AvaTrade Vs Plus500

Category: Broker Guides | Author: Trading Brokers | Date: April 4, 2024

When it comes to online trading, there are several platforms available to traders, each with its unique features and offerings. Two of the well-known platforms in the industry are AvaTrade and Plus500. In this article, we will compare the key features of AvaTrade and Plus500, highlighting their pros and cons, to help you decide which platform may be more suitable for your trading needs. So, let’s delve into the details of AvaTrade and Plus500 to make an informed decision.

What is AvaTrade?

AvaTrade

AvaTrade

AvaTrade is an online trading platform that provides access to a wide range of financial instruments, including forex, stocks, commodities, indices, cryptocurrencies, and more. With over a decade of experience in the industry, AvaTrade has built a reputation as a reliable and regulated broker. The platform offers a user-friendly interface and a suite of trading tools to assist traders in analyzing the market, executing trades, and managing their portfolios. AvaTrade aims to cater to both beginner and experienced traders by providing a balance between simplicity and advanced features.


Pros of AvaTrade

  • Wide range of financial instruments for diversified trading opportunities.
  • The User-friendly interface is suitable for traders of all levels.
  • Regulated broker with a strong reputation and reliable customer support.
  • Multiple trading platforms, including web-based, mobile apps, and MetaTrader 4.
  • Educational resources and analysis tools to support traders’ decision-making.

Cons of AvaTrade

  • Limited cryptocurrency options compared to specialized crypto trading platforms.
  • The minimum deposit requirement may be higher for some account types.
  • Inactivity fees for dormant accounts.
AvaTrade Logo

Our #1 Broker 2024

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.

What is Plus500?

Plus500

Plus500

Plus500 is an online trading platform that offers Contracts for Difference (CFDs) on various financial instruments, including forex, stocks, commodities, and more. Plus500 is known for its accessibility, catering to traders of all levels, from beginners to professionals. The platform provides a simplified trading experience, allowing traders to speculate on the price movements of different assets without owning the underlying assets themselves. Plus500 operates as a CFD provider and is regulated by multiple authorities.

Pros of Plus500

  • Access to a wide range of financial instruments.
  • Regulated broker with a strong reputation and reliable customer support.
  • Availability of a mobile app for trading on the go.

Cons of Plus500

  • Limited educational resources compared to some other platforms.
  • No support for MetaTrader 4 or other third-party trading platforms.
  • Inactivity fees for dormant accounts.
  • Limited order types and trade execution options compared to some advanced platforms.

Founded in 2008, Plus500 is a regulated and leading online trading broker providing a large range of 2,000+ CFD instruments for trading on their proprietary trading platforms with very competitive trading conditions.

80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Comparison between AvaTrade and Plus500

When comparing AvaTrade and Plus500, several factors need to be considered to determine which platform aligns better with your trading requirements. Here’s a comparison of some key factors:

Regulation:

Both brokers are regulated by multiple authorities, but Plus500 has more tier-1 licenses than AvaTrade. Plus500 holds 4 global tier-1 licenses, while AvaTrade holds 4. Plus500 also holds 4 global tier-2 licenses, 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, Plus500 has a higher trust score than AvaTrade.

Trading platforms:

Both brokers offer their proprietary platforms, which are packed with advanced tools and features. However, AvaTrade also offers MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which are the most popular and widely used platforms in the forex industry. AvaTrade’s platform also supports automated trading, social trading, and robo-advisor services. Plus500 does not offer MT4 or MT5, but it offers a web-based platform that is fast, reliable, and customizable.

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. AvaTrade offers lower spreads than Plus500 on average. For example, AvaTrade offers an average spread of 0.92 pips on EUR/USD, while Plus500 offers an average spread of 1.12 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 are market makers, which means they act as counterparties to their clients’ trades and may have a conflict of interest with them. However, both brokers also 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, AvaTrade offers higher leverage than Plus500 on average. For example, AvaTrade offers up to 400:1 leverage for professional clients in Australia or Europe. Plus500 offers fixed leverage for each instrument, which cannot be changed by the trader. The leverage levels vary depending on the instrument and the regulation. 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, and more. However, Plus500 offers more instruments than AvaTrade on average. For example, Plus500 offers over 2,800 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, AvaTrade supports multiple third-party platforms for social trading, such as ZuluTrade, DupliTrade, and MQL5 Signals. Plus500 only supports social trading within its platform.

Minimum deposit:

Both brokers have different minimum deposit requirements depending on the account type. However, AvaTrade has a lower minimum deposit requirement than Plus500 on average. For example, AvaTrade requires a minimum deposit of $100 for its standard account, while Plus500 requires a minimum deposit of $200 for its standard account.

Withdrawal and deposit methods:

Both brokers offer various withdrawal and deposit methods for their client’s convenience and security. However, Plus500 offers more methods than AvaTrade on average. For example, Plus500 offers 15+ 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 Should You Choose: AvaTrade or Plus500?

The choice between AvaTrade and Plus500 depends on your individual trading preferences and requirements. If you prioritize a wide range of financial instruments, a comprehensive platform with additional tools, and support for MetaTrader 4, AvaTrade would be the better choice. AvaTrade caters to both beginner and experienced traders and offers a well-rounded trading experience. On the other hand, if simplicity and ease of use are your priorities, Plus500 may be more suitable. Plus500 provides a straightforward trading environment and offers a good selection of financial instruments.

Conclusion

AvaTrade and Plus500 are both reputable online trading platforms that provide access to a range of financial instruments. AvaTrade aims to strike a balance between simplicity and advanced features, making it suitable for traders of all levels, while Plus500 focuses on simplicity and accessibility. The choice between AvaTrade and Plus500 ultimately depends on your specific trading preferences, such as the range of financial instruments you want to trade, the level of customization and advanced features you require, and your experience level. It is recommended to thoroughly research and test both platforms, considering your individual needs, before making a decision. Additionally, consulting with experienced traders or a financial advisor can provide valuable insights to help you make an informed choice. Remember, selecting the right trading platform is crucial for your trading success, as it directly impacts your trading experience and ability to execute your strategies effectively.



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