- About the Company: AvaTrade is the trading name of AVA Capital Markets Ltd.
- Founded: 2006, re-branding occurred in 2013 when AvaFX became AvaTrade.
- Payment Options: Credit and Debit Cards, Moneybookers, Neteller, PayPal, Webmoney and Wire Transfer.
- Platforms: AvaTrader, MetaTrader 4, Web Trading and Mobile Trading support.
- Accounts available in: EUR, AUD and JPY.
- Minimum Deposit: $1.
- Regulation:In Europe AvaTrade is regulated in Ireland by the Central Bank of Ireland, in Japan by Financial Futures Association and in Australia by ASIC.
- Social Trading: Tradency’s MirrorTrader, ZuluTrade and Cureensee.
- Support Options: Callback, Email, LiveChat and Phone.
AvaTrade offer an impressive range of platforms to their customers with those trading with the brokerage having plenty of choice. AVA offers there own proprietary trading platform the AvaTrader, which is pretty decent and allows for trading and charting all from one screen. Ava also offers the ever popular MetaTrader 4 platform which functions just as you would expect and allows for automated trading through the use of Expert Advisors. Ava only set limits on the use of arbitrage EA’s otherwise traders are allowed unrestricted use of Expert Advisors. There is also a pretty reasonable web based platform which allows you to trade on computers which don’t have either MT4 or AvaTrader installed. The brokerage also offers support for mobile trading with their being trading applications available Those interested in social trading have plenty of choice with Ava offering support for ZuluTrade, Currensee and Tradency.
- Leverage: Up to 1:400.
- Scalping: Allowed.
- Expert Advisors: Allowed, certain limitations are placed on arbitrage advisors.
- Hedging: Allowed.
- Trailing Stops: Yes.
- Spreads: Variable, typical spread EUR/USD 3 pips.
- Minimum pip distance stop/limit orders: 8 pips.
Trading conditions are pretty decent at AvaTrade with the brokerage allowing traders to scalp, hedge and use Expert Advisors albeit with certain limitations. The leverage on offer is pretty impressive with traders using MetaTrader 4 being able to make use of 1:400 leverage on certain currency pairings, for a regulated brokerage the leverage on offer at AvaTrade is pretty impressive. While this increases potential returns, traders should also remember that it also increases risk as well. The only thing I can see traders complaining about is the spreads at AvaTrade are significantly wider than those on offer at brokerages offering variable spreads. The spreads however are still tight enough to allow traders to make profits trading with AvaTrade.
- Number of Currency Pairings: 54 currency pairings (a number of exotic pairings).
- Other instruments: Precious Metals, Commodities, Stocks, Bitcoin CFD’s, Indices and Bonds.
AvaTrade offers up all the currency pairings that the standard Forex trader is going to want to trade. Meaning that those who trade with AvaTrade should be able to trade all the currency pairings they want. Ava also offers a wide range of other instruments for customers to trade and this is part of the reason that AvaFX decided to rename itself AvaTrade, as the platform had evolved going beyond just offering Foreign exchange trading. In 2013, AvaTrade added to this impressive range of trading instruments by making a Bitcoin CFD product available to its clients due to the increase of interest in cryptocurrencies. Thus Ava offer an impressive range of different instruments and those wishing to trade a wide range of markets will be able to do so. In my eyes this is one of the major benefits of the offering from AvaTrade, as it allows yo access to a wide range of different markets all in one place.
- Contact Methods: Phone, Email, LiveChat, Callback
- Telephone Numbers: Huge selection of international numbers for customers to call.
- Support Languages: Arabic, Chinese, English, Dutch, French, German, Greek, Hindi, Hungarian, Italian, Japanese, Portuguese, Romanian, Russian, Slovenian, Spanish, Swedish and Turkish.
AvaTrade offers a number of different ways for customers to get in contact with the brokerage and I have not experienced any problems with AvaTrade, having found the customer support to be helpful attempting to resolve the customers problems to. One of the better features of customer service with AvaTrade is that they offer support in a huge number of different languages meaning that those who do not speak English as a first language can feel comfortable trading with the company. Those who like to get into contact with their brokerage should be able to do without any problems as AvaTrade offers a huge array of international numbers meaning clients will be able to contact the brokerage without running up huge phone bills.
- Regulated: Europe by Central Bank of Ireland, Australia by ASIC and in Japan by Japanese FSA and Financial Futures Association.
- MiFID Regulated: Yes, can accept client from throughout the European Union.
- Can Accept US Traders: No, AvaTrade cannot accept US traders as they do not have the necessary regulation.
- Regulatory Record: I cannot find anything which suggests that AvaTrade’s parent company has been fined or disciplined by the regulators.
AvaTrade’s parent companies are regulated in several jurisdictions. In Europe AvaTrade is regulated by the Central Bank of Ireland. Ireland being a member of the European Union and part of the MiFID arrangements, allows Ava to take on clients from throughout the European Union. MiFID ensures a minimum standard for European regulation which means those depositing with AvaTrade can be assured of a decent standard of regulatory oversight. In Australia Ava is regulated by ASIC and in Japan by the relevant authorities meaning that AvaTrade is able to take on clients from a number of jurisdictions. Having undertaken a bit of research online, I cannot find any evidence to suggest that AvaTrade has ever been fined or disciplined by regulators for regulatory breaches.
Ava Options – Hedging
AvaTrade recently started offering vanilla offering c/p and future options on currencies. You can view our analysis of their hedging for business here.
AvaTrade, offers a wide range of instruments and a number of different trading platforms. This will be attractive to those who wish to trade a wide range of instruments from one place. The only gripe most traders will have with AvaTrade is that the brokerages spreads aren’t the tightest around. This means some traders may wish to seek out brokerages which offer tighter spreads and lower levels of slippage.
If you have had any experiences with AvaTrade please feel free to comment below!
YouTradeFX Customer Base Acquisition
Well known FX & CFD brokerage AvaTrade has confirmed that it has acquired the Australian customer base of the Sydney based arm of YouTrade FX (YouTradeFX Australia), with the deal being completed at the close of trading on the 18th of July.
It has been reported the deal had been in the works for several months with Ava Capital Markets Australia Pty Ltd, Ava Trade’s Australian based subsidiary concluding that YouTrade’s client base in the region would integrate well with it’s own existing clientèle and business operations in the region. As part of the deal, YouTradeFX’s Australian customers will gain access to AvaTrade’s wider selection of trading instruments and platforms.
The brokerage has already completed the process of migrating YouTradeFX clients over to the AvaTrade platform, where the company states they will be able to enjoy a wider choice of instruments and platforms to choose between. With AvaTrade’s Chief Commercial Officer Keith stating ‘“We are delighted to announce this agreement which is another step in achieving AvaTrade’s goal of expanding its presence in the Asia-Pacific market. YoutradeFX has a dedicated client base of serious traders who will benefit enormously from the move to AvaTrade. They will find more opportunities in the markets, top notch educational materials, and the best customer support in the business.”
The move will help AvaTrade boast it’s presence in the lucrative Asia-pacific market, an area where a number of brokerages are keen to expand, as they find growth harder to come by in more developed markets.
YouTradeFX retreats from heavily regulated jurisdictions?
The sale of YouTradeFX’s Australian business see the brokerage complete it’s move away from operating subsidiaries in heavily regulated jurisdictions. Previously, the YouTradeFX group operated a FCA regulated arm of their firm before they released a notification stating that “Youtrade Capital Markets has applied to the Financial Conduct Authority for a Voluntary Variation of Permission, this in effect means that the company can no longer conduct any investment business in the UK. If you have any questions regarding this notice please contact either Adele Swain or Adrian Jackson on +44 203475 4422.“ The brokerages UK URL’s are no longer operational suggesting that the brokerage choice to totally give up it’s FCA regulated operations at some point during 2013.
The brokerage was also recently on the end of a warning from Ontario’s Security Commission, who released a statement stating that the brokerage had been found soliciting residents of Ontario without holding the required licences to operate within the jurisdiction. A full post regarding the warning can be found here.
At the time of writing the brokerages main site had still had YouTrade Capital Markets PTY Ltd (YouTrade FX Australia) listed on the site’s Regulation and Licenses page. However, it appears now that the brokerage will only being taking on new clients at the group’s Mauritius based company, International Youtrade Investments MA Ltd. Meaning that clients wishing to do business with the brokerage will no longer have the option to trade with a regulated arm of the YouTradeFX group. It should be noted that their have been numerous negative reports regarding the operations of YouTradeFX on a number of different trading portals/forums.
The move comes as a number of brokerages appear to have made the move away from on-boarding at least some of their customer base at entities regulated in reputable regulatory jurisdictions, potentially due to the costs associated with doing business in such jurisdictions.