Read our broker comparison of AvaTrade vs IC Markets to find out which is the best broker for you. We’ll look at some of the most important features you need to consider when comparing brokers and give you the information you need to help you decide which broker to use. Both AvaTrade and IC Markets are reputable brokers, but is AvaTrade better than IC Markets? Or vice versa? Let’s take a closer look.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trading Derivatives carries a high level of risk to your capital, and you should only trade with money you can afford to lose. 75% of retail investor accounts lose money when trading CFDs with this provider. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
AvaTrade offers a no-commission trading model with all broker profits coming from the spreads, which are around 0.9 pips on the EURUSD, and around 1.5 pips on the USDGBP. There are no deposit or withdrawal fees, but there is a $50 inactivity fee charged quarterly after a year of inactivity, and an annual admin fee of $100. As with most CFD brokers, there are swap fees applied on positions held open overnight.
At IC Markets, there is no commission on Standard accounts, but there is also the option of a MetaTrader Raw Spread account, which charges $3.50 commission per lot, per trade, plus the spread cost. However, the average spread on this account is 0 pips during peak trading hours. There are no deposit or withdrawal fees, no inactivity fee and no admin fee, but there is, of course, a swap fee.
AvaTrade is an international multi-asset broker that facilitates trading using leverage by providing contract for difference (CFD) trading. The broker offers a large number of financial instruments via CFDs across several asset classes, including forex, stocks, commodities, indices and even cryptocurrencies. The broker has over 50 forex pairs available, and plenty of cryptocurrencies, from Bitcoin and Ethereum through to the Shiba Inu coin.
IC Markets also offers CFD trading across multiple asset classes, including forex, stocks, indices, commodities and bonds. Like AvaTrade, it also offers cryptocurrencies as CFDs, with a total of over 20 digital coins to choose from. It’s possible to trade all assets as CFDs with generous leverage, so when it comes to the range of products on offer, both brokers offer a lot of instruments and the opportunity to trade most of those instruments as CFDs.
AvaTrade offers a very user-friendly website and a choice of platforms. Account opening is easy and almost instant, though it does take up to one business day to verify your documents. Funding your account is also very simple, and mobile traders will find themselves well served with apps for both iOS and Android users.
We also found that the AvaTrade website is easy to navigate. The top bar tabs have drop-down menus leading to information on trading platforms, education, forex and CFD trading, cryptocurrencies, and more. The choice of platforms that AvaTrade clients can use includes MT4 and MT5, along with proprietary options such as AvaOptions, AvaSocial and AvaTradeGO.
At IC Markets, account opening is also very straightforward, and again the website is well laid out, though we found that it is not quite as easy to navigate as AvaTrade. Nevertheless, all the important information is there and fairly easy to find. The trading platforms available are MT4, MT5 and cTrader. All are available in various versions, including Mac, Windows, Android and IOS, as well as via web browser.
The IC Markets site is available in a wide range of languages, with drop-down menus accessed via the top bar that cover a range of important information. Click ‘More’ in the top bar menu to access a range of educational resources, important company information and the broker’s help centre, along with resources such as an economic calendar, forex calculators and a market analysis blog.
AvaTrade is an award-winning brokerage and is fully regulated by relevant bodies such as CySEC in Cyprus, ASIC in Australia and the FSCA in South Africa. The firm is also regulated in the Middle East and the British Virgin Islands.
IC Markets is regulated by CySEC and is also a member of the European Securities and Markets Authority (ESMA). IC Markets (EU) is therefore obligated to comply with all domestic and European laws and regulations applicable to investment firms. The company is also authorised and regulated by the Financial Conduct Authority (FCA) in the UK.
New clients at AvaTrade can open either a live account or a demo account first. You can open a demo account quickly by submitting just your name, phone number and email, or even by signing up via Facebook or Google.
At IC Markets, you can also try a demo account, and the main website makes this fairly obvious with a link that says ‘Try a Free Demo’ in the centre of the main top bar menu. Again, you will just need your full name, phone number and email to register, though there is no shortcut to do it using your social media or other accounts. There is a disclaimer to read when opening a demo account at IC Markets, which states:
“Although demo accounts attempt to replicate real markets, they operate in a simulated market environment. As such, there are key differences that distinguish them from real accounts; including but not limited to, the lack of dependence on real-time market liquidity, a delay in pricing, and the availability of some products which may not be tradable on live accounts.”
This is a useful disclaimer, as this is often not made clear. While demo accounts try to mimic real trading conditions, they cannot replicate them exactly.
As our broker comparison has shown, both AvaTrade and IC Markets are reputable and regulated brokers with some great features. They both offer forex, crypto and CFDs, though there is a wider choice of platforms, and more social and automated trading options, at AvaTrade. Remember, you can try out each platform with a demo account to see which suits you best.