In our broker comparison of AvaTrade and Plus500, we will take a look at the features of each broker so that you have the information you need to decide which might be the best broker for you. Both are well-respected brokers that allow for the trading of a wide range of assets via CFDs, so it is just a case of which broker offers the features you need to trade effectively.
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.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 86% 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.
AvaTrade offers commission-free trading with competitive spreads. The average spread is around 0.9 pips on the EURUSD during peak trading hours, and there are no deposit or withdrawal fees. There is an inactivity fee of $50, charged quarterly once an account has been inactive for 12 months, along with an admin fee of $100 charged annually. There are also overnight swap fees, which depend on the asset you are trading.
Plus500 fees are reasonable, with a spread of around 0.8 pips on the EURUSD during peak trading hours, and again there are no deposit or withdrawal fees. A $10 monthly inactivity fee is charged after three months. There is a swap fee, a currency conversion fee, and a small fee, in the form of a wider spread to contend with, when you use a guaranteed stop order.
At AvaTrade, you can trade via CFDs when trading forex, stocks, commodities, indices, and even cryptocurrencies. AvaTrade offers more than 50 forex pairs, including majors, minors and some exotics, along with a number of cryptocurrencies, including Bitcoin, Ethereum, Dash, Litecoin and other altcoins.
Plus500 also offers CFD trading on a wide range of instruments, including forex, shares, commodities, indices, ETFs and options, with all instruments available to trade as CFDs with decent leverage. The brokerage offers over 65 forex pairs, with all major crosses and plenty of choice when it comes to minor pairs. At Plus500, however, you are not currently able to trade cryptocurrencies.
Both brokers offer an excellent and intuitive user experience, but the choice of trading platforms is better at AvaTrade, where you can use the MT4 and MT5 platforms, as well as WebTrader, and its proprietary platform AvaTradeGO. Mobile apps are available for both iOS and Android devices, and they are easy to download and install.
The AvaTrade website is clean, uncluttered and easy to navigate. When it comes to actually executing your trades, there is a choice of platforms you can use, including MT4 and MT5, which are always popular with forex traders, and an AvaTrade proprietary platform, which you can try out using the demo account. There are also trading platforms for automated and social trading.
At Plus500, it is easy to set up your account, and again there is a risk-free demo account so that you can get a feel for the platform. Plus500 is user-friendly, and there is a trading academy, found on the main site in the drop-down menu under ‘Trading’, which will help make your user experience even better.
Plus500 has its own trading platform available for web, desktop and mobile. It is very straightforward to use and you can access it via the demo account, but it should be noted that Plus500 does not provide MT4 and MT5 trading – so, if you have already done some trading using those platforms and you don’t want to find your way around a new one, AvaTrade will be a better choice for you.
AvaTrade is an international brokerage with offices around the world, and is fully regulated by various authorities in each geographical area in which it operates. Regulating bodies that oversee AvaTrade include CySEC in the EU, ASIC in Australia, and the FCSA in South Africa. The broker is also regulated in the Middle East and the British Virgin Islands.
Plus500 is also a fully regulated and licensed international broker, with some form of regulation in place in the UK, Cyprus, Australia, New Zealand, Singapore, South Africa, Israel and the Seychelles. Plus500 UK Ltd is authorised and regulated by the FCA.
When you sign up at AvaTrade, you can choose to open a demo account, which will provide you with virtual funds so that you can explore the platform for free, find your way around and practice your trading strategies. To register for a demo account, you will need to provide some basic information such as your email and phone number, but you will not, of course, have to deposit any money.
To access a Plus500 demo account, go to the website and click on ‘Start Trading’. You will then be offered a choice of a Real Money or Demo Mode account. Click on ‘Demo Mode’ and enter your information. Again, you will only have to enter limited information, but you will need to activate an actual Plus500 account with a genuine email and password. Alternatively, you can set up your account using your Google, Facebook or Apple profile. At this point, you will be offered the option to live chat with a Plus500 representative if you have any questions.
Even experienced traders sometimes use a demo account to practice new trading strategies, but they are particularly useful for new and inexperienced traders. Just be aware that it is difficult for a demo account to allow for the potential slippage and re-quotes that can happen in real-life trading, so keep this in mind when practicing with your demo account.
When it comes to assessing AvaTrade vs Plus500, the two brokers have lots of similarities, but there are also some differences. Plus500 does not offer cryptocurrencies or MT4/MT5 trading. So, traders who are already used to the MetaTrader software, or who want to trade crypto assets, may prefer AvaTrade. Don’t forget that you can always try out both platforms using the demo accounts if you want to compare them for yourself and see which suits you best.