Ava Trade Review 2020

  • Easy To Use?
  • Cost
  • Profitability
  • Time Needed
4.3

Back in 2006, Ava Trade (https://www.avatrade.com/) was known as AvaFx. With a financial registration across five continents, Ava Trade offers a wide variety of tradable instruments through its domicile in Ireland and multiple satellite offices. It also has average-to-competitive spreads. 

For as low as $100, beginner traders can have their accounts. This broker has committed to educate the novices and get them acquainted with trading quickly. They have established a research website that has videos, free courses, and market analysis. 

AvaTrade Headquarters And Regulations

The global headquarters of Ava Trade is located in the Republic of Ireland. Their corporate structure is composed of entities that have the same regular bases of regulated operations, such as in Australia, Japan, the British Virgin Islands, and South Africa. 

Also in February 2020, Ava Trade is the first to receive Abu Dhabi’s 3A license, which means they are allowed to operate on both professional and retail services of trading there.

How Many Customers Do AvaTrade Have And From Where? 

After being established in 2006, Ava Trade grew. It acquired licenses in several jurisdictions. The last record of their global client base is around 200,000 registered customers, covering Australia, Japan, the British Virgin Islands, South Africa, and the latest in Abu Dhabi. 

What Are The Types Of AvaTrade Accounts?

There is a limited number of accounts available to customers and is dependent on the Ava Trade branch, where you will open your account.

There are only two types of accounts available – for European Union residents and customers outside of the European Union.

Accounts owners in the European Union can choose from a Professional Account, a Spread Betting Account, and a Retail Account. However, the Spread Betting Account is only offered for UK and Ireland residents. 

For customers outside the European Union, they get the Standard Account. These traders can have leverage of up to 1:400 Forex instruments. Also, if a customer deposits a minimum of €10,000, a VIP account can be opened for them. 

Here are other available accounts:

  • Crypto: available for clients worldwide who wish to trade in cryptocurrencies
  • Vanilla Options: available for those who wish to use the Vanilla Options platform
  • Islamic: can be opened by Muslim traders upon request. No overnight swaps are charged. 

What To Expect With AvaTrade?

Novice traders can expect the following when trading with AvaTrade:

  • Thirteen standard trading options are included on the platform that makes trading doable and manageable. 
  • Ava Trade does not charge for commission fees but is compensated through the market ask spread like the difference in price between where you sell or buy an asset
  • AvaTrade earns profits from the opening and closing of a trade that reflects in the spread. This data may not be available within the platform, and you will have to check the website itself. 
  • The options for having other accounts in different currencies are restricted as Ava Trade does not support several base currencies. Because there is no support for other currencies, there is a conversion fee if you deposit different money than the one on your account.
  • You will be charged an Overnight Fee when you hold any positions overnight (10:00 PM GMT). If the position is held over a weekend, you will have to pay for a 3-day ‘swap’ charge, which will is charged on Wednesdays.
  • If you do not log in on your account for three months, Ava Trade will then deduct a fee for inactivity. This fee depends on the base currency of your account
  • £50 (GBP account)
  • $50 (USD account)
  • €50 (EUR account)
  • Moreover, if it is 12 months of inactivity, the admin fee is 100.00 in the currency that your account was opened in – GBP, USD, and EUR.
  • For traders in the European Union, AvaTrade has a maximum leverage of 1:20 on indices, 30:1 on Forex, 1:5 for individual stocks, 1:10 on commodities, 1:2 on cryptocurrencies, and shares and ETFs. 
  • If the trader is outside the European Union, AvaTrade offers maximum leverage of 1:200 on commodities, 1:400 on Forex and indices, 1:20 for individual stocks and shares and ETFs, and 1:20 on cryptocurrencies.
  • AvaTrade added a professional designation to bypass ESMA leverage restrictions while reducing the number of trading platforms available. Some of these changes are not appropriately documented, which could confuse when prospective customers are looking at spread schedules, account types, and fee listings.
  • Several customers have reported that AvaTrade is a little slower than expected when processing withdrawals.

Is There A Fee To Transact At AvaTrade?

AvaTrade does not impose deposit fees. However, there is a minimum deposit required when opening an account. It is £100 (or the equivalent in your preferred currency) for e-payments and credit cards deposit, and it is £500 if you wish to make a wire or bank transfer. 

You will be charged a conversion fee if you transact in a different currency. According to Ava Trade, they are authorized to convert funds based on the prevailing money market rates. 

What Are The Advantages and Disadvantages Of Transacting With AvaTrade?

The following are the pros and cons when you trade using AvaTrade:

  • Options on Forex Vanilla are available
  • Established reputation 
  • Excellent regulation

Some AvaTrade disadvantages to consider:

  • No ECN-style account option
  • Verification process seem to be inconvenient and takes longer than what’s stated even after requirements are submitted
  • Fee for inactivity
  • Hidden fees 
  • Trading platforms do not have enough research and news functionality, and traders have to visit the website for information they need to know. 

Conclusion

Ava Trade is well established and has been known to traders since it has begun. Even with their impressive offerings and options, the charges have caused confusion and distrust for its customers. They have a currency exchange fee and inactivity fee, which could mean a loss to traders. 

Even with their known reputation, it is still wise to take note of the reviews of traders registered to AvaTrade and get to know the pros and cons of this broker. 

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