When it comes to online trading, choosing the right broker can be a critical decision in determining your trading success. AvaTrade and FXTM (ForexTime) are two of the most popular online brokers in the world, both offering extensive trading services to investors. However, each broker comes with its own set of advantages, tools, platforms, and fees that may suit different types of traders. In this article, we’ll explore every aspect of these two brokers to help you decide which one is best suited for your needs.
1. Introduction to AvaTrade and FXTM
AvaTrade Overview
AvaTrade was founded in 2006 and has grown to become one of the most reputable online forex and CFD brokers in the industry. AvaTrade offers access to various financial instruments including Forex, Stocks, Commodities, Indices, and Cryptocurrencies. Known for its strong regulatory oversight, AvaTrade is licensed in several jurisdictions, including the European Union, Australia, Japan, and South Africa. The platform is accessible via a wide variety of devices, with robust educational resources for both beginners and seasoned traders.
FXTM Overview
FXTM, established in 2011, has gained a strong reputation as a Forex and CFD broker that offers competitive trading conditions. It provides access to more than 250 financial instruments including Forex, Indices, Commodities, Stocks, and Cryptocurrencies. FXTM is regulated in several jurisdictions such as Cyprus, the UK, and South Africa, offering a secure environment for traders. FXTM also offers multiple account types catering to different levels of traders, along with robust educational content to help users learn the art of trading.
2. Trading Platforms
AvaTrade Platforms
AvaTrade offers several powerful trading platforms, providing users with flexibility to choose the one that best suits their trading style and experience level.
- MetaTrader 4 (MT4): AvaTrade offers the widely popular MetaTrader 4 (MT4), a user-friendly and highly customizable platform. MT4 is renowned for its stability, advanced charting features, automated trading capabilities via Expert Advisors (EAs), and support for a wide range of indicators.
- MetaTrader 5 (MT5): MT5 is the more advanced version of MT4, offering additional timeframes, charting tools, and more order types. MT5 is ideal for traders who require greater functionality and want to trade on multiple asset classes simultaneously.
- AvaTradeGO: AvaTrade’s proprietary mobile trading app, AvaTradeGO, is designed for traders on the go. It’s user-friendly and integrates seamlessly with the AvaTrade web platform, allowing users to monitor their accounts, access charts, and make trades from their mobile devices.
- WebTrader: AvaTrade offers a browser-based trading platform, which means traders don’t need to download any software. It comes equipped with various charting tools, indicators, and a convenient interface for executing trades quickly.
FXTM Platforms
FXTM also provides a range of trading platforms, giving traders flexibility in their choice of trading environment.
- MetaTrader 4 (MT4): Similar to AvaTrade, FXTM offers the widely used MT4 platform, offering comprehensive features such as multiple chart types, automated trading, and various analysis tools. It is suitable for both beginner and experienced traders.
- MetaTrader 5 (MT5): FXTM also supports MT5, which is ideal for traders who require more advanced features, including more timeframes, additional order types, and the ability to trade different asset classes from a single platform.
- FXTM Trader: FXTM has its own mobile trading app, FXTM Trader, which is available for both Android and iOS. It allows users to manage their accounts, trade, and access market updates on the go.
Summary: Both AvaTrade and FXTM offer the popular MetaTrader platforms (MT4 and MT5), as well as their own proprietary mobile apps (AvaTradeGO and FXTM Trader). AvaTrade, however, offers a slightly wider range of platform options, including its web-based trading platform. FXTM, on the other hand, focuses more on optimizing its mobile apps for traders.
3. Account Types
AvaTrade Account Types
AvaTrade offers a variety of account types that cater to different levels of traders. These include:
- Standard Account: This is the default account type for most traders, providing access to all the basic features of AvaTrade’s platforms, including the ability to trade Forex, Commodities, Indices, and Cryptocurrencies.
- Islamic Account: AvaTrade offers an Islamic account that is compliant with Sharia law, meaning it does not involve interest or swap rates, making it suitable for traders who wish to avoid those elements in their trading.
- Professional Account: AvaTrade also offers professional accounts to traders who meet certain criteria, which provide access to higher leverage and additional features not available to retail traders.
FXTM Account Types
FXTM offers a more extensive range of account types compared to AvaTrade, providing greater flexibility to traders of different experience levels.
- Micro Account: This account is ideal for beginners or those with a smaller capital base. It offers low minimum deposit requirements and smaller trade sizes, making it a good option for new traders.
- Standard Account: The standard account is best suited for traders with a bit more experience. It offers access to the full range of FXTM’s trading features, including tight spreads and flexibility in leverage.
- ECN Account: The ECN (Electronic Communication Network) account offers the lowest spreads and faster order execution. This account is ideal for professional traders who require direct market access for high-frequency trading.
- Islamic Account: Like AvaTrade, FXTM also offers an Islamic account, which follows the principles of Sharia law, with no swaps or interest rates applied.
Summary: AvaTrade offers a more straightforward range of accounts, including a professional account, while FXTM provides more specialized options, such as the Micro and ECN accounts. FXTM offers greater flexibility for different trader needs, particularly with its ECN account, which appeals to professional traders.
4. Fees and Commissions
AvaTrade Fees and Spreads
AvaTrade’s fees are competitive and vary based on the type of asset being traded. For Forex trading, spreads typically start at 0.9 pips for major currency pairs. AvaTrade offers a commission-free trading environment for its retail traders, with costs embedded in the spreads.
In addition to the trading spreads, AvaTrade charges non-trading fees, such as withdrawal fees, account inactivity fees, and overnight financing fees for positions held overnight. However, AvaTrade’s fees tend to be on the lower side compared to many of its competitors.
FXTM Fees and Spreads
FXTM also offers competitive spreads, with Forex spreads starting from as low as 0.1 pips for the ECN account. For standard accounts, the spreads are typically higher but still remain competitive. FXTM charges commissions on its ECN accounts, which can range from $2 to $4 per lot, depending on the trading volume.
FXTM also has non-trading fees, including withdrawal fees and account maintenance fees for inactivity. However, FXTM’s fees are generally transparent, and traders can avoid high costs by choosing the right account type.
Summary: Both AvaTrade and FXTM offer competitive spreads, with AvaTrade slightly edging ahead in terms of lower overall costs due to its commission-free trading on retail accounts. FXTM’s ECN account, however, provides the best spreads for professional traders willing to pay commissions.
5. Customer Support
AvaTrade Customer Support
AvaTrade offers excellent customer support, available 24/5 via multiple channels, including phone, email, live chat, and social media. Their website also features a comprehensive FAQ section, as well as a series of educational resources and video tutorials for traders.
AvaTrade has a multilingual support team, making it accessible to traders from various regions. The broker is also known for responding to queries quickly and efficiently.
FXTM Customer Support
FXTM also provides excellent customer service, offering 24/5 support in multiple languages. Traders can reach customer service via live chat, phone, email, or through the FXTM mobile app. FXTM’s support team is well-regarded for their professionalism and quick response times.
FXTM offers a dedicated account manager for premium clients, ensuring more personalized service and support.
Summary: Both AvaTrade and FXTM offer outstanding customer support, available 24/5. AvaTrade stands out for its multilingual support, while FXTM offers a more personalized experience for premium clients through dedicated account managers.
6. Education and Research
AvaTrade Education and Research
AvaTrade places a strong emphasis on educating its traders, offering a range of resources such as trading guides, video tutorials, webinars, and live market analysis. AvaTrade also provides in-depth educational content on its platforms, which can help traders enhance their knowledge of the markets and improve their trading strategies.
Additionally, AvaTrade offers research tools and reports, including economic calendars, market news, and technical analysis.
FXTM Education and Research
FXTM also offers robust educational content, with a wide variety of learning resources, including articles, video tutorials, and webinars. FXTM’s educational section is well-structured, catering to beginners and advanced traders alike. They also offer a wide range of webinars, often hosted by professional traders and analysts.
FXTM also provides market analysis, research reports, and trading signals to help traders make informed decisions.
Summary: Both AvaTrade and FXTM offer comprehensive educational resources and research tools, but FXTM may be more suited to traders looking for detailed market analysis and professional insights. AvaTrade, on the other hand, is more focused on beginner education and providing a broader range of general market resources.
7. Conclusion
In comparing AvaTrade and FXTM, it’s clear that both brokers offer a variety of features to suit traders of all levels. AvaTrade stands out with its broad platform offerings, including the AvaTradeGO app and a variety of account types, while FXTM excels with its specialized accounts like the ECN account and its comprehensive educational resources for traders.
Ultimately, your decision between AvaTrade and FXTM should depend on your specific needs. If you’re a beginner or intermediate trader looking for a user-friendly platform with competitive spreads and low costs, AvaTrade may be the right choice for you. However, if you’re a professional trader looking for lower spreads and advanced trading tools, FXTM might be better suited to your trading style.
