In this Forex broker comparison, we will take a look at two well-managed brokerages where clients are treated to a competitive trading environment. Vantage FX, operational since 2009 has a distinct focus on technology and is domiciled in the Cayman Islands. The broker offers raw spreads for a commission of $6 per round lot and is ideal for automated trading conditions and scalpers. Adding a significant competitive advantage is the maximum leverage of 1:500. AvaTrade has been serving traders since 2006 out of Ireland, where Forex traders have access to a commission-free selection of currency pairs and naturally higher spreads. The asset selection is significantly larger, but the maximum leverage is capped at 1:30 (which can actually be safer for traders, despite the advantages of leverage). It is primarily focused on new retail traders and executed its business model effectively.
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
- Vantage FX vs AvaTrade Verdict
Australia Ireland CIMA ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID 2009 2006 ECN/STP Market Maker $200 $100 N/A MetaTrader 4, MetaTrader 5, Web-based Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ 0.1 pips 0.9 pips 0.2 pips 1.5 pips $0.04 $0.03 $0.80 $0.29 N/A 77.82% 0.0 pips Not applicable 1.0 pips 0.9 pips $4.00 per round lot Commission-free Visit Website Visit Website
Features and Platforms
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Vantage FX
The Raw ECN account provides a competitive trading environment for all traders to consider. A minimum deposit of $500, maximum leverage of 1:500, and the MT4 SmartTrader upgrade for the MT4 trading platform create an excellent service. Vantage FX is an ideal choice for automated trading solutions, and a premier choice for account management firms, which are supported through MAM/PAMM accounts. Social trading, poplar with new retail traders, is enabled via ZuluTrade and Myfxbook Autotrade.
Enhancing the trading environment is cutting-edge technology. Vantage FX connects MT4 traders to their deep liquidity pool via the oneZero MT4 bridge, powered Xeon E7 processors. Free VPS hosting adds a critical tool for automated trading, but a minimum deposit of $1,000 is required. It is worth it considering the outstanding combination of core and auxiliary trading services maintained by this broker. The sole weak spot remains research and education, where improvements are necessary to elevate them to a similar degree of quality as the rest of products and services.
Vantage FX features one of the most technologically advanced and competitive trading environments available today.
AvaTrade
New retail traders are the primary target group of this broker, and the low minimum deposit can really help those who are new to online trading get comfortable. The selection of trading platforms is noteworthy. Clients may use the proprietary trading platforms WebTrader and AvaTradeGo, or the MT4/MT5 trading platforms, upgraded with the Autochartist plugin. Options traders have access to the AVAOptions platform, featuring exclusive analytics tools like a what-if analysis. ZuluTrade and DupliTrade allow traders to engage in social trading.
Sharp Trader is the trading academy offered as a separate service, while educational content is additionally provided on the AvaTrade website. A 21-day free demo is available, though ideally this should be available for an unlimited period. Still, 21 days is enough time for you to test and appreciate all the AvaTrade has to offer. 71.0% of retail accounts operate at a loss, which is near the industry standard. AVAProtect, acting as an insurance policy covering a predefined period against losses, can be an advantage that appeals to new traders. It is important to note that the longer this service is in place, the higher the fee. Stop-loss orders offer a free alternative for this purpose.
Available Markets
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Vantage FX maintains 293 assets but only 41 currency pairs, which does not offer adequate coverage of the market. The commodity choice allows excellent diversification possibilities, while cryptocurrencies are notably missing. Completing the assortment is a broad equity CFD range across five markets with an additional 15 index CFDs. AvaTrade offers 250 core assets, but including options contracts and over 700 equity CFDs, the total number rises to over 1,000. Diversification is achieved through 16 commodities, and eleven cryptocurrencies offer a basic introduction to the sector. Two bonds and five ETFs are where this brokerage fails to deliver. Vantage FX grants traders a satisfactory variety of liquid assets, but AvaTrade maintains a more comprehensive choice, better suited for portfolio managers seeking greater equity exposure.
Typical Spreads and Fees
0.1 pips 0.9 pips 0.2 pips 1.5 pips $0.04 $0.03 $0.80 $0.29 N/A $39 0.0 pips Not applicable 1.0 pips 0.9 pips $4.00 per round lot Commission-free No $50 quarterly after 3 months Visit Website Visit Website
Traders have access to raw spreads, as low as 0.0 pips, at Vantage FX for a competitive $6 per round lot commission. Commission-free accounts are also available, where the minimum spread is noted as 1.4 pips. AvaTrade provides its traders with a lower cost structure, with the EUR/USD spread listed at 0.9 pips, without levying additional charges. Equities are reasonably priced, while certain commodities incur a fee. Active traders and portfolio managers will discover a more favorable trading environment at Vantage FX, where new retail traders may benefit from a lower cost structure for low-frequency trading activities at AvaTrade.
Swap rates on leveraged overnight positions apply at both brokers. Equity and index CFDs are impacted by corporate actions like dividends and mergers, which are passed onto portfolios. Depending on the payment processor, third-party fees may apply. AvaTrade also charges an unnecessary inactivity fee after three months and an administration fee after twelve months, in the amount of €50 and €100, or a currency equivalent, respectively. The overall pricing environment is significantly more competitive at Vantage FX, especially for committed traders, where a well-executed cost-structure enhances an excellent trading environment.
Security and Trust
Australia, Vanuatu, South Africa United Arab Emirates, Australia, Ireland, Israel, Japan, British Virgin Islands, South Africa CIMA ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID 428901, 51268, 700271 C53877, SIBA/L/13/1049, 406684, 45984, 1662, 190018, 514666577 1,2,4 N/A Visit Website Visit Website
Client funds for Vantage FX traders remain fully segregated at the National Australia Bank (NAB), with regular audits conducted. Professional indemnity insurance covering its authorized representatives is in place, but the lack of an investor compensation fund is notable. An insurance protecting deposits in case of default is preferable over the existing policy. Vantage FX is fully compliant and transparent, maintaining an acceptable level of regulation, but falls behind competitors.
AvaTrade is primarily regulated by the Central Bank of Ireland and exposed to E regulations, rendering a less competitive trading environment. Investors are further protected by the ICCL (Investor Compensation Company LTD), up to €20,000. Enhancing the regulatory network are six additional jurisdictions. AvaTrade has a clean regulatory record and can be trusted.
Vantage FX vs AvaTrade - Verdict
The trading environment at Vantage FX is ideally suited for committed retail traders, automated trading strategies, and portfolio management firms. It is one of the most technologically advanced brokerages. Clients have access to one of the most technologically advanced brokerages and a low-quantity, but high-quality, asset selection. AvaTrade supports a variety of trading platforms and offers a sounds pricing environment for a commission-free choice. Low-frequency retail traders will find a more cost-effective structure at this broker. Uncompetitive regulations due to EU oversight reduces the appeal of this broker – still, high-level EU regulation certainly outshines Vantage FX's limited regulation in less-strict jurisdictions. The 21-day limited demo account is a sore point for , especially compared against the unlimited one offered at Vantage FX. Overall asset selection is superior, a fact to consider for traders and managers seeking greater exposure to the global equity market. Traders looking for a technical advantage or top high-frequency trading options will certainly favor Vantage FX's offerings, while those looking for more reliable regulation and a wider asset selection will appreciate all that has to offer.
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