AvaTrade is a contract for difference (CFD) broker includes trading products for stocks, bonds, indices, ETFs, commodities, and cryptocurrencies. CFDs enable traders to speculate on an asset without actually owning the underlying asset. CFDs allow traders to apply large amounts of leverage and also to take short positions. This is a benefit as most cryptocurrency trading services do not enable traders to take short positions. One of the key features of AvaTrade is providing traders with a number of different software options to conduct their trades on. This includes the popular MetaTrader software along with options to automate trading. AvaTrade is also available on web browsers, mobile, and desktop applications.
AvaTrade has eight different cryptocurrency products including Bitcoin, Bitcoin Cash, Bitcoin Gold, Litecoin, Ethereum, Ripple, Dash, and EOS. This is fewer products than competitors offer with some competitors offering over 20 products but the selection still includes a wide variety. AvaTrade offers different leverage options for professional traders. Retail investors leverage is fixed at 1:2 for all cryptocurrency products. Professional traders can go up as far as 1:25 for the Bitcoin product. The leverage options are greater than most competitors.
In terms of fees, AvaTrade is priced higher than competitors and fixes its fees into the spread. Traders are charged an inactivity fee of 25 GBP for three months of inactivity on their account. Fees are not transparent on the site and need to be searched for.
- Enables traders to take short positions and apply leverage
- Leverage capability is greater than most competitors
- Offered on a wide variety of platforms
- Fees are not transparent
- Inactivity fee is charged after three months
- Fewer cryptocurrency products than competitors