If you are reading this article, you’re likely having trouble deciding whether SquaredFinancial or AvaTrade is the better Forex trading platform for you. While both platforms generally provide positive user experiences, there are some essential differences to note.
In this SquaredFinancial vs AvaTrade review, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- AvaTrade vs SquaredFinancial - Verdict
Ireland Cyprus ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID CySEC, FSA 2006 2005 Market Maker ECN/STP, Market Maker $100 0$ N/A Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ MetaTrader 4, MetaTrader 5 0.9 pips 1.1 pips ($11.00) 1.5 pips N/A $0.03 $0.03 $0.29 $0.34 77.82% N/A Not applicable N/A 0.9 pips N/A Commission-free N/A Visit Website Visit Website
Features and Platforms
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Traders at SquaredFinancial have the MT4/MT5 trading platforms, but only the out-of-the-box versions. It actively pushes MT5 and offers two account types. Beginner traders may benefit from the Squared Academy, where dozens of ultra-short videos introduce topics. SquaredFinancial also offers in-house market commentary and research. Besides MT4/MT5, AvaTrade provides traders with five proprietary trading platforms and three copy trading services. SharpTrader, the AvaTrade trading academy, spun out into a separate business unit and remains one of the best educational resources. AvaTrade also partnered with Trading Central, adding quality research content and more competitiveness.
Available Markets
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SquaredFinancial provides traders with 48 currency pairs, a sub-standard selection, and added five cryptocurrency pairs. Continuing the below-average choices are five commodity CFDs and 13 index CFDs, while the 19 futures contracts offer good exposure to this sector for retail traders. The 55 equity CFDs complete the asset selection. AvaTrade delivers 55 currency pairs and 16 cryptocurrency pairs, complemented by 27 commodities and 31 index CFDs. Additionally, 614 equity CFDs, 58 ETFs, 44 options contacts, and two bonds are available. SquaredFinancial maintains a below-average choice of assets, while AvaTrade clocks in at the upper range of the mid-section.
Typical Spreads and Fees
0.9 pips 1.1 pips ($11.00) 1.5 pips N/A $0.03 $0.03 $0.29 $0.34 $39 N/A Not applicable N/A 0.9 pips N/A Commission-free N/A N/A N/A $50 quarterly after 3 months N/A Visit Website Visit Website
The commission-free cost structure at SquaredFinancial begins with a high minimum spread of 1.2 pips or $12 per 1.0 standard lot. AvaTrade shows a minimum mark-up of 0.9 pips or $9 per lot. SquaredFinancial additionally presents a commission-based alternative with raw spreads of 0.0 pips for a commission of $5 per lot. Equity fees at SquaredFinancial average 0.15% versus 0.13% at AvaTrade, but above the 0.10% industry average. Swap rates on leveraged overnight positions apply at either one, and traders may face third-party payment processor costs. Clearly, AvaTrade maintains a cost advantage.
Security and Trust
United Arab Emirates, Australia, Ireland, Israel, Japan, British Virgin Islands, South Africa Cyprus, Seychelles ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID CySEC, FSA C53877, SIBA/L/13/1049, 406684, 45984, 1662, 190018, 514666577 SD024, 329/17 N/A 4, 1 Visit Website Visit Website
EU-based clients at SquaredFinancial can trade with the unit licensed by the Cyprus Securities and Exchange Commission (CySEC). International clients may opt for the more competitive Seychelles subsidiary, regulated by the Financial Services Authority (FSA). SquaredFinancial also has a $1,000,000 per client Excess of Loss insurance. The primary regulator of AvaTrade is the Central Bank of Ireland. It also has subsidiaries regulated by the ASIC, the Abu Dhabi ADGM/FSRA, the Japanese FSA/FFAJ, the South African FSCA, the British Virgin Islands BVI, and the Canadian IIROC. Negative balance protection and segregation of deposits are available at both brokers.
AvaTrade vs Squared Financial – Verdict
SquaredFinancial continues to expand its products and services, with the latest additions consisting of the MT5 trading platform and cryptocurrency assets. The FSA subsidiary grants access to an insured trading environment with maximum leverage of 1:500, and the commission-based account features a competitive pricing environment but requires a $5,000 deposit. High-frequency traders can decrease trading costs via the Loyalty Cashback Offer. While new traders get an average educational section, a quality research section exists. AvaTrade presents more trading platforms, a broader asset selection, and a superior cost structure for all clients. Its educational division SharpTrader delivers excellent value for first-time traders, and the partnership with Trading Central notably enhances the research. AvaTrade remains a better option for beginner traders, equity traders, and those with sub-$5,000 portfolios. High-frequency traders, like scalpers without the need for broad asset choices, and deposits exceeding $5,000, can benefit more at SquaredFinancial.
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