Avatrade Vs IG

Category: Broker Guides | Author: Trading Brokers | Date: June 28, 2023

In the fast-paced world of online trading, selecting the right broker is essential for achieving your financial goals. AvaTrade and IG are two prominent players in the industry, offering a wide array of trading opportunities and advanced features. In this article, we will conduct an in-depth comparison of these brokerage platforms, helping you make an informed decision about which one best suits your investment needs. Whether you are a seasoned trader or just starting your investment journey, understanding the unique strengths and weaknesses of AvaTrade and IG is crucial to making an informed decision between the two.

Overview of AvaTrade

AvaTrade

AvaTrade

AvaTrade is a well-established brokerage platform that has been catering to traders worldwide since 2006. Known for its user-friendly interface and extensive range of trading instruments, AvaTrade offers a diverse portfolio of assets, including Forex, stocks, commodities, cryptocurrencies, and more. With its commitment to providing a seamless trading experience, AvaTrade offers various trading platforms, including the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5), as well as its proprietary platform called AvaTradeGO.

One of the standout features of AvaTrade is its comprehensive educational resources, which are designed to empower traders of all skill levels. From beginner tutorials to advanced trading strategies, AvaTrade offers a wealth of educational materials, including video tutorials, webinars, eBooks, and market analysis. Additionally, AvaTrade provides a demo account option for traders to practice and refine their trading skills before diving into live trading. This feature is particularly beneficial for novice traders who want to gain confidence and experience in a risk-free environment.

Pros of AvaTrade

  • Wide range of trading instruments, including cryptocurrencies.
  • User-friendly platform with advanced trading tools.
  • Competitive spreads and flexible leverage options.

Cons of AvaTrade

  • Limited research and educational resources compared to some other brokers.
  • Limited availability of certain exotic currency pairs.
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 IG

IG

IG

IG, founded in 1974, is a global leader in online trading with a strong reputation in the industry. The platform offers an extensive range of financial instruments, including Forex, indices, shares, commodities, cryptocurrencies, and more. With its powerful trading technology and advanced features, IG provides traders with access to a wide range of markets, enabling them to diversify their investment portfolios. IG offers multiple trading platforms, including the user-friendly IG Trading platform and the feature-rich MetaTrader 4 (MT4).

One notable feature of IG is its commitment to delivering competitive pricing and transparent trading conditions. The platform offers tight spreads, allowing traders to execute trades at favorable prices. Moreover, IG provides access to advanced charting tools and analysis, empowering traders to make well-informed trading decisions. In addition to its comprehensive market analysis, IG offers a range of educational resources, including trading courses, webinars, and seminars, to help traders enhance their knowledge and skills.

Pros of IG

  • Wide range of tradable assets, including global markets.
  • Advanced trading tools and charting capabilities.
  • Strong regulatory framework and reliable customer support.

Cons of IG

  • Higher minimum deposit requirement compared to some other brokers.
  • Inactivity fees for dormant accounts.
IG Logo

IG have an impressive selection of 18,000+ instruments including Forex, Stocks, Cryptos and Commodities. You can trade via easy to use platforms for desktop and mobile apps, with low trading costs and the peace of mind that you are using one of the most well-known brokers in the industry.

69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.

Comparison Between AvaTrade and IG

When comparing AvaTrade and IG, there are several key aspects to consider to determine which platform suits your trading needs.

Regulation:

Both brokers are regulated by multiple authorities, but IG has more tier-1 licenses than AvaTrade. IG holds 7 global tier-1 licenses, while AvaTrade holds 4. IG also holds 2 global tier-2 licenses and 1 global tier-3 license, while AvaTrade holds 4 global tier-2 licenses and 1 global tier-3 license. Tier-1 licenses are considered the most trustworthy and reputable in the industry, while tier-3 licenses are considered the least trustworthy and reputable. Therefore, IG has a higher trust score than AvaTrade.

Trading platforms:

Both brokers offer MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which are the most popular and widely used platforms in the forex industry. However, IG also offers its proprietary platform, which is fast, reliable, and packed with advanced tools and features. IG’s platform also supports automated trading, social trading, and robo-advisor services. AvaTrade does not have its proprietary platform, but it supports other third-party platforms, such as ZuluTrade, DupliTrade, and MQL5 Signals for social trading.

Pricing and fees:

Both brokers charge no commissions on most trades, but instead, apply a spread or a margin to the market price. The spreads vary depending on the instrument, market conditions, and account type. IG offers lower spreads than AvaTrade on average. For example, IG offers an average spread of 0.86 pips on EUR/USD, while AvaTrade offers an average spread of 0.92 pips on EUR/USD. Both brokers also charge overnight funding fees for holding positions open past a certain time, as well as inactivity fees for dormant accounts.

Broker type:

Both brokers offer STP (straight-through processing) or ECN (electronic communication network) accounts for some instruments or markets, which means they pass their clients’ orders to external liquidity providers and do not take the opposite side of their trades. STP or ECN accounts usually have tighter spreads but higher commissions than market maker accounts.

Leverage:

Both brokers offer different leverage levels depending on the instrument, market, and account type. However, IG offers higher leverage than AvaTrade on average. For example, IG offers up to 500:1 leverage for professional clients in Australia or Europe, while AvaTrade offers up to 400:1 leverage for professional clients in Australia or Europe. Leverage is a double-edged sword that can magnify both profits and losses.

Asset selection:

Both brokers offer a wide range of instruments on various markets, such as forex, shares, indices, commodities, cryptocurrencies, and more. However, IG offers more instruments than AvaTrade on average. For example, IG offers over 17,000 financial instruments on offer, while AvaTrade offers over 1,200 financial instruments on offer.

Social trading:

Both brokers support social trading or copy trading services, which allow you to follow or copy other traders’ strategies and performance. However, IG only supports social trading within its platform or MT4’s integrated solution, while AvaTrade supports multiple third-party platforms for social trading, such as ZuluTrade, DupliTrade, and MQL5 Signals.

Minimum deposit:

Both brokers have different minimum deposit requirements depending on the account type. However, AvaTrade has a lower minimum deposit requirement than IG on average. For example, AvaTrade requires a minimum deposit of $100 for its standard account, while IG requires a minimum deposit of $250 for its standard account.

Withdrawal and deposit methods:

Both brokers offer various withdrawal and deposit methods for their client’s convenience and security. However, IG offers more methods than AvaTrade on average. For example, IG offers 16+ payment methods including credit cards, debit cards, PayPal, wire transfer, etc., while AvaTrade offers 10+ payment methods including credit cards, debit cards, Neteller, Skrill, etc.

Which is Better For You?

AvaTrade might be a better option for you if you are a beginner trader or if you value comprehensive educational resources and user-friendly platforms. AvaTrade offers an extensive range of educational materials, including webinars, video tutorials, and eBooks, which can be beneficial for those who are new to trading or looking to expand their knowledge. Additionally, their user-friendly platforms, such as MetaTrader 4 (MT4) and MetaTrader 5 (MT5), make it easier to navigate the trading process and access a variety of tools and features. AvaTrade’s intuitive interface and educational resources can help you build a solid foundation in trading and make informed decisions.

On the other hand, IG might be a better option for you if you prioritize competitive pricing, transparent fee structures, and a wide range of trading instruments. IG is known for its competitive spreads, flexible pricing options, and transparent fee structure. They offer a diverse selection of financial instruments, including Forex, indices, shares, commodities, and cryptocurrencies, providing ample trading opportunities. With IG, you can customize your trading experience by choosing between commission-based or spread-only accounts, depending on your trading style. If cost-effectiveness and access to a wide range of markets are your primary concerns, IG can be a suitable choice.

Conclusion

Both AvaTrade and IG offer robust trading platforms and a wide range of tradable assets. AvaTrade shines in its focus on cryptocurrencies and user-friendly interface, while IG stands out with its comprehensive offering of global markets and advanced charting tools. Ultimately, the choice between AvaTrade and IG depends on your individual trading goals, preferences, and risk tolerance. It is recommended to consider your specific requirements and carefully evaluate the features and offerings on a demo account with each broker before making a decision.


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