AvaTrade Fees and Spreads

AvaTrade - Fees & Spreads

 

AvaTrade Fees and Spreads

 

There is an initial minimum deposit of $100 when opening an account.

AvaTrade fees and spreads depend on the type of financial instrument being traded in addition to the account type, with spreads that start from as low as 0.03 pips.

AvaTrade has trading fees which are both transparent and easy to calculate, in addition to provision being made for a trading calculator which can be used by traders to calculate the costs more accurately they will incur when trading financial instruments.

AvaTrade provides a comprehensive summary of fees along with a spread list which can be found under the Trading Conditions & Charges section on the website. This spread list indicates the spreads according to each financial instrument provided by AvaTrade.

 

The spreads and commissions, where applicable, pertaining to each asset class can be viewed as follows:

  • Forex – spreads start from 0.9 pips with a margin of 0.25% and leverage of 1:400 (depending on the currency pair)
  • Stocks – All stocks have a spread of 0.13%, a margin of 10% and leverage of 1:10
  • Commodities – commodities such as Gold have a spread from 0.34 pips while others such as Platinum have commissions which are charged according to the market and per trade. Margin and leverage depends on the commodity being traded.
  • Indices – start from as little as 0.3 pips over market. The margin and leverage depends on the index being traded.
  • FX Options – spreads start form 0.9 pips. The margin and leverage will depend on the instrument being traded.
  • ETFs – has a spread starting from 0.13% with a 5.00% margin and leverage of 1:20.
  • Bonds – EURO-BUND has a 0.03 spread over market with a 5% margin and leverage of 1:20 while JAPAN GOVT BOND has a spread of 0.06 over market with a 5% margin and leverage of 1:2
  • Cryptocurrencies – spreads start from 0.35% over market and margin along with leverage will depend on the type of crypto being traded.

 

Traders should note that certain financial instruments can only be traded during a certain time of the day, especially when considering different time zones, and additional fees may be charged should they hold these positions after they have closed.

 

Additional Trading Fees

 

Overnight fees, otherwise known as swap fees or rollover fees, may be charged for positions held open for longer than a day. AvaTrade offers the option of an Islamic account to traders who are of Muslim faith and who operate under the Sharia Law.

Traders who are eligible for the Islamic account can follow the process of opening an AvaTrade live account and apply for the Islamic option after funding their trading account. This process takes between 1 to 2 business days.

AvaTrade does not offer traders with spread betting and therefore spread betting fees are not applicable to this broker.

 

Broker Fees

 

AvaTrade does not charge withdrawal fees or deposit fees, but other broker fees which are charged, and these include:

  • An inactivity fee of $50 per quarter after the account has been inactive for 3 consecutive months.
  • An administration fee of $100 which will be deducted from the traders account should the trading account be inactive for 12 consecutive months.

 

Pros and Cons

 

PROS CONS
1.      Low minimum deposit 1.      Inactivity fee charged
2.      No deposit fees 2.      Administration fee charged
3.      No withdrawal fees 3.      Commissions quite high compared to other brokers
4.      Low spreads starting from 0.03 pips
5.      Competitive trading conditions
6.      Provision made for Islamic account

 

FAQ

 

How many instruments can I trade with AvaTrade?

You can trade over 250 different instruments with AvaTrade, which include the following, but is not limited to:

  • Forex
  • Commodities
  • Indices, and more.

 

Which platforms are supported by AvaTrade?

AvaTrade provides the following popular trading platforms:

  • MetaTrader4
  • MetaTrader5
  • AvaTrade Web Trading

 

Does AvaTrade offer leverage?

Yes.

AvaTrade offers a maximum leverage of up to 1:400 on Forex, depending on the currency pair, 1:10 on stocks and 1:2 on bonds.

 

What spreads can I expect with AvaTrade?

Spreads from as little as 0.03 pips on Bonds.

The spreads will be determined by the different financial instrument that is being traded. Traders can expect from 0.03 on bonds, 0.3 pips on Indices, 0.34 on commodities, 0.9 on FX Options and Forex, if only to name a few.

 

Does AvaTrade charge commission?

Yes.

Commissions are charged on some financial instruments such as Platinum.

 

Is AvaTrade regulated?

Yes, AvaTrade is regulated by the highly reputed Bank of Ireland, the ASIC in Australia, The FSCA in South Africa, the FSA in Japan, the FRSA in the Middle East and B.V.I Financial Services Commission.

 

Is AvaTrade a recommended Forex trading broker for experts and beginners?

Yes, AvaTrade offers a good trading environment for all types of traders, from beginners to advanced.

 

What is the overall rating out of 10 for AvaTrade?

9/10

 

 

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