Forex, short for foreign exchange trading, is an ever-changing industry, and choosing the right broker is crucial to avoid sleepless nights.
Today we’ll compare two of the legendary forex brokers, FXTM and AvaTrade, you will find out the general pitfalls of trading forex and how your choice of broker can either contribute to or help avoid these issues.
With this comprehensive comparison of FXTM and AvaTrade, you’ll find out all about their regulations, platforms, stability, fees, spreads, leverage, customer support, and more. Let’s delve into this “FXTM vs. AvaTrade” battle and find out who is the better broker.
FXTM vs AvaTrade Regulations: Which Broker is Reliable?
Both FXTM and AvaTrade are legitimate brokers. Regulations are a key aspect that makes a broker reliable. Liquidity providers in forex undergo strict regulatory compliance to get licensed. For me, being regulated by FCA takes FXTM reasonably further in the FXTM vs AvaTrade battle. The reason I started this FXTM vs AvaTrade comparison is that I believe reliability is the most important factor when comparing forex brokers.
FXTM’s FCA regulation is noteworthy since the Financial Conduct Authority is known for trader-friendly and strict demands. Both FXTM and AvaTrade comply with the regulatory requirement of segregating client funds. This means that client funds are kept separate from the broker’s operational funds.
FXTM and AvaTrade’s multi-jurisdictional regulatory coverage indicates a global commitment and ability to handle high frequency forex trading globally. Both being globally recognized and reliable I think FXTM is ahead on this FXTM vs AvaTrade comparison for now.
Forex Trading with FXTM vs AvaTrade
If you aim to profit in the forex market, it is imperative to trade with a regulated broker, and secondly, you should seek favorable trading conditions.
Both AvaTrade and FXTM provide a diverse range of instruments, with AvaTrade offering a greater variety. However, if your primary focus is on forex trading, FXTM stands out with a more extensive offering of currency pairs.
FXTM provides over 60 currency pairs with industry-low spreads, while AvaTrade offers around 50 currency pairs with higher spreads. For instance, the EUR/USD spread is only 0.6 for FXTM compared to 1.5 for AvaTrade.
In terms of accessibility, FXTM offers an exceptionally low minimum deposit of $10, making it highly accessible for traders with limited capital. AvaTrade, with a slightly higher minimum deposit of $100, still maintains a relatively low entry point compared to some other brokers.
Both FXTM and AvaTrade offer competitive features. The choice between them may depend on your preferences, trading strategies, and specific requirements. It’s essential to consider factors such as the range of instruments, currency pairs, spreads, and minimum deposits to align the broker’s offerings with your trading objectives.
A VPS benefits forex traders by providing faster trade execution through reduced latency and 24/7 accessibility for automated trading systems. Both FXTM and AvaTrade offer their VPS. This remote server setup allows traders to maintain uninterrupted trading activities from anywhere on the world, even when their local computers are offline.
Status Quo Tendency Trader is continuing the losing strategy due to their past experiences and decisions, a phenomenon known as anchoring bias. This also leads to the sunk cost effect, where traders not only maintain their losing positions but might also expand them. Negative balance protection protects you from this psychological state
Which is Best for Beginners, FXTM or AvaTrade?
Both FXTM and AvaTrade provide extensive educational resources for beginners and experienced traders aspiring to become professionals. They offer demo accounts for firsthand experience in real FX trading, and their copytrading features enable users to discover successful strategies to integrate into their portfolios.
Both brokers also support Expert Advisors on their Metatrader platforms. However, it’s essential to note that for inactive users, FXTM imposes a $5 charge, while AvaTrade charges $50. Therefore, it’s advisable to close your account when not actively trading, as $5 might be a reasonable amount for a break, but $50 could be considered excessive to keep the account open.
Which Customer Support is Better: FXTM vs AvaTrade
AvaTrade and FXTM both offer customer care services through various channels, providing traders with multiple ways to seek assistance. AvaTrade supports clients via phone, including a specified number for WhatsApp (+447520644093), and offers a live chat option on their website.
In contrast, FXTM provides customer support through phone, with the provided number +44 20 3734 1025, as well as through email for more complex queries. Both FXTM and AvaTrade aim to be accessible to their clients, offering live chat options for real-time assistance.