AvaTrade Commission or Brokerage Charges – Review, Plans, FAQs & more
Know everything about AvaTrade Commission or Brokerage Charges here. AvaTrade is a multinational broker originating from Ireland.
It has a huge presence in Europe and Asia. AvaTrade provides a variety of trading platforms for forex and CFD trading.
AvaTrade contains a number of trading assets of varied nature. Agencies of multiple countries regulate it under financial laws.
Finally, its UI is practical and easy to navigate. They also allow multiple trading platforms, such as Meta Trader 4 and AvaTrade Go (For mobile).
The commission scheme for AvaTrade is slightly complex. There are a couple of different types of commission which the broker charges.
Keeping this in mind, let’s review different commissions and policies by AvaTrade.
AvaTrade Commission or Brokerage Charges
There are a bunch of different commissions to look for here.
Firstly, AvaTrade does not charge any trading commission or brokerage.
The minimum deposit amount is £ 100 for credit cards and e-payment services. For bank-transfers/wire transfer services, the minimum limit is £ 100.
Similarly, it does not charge any trading commission i.e you won’t have to pay for executing buy or sell orders.
Instead, they earn their revenue from a system of spreads.
AvaTrade makes its money off the cost of opening and closing a trade reflected in a spread. Spread is variable in nature and differs from asset to asset.
Most of the time, you can expect somewhat of a spread of 0.9, which is up to the industry standard.
Moreover, there is an ‘Overnight charge’ if you hold any position overnight (22.00 GMT). Holding a position over the weekend also requires a ‘3-day swap charge’.
Finally, you’d have to pay 50 USD/GBP/EUR of ‘Inactivity charge’ for 3 months of inactivity.
Also, if you reach 12 months of inactivity, you’d have to pay 100 USD/GBP/EUR of ‘inactivity charge’.
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Types of AvaTrade Commission Plans
|Types of Commission Plans|
|Account Type||Retail Account||Professional Account|
|Initial Deposit||100 USD||100 USD|
|Spread||Fixed spreads that start from 0.9 pips.||fixed spreads that start from 0.9 pips|
AvaTrade is different from other brokers who offer their customers a wide array of plans. They keep it simple and limit their account types to two.
Each account can only be of two types: either Retail or Professional. There are perks and benefits associated with each, which we’ll look into further.
The retail account is for the novices as well as the semi-experienced traders. They especially cater to the low-volume trades.
The retail account is the default account you get when you make an account on AvaTrade. The retail account comes with various features.
Primarily, you won’t have to pay brokerage on the retail account. Further, AvaTrade offers customers negative balance protection.
Going forward, the retail account gets you a fixed spread on forex trading starting at 0.9 pips. The maximum leverage offered is up to 1:400 for the retail accounts.
As for the professional account, you must have a couple of qualifications.
Firstly, trading activity over 12 consecutive months, necessary trading experience in the financial sector, or a trading portfolio of €500,000 or more.
There are strict restrictions on a Professional account that are EU regulation compliant. However, the benefits that accompany the professional account are pretty lucrative.
A professional account offers the trader tight and fixed spreads starting from 0.6 pips. It also offers commission-free trading and a number of analytical features.
All of them intend to give you an edge over retail accounts.
AvaTrade Account Opening Process
AvaTrade Account opening is also very simple. It’s because of its simplistic and easy-to-navigate user interface.
The steps to do the same are as follows:
- First, go to the AvaTrade website. On the homepage, you’d find a ‘Register Now’ button, which would lead you to a registration form.
- Now fill in your personal information (Name, Email address, Phone number) on the online form. Alternatively, you can also register using your Google/Facebook account.
- The next step is to fill the AvaTrade live account profile.
- These questions are a bit more personal and in-depth, and their purpose is for the broker to get to know you better.
- This is all standard stuff for any forex broker.
- Next up, you’ll have to choose your trading platform. AvaTrade provides options such as AvaOptions, MetaTrader 4, MetaTrader 5, Web Trader, Zulutrade, or Duplitrade. Each one has separate functionality and set of features.
- Now, you would have to verify your identity by uploading appropriate documents. Earlier, in the personal details section, you had to enter your address as well.
- So, for the verification process, you have to upload a scanned copy of your personal identity.
- Also, you’re required to submit a scanned copy of residence proof. You can do this by simply clicking on the ‘Upload Documents’ option on the left side menu.
- The verification process can take up to 24 hours. After the verification process, your account would be ready. You can now download the trading platform and start trading.
AvaTrade Payment or Withdrawal Methods
|Deposit Options||Boleto, Credit Card, Neteller, PayPal, QIWI, Skrill, Wire Transfer|
|Withdrawal Options||Boleto, Credit Card, Neteller, PayPal, QIWI, Skrill, Wire Transfer|
AvaTrade offers a number of diversified payment options for deposits and withdrawals. The deposits and withdrawals come along with a couple of intrinsic conditions.
If you’ve deposited an amount using a credit card/debit card, you must withdraw up to 100% of the deposit.
To clarify further, if you’ve deposited $1000 using a card, and made an additional profit of $500, the first $1000 has to be withdrawn to the same card, and the rest can be withdrawn to a different method.
In the case of a third-party deposit, you must withdraw 100% of the deposit to the same payment method.
As mentioned above, AvaTrade offers a number of payment options. Here’s a list of them for reference:
- Bitcoin payments
- Credit Card
- Perfect Money
- Western Union
- Wire Transfer
These are the standardized monetary payment options that are accepted by AvaTrade. These payment options are independent of your location. Besides, there are a number of regional payment options also which you can avail. Hence, to sum up, the payment methods are very diversified and vary according to your location.
AvaTrade Investment Assets
|Supported Cryptocoins||bitcoin, dash, eos, ethereum, litecoin, neo, ripple, stellar|
|Total Tradable Assets||1250|
|Number Of Currency Pairs||55|
|Number Of Cryptocurrencies||14|
|Number Of Stocks||722|
|Number Of Indices||28|
|Number Of Commodities||32|
|Number Of Futures||NA|
|Number Of Options||44|
|Number Of Bonds||2|
|Number Of ETFs||59|
As mentioned above, AvaTrade offers a wide variety of assets for you to trade. Ranging from forex to cryptocurrencies, AvaTrade has them all.
Keep in mind that all these assets are available for trading from all the accounts. There is no difference in asset set for retail and professional accounts.
Here is a list of the assets offered by AvaTrade.
Forex is one the main focus of AvaTrade’s trading platform. There are 55 pairs of currencies trading assets available to trade on AvaTrade.
Most of them are some combination of USD, GBP, EUR, CAD, JPY, and AUD.
However, other currencies are also available for trading, such as CHF, NZD, CLP, ILS, ZAR, SGD, SEK, DKK, MXN, NOK, PLN, CNY, RUB, TRY, and HUF.
The spread offered varies from currency pair to currency pair, with more traded currency pairs offering better spreads.
A total of 615 stocks can be traded here, everything from NETFLIX to AIRBNB to MODERNA.
Unlike forex trading, stock trading has a fixed spread of 0.13%.
Also, the leverage offered is 10:1 and the margin is 10%.
27 commodities are also available for trading from AvaTrade.
Everything ranging from Gold, Silver, Platinum to Crude Oil, Gasoline, Natural Gas to Soybean, Corn, and Sugar.
The spreads, margins, and leverages are also variable here. They differ from commodity to commodity.
16 cryptocurrencies also have a place in the marketplace of AvaTrade.
The notable ones are BITCOIN, BITCOIN GOLD, and LITECOIN. Once again, variable spreads are offered on them.
Apart from these, AvaTrade also allows trading on FX Options, Indices, Bonds, and ETFs. A thing to note is that some assets are platform-specific.
That means depending on the AvaTrade platform you’ve opted for, you may or may not have access to a specific asset.
AvaTrade Commission – Conclusion
We’ve reviewed the commission plans for AvaTrade, which came out to be pretty reasonable.
They provide a lot of flexibility and functionality in the market.
We also took a look at the account types and presented a tutorial on how to open an account on AvaTrade.
Finally, we looked at the payment options and investment assets offered by the broker.
All in all, AvaTrade is a remarkable broker that offers you varied options on every step of trading.
AvaTrade Brokerage Charges or Fees – FAQs
Here are a few FAQs related to the AvaTrade Brokerage Charges or Fees –
Do AvaTrade charge commissions?
AvaTrade does not charge trading or withdrawal commissions. Rather, they make their money through spreads.
They also charge you for holding positions overnight and over the weekend.
And if your account goes through a certain period of inactivity, you’d have to pay an ‘inactivity fee’.
How much does AvaTrade charge brokerage?
AvaTrade does not charge a brokerage or Trading commission.
There is no amount that you’d have to give if you open or close a position on the market.
However, you’d have to pay for holding a position overnight (after 22.00 GMT).
Also, you’d have to pay for holding a position over the weekend.
What is the minimum deposit required in AvaTrade?
AvaTrade has two different lower limits for the minimum amount.
If you’re depositing money through a credit card/debit card, the minimum deposit amount is $100.
However, if you’re depositing money through wire/bank transfer, the minimum deposit amount is $500.
How much leverage does AvaTrade provide?
Leverage offered by AvaTrade is variable in nature and differs from asset to asset.
Forex trading offers fixed leverage of 400:1.
The stocks offer leverage of 10:1 and EFTs offer 20:1.
The rest of the assets (Bonds, Cryptocurrencies, Commodities, FX options) offer variable leverage. Hence, for these particular instruments, leverage varies from asset to asset.
How much is spread at AvaTrade?
Just like leverage, the spread is also variable in nature and differs from asset to asset.
The forex trading offers spreads starting from 0.9 for the retail accounts. Stocks offer a spread between 0.13% and 0.36%.
Commodities offer spreads around 0.3, while cryptocurrencies offer spreads around 0.25%.
What type of commission plans are available in AvaTrade?
AvaTrade does not differ its commission plans from account to account.
The spreads, leverage, and margin are fixed for an asset and do not change upon the account type. Also, the terms of payments do not change according to the account type.
Does AvaTrade provide cryptocurrencies for investment?
Yes, AvaTrade does provide cryptocurrencies for investment. BITCOIN, BITCOIN GOLD, BITCUSD, BTCEUR, LITECOIN, RIPPLE, and DASH are the important ones.
AvaTrade provides 1-2% of spread over the market on cryptocurrencies. As for the leverage, it varies from 5:1 to 20:1.
Is AvaTrade a legit forex broker?
Yes, AvaTrade is a legit forex broker. With AvaTrade, you can invest in up to 55 currency pairs. All of them are combinations of powerful currencies such as USD, EUR, GBP, CAD, CHF, JPY, and AUD.
You also have access to forex options trading. Forex options trading has around 44 currency pairs available.
Can I invest in AvaTrade for $5?
Ans. Since the minimum deposit amount for AvaTrade is $100, you sure can’t deposit anything in your account with $5.
However, if you somehow have enough money with you for a deposit, you can trade with $5 with certainty.
Since the minimum amount with which you can trade is $1, it is possible to trade with $5.
Are there any hidden charges available with AvaTrade?
No, there are no hidden charges associated with AvaTrade.
All the commissions that they charge are well declared by the brokers in advance.
The charges are the ‘overnight charge’, the ‘3-day swap charge’, the ‘inactivity charge’, and the ‘administration charge’. Also, the spreads and leverages associated with the trading of an asset are on display beforehand.
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