AvaTrade Fees Explained In Detail

AvaTrade is a fast-growing trading platform which offers an extensive range of Contracts for Difference (CFDs) in numerous markets. Founded in 2006, it is licenced and regulated across the world through its numerous subsidiaries and partners. For its services, AvaTrade charges fees, and this guide will help you understand what they are and when they are charged.

General Overview of Avatrade

AvaTrade is a global CFD trading platform which lets you invest in cryptocurrencies, Forex, commodities, ETFs, and indices. The platform is one of only a handful to be regulated in numerous jurisdictions, including Europe, British Virgin Islands, Japan, Australia, and South Africa. In keeping with its international standing, AvaTrade is available in over 30 languages, including Mongolian and Suomi. The platform is considered to be very safe, implementing security measures which protect the platform, its users and their funds.

General Fees

AvaTrade is a business, and as such, needs to generate profit whilst covering platform and security overheads. Although the platform charges a variety of fixed or varying fees based on several conditions, it offers a transparent explanation and structure. The platform is proud of the fact that it does not charge any hidden fees, and provides examples of when and how particular fees are charged.

Trading Fees

Financing Rates on AvaTrade

Trading fees come in several forms and are only charged whenever you open and/or close a position. Commonly, these fees take the form of a percentage and can either be embedded as part of the asset’s price or charged separately. AvaTrade offers an explanation of individual trading fees on the ‘Trading Info’ tab on the main page.

On this platform, the financing rate is referred to as the Overnight Interest fee. This is explained further on in this AvaTrade fees guide. When trading derivatives, such as Bitcoin CFDs, investors have the option to trade on margin, allowing them to open larger positions with less capital.

The amount and conditions of leverage vary by market. Forex markets offer the highest possible margin on the platform, with up to 30:1 available. This means that with an investment of €100 you can open a Forex position worth up to €3,000.

It is important to remember that trading on margin is considered to be a high-risk strategy. In the same way that potential profits could be magnified with leverage, so too could potential losses. 79% of retail investors who trade on AvaTrade lose money when trading CFDs.

Non-trading Fees

AvaTrade, like most other online trading platforms, charges non-trading fees which are not associated with opening or closing positions. Two of the most common non-trading fees are withdrawal and deposit fees.

Withdrawal Fees

The platform supports a variety of payment methods, including eWallets, cards, and bank transfers. Unlike most trading platforms, AvaTrade does not charge users any withdrawal fees. This is a significant advantage over other platforms, including extremely reputable ones such as eToro or, in some cases, XTB.

Deposit Fees

Making a deposit into your AvaTrade account is also free, and you can use a variety of convenient payment methods to accomplish this.

Buy and Sell Spread Fees

The main trading fee charged by AvaTrade is the spread. This is defined as the difference between an asset’s buy and sell price and is embedded as part of the final price. As a result, you won’t need to calculate the spread yourself. In order to calculate the spread, AvaTrade makes use of some of the best exchanges around the world.

AvaTrade does not charge any broker commission fees, so it relies on this bid-ask spread to generate its markup.

Spread Fee Example

Consider a trader who is investing in stocks. He or she chooses Microsoft stocks and wants to buy 100 shares with a spread of 13 pips. This means that the applicable spread is $13, or 0.13 x 100.

Overnight Fees

Every market offered on AvaTrade has a particular time of day which marks the ends of one trading day and the start of another. Positions which are kept open beyond this time are charged an overnight fee. This fee varies for each asset, and also changes depending on whether you have opened a buy or sell position.

Overnight fees charged on AvaTrade are calculated on the currency in which the instrument is denominated in. This means that you might be charged currency conversion fees in addition to overnight fees.

Inactivity Fees

Understandably, maintaining and securing user accounts is costly, so AvaTrade charges an inactivity fee to accounts which are not used for three consecutive months. This fee is charged monthly until the account starts to be used again or is closed. For accounts which are based on EUR, the inactivity fee is €50.

In addition to the standard inactivity fee, AvaTrade also charges an Administrative Fee for accounts which remain unused for 12 consecutive months. For EUR-denominated accounts, the applicable administrative fee is €100.

Trading with Avatrade

Since AvaTrade is a regulated trading platform, before you can start trading you’ll need to verify your account. You can find more information on this on our detailed AvaTrade guide.

Once you have set up your account, you can access the platform’s extensive educational resources and helpful information. For each instrument, AvaTrade offers historical charts and a range of useful tools to analyse them and identify trends. You can combine your strategy development with practice trading using AvaTrade’s free demo account. Unfortunately, this demo account is only available for 21 days following account opening.

AvaTrade provides you with a selection of trading platforms to choose from, including mobile applications. Amongst the options, you will find the award-winning Meta Trader 4 and 5, ideal for traders who are already accustomed to using such platforms.

Concluding Thoughts

Within a relatively short period of time AvaTrade has grown to become a major trading platform with users from all over the world. One of its most important features is the attention to technology and functionality. This makes trading on the platform easy, convenient, and ideal for both novice and experienced traders. In addition, users can look forward to simplified and competitive fees which offer better value than comparable platforms on the market.