Interactive Brokers versus AvaTrade
The choice of trading platforms at AvaTrade is outstanding. It consists of the proprietary WebTrader, the mobile app AvaTradeGO, Ava Option, MT4, and MT5. Social trading is available via Ava Social, ZuluTrade, and DupliTrade. The Trading Central upgrades MT4/MT5, where trades can run algorithmic strategies or use the embedded copy trading feature. Passive income seekers benefit from the partnership program with $250M+ in payouts.
Interactive Brokers presents a suite of cutting-edge proprietary solutions developed for advanced traders, including algorithmic trading and support for third-party developers. Investor’s Marketplace offers 1,500+ services, and passive investors can benefit from Interactive Advisors available from $100.
We have conducted an in-depth review of AvaTrade and Interactive Brokers to determine which one presents the better overall choice and which traders will benefit the most at either broker.
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- Interactive Brokers versus AvaTrade- Verdict
Ireland United States ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID N/A 2006 1978 Market Maker ECN/STP, No Dealing Desk $100 $0 Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ Proprietary platform 0.9 pips 0.2 pips ($2.00) 1.5 pips 0.4 pips ($4.00) $0.03 $0.01 $0.29 $0.17 77.82% N/A Not applicable N/A 0.9 pips N/A Commission-free $1.00 - $2.00 Get Started Get Started
Features and Platforms
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Noteworthy:
SharpTrader, the successfully spun out AvaTrade academy, and the IBKR Campus remain two of the highest-quality educational services industry-wide for beginner traders. They also get high-quality market research at Interactive Brokers.
Available Markets
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Most traders will find the balanced asset selection at AvaTrade more than enough to execute strategies and achieve cross-asset diversification. AvaTrade supplements its standard Forex selection with Forex options. As a prime brokerage Interactive Brokers maintains 135 markets across 33 countries in 23 currencies, resulting in excellent sector exposure for demanding clients.
Typical Spreads and Fees
0.9 pips 0.2 pips ($2.00) 1.5 pips 0.4 pips ($4.00) $0.03 $0.01 $0.29 $0.17 $39 $0.25 Not applicable N/A 0.9 pips N/A Commission-free $1.00 - $2.00 N/A $50 quarterly after 3 months N/A Get Started Get Started
Forex traders at Interactive Brokers get a notable cost advantage with minimum fees of $3 versus $9 at AvaTrade, making it the better choice for scalpers and high-frequency traders. Equity trading at AvaTrade remains commission-free and costs 0.05% per trade at Interactive Brokers, the lowest cost commission-based competitors.
Security and Trust
United Arab Emirates, Australia, Ireland, Israel, Japan, British Virgin Islands, South Africa United Kingdom, United States ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID N/A C53877, SIBA/L/13/1049, 406684, 45984, 1662, 190018, 514666577 36418, 8-47257, 208159 N/A 1, 1 Get Started Get Started
AvaTrade and Interactive Brokers both segregate client deposits and offer negative balance protection. AvaTrade is a trusted broker, but trading conditions depend on the regulatory jurisdiction. Interactive Brokers, a NASDAQ-listed company and S&P 400 constituent, is 81.5% privately held with $6 billion in excess regulatory capital.
AvaTrade vs Interactive Brokers – Verdict
Interactive Brokers
| Pros | Cons |
| Cutting-edge proprietary trading platforms with support for algorithmic trading | Limited deposit and withdrawal options |
| Industry-leading asset selection and trading costs | |
| Superior trading tools consisting of 1,500+ services | |
| Low-cost passive investments from as little as $100 |
AvaTrade
| Pros | Cons |
| High-quality educational offering via SharpTrader | Higher trading costs typical of commission-free brokers |
| Excellent choice of trading platforms catering to various trading needs | |
| Broad asset selection and cross-asset diversification opportunities | |
| Well-regulated and trusted broker with oversight from a central bank |
Given the ultra-competitive costs at Interactive Brokers, Forex scalpers, high frequency, and algorithmic traders, and those with demanding asset requirements get a good trading environment there. The overall product and services portfolio may overwhelm many retail traders, but AvaTrade covers all their needs and so typically remains a better choice for them. The support for social trading, and user-friendly mobile app, stand out among the features millennial and GenZ traders favor.
You might also be interested in reviewing the below broker comparisons:
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- InteractiveBrokers vs Oanda
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- InteractiveBrokers vs QuesTrade
FAQs
Should I use AvaTrade?
AvaTrade offers a balanced asset selection and quality trading environment, catering well to most retail traders, but everyone needs to gauge the product and services portfolio against their unique requirements.
Is AvaTrade a dealing desk broker?
AvaTrade is a market maker and, therefore, has a dealing desk, even if it is automated.
Is AvaTrade South African?
AvaTrade is an international multi-asset CFD broker headquartered in Ireland, but it maintains a South African subsidiary.
Is my money safe in AvaTrade?
Client funds at AvaTrade remain secure and segregated from corporate funds. Additionally, AvaTrade complies with seven regulators, one being a central bank.
Who are the competitors of Interactive Brokers?
Theoretically, all brokers compete with Interactive Brokers and each other. Since Interactive Brokers remains in the top echelon of the brokerage scene, companies including IG Markets, Saxo Bank, RoboForex, TD Ameritrade, IC Markets, FXCM, CMC Markets, and City Index rank as immediate competitors.