LegacyFX offers the MT5 trading platform, ignoring the well-established MT4 infrastructure, and deploys an unnecessarily complex account structure with a backward philosophy. PAMM accounts are available, but trading costs are high unless traders deposit $25,000+.

AvaTrade features a broad choice of trading platforms. Besides MT4/MT5, supportive of algorithmic trading and upgraded via the Trading Central plugin, it developed its proprietary WebTrader, its mobile app AvaTradeGO, and Ava Option. The proprietary Ava Social caters to copy traders alongside ZuluTrade and DupliTrade. AvaTrade provides equal access to its trading environment for a deposit of $100.

Beginner traders get an industry-leading product via AvaTrade SharpTrader, while LegacyFX offers high-quantity, low-quality educational content.

I have conducted an in-depth review of LegacyFX and AvaTrade to determine which one presents the better overall choice and which traders will benefit the most at either broker.

Headquarters
IrelandCyprus
Regulators
ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFIDVFSC
Tier 1 Regulator(s)?
Owned by Public Company?
Year Established
20062012
Execution Type(s)
Market MakerMarket Maker
Minimum Deposit
$100$500
Negative Balance Protection
N/A
Trading Platform(s)
Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+MetaTrader 5
Average Trading Cost EUR/USD
0.9 pips1.6 pips
Average Trading Cost GBP/USD
1.5 pips1.5 pips
Average Trading Cost WTI Crude Oil
$0.03 $0.13
Average Trading Cost Gold
$0.29 $0.63
Retail Loss Rate
77.82%N/A
Minimum Raw Spreads
Not applicableN/A
Minimum Standard Spreads
0.9 pipsN/A
Minimum Commission for Forex
Commission-freeN/A
Islamic Account
Signals
US Persons Accepted?
Managed Accounts
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Features and Platforms

MT4
MT5
MT4/MT5 Add-Ons
N/A
cTrader
Proprietary Platform
Automated Trading
Social/Copy Trading
N/A
DOM?
Guaranteed Stop Loss
Scalping
Hedging
One-Click Trading
OCO Orders
Interest on Margin
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Noteworthy:

LegacyFX offers swap-free trading on all accounts, making it a notably cheaper broker for leveraged traders who maintain open positions for several days or weeks. Both brokers feature a Guardian Angel service, superior at AvaTrade.

Available Markets

Currency Pairs
N/A
Cryptocurrencies
N/A
Commodities
Crude Oil
Gold
Metals
Equity Indices
Stocks (non-CFDs)
Bonds
N/A
ETFs
Options
N/A
Futures
Synthetics
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LegacyFX covers most sectors but has insufficient trading instruments in each. They suffice for beginners to get acquainted with the market, and for focused trading strategies that require fewer assets. AvaTrade maintains a well-balanced asset selection focused on equity trading with cross-asset diversification. It also supports complex strategies using options, making it an overall better choice.

Typical Spreads and Fees

Average Trading Cost EUR/USD
0.9 pips1.6 pips
Average Trading Cost GBP/USD
1.5 pips1.5 pips
Average Trading Cost WTI Crude Oil
$0.03 $0.13
Average Trading Cost Gold
$0.29 $0.63
Average Trading Cost Bitcoin
$39 $505
Minimum Raw Spreads
Not applicableN/A
Minimum Standard Spreads
0.9 pipsN/A
Minimum Commission for Forex
Commission-freeN/A
Deposit Fee
N/A
Withdrawal Fee
N/A
Inactivity Fee
$50 quarterly after 3 months N/A
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LegacyFX’s trading costs are unacceptably high, commencing from 1.5 pips or $15.00 per lot, making them unsuitable for scalpers and day traders. Deposits above $25,000 qualify for a reduction to 0.6 pips or $6.00, which competitive brokers offer all clients. Ava counters with acceptable trading costs ranking it in the mid-section of the market.

Security and Trust

Country of the Regulator
United Arab Emirates, Australia, Ireland, Israel, Japan, British Virgin Islands, South AfricaCyprus, Vanuatu
Name of the Regulator
ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFIDVFSC
Regulatory License Number
C53877, SIBA/L/13/1049, 406684, 45984, 1662, 190018, 51466657714579, 344/17
Regulatory Tier
N/A4,1
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LegacyFX and AvaTrade segregate client deposits from corporate funds and offer negative balance protection with third-party insurance missing. Both offer an equally secure and trustworthy trading environment. Trading conditions at AvaTrade depend on the regulatory jurisdiction.

AvaTrade vs LegacyFX – Verdict

AvaTrade

Pros
Cons
High-quality educational offering via SharpTraderHigher trading costs typical for 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

LegacyFX

Pros
Cons
Swap-free trading and high leverageHigh minimum deposit
Autochartist plugin for MT5 and in-house researchNot all account types have access to core features
Educational tools for beginner traders
Loyalty Program for affiliates

LegacyFX is an MT5 broker with high trading costs for scalpers and day traders, but its swap-free fee offer makes it a niche broker for medium-to-long-term traders. The backward account structure and restrictions for smaller deposits place traders at a disadvantage or force deposits. AvaTrade remains a reliable multi-asset broker with a well-balanced asset selection and an acceptable cost structure with custom-tailored products and services for select trading strategies, making it the overall superior choice.

You might also be interested in reviewing the below broker comparisons:

FAQs

Is AvaTradeGO reliable?

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AvaTradeGO is a reliable and user-friendly mobile trading platform, ideal for social trading and portfolio management on the go.

Is AvaTrade legit in South Africa?

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AvaTrade offers South African traders a domestic presence with oversight from the capable FSCA.

Is my money safe in AvaTrade?

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AvaTrade is one of the most trusted brokers and complies with seven regulators, one being a central bank. Therefore, traders should feel safe depositing AvaTrade.