Avatrade Forex Broker

What Is Avatrade?

Forex broker Avatrade was established in 2006, making it one of the oldest forex brokers in the industry.

It is regulated by several international financial authorities from the Bank of Ireland to the Financial Futures Association of Japan (FFAJ) and the Australian Securities and Investment Commission (ASIC).

Avatrade is a market-maker, meaning it acts as a middle man between the trader and the interbank market and has an in-house dealing desk which executes transactions on their clients’ behalf.

Market makers use economies of scale. By buying up large positions from liquidity providers, the forex broker can then resell them to retail traders in smaller quantities and make money on the spread. This means that individual traders have access to the most liquid markets without a big upfront investment.

Admiral Markets is fully regulated by the UK Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), as well as the Cyprus Securities and Exchange Commission (CySec).

What Can I Trade on Avatrade?

Avatrade offers derivative financial instruments in eight asset classes, including:

Forex Contracts for Difference (CFDs)

Commodities

Indices

FXOptions

Cryptocurrencies

Bonds

Exchange Traded Funds (ETFs)

Within those eight asset classes, you can trade:

Contracts on indices like the FTSE 100 or DAX30

Major currency pairs like the EURUSD

Apple stock

Oil and Gold contracts

FX Options on EUR/USD, GBP/USD and others

ETFs on S&P 500, MSCI Emerging and others

CFDs on EURO-BUND and others

Ethereum, BTCUSD, BTCEUR and others

Avatrade has five trading platforms with different functions. It offers Metatrader 4 and Metatrader 5, WebTrader, AvaTradeGO, AvaSocial and AvaOptions. AvaTradeGO is a mobile app that features real-time social trends. AvaSocial is a social trading app for copy trading. WebTrader is for new traders and AvaOptions is an options trading platform.

There is an Islamic Trading account available along with other types of forex trading accounts like a professional account.

Avatrade Pricing

Avatrade earns money on the forex Bid-Ask spread and does not charge trade commissions. There are charges on leverage and overnight interest, however, so be sure to calculate the amounts and include them in your trading costs. These rates are displayed in the trading platform.

If you’re trading shares, the company charges a mark-up on the share market price.

Avatrade charges administration fees of EUR 100 on Euro account, $100 on USD accounts and GBP 100 on Pound Sterling accounts. Inactive accounts carry a Eur/USD/GBP 50 charge.

Examples of fees are displayed on the Admiral Markets website which is fully transparent regarding this sector. All relevant information can be directly accessed from inside the trading platforms. Monthly trading volume within a trader’s account will determine commission charges. After being inactive for 24 months, a monthly fee of €10 will be applied. Deposit and withdrawal fees may apply.

Education and Research

New traders have access to video tutorials on forex trading basics, covering material like how to use Metatrader 4, how to trade on stock futures and how to start forex trading. Commodity trading principles are covered along with Technical Analysis and Stock Market Fundamentals.

You can learn about what is stock indices trading, understand forex news, stock market weighting and how to calculate price movements in indices.

If you want to learn about market analysis and how to apply technical analysis, it’s all covered in Avatrade’s tutorials.

Pros

*Experienced broker with a transparent website

*Extensive trading education materials

*Variety of trading platforms

Cons

*High account administration fees

*Maximum leverage 1:400

*Some traders prefer STP brokers instead of market makers