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The pros, cons, and fees of AvaTrade
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The pros, cons, and fees of AvaTrade
AvaTrade is an international CFD broker that has been around since 2006, although it was originally launched under the brand name AvaFX. It’s fair to say that AvaTrade has already attained a degree of popularity, as it has more than 300,000.To get more news about avatrade pros & cons, you can visit wikifx.com official website.
It claims to operate as a regulated broker in seven different countries, including Ireland, Australia, Japan, and a few others. It promises a user-friendly platform and it seems to offer competitive spreads (fees).But, of course, there are many questions that need answers before you can determine whether AvaTrade is a good option for you. For instance, which financial instruments am I able to trade, are there any hidden fees, is it a scam?, etc.
In order to answer all these questions, I prepared this review of AvaTrade and I’ll tell you all you need to know about this trading platform.
The pros and cons of AvaTrade
Before I explain all the features offered by AvaTrade, I want to tell you about its advantages and drawbacks, and about who might benefit from opening an account with AvaTrade.
Who should be using AvaTrade?
AvaTrade is a broker for investors who intend to invest exclusively in derivatives such as CFDs and Forex options. If you want to buy stocks, ETFs, or even cryptocurrency, there are better alternatives out there, like DEGIRO, eToro, or Interactive Brokers.
Is AvaTrade secure?
AvaTrade does go to great lengths to have a secure platform on which your investments are not at risk of being stolen/hacked by cybercriminals. For instance, it uses SSL encryption and has several security protocols in place, including McAfee Secure – not sure what this last one is, but sounds good.That said, I’d prefer having two-step authentication – like DEGIRO or eToro offer. With that process, AvaTrade would ask you to confirm your identity with a verification code sent to your mobile, as is done by many banking apps. This would provide an extra layer of security to your account. Regrettably, it’s not available.
Who regulates AvaTrade?
If you are afraid that AvaTrade might be a scam, rest assured that it is regulated in a number of (reputable) countries, with many regulatory bodies supervising its activities.
What AvaTrade does with these spreads is it offers one price if you’re selling and a different one if you’re buying. This spread, which is already built into the transaction cost, is how AvaTrade and other market makers finance themselves.The bottom line is that AvaTrade doesn’t allow you to invest in many different types of financial products. It’s really only possible to invest in derivatives. So, if you want to invest in stocks, investment funds, ETFs, or cryptocurrencies, it’s best you look for an alternative.
On the other hand, it can be your gateway into the world of trading via CFDs (contracts for difference). This type of product is suitable for short-term speculation, as the trading cost (the spread that I mentioned earlier) is low.
How does AvaTrade work?
With AvaTrade, there are only two types of accounts: retail investor accounts and professional investor accounts.The main difference between these two types of accounts is that if you are a professional trader, you will have access to higher risk trades; e.g. the leverage levels are increased. Please bear in mind that these professional investor accounts may not be available in all countries.