AvaTrade is one of the major brokers that has been operating since 2006. There are offices in 11 countries. The headquarters of the Irish company is in Dublin.
In 2006, it started to serve as AVAFX. Investors trading at that time already know AVAFX. The company went to name change and made the brand name AvaTrade. Then quickly spread to the whole world. The broker has offices in cities like Sydney, Milan, Paris, Tokyo. Is AvaTrade reliable or scam? Let’s do the AvaTrade review together.
AvaTrade is controlled by 5 different regulators. The broker is regulated by the Central Bank of Ireland in Ireland and has a MiFID regulation throughout the EU. At the same time, the company is regulated by ASIC (Australian Securities and Investment Commission ), JFSA (Japanese Financial Services Authority), Financial Futures Association of Japan (FFAJ), Financial Services Commission in British Virgin Islands and the Financial Services Board (FSB) in South Africa.
Although not extraordinary in terms of regulations and licenses, it is considerably strong. Among them ASIC, which is Australian watchdog, is known as a very reputable regulator. In addition to these licenses, clients’ funds are guaranteed by the Investor Compensation Company (ICCL) for up to 20000 EUR.
When we consider all this, I can say that AvaTrade is a very secure broker for investors. So trades of Avatrade do not have to worry about their funds’ security.
Avatrade offers two different account types for investors, one of which is the fixed spread account type and the other is the floating spread. The minimum deposit for both types of accounts is $ 100. In comparison, the minimum deposit is $ 5 in XM witch has both FCA and ASIC licenses but $ 200 in Pepperstone and $ 100 in FXPro.
The maximum leverage is 1: 400 at AvaTrade. I can say that this maximum leverage is at a acceptable level.
In fixed spread account, spread is 1.9 on EURUSD, that’s a competetive pricing. The advantage of a fixed spread account is that it protects you from situations like spread widening in which may occur at the close of markets or during major news releases. Many investors who want to avoid these situations prefer the fixed spread account.
For the other account type, there is floating spread and the average spread is 1.5 pips on EURUSD. The good part is that there is no commission in both account types.
When we look at depositing and withdrawing options, we see that AvaTrade is one of the most restricted brokers in this regard. There are only bank transfer and credit card options as deposit and withdrawal options. In some places it says that deposits and withdrawals can be made via Skrill and Neteller, but I could not find any information to confirm it on the official website.
Founded in 2006 as AvaFX, and later changed to AvaTrade as its brand name, the broker is a very old company on the forex market. Founded in 2006 as AvaFX, and later changed to AvaTrade as its brand name, the broker is a very old company on the market.
But in recent times we see that it have lost its popularity. The official website of the company is quite inadequate. It’s very hard to find the information you’re looking for such as spreads, payment methods, and so on. Despite these, spreads are competitive, and there are no commissions.