Avatrade is among the oldest online brokerages that were founded in 2006. At that time, it had over 200,000 registered account holders globally. Currently, the company has four offices that are located in Ireland, the British Virgin Island, Japan, and Australia. The broker accepts clients in over 50 countries and accepts trading accounts in several currencies.
Even with the large presence, you may still be wondering, is Avatrade a scam or a legitimate broker? To answer this question, we will be looking at aspects such as their reputation & regulation, their trading platforms, and their withdrawal and deposit methods.
How Does Avatrade Work?
Avatrade has a selection of over 1,250 trading assets. The financial instruments include stocks, EFTs, bonds, cryptocurrencies, Forex options, CFDs, Forex currencies, commodities, and indices. The instruments used in 2020 are:
- 13 cryptocurrencies– including Ethereum, Litecoin, Bitcoin, Bitcoin Gold, EOS, Ripple, and Dash, with leverage of 1:2.
- 2 Bonds– Euro-Bond & Japan-Govt Bond with leverage of 1:5.
- 5 ETFs– Energy Select Sector SPDR, MSCI Emerging Market Index Fund, MSCI Brazil Fund, Market Vectors TR Gold Miners, and S&P 500 VIX Short-Term Futures ETN.
- 17 CFDs on Commodities– including agricultural products, energy, and precious metals.
- 637 CFDs on individual stocks– with leverage of 1:5.
- A collection of 20 indices– including Cannabis Index and China A50 with leverage of 1:20 and 1:10.
- 55 Forex currency pairs– minors and majors with leverage of 1:30 and 1:20.
- 54 FXOptions of Forex pairs, spot silver, and spot gold– with leverage of 1:30 and 1:20.
The broker also offers competitive spreads based on the asset a trader is using. A person can achieve 0.8 pips. For gold assets, a trader gets 1.5 for floating and 1.9 pips for fixed spreads.
Regulation and reputation
The Avatrade headquarters is located in Dublin, Ireland. The broker has sales centers in Paris, Sydney, Dublin, Mongolia, Madrid, Nigeria, Johannesburg, Beijing, Santiago, Tokyo, and Milan. Avatrade is one of the best brokers in terms of reliability and reputation. It is regulated by authorities such as:
- ASIC in Australia under license number 406684
- FFA (license number 1574) and FSA (license number 1662) in Japan
- FSB in South Africa under license number 45984
- Central Bank of Ireland in Europe under license number C53877
This broker is regulated by different jurisdictions, which helps in reassuring investors across the world. This also implies that multiple organizations make sure that the broker adheres to the local regulations. Additionally, Avatrade has won awards such as “the Best Forex Broker YEAR,” Best Customer Support,” “Best Financial Derivative Trading Provider,” and “Best Alert System”. The broker has also collaborated with Friedberg Direct and opened a market in Canada.
The broker has several automated trading platforms to meet the trading preferences and increase the success rate of a trader. The function allows a trader to utilize the Mirror Trader, which mirrors professionally tested strategies. The platforms offered by Avatrade include:
- Mac Trading
- Mobile Trading
- MetaTrader4 and
- MT4 Floating Spreads
UK traders can use the MQL5 Signals Service platform if they want to link their trading accounts to signal providers in the UK and around the world.
The fastest way to trade on Avatrade is by using a web trader. This is because it has several analytics tools, free and clear reporting, highly customizable interface, supported in 41 languages and its trade is centered on real-time market sentiments.
Trading Accounts offered
Avatrade ensures everything is straight forward by providing two accounts, regardless of a trader’s experience. There is only a standard account and a demo account.
You can open a standard account by depositing $100 via credit cards or $500 using wire transfer. Or open a free demo account to familiarize yourself with trading without risking your money. The broker also provides a Muslim account that adheres to Islamic sharia laws. Professional traders can create MAM accounts for easy management of their clients’ accounts.
Deposits and Withdrawals
You need to deposit $100 to open an Avatrade account. Deposits are made via e-payments, credit cards, and wire transfers. However, Canadian traders cannot use credit cards to make deposits. Those who are not living in Australia or the EU can use e-payment methods such as Skrill, Neteller, and WebMoney. E-payments are credited within 24 hours while wire transfer can take up to 7 days to be processed.
When initiating a withdrawal, you should first verify your account. Just like in Deposits, the withdrawal processing time will differ depending on the method you choose. The broker can charge a withdrawal fee, and the bonuses cannot be withdrawn unless a person has traded several times.
The broker has an extensive FAQ section that addresses most concerns. However, for other inquiries, you can reach the Avatrade support system during trading hours via chat, email, and phone. Have in mind that this broker offers 24/5 chat and phone support.
Avatrade provides an exceptional education to its traders. In addition to offering tutorials, eBooks, glossaries, and videos, they have dedicated a section of their website for educational purposes.
Is Avatrade legitimate or a scam?
Avatrade is a legitimate CFD and Forex broker. The brand is regulated in South Africa, Europe, and Australia and around the world.
How long does Avatrade process withdrawals?
Withdrawals are processed within one day. However, different withdrawal methods will vary in the time they clear. For instance, E-wallets takes 24 hours, wire bank transfers take a maximum of 10 days, and credit/debit cards take at least 5 days.
Which languages are supported on Avatrade?
Supported languages include English, German, Swedish, Chinese, Portuguese, Polish, Japanese, Italian, Korean, Hebrew, Hungarian, Spanish, French, Finnish, and Arabic.
Which countries are supported by AvaTrade?
Avatrade supports more than 50 countries. Some of these counties include UAE, Uganda, UK, Ukraine, Spain, South Africa, Syria, Switzerland, Australia, China, Czech Republic, Poland, Italy, Luxembourg, Netherlands, and Norway.
Traders from the US, Iran, Brunei, Somalia, Belgium, Kuwait, Pakistan, Afghanistan, Morocco, and Iraq are prohibited from using Avatrade.
What makes Avatrade competitive?
The main feature that sets Avatrade apart is its global presence. Additionally, they provide dedicated account managers in various languages and they have a number of licenses which is an indication of their reliability.