When choosing the right online broker, two names that often pop up are AvaTrade and Plus500. Both are well-known in the world of forex and CFD trading, and each has its own strengths. In this article, we’ll compare AvaTrade and Plus500, looking at their platforms, fees, features, and more, to help you decide which broker best suits your needs.
This table offers a quick comparison to help you choose between the two brokers based on your preferences and trading style.
| Feature | AvaTrade | Plus500 |
|---|---|---|
| Year Founded | 2006 | 2008 |
| Regulation | ASIC, FCA, CySEC, Central Bank of Ireland, others | FCA, CySEC, ASIC, others |
| Trading Platforms | MetaTrader 4, MetaTrader 5, AvaTradeGO | Proprietary Web-based and Mobile App |
| Leverage | Up to 400:1 (region-dependent) | Up to 30:1 (retail clients) |
| Commission Fees | None | None |
| Spreads | Competitive, variable spreads | Tight, variable spreads |
| Educational Resources | Extensive (Webinars, Tutorials, eBooks) | Limited |
| Customer Support | Phone, Live Chat, Email (Multiple Languages) | 24/7 Live Chat |
| Assets | Forex, CFDs (stocks, commodities, cryptos) | Forex, CFDs (stocks, indices, cryptos) |
| Inactivity Fee | Yes (after 3 months) | Yes (after 3 months) |
| Mobile App | AvaTradeGO | Yes |
| Best For | Beginners & advanced traders seeking educational content and multiple platforms | Traders who prefer a user-friendly, straightforward platform |
Overview of AvaTrade
AvaTrade is a global CFD and forex broker founded in 2006. It offers trading in forex, stocks, commodities, cryptocurrencies, and more. With its years of experience, AvaTrade has become a trusted name in the industry.
Key features of AvaTrade include:
- Regulation: AvaTrade is regulated by several major financial authorities, including the Central Bank of Ireland, the Australian Securities and Investments Commission (ASIC), and others.
- Platforms: AvaTrade provides access to multiple platforms like MetaTrader 4 (MT4), MetaTrader 5 (MT5), and their own AvaTradeGO app.
- Leverage: Traders can access leverage of up to 400:1, depending on their region.
- Educational Resources: AvaTrade offers a wide range of educational materials, making it a great option for beginners.
- Fees: AvaTrade has competitive spreads, but it also charges overnight fees and inactivity fees for accounts that remain idle for three months.
Overview of Plus500
Plus500 is another top CFD broker that started in 2008. It focuses on providing a user-friendly platform and access to a broad range of markets, including stocks, forex, indices, cryptocurrencies, and commodities.
Key features of Plus500 include:
- Regulation: Like AvaTrade, Plus500 is regulated by several top-tier financial authorities, including the Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC).
- Platform: Plus500 is known for its proprietary trading platform, which is web-based and mobile-friendly, with a straightforward and easy-to-use interface.
- Leverage: Plus500 offers leverage of up to 30:1 for retail clients, in line with regulatory standards.
- Educational Resources: Plus500 provides fewer educational resources compared to AvaTrade, making it a better fit for more experienced traders.
- Fees: Plus500 charges no commissions and has tight spreads. However, there are also overnight fees and inactivity fees, similar to AvaTrade.
AvaTrade vs Plus500: Platform Comparison
When it comes to trading platforms, both brokers offer unique features.
- AvaTrade provides multiple platform choices like MetaTrader 4 and MetaTrader 5, which are highly popular among traders for their advanced charting tools and automated trading features. Additionally, the AvaTradeGO app is sleek and designed for ease of use, allowing traders to access their accounts on the go.
- Plus500, on the other hand, sticks with its proprietary platform, which is incredibly intuitive and user-friendly. It’s perfect for traders who prefer simplicity and want to get started with minimal learning. While it might not be as feature-rich as MT4 or MT5, it offers all the essentials for trading CFDs.
Which one to choose?
- If you’re a trader looking for advanced tools, AvaTrade with MT4 and MT5 might be the better option.
- If you prefer an easy-to-use, hassle-free platform, Plus500 could be more appealing.
AvaTrade vs Plus500: Fees and Costs
Fees can significantly impact your trading profitability, so it’s important to understand the fee structures of both brokers.
- AvaTrade operates with competitive spreads on most assets but does charge for overnight positions and has an inactivity fee after three months of non-use. Additionally, it has no commission charges for most trades, which makes it attractive to some traders.
- Plus500 is commission-free across the board and offers very tight spreads, making it cost-effective for short-term traders. However, overnight fees and inactivity fees do apply, just like AvaTrade.
Which one to choose?
- For traders who want low spreads and don’t mind proprietary platforms, Plus500 may be cheaper.
- If you prefer a range of trading platforms with no hidden commissions, AvaTrade could be a better fit.
AvaTrade vs Plus500: Leverage and Risk
Leverage is an essential part of CFD and forex trading. It allows traders to control larger positions with a small amount of capital.
- AvaTrade offers leverage of up to 400:1 for professional clients, which can be beneficial for experienced traders who understand how to manage risk properly. However, leverage is region-specific, and in Europe and the UK, the leverage for retail traders is capped at 30:1 due to regulations.
- Plus500 also offers leverage of 30:1 for retail clients, in compliance with regulatory bodies like the FCA and CySEC.
Which one to choose?
- If you need higher leverage and are in a region that permits it, AvaTrade is the better choice.
- If you’re comfortable with regulatory limits and are a retail trader, Plus500 is a solid option.
AvaTrade vs Plus500: Education and Support
AvaTrade and Plus500 differ significantly in their approach to education and customer support.
- AvaTrade excels in its educational offerings, providing webinars, video tutorials, eBooks, and articles aimed at helping beginners improve their trading knowledge. It also has excellent customer support, available via phone, live chat, and email in multiple languages.
- Plus500 is more suited to experienced traders, as it does not offer as many educational resources. However, it offers 24/7 customer support, which is a big plus for traders who need immediate assistance, especially in the fast-moving world of forex and CFD trading.
Which one to choose?
- If you’re a beginner looking for educational resources and strong customer support, AvaTrade is the clear winner.
- If you’re an experienced trader and prefer to learn by doing, Plus500 might be more up your alley.
AvaTrade vs Plus500: Which Should You Choose?
Ultimately, the choice between AvaTrade vs Plus500 boils down to your trading preferences and experience level.
- AvaTrade is ideal for traders looking for multiple platforms, higher leverage (depending on location), and comprehensive educational resources. It’s also better for traders who want to use MetaTrader 4 or MetaTrader 5.
- Plus500 is perfect for traders who prefer a simple, commission-free trading platform with tight spreads. Its proprietary platform is easy to use, making it suitable for both beginners and seasoned traders alike.
Both brokers have strengths and weaknesses, so choosing the right one depends on what you value most in a broker. If you’re a beginner looking for educational resources and a choice of platforms, AvaTrade is a better fit. If you’re an experienced trader wanting a clean, intuitive interface with no commissions, Plus500 might be your go-to choice.
Whatever your decision, always ensure you understand the risks involved in trading CFDs and forex, and trade responsibly.
Editorial Staff at Chweya is a team of financial experts led by Vincent Nyagaka, with over 9 years of experience in finance, commerce, forex, crypto, and marketing. Started in 2014, Chweya is now among the largest free financial resource sites in the industry and is often referred to as Wikipedia for business.