AvaTrade Review - Is it Legit? (March 2024) - Securities.io

AvaTrade promote commission-free trading through all of their available account types. This is made possible due in part to the fact that they are a market maker broker who essential operate their own internal market pricing and act as a counterpart to your trades. This is the opposite of some brokers who facilitate direct market access with reduced or no spread, but impose commission.

The spreads across the board at AvaTrade start at a competitive level. When trading major markets such as the EUR/USD forex market, you can expect spreads to start from 0.9 pips. This can reduce further if you open a professional trading account which the broker does offer. For these traders, the spreads start from 0.6 pips, though these accounts have a number of requirements and are generally only accessible to UK and EU traders.

Trading in markets other than forex, such as indices, crypto, and stocks, the spread generally has a starting point of between 0.13% (stocks), up to 0.35% (crypto).

AvaTrade fees are generally fair, and they do a good job at trying to limit these as much as possible. You should not typically incur a deposit or withdrawal fee with the exception of if you are using a wire transfer, or exchanging an unsupported base currency. As with all CFD broker, they do charge overnight fees, though these can be waived if you open an AvaTrade Islamic trading account. There is also an inactivity fee. This is relatively high at $50 after 3 months of inactivity, and for each subsequent 3-montn inactive period.