This broker comparison pits two of the industry's most established brokers, AvaTrade and Plus500, against each other in a standoff to see which offers the best services. Both brokers advertise commission-free trading, catering to the same target market of new retail traders, featuring proprietary trading platforms. The former has executed its business strategy quietly. 71.0% of AvaTrade's retail traders operate at a loss. Plus500 is lacking research and education divisions but does have a very solid proprietary trading platform. At Plus500, 82% of retail CFD accounts lose money.
This broker 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 Plus500 Verdict
Ireland Israel ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID ASIC, CySEC, FCA, FMA, FSCA, MAS 2006 2008 Market Maker Market Maker $100 $100 Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ Proprietary platform, Web-based 0.9 pips 1.3 pips 1.5 pips 1.7 pips $0.03 - $0.29 - 77.82% 82.00% Not applicable Not applicable 0.9 pips Not applicable Commission-free Commission-free Visit Website Visit Website 82% of retail CFD accounts lose money
Features and Platforms
Visit Website Visit Website 82% of retail CFD accounts lose money
AvaTrade
The most outstanding feature at AvaTrade is the selection of trading platforms to suit various trading styles. At the core are proprietary trading platforms WebTrader, AVA TradeGo, and AVAOptions, which is exclusively designed for option traders. The popular MT4 trading platform, together with the failed successor MT5, are equally available and enhanced with the Autochartist plugin. Social trading is supported through market-leader ZuluTrade and as an alternative, DupliTrade.
AVA Trade opted to offer its trading academy, Sharp Trader, as a separate service, but the website features additional educational content. The demo-account is restricted to just 21 days, below the industry standard of unlimited demos, but still ample time to see how things work. The AVAProtect offering is an insurance policy covering a predefined period against losses, where the fee increases with the requested time of protection.
Plus 500
Traders of Plus500 are offered the company's proprietary platform only, offered as a desktop version, webtrader, or mobile version. The background of the founding team is in technology, and the company tries to offer a solid technological offering. Still, in the face off between AvaTrade and Plus500 on the technological level, AvaTrade is the clear winner, since it offers much more to traders with varying needs than Plus500's singular, limited, proprietary trading platform.
When it comes to educational offerings, AvaTrade also beats Plus500 in this area. Failure to provide proper research and education divisions stands out, especially with new retail traders as the primary target group. Plus500 features isolated articles inspired by marketing and started to add video content, but proper education is unavailable.
A sub-par trading platform and the absence of essential auxiliary trading services create an uncompetitive trading environment.
Available Markets
Visit Website Visit Website 82% of retail CFD accounts lose money
AVA Trade provides traders with 250 core assets, and over 1,000, including more the 700 equity CFDs and options contracts. Sixteen commodity and eleven cryptocurrencies offer primary cross-asset diversification, while two bonds and five ETFs merely serving marketing purposes. Plus500 maintains over 2,000 CFDs across seven asset classes. Through 49 commodities and 27 cryptocurrencies, portfolio managers can diversify suitably. 189 ETFs offer an excellent introduction to passive trading. Asset selection is the only category where Plus 500 achieves proper execution as a brokerage.
Typical Spreads and Fees
0.9 pips 1.3 pips 1.5 pips 1.7 pips $0.03 - $0.29 - $39 - Not applicable Not applicable 0.9 pips Not applicable Commission-free Commission-free $50 quarterly after 3 months $10 monthly after 3 months Visit Website Visit Website 82% of retail CFD accounts lose money
The core pricing environment for traders is more competitive at Plus500, where assets have no minimum markup as Plus500 implements dynamic spreads dependent on market conditions. AVA Trade lists minimum spreads from 0.9 pips. Equity CFDs are advertised as commission-free by both brokers. Certain commodities incur a fee at AvaTrade, while assets are generally priced higher at Plus500. Both brokers are market makers.
Swap rates on overnight leveraged positions apply, where reports indicate that Plus500 imposes a more excessive fee than competing brokers. Corporate actions like dividends and mergers, which impact equity and index CFDs, are passed on to traders. AVA Trade carries an inactivity and administration fee after three and twelve months of €50 and €100 or a currency equivalent. Plus500 charges a $10 inactivity fee per month, while an up to 0.7% currency conversion fee is present. Third-party processing fees apply, but both brokers waive internal charges. AvaTrade has a slight overall advantage against Plus500 regarding trading fees.
Security and Trust
United Arab Emirates, Australia, Ireland, Israel, Japan, British Virgin Islands, South Africa United Arab Emirates, Australia, Cyprus, Estonia, Israel, New Zealand, Seychelles, Singapore, United Kingdom, South Africa ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID ASIC, CySEC, FCA, FMA, FSCA, MAS C53877, SIBA/L/13/1049, 406684, 45984, 1662, 190018, 514666577 509909, 250/14, 417727, 486026, 47546, SD039, 100648-1, NOT AVAILABLE, 4.1-1/18, F005651 Visit Website Visit Website 82% of retail CFD accounts lose money
All client funds deposited with Plus500’s Cyprus subsidiary are held in segregated client bank accounts in accordance with the Cyprus Security and Exchange Commission’s (CySEC) client funds rules. Plus500AU Pty Ltd holds client money in a segregated trust account, in accordance with the Australian legal requirements.The Central Bank of Ireland provides the primary regulatory environment for AVA Trade. Client funds are fully segregated and protected under the ICCL (Investor Compensation Company LTD), up to €20,000. Six additional jurisdictions complete the regulatory network. ATrade, the Israeli subsidiary, was fined two times in 2019 for providing unlicensed services to traders. Overall, AVA Trade has a clean regulatory record and represents a trustworthy broker.
Plus500 is primarily regulated by the UK Financial Conduct Authority (FCA), while five alternative regulators provide additional oversight. The Financial Services Compensation Scheme (FSCS) protects deposits up to £85,000 in case of default, and funds remain segregated. In 2012, the FCA fined this broker for not reporting transactions accurately. In the 2017 annual report to shareholders, no profits or losses from client trading activity for 2015 through 2017 were reported. In February of 2019, a revision revealed a $103 million loss for 2017 alone. When it comes to regulation, both brokers have a solid regulatory framework, but AvaTrade has a cleaner long-term record.
AvaTrade Vs Plus500 – Verdict
AVA Trade maintains an excellent choice of trading platforms, where over 1,000 assets are available in a largely commission-free cost-structure. New traders have access to a sound trading academy and a 21-day demo trading account. Plus500 merely offers its WebTrader platform, where core features are notably missing. Automated trading is not supported, and this broker lacks a research section. Isolated marketing-inspired educational content is unacceptable. Traders are left with over 2,000 reasonably priced assets in a below-average trading platform. While both brokers have advantages and certainly they both have disadvantages, AVA Trade offers a superior and more trustworthy trading environment.
You might also be interested in reviewing the below broker comparisons:
- Avatrade vs Oanda
- Avatrade vs VantageFX
- Avatrade vs Pepperstone
- Plus500 vs Capital.com
- Plus500 vs SaxoBank
- Plus500 vs Libertex
