AvaTrade review (Friedberg Direct)

What is AvaTrade?

AvaTrade is a global investment platform for trading foreign currencies and contracts for difference (CFDs). With AvaTrade, you can buy and sell over 35 currency pairs and CFDs on a wide range of securities, including stocks, bonds, exchange-traded funds (ETFs), indices, commodities and more.

Launched in 2006, AvaTrade has over 400,000 customers and is headquartered in Dublin, Ireland. The company supports over 2 million monthly trades totaling more than $70 billion.

Important: This broker offers CFDs which are a leveraged product. Using leverage involves greater risk than using cash resources only and your responsibility to repay the borrowed money (and any interest) remains the same even if the value of the underlying asset declines.

Is AvaTrade the same as Friedberg Direct?

In Canada, AvaTrade accounts are offered through Friedberg Direct, a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Membership in the CIPF means your AvaTrade account balance is covered up to $100,000 (across all accounts) in the unlikely event the firm fails.

Friedberg Direct was founded in 1971 and is headquartered in Toronto, Ontario. The company manages over $2 billion in assets.

What are the benefits of AvaTrade?

AvaTrade offers a number of different forex and contracts for difference (CFD) trading options. The main platform that AvaTrade offers is MetaTrader 4.

• Zero commissions. AvaTrade does not charge trading fees, although a buy/sell spread is included in the platform’s quotes.
• Demo account. Practice trading and get a feel for the platforms without risking your real money.
• Flexible deposit methods. Load funds into your AvaTrade account via credit card, bank transfer and Google Pay.
• Trade forex and CFDs. Buy and sell foreign currency pairs. Trade CFDs on stocks, bonds, ETFs, indices, commodities and more.
• Many trading platforms. Access a wide array of tools across five investment platforms: WebTrader, MetaTrader 4, MetaTrader 5, AvaOptions, MacTrading.
• CIPF insured. Your deposits are insured against loss through the Canadian Investor Protection Fund (CIPF) in the unlikely event that AvaTrade or Friedberg Direct fails.

What should I look out for?

• Minimum deposit. To open an AvaTrade account in Canada, you must deposit at least $300 CAD.
• High-risk investments. Requires experience. Forex trading and CFDs are considered riskier investments than stocks, bonds and funds. Investors need to be familiar with technical analysis and predicting market movements. The potential for loss can be high.
• Inactivity fee. Pay $50 if you go three months without using your account.
• Administrative fee. Pay $100 annually for account maintenance, regardless of whether you have actively used your account.

Compare more investment platforms in Canada

Not all investment platforms let you trade forex and CFDs. If you’re looking for a brokerage that lets you trade Canadian and US stocks and ETFs, take a look at these options.

Best for Lowest Commissions

Go to site

Low margin rates

• Access to international stock exchanges
• Low margin rates
• Powerful research tools

Best for Low Fees

Go to site

CA & US trading

• 6% cash rebate plus $2,200 in trading perks
• Low transaction fees
• Easy-to-use app

Best for Beginners

Go to site

Easy to use app

• Easy-to-use platform
• Low fees
• Student and young investor discounts

How easy is AvaTrade to use?

Among the trading platforms AvaTrade customers can use is MetaTrader 4. This popular, user-friendly investment software comes packed with research and educational tools to help you make informed decisions about your trades.

It’s easy to sign up for an account with AvaTrade, and you’ll be able to start trading as soon as you get approved and load funds into your account. You can also start by downloading a demo account which will let you spend virtual funds and start refining your trading strategy.

That being said, AvaTrade’s emphasis on forex and CFD trades makes it more suitable for advanced traders than newbies who are just beginning their investment journey.

What research does AvaTrade provide?

AvaTrade offers a number of research options through its educational portal, Sharp Trader.

• Forex trade news. Get the latest on trade markets and economic trends with up-to-date forex trade news (including featured articles and fundamental analysis).
• Market analysis. Make more informed decisions about when to buy and sell your investments with real-time market data.
• Charting tools. Access a number of advanced charting tools with plenty of technical indicators to help accurately project your trades.

Pricing and fees

AvaTrade does not charge trade commissions. But you’ll pay an annual account maintenance fee and a spread on every trade you make.

• Account fees. Pay $100 annually to maintain your account. If you don’t use your account for three months, you’ll also be charged a $50 inactivity fee.
• Spreads. You’ll have to pay the spread on any currency pair or CFD that you trade plus a currency conversion markup (if you’re exchanging currencies). Spreads fluctuate according to market movements. Expect to pay 3% - 6% for most currencies (but fees can reach 28%).

Is AvaTrade safe?

Through it’s partner organization, Friedberg Direct, AvaTrade is regulated by the Investment Industry Regulatory Organization of Canada (IIROC), and customer accounts are insured by the Canadian Investor Protection Fund (CIPF). Investors’ funds are kept separate from the firm’s business funds. Data is encrypted for safe transmission online.

How do I open an AvaTrade account in Canada?

If you’re ready to join AvaTrade Canada, follow these step to get started:

1. Go to the AvaTrade Canada website, and select Register Now at the top of the screen.
2. Provide personal information like your name, phone number and email address.
3. Provide the required documents to verify your identity and residency.
4. Submit your application and wait for approval. Once approved, deposit funds via credit card, debit card or wire transfer to begin trading.

If you want to take AvaTrade for a test run, set up a demo account to practice trading without committing real funds.

Eligibility requirements

To open an AvaTrade account in Canada, you need to be a Canadian resident and at least the age of majority in your province or territory (18 or 19 years old). Your chance of getting approved to open an account will be higher if you also meet the following criteria:

• You can afford to lose $5,000 or more
• You’re employed with an annual salary of $25,000 or more
• You have at least $25,000 in savings

Required information

Be prepared to provide the following information when applying to open an AvaTrade Canada account:

• Social Insurance Number (SIN)
• Proof of identification like a passport or driver’s licence with your photo and mailing address.
• Proof of address like a recent utility bill or tax Notice of Assessment with your name and mailing address. Financial documents will not be accepted as proof of address.
• Financial statement like a bank statement, credit card statement, loan documents or mortgage documents.
• W-8 BEN form to avoid being double taxed by the US and Canadian governments when you invest in US securities. You can download this form from AvaTrade’s website.
• Trusted Contact Person form with contact information for a mature, capable individual who can confirm your identity to AvaTrade (if required) and connect with the firm if major problems arise (i.e. you’re financially exploited or experience a reduced mental capacity for financial decision making).

How do I reach AvaTrade customer support?

AvaTrade offers support from real humans 24 hours a day, five days a week. You can connect with AvaTrade customer service via the following methods:

• Phone
• Online chat
• Email/online contact form
• WhatsApp messaging