AvaTrade is an online broker for trading Forex, CFDs on stocks, metals, energies, indices, bonds, and ETFs with no commission fees.
AvaTrade was founded in 2006 and has temporary permission in the United Kingdom by the Financial Conduct Authority (FCA).
We will review the trading conditions, fees, deposit/withdrawals, trading platforms, and the customer support of AvaTrade UK to see if this broker is right for you.
|AvaTrade Review Summary|
|Broker Name||AvaTrade United Kingdom|
|Address||AvaTrade Financial Centre, Five Lamps Place, Amiens Street, Dublin 1 Ireland|
|Regulation||ASIC, CySEC, FSCA, FRSA, Central Bank of Ireland|
|Trading Platforms||AvaTrade WebTrader, MT4, MT5 and AvaTradeGo available on PC, Mac, Web, Android, & iOS|
- Fast execution
- Offers GBP account currency
- Offers commission-free trading
- Offers negative balance protection
- Supports multiple trading platforms and EAs
- Does not charge any fees for deposits or Withdrawals
- Temporary FCA regulation
- Charges dormant account fees
- Do not have 24/7 customer support
- Slow processing of deposits and withdrawals
Is AvaTrade Safe for Traders?
AvaTrade is licensed in multiple jurisdictions by top-tier financial regulators and this makes them trustworthy for traders in the UK.
You can find details of AvaTrade’s regulatory status in the UK, Europe, Africa and Asia below.
1) Financial Conduct Authority (FCA), United Kingdom: AvaTrade is authorized in the UK by the FCA as Ava Trade EU Limited with Reference Number 504072 and has been given Temporary Permission to offer certain financial services in the UK following EEA (European Economic Area) authorization.
2) Australian Securities & Investments Commission (ASIC): AvaTrade is registered in Australia and regulated by ASIC as Ava Capital Markets Australia Pty Ltd with ACN 143 340 907, issued in 2010.
3) Central Bank of Ireland: AvaTrade is registered in Ireland, regulated by the Central Bank of Ireland, and authorized as an investment firm with reference number C53877 in 2009. Ireland serves as the headquarters for AvaTrade.
4) Financial Sector Conduct Authority (FSCA) in South Africa: AvaTrade is authorised by the FSCA to provide financial services in South Africa as Ava Capital Markets (Pty) Ltd with FSP number 45984, issued in 2015.
5) Financial Regulatory Services Authority (FRSA) of Abu Dhabi Global Markets (ADGM): AvaTrade also has authorization as an investment dealer in the UAE as Ava Trade Middle East Limited, regulated by the FRSA with permission number 190018 issued in 2020.
The AvaTrade brand is also authorised in Israel as Ava Trade Ltd., by the Israel Securities Authority, and in Japan as Ava Trade Japan K.K. authorised by the Financial Services Agency of Japan.
Under FCA and ESMA regulations, retail traders are subject to maximum leverage of 1:30 on AvaTrade. Professional account holders can access up to 1:400 leverage.
Note that some instruments have lower leverage ratios and AvaTrade operates a fixed leverage system.
AvaTrade Account Types
AvaTrade offers two types of accounts for trading: the default retail account and the professional account, designed for experienced and high-volume traders.
They also offer demo accounts for beginners and a no-swap Islamic account option upon request.
Below, you’ll find information about the different account types at AvaTrade.
Retail Account: When you sign up with AvaTrade, you will automatically become a Retail Account trader. You can trade on a variety of financial instruments, including forex pairs and CFDs on bonds, stocks, commodities, precious metals, energies, FX Options, ETFs, and indices.
For the AvaTrade Retail Account, the maximum leverage is 1:30. If you meet the professional criteria, you can apply for a Professional Account that offers higher leverage.
Deposits and withdrawals of funds to your account are free of charge and no commissions for opening trades on instruments listed on the Retail Account.
Swap fees are charged for maintaining a position that remains open overnight, and the spreads on EURUSD start from 0.9 pips.
This account attracts an inactivity charge of £50 and an administration fee of £100 each month when it stays inactive for a period of three or 12 consecutive months respectively. However, your account will not incur a negative balance if it has no funds in it.
To start trading with the Retail Account, you must deposit a minimum of £100 and trade with a minimum of 0.01 lots.
Professional Account: The AvaTrade Professional Account is for experienced traders who trade in significant volumes of financial instruments. You must meet certain requirements before you can apply to have a Professional Account.
To apply for a professional account, you must meet at least 2 of these 3 conditions:
- You have at least one year of working experience in the financial services sector.
- You have a financial portfolio valued at more than €500,000, including cash savings and financial instruments
- You must provide proof of at least 10 significant trades per quarter in the last 12 months.
With this account, you can trade forex pairs and CFDs on bonds, stocks, commodities, precious metals, energies, FX Options, ETFs, and indices with a maximum leverage of 1:400.
This account is spread only with commission-free trading and charges no fees when you deposit or withdraw funds.
Swaps fees are charged for holding a position overnight, and spread on major pairs like EURUSD starts from 0.6 pips on the Professional Account.
When your account is inactive for three consecutive months, a fixed inactivity fee of £50 will be charged every month. An additional £100 administration fee will be charged after 12 months of inactivity. However, your account will not incur a negative balance if it has no funds in it.
The minimum deposit on this account is £100, and you can trade with a minimum of 0.01 lots.
Islamic Account: AvaTrade offers swap-free Islamic Accounts to Muslims who want to adhere to sharia law in their trading.
If you want an Islamic Account, you need to first sign up for a Retail or Pro Account and then contact customer support so that they can convert your account to swap-free Islamic status. Such requests are processed within 2 days.
The leverage and fees for this account are the same as the Retail and Pro Account except that it does not charge a fee when you hold a position overnight.
Note that AvaTrade Islamic Account holders are not allowed to trade FX currency pairs of ZAR, MXN, TRY, RUB, and any Cryptocurrencies. Additionally, Islamic customers pay increased spread fees on all trades.
AvaTrade Base Account Currency
While signing up for an AvaTrade account, you automatically get the British pound (GBP) as the base currency on your account and all your trades, deposits, and withdrawals will be measured in this currency.
Additionally, AvaTrade offers you the option to choose between CHF, EUR, and USD as your base currency. If you are planning to trade mainly inU.S. dollars (USD) or Euros (EUR), you can set your AvaTrade account to USD or EUR as the base currency and deposits in GBP will be converted to this currency.
AvaTrade Overall Fees
Fees on AvaTrade depend on several factors, including the type of account you have, the instruments you’re trading, and the volume of your transactions. An overview of trading and non-trading fees can be found below:
Spreads: When you trade any instruments on the platform, AvaTrade charges spread fees, which are the differences between the buy and sell prices of the financial instrument you are trading.
For example, if you’re buying EURUSD at 0.02250 and selling it at 0.02180, the difference of 0.0007 is the spread fee, also called pips.
The AvaTrade spreads are fixed. The typical spread fees for 1 lot size of major pairs are shown in the table below.
|Instrument/Pair||Retail Account||Professional Account|
|EUR/USD||0.9 pips||0.6 pips|
|GBP/USD||1.5 pips||0.9 pips|
|EUR/GBP||1.5 pips||1 pip|
|Gold||0.29 pips||0.23 pips|
Commission fees: AvaTrade offers commission-free trading on all account types, a feature that allows you to enter and exit trades on any instrument without paying any fees.
Swap fees: Swap fees apply whenever you keep an open position on AvaTrade after midnight. The fee is based on the total volume of your positions and whether they are long (buy) or short (sell).
Your daily typical swap costs on AvaTrade for EURUSD on a trade size of 1,000 would be -0.0015% for selling, and -0.0060% for buying.
Since Islamic Accounts are swap-free, they do not pay any swap fees.
Deposit and Withdrawal fees: AvaTrade does not charge you any fees when you deposit money into your trading account or withdraw money from it. This applies to all payment methods.
Your bank or payment processing company may charge some independent transaction fee.
Account Inactivity charges: If you don’t log in to your AvaTrade account for three consecutive months, a fixed monthly inactivity fee of £50 will be charged. After 12 months of inactivity, an additional administrative charge of £100 will be added. However, your account balance won’t become negative if it has no funds in it.
How to Open AvaTrade Account in UK?
To start trading on AvaTrade, follow the basic steps below to open a trading account.
Step 1: Visit AvaTrade’s website, www.avatrade.co.uk, and click the ‘Register Now’ button highlighted in orange. If you do not want to open a real trading account yet, click on ‘Demo Account’ below ‘Register Now’.
Step 2: Type in your email address and create a password on the form that appears. Then click ‘Create Account’ to continue.
Step 3: After you click Create Account, you will be taken to the AvaTrade dashboard and asked to provide some personal details like date of birth, phone number, and full name.
Supply this information and then click the blue arrow button at the end of the form to go to the next page of the registration.
Step 4: Now you will be asked to complete some personal information about your income and CFDs trading experience.
You will need to select a preferred trading platform and base currency for your account. You can choose between the Swiss franc (CHF), Euro (EUR), Great Britain Pound (GBP), and the United States Dollar (USD).
Next, check the box to confirm you understand the nature of trading on this platform and click on the blue arrow button
Step 6: Once you complete registration, you will be redirected to the AvaTrade dashboard.
Here you will upload identity and address verification documents to verify your account.
Once you verify your account, you can add money to your trading account, begin to trade, and withdraw funds.
AvaTrade Deposits & Withdrawals
After you verify your account, you can deposit and withdraw funds. AvaTrade accepts the following payment methods for deposits and withdrawals: credit/debit cards, Skrill, Neteller, and bank wire transfers. These methods are visible on the deposit and withdrawal page of your account.
Below we have provided an overview of deposits and withdrawals on AvaTrade UK.
What is AvaTrade minimum deposit?
AvaTrade’s minimum deposit is £100 or 100 units of your base account currency for all payment methods.
Deposits are credited to your trading account within 24 hours for E-wallets, instantly for Credit/Debit cards, and up to 10 business days for Wire Transfer.
For faster bank transfer processing, you can contact support with your proof of payment.
When you deposit for the first time with a card, it can take up to 24 hours to be credited due to security checks.
To deposit to AvaTrade, log in to your account and click the ‘Deposits’ link on the left, then click ‘Fund Your Account,’ select a deposit method, enter the amount you want to deposit then click on ‘Deposit’.
What is AvaTrade minimum withdrawal?
On AvaTrade, there is a minimum withdrawal amount of £100 for wire transfers and £1 for other payment methods.
It takes up to 5 business days for you to receive the funds withdrawn to your credit/debit card, 24 hours for e-wallets, and up to 10 business days for a wire transfer.
To withdraw your money from AvaTrade, log in to your account and click the ‘Withdraw Funds’ link, then click ‘Withdraw your funds.’ Select a withdrawal method, fill out the withdrawal form and click ‘Submit’.
AvaTrade Trading Instruments
Below are financial instruments that can be traded on AvaTrade
|Forex||Yes||55 currency pairs on AvaTrade|
|Commodities||Yes||18 spot commodities on AvaTrade (Metals, Oil, Energies, Cocoa, and others)|
|FX Options||Yes||44 pairs of FX Option on AvaTrade|
|Indices||Yes||32 spot indices on AvaTrade|
|Stocks||Yes||629 stocks on AvaTrade|
|Cryptocurrencies||Yes||20 cryptocurrency pairs *|
*Note that AvaTrade does not currently offer cryptocurrency trading to UK customers.
AvaTrade Trading Platforms
AvaTrade supports the following trading platforms:
MetaTrader 4 and MetaTrader 5: AvaTrade offers MT4 & MT5 trading applications that can be accessed on the web, desktop, and mobile devices (Android & iOS).
AvaTrade WebTrader: AvaTrade also offers its clients a proprietary web-based trading application, the AvaTrade WebTrader.
AvaTradeGo: AvaTradeGo is AvaTrade’s mobile trading application, available on both the App Store and Google Play Store.
AvaSocial: AvaSocial lets you access the strategies and experts and successful traders. It is basically for copy trading. You can download AvaSocial on Google Play Store or Apple App Store. It is available on mobile phones alone.
AvaTrade Execution Policy
AvaTrade is a market maker. This is evidenced by their fixed spreads and in-house dealing desk. They determine the bid-ask prices of the CFDs they offer and fulfill all of your trades for you.
In a review of their legal document, we observe that there might be cases of delayed connectivity and latency. If the prices displayed during this delay are favorable to you, AvaTrade can block the trade, void it, revoke your profits or even widen the spread after you have placed the trade.
In addition, there are also price requotes. According to the document, if the initial bid-ask price offered to you does not reflect the ‘fair’ market rate, AvaTrade at their sole discretion can choose not to execute your order. Instead, they send you an amended quote for your consideration.
Furthermore, the document states that your Limit Orders will not be executed if the price moves to your advantage. This means AvaTrade does not have a system that seeks the best prices for traders.
AvaTrade Education and Research
You can learn with AvaTrade in the following ways.
1. Demo Account: AvaTrade offers a free demo account with no risk. You can use the demo account for learning and practice. However, AvaTrade’s demo account has a downside. The demo account expires after three weeks. You will have to add another demo account. With this, it becomes difficult for traders to track their progress long-term.
2. Trading Videos: AvaTrade’s videos are extensive and structured well for traders to understand. Tutorials on trading platforms, currency pair trading, commodities trading, and stock trading are covered. Another important topic covered in this section is ‘stock market fundamentals’. This is key to understanding what moves the shares CFD market.
3. Educational Articles: These are extra articles for traders’ learning. They include random topics like trading rules, market terms, order types, etc.
AvaTrade UK Customer Service
Avatrade customer support is available Monday through Friday via the following channels:
Live chat support: AvaTrade offers live chat support to traders via the website. The chatbot AvaGuide is available 24/5, but live agents are only available from 5:00 to 21:00 GMT, Monday to Friday.
The chatbot can answer a lot of questions about AvaTrade platforms, deposits/withdrawals, and more by prompting you with options when you ask a question.
In order to chat with a live agent, just send ‘chat agent’ as a message and the bot will give you a couple of options. Select ‘Chat With An Agent’ and it will take you to a live chat session. You will need to submit your email address and name for this.
The AvaTrade live chat customer support for us was prompt when we tested it, with a response time of about 1 minute. The answers provided were both accurate and relevant.
Email support: AvaTrade offers email support during business days, so you can send them an enquiry through their contact us form on their website.
Phone support: AvaTrade offers phone support to traders on the platform in different countries. The phone support is available during business hours from Mondays to Fridays. The AvaTrade UK support phone number is +442033074336.
To reach AvaTrade WhatsApp support, you can send a message to the following number: +447520644093.
Do we Recommend AvaTrade UK?
Based on the safety of traders’ funds, we recommend AvaTrade because they are regulated by the FCA in the UK, although it is temporary permission.
They are also regulated by ASIC, which is a Tier-1 regulator, as well as other Top-Tier regulators like FSCA, CySEC, ISA, and FRSA.
The fees on AvaTrader are moderate, with spreads starting from 0.9 pips for major currencies and the broker charges no trading fees for currency pairs. AvaTrade supports trading on many platforms, including web browsers and mobile devices, which makes it easy to create an account and make trades.
Customer support at AvaTrade is not so good, while their live chat has very little wait time, they cannot be reached 24 hours a day, which means that if you ever need to contact customer support, you may be waiting a while to get assistance. There are brokers who offer 24/7 customer support.
AvaTrade UK FAQs
Is AvaTrade regulated in UK?
AvaTrade has a temporary licence in the UK as Ava Trade EU Limited with Reference Number 504072 and has been given Temporary Permission to offer certain financial services in the UK.
Does AvaTrade have Nasdaq?
You can trade NASDAQ on AvaTrade, the index can be found as US_TECH100 on AvaTrade.
Is AvaTrade commission free?
AvaTrade does not charge commissions on CFDs./p>
Is AvaTrade good for beginners?
AvaTrade offers a Demo Account for new and prospective traders to try out the platform and its features.
AvaTrade’s negative balance protection means that traders do not lose more than the money in their account, making the broker a good choice for beginners.
Note: Your capital is at risk