If you’ve started your broker search alphabetically, you’ve probably already heard about Alpari and AvaTrade. This Forex broker comparison will break down the strengths and weaknesses of these brokers and will provide a deep comparison of Ireland-based AvaTrade and Mauritius-based Alpari International so that you can determine if either of these global brokerages is right for you. Alpari was founded in 1998 and boasts over 2,000,000 clients. AvaTrade was founded in 2006 and currently serves over 200,000 traders. Nevertheless, neither the life of the brokerage nor its client number should be primary factor considered when choosing a Forex broker, as they represent more how the company’s marketing efforts work rather than the actual workings of the broker. This comparison will dig a bit deeper to show you the nitty-gritty details of both AvaTrade and Alpari International.
This comparison will focus on the following four aspects plus an ultimate verdict:
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- AvaTrade vs Alpari Verdict
Ireland Saint Vincent and the Grenadines ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID MWALI International Services Authority 2006 1998 Market Maker ECN/STP, Market Maker $100 $500 Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ MetaTrader 4, MetaTrader 5 0.9 pips 1.1 pips ($11.00) 1.5 pips 1.2 pips ($12.00) $0.03 $0.06 $0.29 $0.27 77.82% Undisclosed Not applicable 0.0 pips 0.9 pips 0.8 pips Commission-free $1.60 per 1.0 standard round lot Visit Website Visit Website
Features and Platforms
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AvaTrade
AvaTrade offers a range of trading platforms, including the standard MetaTrader 4 and MetaTrader 5 options, as well as solid proprietary platforms called AvaTradeGo for mobile trading, and WebTrader for desktop trading. AvaTrade’s MetaTrader platforms are outfitted with the Autochartist MT4/MT5 plugin provided for a significant upgrade to the trading environment. Social trading is offered via partnerships with DupliTrade and ZuluTrade. Options trading is available on the fully customizable AVAOptions platform, which includes the possibility to conduct what-if analyses.
An educational program is offered by AvaTrade, allowing new traders to broaden their knowledge base before funding their accounts. A combination of written content, eBooks, and videos are available. The demo account is time-limited to just 21 days, which is less than ideal in today’s competitive market, but should give traders more than enough time to see if the brokerage provides good service. The research division was decoupled from the official website and is offered as a trading academy, Sharp Trader. 71.0% of retail traders operate at a loss with AvaTrade.
Alpari
The MT4/MT5 trading platforms are available at Alpari but without any of the required third-party plugins offered by AvaTrade. This lack of plugins instantly puts Alpari at a disadvantage compared to AvaTrade, as most traders will miss those critical services. ECN trading is available at Alpari which can be an advantage, but this broker fails to inform traders which ECN bridge is utilized to connect MT4/MT5 accounts to the Electronic Communication Network (ECN). The Alpari CopyTrade platform supports social trading.
Retail account management is where Alpari established itself as a prime choice. Over 56,000 PAMM accounts are listed, home to more than 550,000 traders. A 30% deposit bonus is available but remains dependent on geographical location. This broker hosts trading competitions that should be avoided. Webinars and written content covering trading allow new traders to increase their knowledge base. Free research is presented by Alpari, and a loyalty cashback program for active traders reduces trading costs further, creating a great overall trading environment.
Over 2,000,000 traders take advantage of excellent trading conditions provided by Alpari, including 550,000 traders across 56,000 PAMM accounts.
Available Markets
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AvaTrade allows clients access to over 250 assets, but the focus remains the Forex market. The commodity selection is acceptable, and the cryptocurrency offering provides a refreshing range. This broker does list two bonds and five ETFs, an somewhat sad attempt to market a well-diversified selection. Index CFDs provide a solid introduction into this asset class, and roughly 700 equity CFDs are listed. AvaTrade mentions over 250 assets in its primary content, but considering the broad selection, the number is closer to 1,000. Options traders will find the choices provided solid.
The asset selection at Alpari is considerably weaker apart from the Forex market, where this broker provides a great choice to traders. The commodity market is extremely weakly covered with merely four assets. Ten equity CFDs can be compared to AvaTrade’s bonds and ETFs, pretty weak coverage of the sector that serves marketing purposes but not traders. Eleven index CFDs provide retail traders with basic diversification options, but only four cryptocurrencies are offered. Alpari offers over 250 assets in total.Typical Spreads and Fees
0.9 pips 1.1 pips ($11.00) 1.5 pips 1.2 pips ($12.00) $0.03 $0.06 $0.29 $0.27 $39 $56.50 Not applicable 0.0 pips 0.9 pips 0.8 pips Commission-free $1.60 per 1.0 standard round lot N/A N/A $50 quarterly after 3 months N/A Visit Website Visit Website
AvaTrade provides fixed spreads for its accounts. The EUR/USD is listed with a spread of 0.9 pips for retail traders. Variable spreads are quoted only for options trades, a fact buried in legal texts. More transparency regarding the pricing environment is necessary. AvaTrade notes that variable spreads are impacted by actual market conditions, which is why it fixes its spreads close to market conditions.
No commissions are charged, but the shortfall is covered by spreads. An inactivity fee of €50 or a currency equivalent applies is deducted after three months of inactivity unless prohibited by law. Following twelve months inactivity, an administration fee of €100 or a currency equivalent is charged. Most traders are not expected to become inactive, which makes the existence of such fees even mostly irrelevant.
The pricing environment at Alpari is significantly more trader-friendly. Traders are provided with the best choice in the ECN account. For a minimum deposit of just $500, spreads are as low as 0.4 pips with a commission of $3 per lot. The loyalty cashback program reduces trading costs further. Traders who prefer to trade free of commissions will get the same 0.4 pips spreads in the Pro MT4 account, but the minimum deposit is $25,000. The EUR/USD is listed with a spread of 1.2 pips in the Standard account, higher than at AvaTrade. The Alpari Micro account comes with a minimum spread of 1.7 pips. Traders are highly recommended to take advantage of the ECN account, which provides one of the most trader-friendly cost structures in today’s brokerage industry.
Overnight leveraged positions face swap charges, which are listed inside the trading platforms. Corporate actions like dividends and mergers are passed on to traders. Third-party withdrawal charges also apply. The general pricing environment at Alpari is considerably more competitive and trader-friendly as compared to AvaTrade, though a higher deposit is required, which might deter some traders.
Security and Trust
United Arab Emirates, Australia, Ireland, Israel, Japan, British Virgin Islands, South Africa Mauritius, Malawi ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID MWALI International Services Authority C53877, SIBA/L/13/1049, 406684, 45984, 1662, 190018, 514666577 C113012295, T2023236 N/A 4, 5 Visit Website Visit Website
AvaTrade’s primary regulator is the Central Bank of Ireland, and traders are protected under the ICCL (Investor Compensation Company LTD) scheme up to a maximum of €20,000. This solely applies to the entity operating out of Ireland, which remains under EU regulation, including MiFID II. Funds remain segregated across all subsidiaries. The company is regulated in other jurisdictions under different brand names, such as ATrade in Israel. The broad regulatory record is clean, and traders may trust this broker.
Exinity LTD, the owner of Alpari, is regulated in Mauritius by the Financial Services Commission (FSC). Another layer of protection is provided through The Financial Commission’s compensation fund, with maximum coverage of €20,000 per case, and on par with EU protection. This broker has faced bankruptcies and market exits in its past but has always remained in full compliance with its regulators. Traders should have full trust and confidence in Alpari.
Alpari opted for an innovative approach to regulation through The Financial Commission operated out of Hong Kong. It is the world’s first external dispute resolution (EDR) mechanism and offers brokers the opportunity to deploy a competitive trading environment while protecting traders on par with reputable regulatory schemes.
AvaTrade vs Alpari Verdict
AvaTrade is a trustworthy brokerage but provides traders with a slightly overpriced trading environment in fixed-spread accounts. Still, this broker offers a much wider range of assets than Alpari does, and the moderately higher fees are a small price to pay if there are assets that you want to trade that aren’t available at Alpari. In its current form, AvaTrade can make a case for a solid option as part of a well-diversified brokerage strategy to trading.
Alpari has grown into a well-respected brokerage over the past two decades and created an outstanding trading environment. Through a series of past mistakes, this brokerage has grown and evolved and has faithfully served over 2,000,000 traders. A leader in PAMM accounts, Alpari is most relevant to traders who deploy automated trading solutions. This is achieved through a cost-effective trading environment and a maximum leverage of 1:1000.
Both brokers provide solid offerings, but AvaTrade edges out Alpari in terms of asset selection, platform offerings, and level of regulation, making it our clear winner in this Alpari vs AvaTrade broker comparison.
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