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Exclusive AvaTrade Review By Forex Brokers Journal
What is going to be represented in this article is to give you a complete and comprehensive review on Avatrade brokerage, which is a popular broker in Forex world. As a matter of fact, I personally like Avatrade, not because of the good conditions and services they offer to the clients but because it reminds me of good days when I had started trading Forex. I found these two screen shots in my emails when I once had made a withdrawal in AvaFx in 2007.
Yes, as you see only 150$ and 250$ were my ideal earnings in Forex in my early weeks of Forex trading, and off course these good memories has caused forming a nice picture of Avatrade in my mind. As you see my account is among first 200 accounts had opened in Avatrade in those days.
About Avatrade (former AvaFx):
This brokerage has been founded in 2006 and the main office is located in Dublin, Ireland. It has also offices in France, Italy, Japan, Australia and also United States. In Avatrade clients have access to trade commodities, indices, shares, CFDs, Forex, and options. Main platforms Avatrade is now offering to its users include: Avatrade and MT4 (at the time I used to trade with them they didn’t have MT4 and that’s one of the reasons I quit Avatrade very soon). In Avatrade, clients can trade Forex in two types of accounts, one with fixed and the other with variable spread. I personally decided to open fixed spread account because Avatrade platform is not user-friendly and that Avatrade support team confirmed their Meta Trader accounts with fixed spreads have much more users.
Opening an Account in Avatrade:
Although I had an account with them previously but for having a comprehensive review I registered a new account with them. As for every other broker, I filled the registration form for opening new accounts and gained access to my control panel in Ava. After a few minutes someone from Avatrade’s team contacted me and asked me whether I have any problem.
In order to get my account verified, I sent my ID card and utility bill to the account manager and after a few hours my account was verified.
Let’s now log in to the clients control panel in Ava and try to make a deposit in our account. Unfortunately Ava’s control panel was not interesting and I didn’t actually like it. In upper part of the page, your personal information have been shown and below it, only your trading account number and its type has been listed, without even showing your account balance! In lower part of the page there are menus for deposit, withdrawal, uploading the docs and request for Ava debit master card.
Depositing via credit cards, Paypal, Neteller, Skrill, Webmoney and wire transfer are the deposit methods available for clients in AvaFx. But unlike most of other brokers, even depositing in your account via e-currencies is not automatic and online in Ava. This can be considered as a negative point for Ava. With a low amount of budget they can easily make it possible for their clients.
I made a deposit in my account in two steps via Skrill and then Webmoney which both took half a day to be added to my trading account.
Spreads in Avatrade:
My account is now active and deposit has been made and the account is ready to trade on. The first thing funny for me in Metatrader is the spreads in Ava which are: 3 pips for USD/JPY, EUR/USD and 4 pips for AUD/USD, USD/CHF, GBP/USD and 5 pips for NZD/USD?!!! I am sorry Miss Ava but this is really terrible! 😯 Maybe these spreads were acceptable in the old days of Forex trading but for today’s market these are not acceptable at all and Ava has to revise them.
Although the account type I opened is fixed spread but let’s see whether the spreads are really fixed all day long or not! For doing this I use an EA which I myself have written for monitoring spreads and you can download it here for free.
Oh my god! What is now showing for me in this expert is horrible! Spreads in GBP/USD and USD/CHF have even reached to 8 and 6.4 pips and in USD/JPY reached 4.4 and in EUR/USD reached 3.4 pips! Yes, This is a fixed spread account! 😉
I think everything is now crystal clear for Avatrade spreads and I believe that’s enough talking about it.
Order Execution in Avatrade:
Although Ava’s spreads are disappointing but let’s see how order executions are operating in Avatrade. In executing orders there are 3 things important for me: how fast the order is executed, re qoute and slippage!
Order Execution Speed:
Fortunately in new versions of Meta Trader time of order execution is recorded by millisecond and this has made things so easy for us. I made 10 positions in different lot sizes and in various pairs in Avatrade and you can see the results in the table below:
As you can see in the table, the minimum time for order executions was 0.656 second and the maximum time for them was 2.063s and the average time of execution for these 10 positions was 1.545. If we subtract my maximum server ping to Ava trader server which is about 70 milliseconds from this amount, the final execution order time will be 1.475 second and this duration of time is not good at all and this is way more than order execution speed of many other brokers I know.
It is true that Ava’s speed in order execution was not that much good but a positive point was that I got no Re-quote from them and all of my orders were executed at my requested price. This can somehow compensate low speed of order execution because one of the reasons we like fast order execution is that it makes no Re-quote and Slippage.
Avatrade had slippage in pending orders like most other brokers and if you are trading when economic news is going to be published or even if you have open positions at those times, you should prepare yourself that your orders might be slipped.
Off course this cannot be considered as a fully negative point for Avatrade because this is so for most of other brokers and this is somehow due to nature of market but what can be considered a negative point for Ava is that when I wanted to make a position before some news publishing, I’v got off-quote and didn’t allow me to trade!
Customer Support in Avatrade:
Unfortunately I cannot give a good score for customer support in Ava too because when I encountered a problem during my trades I tried to chat with their live support many times but there was no one available to answer me at first and when I got the response after several tries they asked me to send my problems details via email. When I sent my problem via email to the related department I didn’t receive any response from them too! I contacted my account manager and after a few days he referred me to someone else who at last didn’t resolve my problem.
Altogether I was not satisfied with their customer support.
Now my account balance is almost twice of my deposit amount and it is time to withdraw. I withdrew my total 6000$ balance which included my initial deposit and my profit. Fortunately my withdrawal was done within 24 hours after my request. Although this is not the best but it is good and acceptable.
Altogether Avatrade can be considered as a medium broker and it should actually be improved in some aspects such as customer support and trading conditions so that we could recommend it to traders. I am also interested to hear your experience trading in AvaTrade. Please share!