AvaTrade Vs FXCM

Category: Broker Guides | Author: Trading Brokers | Date: July 16, 2023

In the world of online trading, choosing the right platform is paramount for success. Avatrade and FXCM are two prominent names that have captivated traders worldwide with their robust features and services. This article delves into a comprehensive comparison of Avatrade and FXCM, aiming to assist traders in making an informed decision. We explore key aspects such as trading instruments, platforms, customer support, and regulatory compliance. By examining the strengths and weaknesses of each platform, readers will gain valuable insights to determine which one aligns better with their trading goals and preferences.

Overview of AvaTrade

AvaTrade

AvaTrade is a renowned online trading platform that has established itself as a leading player in the financial industry. With a strong presence in over 150 countries, AvaTrade offers a comprehensive range of financial instruments, including forex, stocks, commodities, cryptocurrencies, and indices. One of its standout features is the user-friendly and intuitive trading platform, equipped with advanced charting tools and analysis capabilities, enabling traders to make informed decisions. AvaTrade also offers a variety of trading accounts to cater to the diverse needs of its clients, including demo accounts for beginners and professional accounts for experienced traders. Additionally, the platform provides access to a wide range of educational resources, such as video tutorials and webinars, to empower traders with the knowledge and skills needed to succeed in the market. With its commitment to security, regulation, and exceptional customer support, AvaTrade has earned a solid reputation as a reliable and trusted trading platform.

Pros of AvaTrade

  • Wide range of financial instruments including forex, stocks, commodities, cryptocurrencies, and indices.
  • User-friendly and intuitive trading platform with advanced charting tools and analysis capabilities.
  • Various trading account options to suit different trader preferences and experience levels.
  • Access to educational resources such as video tutorials and webinars.
  • Strong commitment to security, regulation, and customer support.

Cons of AvaTrade

  • Limited availability of certain financial instruments compared to some other platforms.
  • Inactivity fee charged for dormant accounts.
  • Some traders may find the spreads and fees slightly higher compared to other brokers.
  • Limited options for automated trading strategies.
  • Availability of certain features and services may vary depending on the trader’s location.
AvaTrade Logo

Our #1 Broker 2023

AvaTrade is an award-winning and multi-regulated broker offering a great selection of trading instruments including Forex, Cryptos, Stocks and Commodities. You can trade on all of your devices via user-friendly platforms with excellent trading conditions and no commission fees.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Overview of FXCM

FXCM

FXCM, a prominent name in the online trading industry, offers a comprehensive platform for traders seeking diverse financial opportunities. With a global presence and a strong reputation, FXCM provides access to a wide range of instruments, including forex, commodities, indices, and cryptocurrencies. The platform boasts advanced trading tools and features, empowering traders with real-time market data, customizable charts, and a variety of order types. FXCM’s user-friendly interface facilitates seamless navigation and execution of trades.

Additionally, the platform offers competitive spreads, transparent pricing, and deep liquidity, ensuring optimal trading conditions. FXCM places great emphasis on customer support, providing multilingual assistance and educational resources to enhance traders’ knowledge and skills. Through its robust technology infrastructure, global regulatory compliance, and dedication to client satisfaction, FXCM has positioned itself as a trusted partner for traders of all levels of experience.

Pros of FXCM

  • Access to a wide range of financial instruments, including forex, commodities, indices, and cryptocurrencies.
  • Advanced trading tools and features, such as real-time market data and customizable charts.
  • User-friendly interface for seamless navigation and trade execution.
  • Competitive spreads, transparent pricing, and deep liquidity for optimal trading conditions.
  • Strong focus on customer support, including multilingual assistance and educational resources.

Cons of FXCM

  • Limited availability of certain financial instruments compared to some other platforms.
  • Inactivity fee charged for dormant accounts.
  • Some traders may find the customer support response times to be slower during peak periods.
  • Limited options for automated trading strategies.
  • Availability of certain features and services may vary depending on the trader’s location.
FXCM Logo

FXCM is an established and well-regulated online broker with an excellent range of powerful trading platforms that are loaded with tools and market insights to help you discover trades and make informed decisions.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Comparing AvaTrade and FXCM

The following are key considerations when comparing Avatrade and FXCM:

1. Regulation

AvaTrade and FXCM are both well-regulated brokers that offer a high level of security for their customers. AvaTrade is regulated by multiple authorities, including the Central Bank of Ireland, the Australian Securities and Investments Commission, the Financial Services Agency of Japan, the Financial Sector Conduct Authority of South Africa, and the Abu Dhabi Global Market. It also holds a license from the British Virgin Islands Financial Services Commission, a low-tier regulator.

FXCM is regulated by reputable regulators, such as the Financial Conduct Authority in the UK, the Australian Securities and Investments Commission, the Cyprus Securities and Exchange Commission, and the Financial Sector Conduct Authority of South Africa. It also operates under FXCM Markets Limited, which is registered in Bermuda and regulated by the Bermuda Monetary Authority, another low-tier regulator.

Both brokers provide negative balance protection and segregate client funds for some of their customers. AvaTrade has more global licenses than FXCM, which may be an advantage for some traders who want to access different markets.

2. Trading Platforms

AvaTrade offers a comprehensive range of trading platforms, catering to diverse trading styles and preferences. Traders can choose from platforms such as MetaTrader 4 (MT4), MetaTrader 5 (MT5), AvaOptions, AvaTradeGO, DupliTrade, and ZuluTrade. Each platform is designed to provide intuitive user experiences, advanced charting tools, and analysis capabilities, empowering traders to make informed decisions.

FXCM also provides a range of trading platforms, including MetaTrader 4 (MT4), NinjaTrader, Trading Station, and ZuluTrade. These platforms offer traders flexibility and choice when it comes to executing trades, accessing real-time market data, and utilizing various order types. Whether traders prefer a familiar platform like MT4 or seek more advanced features, FXCM’s platform offerings cater to different trading needs.

3. Pricing and Fees

AvaTrade has a slight edge over FXCM in terms of pricing and fees, specifically regarding the average spreads on currency pairs. AvaTrade offers lower average spreads on most currency pairs compared to FXCM. The average spread for EUR/USD is 0.6 pips at AvaTrade and 1.3 pips at FXCM.

Let’s consider an example to illustrate the potential cost difference. If you trade 1 standard lot (100,000 units) of EUR/USD at AvaTrade, you would pay $6 in spread cost per round trip (buy and sell). On the other hand, if you trade the same lot size at FXCM, you would pay $13 in spread cost per round trip. This means there is a difference of $7 per trade between the two brokers, which can accumulate over time.

It’s important to note that spreads are not fixed and can vary based on factors such as market conditions, liquidity, and volatility. There might be instances when FXCM offers lower spreads than AvaTrade on certain currency pairs or at specific times of the day. Hence, it is recommended to check the live spreads on both platforms before placing a trade and to monitor them throughout your trading session.

4. Leverage

AvaTrade offers leverage up to 1:400, allowing traders to multiply their trading positions by up to 400 times their invested capital. This high leverage can amplify potential profits, but it also increases the risk of losses. It is crucial for traders to have a solid understanding of leverage and the associated risks, and to use it judiciously according to their risk tolerance and trading strategy. In contrast, FXCM offers leverage up to 1:30, providing a more conservative leverage option. Traders should carefully assess their risk appetite and the impact of leverage on their trading before deciding which level of leverage is suitable for them.

5. Asset Selection

AvaTrade boasts a wide range of assets, offering traders the opportunity to diversify their portfolios across various markets. Traders can access a broad selection of assets, including forex, stocks, indices, commodities, cryptocurrencies, and bonds. This diverse asset selection allows for greater flexibility and the ability to capitalize on different market opportunities. On the other hand, FXCM focuses primarily on forex, commodities, and indices. While the asset selection is more limited compared to AvaTrade, it still covers the most popular and frequently traded financial instruments. Traders should consider their preferred markets and trading strategies when evaluating the asset selection offered by each broker.

6. Social Trading

Both AvaTrade and FXCM recognize the value of social trading and offer tools to facilitate it. Social trading allows traders to observe and replicate the trades of successful traders, leveraging their expertise and strategies. AvaTrade provides access to social trading platforms such as DupliTrade and ZuluTrade, enabling traders to browse and select from a pool of experienced traders to follow and copy their trades. FXCM also offers social trading features, empowering traders to connect with other participants and potentially benefit from their trading insights. Traders interested in social trading should assess the features and capabilities of each broker’s social trading platform to determine which one aligns best with their needs and preferences.

7. Minimum Deposit

AvaTrade requires a minimum deposit of $100 to open a trading account. This relatively affordable minimum deposit makes it accessible to traders with different budget sizes. FXCM, on the other hand, has a slightly lower minimum deposit requirement of $50. Traders should consider their financial situation, risk appetite, and trading goals when evaluating the minimum deposit requirement of each broker. It’s important to choose a minimum deposit that allows for comfortable participation in the markets while ensuring responsible risk management.

AvaTrade or FXCM: Which is Best for You?

Determining which broker is best for you depends on your specific trading preferences and goals. If you’re someone who values a wide range of trading instruments, including stocks, cryptocurrencies, and bonds, along with a variety of platform choices and advanced analysis tools, AvaTrade may be the better option. On the other hand, if you primarily focus on forex, commodities, and indices, and prefer a broker with lower minimum deposit requirements and strong social trading features, FXCM could be the more suitable choice. Consider factors such as regulatory oversight, leverage options, pricing structures, and the availability of educational resources. Assessing your individual needs and priorities will help you make an informed decision on which broker aligns best with your trading style and aspirations.

Conclusion

In conclusion, both AvaTrade and FXCM are well-established trading platforms that provide traders with a range of features and options to suit their individual needs. AvaTrade excels in its diverse asset selection, comprehensive trading platforms, and higher leverage options. On the other hand, FXCM focuses on forex, commodities, and indices while offering a lower minimum deposit requirement. Traders should carefully evaluate their trading goals, risk tolerance, and preferences to determine which broker aligns best with their requirements. Conducting thorough research and considering factors such as regulation, platform features, pricing, asset variety, social trading capabilities, and deposit/withdrawal methods will help traders make an informed decision and embark on their trading journey with confidence.


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