade with AvaTrade, you need to open a so-called live trading account on the site. When registering, you will be asked for your first and last name as well as an email address and a telephone number.
If you already have a login for the demo account, you can use it for your registration. You can also register with AvaTrade using your Facebook or Google account. You can find the registration via the start page.
AvaTrades grants a first deposit bonus of 20 percent. This is an incentive to deposit as much money as possible with the first transfer. This applies up to a maximum deposit of 10,000 euros.
You can only withdraw the bonus if you have traded at least 10,000 currency units within one year of receiving it.
Step 2: The verification
European law stipulates that the broker must be able to establish the identity of his customers beyond doubt. This prevents money laundering and ensures that minors do not have access to the financial market.
This is why verification is required on AvaTrade. You will need to upload documents to confirm your identity after you have registered. Only after the verification has been confirmed by the AvaTrade service can you start trading.
Step 3: Deposit credit
After you have opened and verified your live trading account with AvaTrade, you can now deposit money into your account that you want to use for trading. You must deposit at least 100 euros per transfer to your account. Choose the best payment method for you from the numerous offers and make your transfer.
The subsequent waiting time varies depending on the payment method supported by AvaTrade. In our experience, it is particularly fast with Skrill, Neteller and credit card transfers. The SEPA bank transfer usually takes at least one business day.
Step 4: Trade with AvaTrade
As soon as your transfer arrives on your account, you can start trading on AvaTrade. You can use either the MetaTrader 4 or MetaTrader 5 trading software as a trading tool, in the browser or as an app.
Select an instrument you want to trade and open the order window. In the order window you can define whether you want to bet on falling or rising prices and how large the contract size should be. In addition, you can set predefined stops and limits so that your position is automatically closed at a certain price with a loss or profit.
If you wish to trade CFDs, please familiarise yourself independently with the special risks and functions of this trading instrument. Trading CFDs can result in the complete loss of your investment. Our instructions are expressly not a recommendation for trading CFDs. It only serves as an orientation guide.
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The AvaTrade App
Mobile trading is simply part of the game these days. With a good trading app, you are always able to react to current market events as quickly as possible, regardless of your location – provided you have a good internet connection.
AvaTrade also offers its own trading app for mobile devices: The AvaTrade app is available for iPhone and iPad as well as for Android devices such as smartphones and tablets.
You can find it in the respective stores under “AvaTradeGo – Trading App” or on the homepage of the broker. The download and use of the app are free of charge. Of course, an AdaTrade login is mandatory.
Apps often offer additional functionalities that are not available on the desktop. In the AvaTrades app, for example, you can activate notifications that alert you to price developments you have set, even when you are not holding your device.
Cancel AvaTrade and delete account
If, for example, you have found another broker or no longer have any open positions, you can delete or terminate your AvaTrade account. The prerequisite for this is, as already mentioned, that there are no more open positions on the account (e.g. fees for inactivity and overnight fees). If all requirements are met, the AvaTrade account can be terminated in writing.
First of all, you have to contact the customer service via the contact form on the AvaTrade website. You will then receive the address that you need for the written termination. Alternatively, you can reach the customer service within UK by calling 0800 664 4879.
AvaTrade experience: The conclusion
Our experiences with AvaTrade were convincing all around: The Irish broker for Forex and CFDs on cryptocurrencies, shares, commodities, indices and more basically offers everything that should be part of a modern offer. AvaTrade is controlled by the Irish central bank CBI.
The fact that AvaTrades offers a wide range of products, including cryptocurrencies such as Bitcoin, is a real exclamation mark against the competition. It fits into the positive picture that users can also use a live chat. Our rating? One of the strongest brokers in the market! The variety of trading options is remarkable.
The advantages of Avatrade at a glance
- Large offer
- Authorised and regulated in Europe by the CBI
- AvaTrade App for Apple and Android devices
- Free trading webinars & demo account available
- First deposit bonus of 20 per cent
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AvaTrade Experience: FAQs
What is AvaTrade?
The provider is a Forex broker. Here, currency pairs can be traded on the foreign exchange market. Trading with shares or CFDs is also possible.
Is it worth opening an account with AvaTrade?
AvaTrade passed our test. All desired currency pairs are available and customers seem to be satisfied with the platform.
How much money should I invest?
The amount of one’s own investment should depend on both one’s own liquidity and one’s own risk appetite. In general, you should never invest money that you actually need elsewhere, as profits can never be guaranteed. Forex trading is also always subject to the risk of losing the money invested.
How long does it take to cash out at AvaTrade?
Here, too, the platform is convincing. Withdrawals are processed very quickly and are in your account within a few minutes to 2 working days, depending on the selected withdrawal method.
What are the requirements for me to trade successfully at AvaTrade?
You should always know what you are investing in. Beginners in particular should therefore first read up on Forex trading thoroughly. Here at Kryptoszene.de, all the information is provided. If you have the necessary know-how, as well as a good feeling for the markets, nothing will stand in the way of early profits.
All trading is risky. No guarantee of profit .Any content on our website is for information purposes only and does not constitute a recommendation to buy or sell. This applies to assets, products, services or other investments. The opinions communicated on this site do not constitute investment advice and independent financial advice should always be sought where possible. This website is available to you free of charge, but we may receive commissions from the companies we feature on this website.
David is fascinated by the dark side of cryptocurrencies: For the news section of Kryptoszene.de, he mainly writes about stock market hacks, Bitcoin scams and the regulation of the new financial market. Many reviews, guides and advice texts on cryptocurrencies came from his pen. The critical enthusiast first bought cryptocurrencies in spring 2017 and invested in ICOs. He experienced the great hype and the subsequent bear market first-hand. He lives and writes in Berlin.
View all posts by David Standt
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