AvaTrade Review 2024
A comprehensive platform, AvaTrade allows you to trade cryptocurrencies, ETFs, CDFs, stock indices and stocks. A secure, easily accessible platform to buy and sell your assets at the best price.
Strong points
AvaTrade is a prominent and safe platform for trading financial assets like crypto, ETFs, CFDs, and stocks. How good is it? Find out all you need to know from our AvaTrade review.
The AvaTrade broker has been in the crypto and stock market landscape since 2006. That is, the exchange has a strong trading background. Let’s discover AvaTrade in broad terms.
AvaTrade is not a crypto exchange; it is a brokerage platform that provides services similar to eToro. As a broker, AvaTrade is regulated by different agencies around the world. On AvaTrade, you can do crypto trading, but there are other things! You can also try other markets, such as currencies, commodities, stock indices, etc. Like eToro, AvaTrade offers CFD trading.
AvaTrade’s head office is located in Dublin, Ireland. But the broker also has several offices in the following countries:
The particularity of AvaTrade is that it provides several platforms for trading. The platforms differ in content and complexity and are, therefore, aimed at different types of investors.
Thus, on AvaTrade, you will find the following trading platforms:
AvaTrade is a platform that was launched in 2006. At the time, it was known as AvaFX. From the beginning, the platform has specialized in trading derivative products such as stock indices, currencies, and commodities.
The AvaTrade platform has built its success over the years to become a critical financial player. Thus, AvaTrade currently has more than 200,000 customers worldwide and represents more than 30 billion dollars in trading volume. AvaTrade also has more than 2 million transactions each month.
The AvaTrade e-platform only offers trading services. So you can buy, sell, and trade cryptos. But AvaTrade also provides trading of other assets.
On AvaTrade, you can do crypto trading; that is, you can buy, sell, and exchange cryptocurrencies. Several cryptos are available on AvaTrade, such as:
If you use the AvaTrade MetaTrader 5 app, you also have access to the following coins: Shiba Inu (SHIB), Solana (SOL), and Polygon (MATIC).
In addition to these cryptocurrencies, AvaTrade offers you the possibility of trading on a bouquet of cryptocurrencies. Thus, you can access Crypto Market Index 10, a weighted index that brings together the ten most essential cryptocurrencies in capitalization. To be included in this index, the coin must have an average market capitalization of $1 billion over the last 30 days. Compared to trading a specific crypto, using the Crypto Market Index 10 offers the following advantages:
As a brokerage platform, AvaTrade is not just limited to crypto trading. So, you can also do currency trading or Forex. The following pairs are notably available on AvaTrade:
On AvaTrade, you can also do classic stock trading. The significant difference compared to traditional trading platforms is that on AvaTrade, you benefit from leverage effects. These effects serve to maximize your gains while minimizing your initial investment.
On AvaTrade, you will find stocks of the world’s largest companies such as:
You can also bet on stock indices on the same principle as stocks. These indices bring together a certain number of stocks and allow you to diversify your investment. On AvaTrade, you can, for example, invest in the following index:
ETFs are baskets of specific stocks. AvaTrade gives you access to ETF trading. For example, on AvaTrade, you can invest in the Energy Select Sector SPDR XLE ETF. As its name suggests, this ETF brings together worldwide companies in the energy sector. Another example is that you can bet on an ETF that brings together companies specializing in gold and silver mining with the Market Vectors TR Gold Miners GDX ETF.
You can bet on commodity prices on AvaTrade. For example, the platform provides leveraged trading of the following subjects:
As on eToro, the AvaTrade platform allows you to trade CFDs. CFD is the English acronym for “Contract For Difference.” CFDs are part of derivative products and are a vital tool for investors. For what? CFDs allow you to bet on the performance of an asset without having to buy it. Clever, right?
Let’s take the example of a crypto CFD. A Bitcoin CFD reproduces the price of Bitcoin. If you want to bet on the performance of Bitcoin without buying it yourself, then you can use the Bitcoin CFD. Additionally, CFD trading allows you to take advantage of price variations (or “differences”). This means you can bet on a price fall and make money even when the asset’s cost decreases.
On AvaTrade, you can trade CFDs on:
CFDs are potent tools widely used by professionals. Educating yourself before using CFDs is strongly recommended if you are a beginner. Indeed, the losses can be very significant. Moreover, AvaTrade, like all brokerage platforms, transparently mentions the following warning:
“CFDs are complex instruments that carry the high risk of losing money quickly due to leverage. 71% of retail investment accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to lose your money.”
As you have surely understood, AvaTrade is a platform that offers different types of trading and requires a specific level of knowledge at the start. But AvaTrade makes things easier for you by providing several trading training courses.
These training courses offer high-quality video content and are free. For example, you will find the following training courses:
Learn to trade:
Fundamental indicators:
The basics of trading:
Order types:
How to trade crypto on AvaTrade?
Find out how to trade crypto on AvaTrade below:
There are two types of accounts:
The professional account includes greater leverage than the standard. Contrary to what its name suggests, you can, as an individual, open a professional account. But for this, you must have extensive trading experience with many orders placed over the last 12 months.
To create an account, you must click on “Create Account” and provide the following information:
Once you accept the privacy policy and terms and conditions, the platform asks you for other information, such as your:
The form is relatively long to complete, but it fulfills two primary roles. First, it is a legal obligation arising from the KYC (“Know Your Customer”) protocol. For AvaTrade, this is also the way to know its users’ profiles and prevent potentially malicious people from connecting. Please note that you can also choose to open a demo account. With such an account, you can take your first steps in crypto trading without risk since your wallet is virtual.
After opening your account, AvaTrade verifies it. To do this, you will need to provide the following two types of documents:
Once you have uploaded these documents, you will be notified that your account has been validated. You can start using AvaTrade without verifying your account. But be careful, send these documents quickly. It will be suspended unless the platform has verified your account within 14 days of opening it. To finalize your account verification, you must also provide your phone number. The broker will send you a code to your mobile to verify the phone number.
The first step to trade crypto is to fund your account on AvaTrade. To do this, you must go to “Deposit” and “Fund your account.” The minimum deposit is €100. Traditionally, you can make this deposit by card or by bank transfer. While the transfer can take up to 3 days, the deposit by card is much faster.
Once your account is funded, all you have to do is choose your crypto and then click “Buy.” The interface varies depending on the AvaTrade application you choose.
Fees are different depending on the asset you use. Regarding cryptos, there are no withdrawal or deposit fees. On the other hand, there are fees called “Spread.” They correspond to the price difference between when you place the order and when you buy the asset. When it comes to crypto, these fees are between 0.2% and 2%:
Please note that AvaTrade also has inactivity fees. Concretely, if you do not use the platform for three consecutive months, you must pay $50 in fees. For a period of inactivity of 12 months or more, administrative costs of $100 are added.
The AvaTrade pltaform is reliable. In the event of bankruptcy or a significant problem, AvaTrade has provided two mechanisms. First, you should know that your funds and securities are stored in a bank independent of AvaTrade. Then, the platform guarantees your funds up to €20,000 thanks to the broker’s insurance with a Rish compensation fund.
The AvaTrade broker is regulated by many international institutions, such as:
