AvaTrade is a broker which is originally from Frankfurt and states that its unique selling point are its accounts at the Commerzbank. You always have to be careful with information like that but in the case of AvaTrade, things are OK. This is a serious company which has its headquarters and the traders’ money based in Germany. I think you just feel a lot more comfortable with that than if your money is on Cyprus, in Israel or on the Cayman Islands. At least you should. But this does not necessarily mean that you should get started right away and immediately trade with AvaTrade. You should really think well about it, because AvaTrade is not really the best broker for beginners. That means: if you have never traded forex or normally trade with a budget of 200 Euros, then you should maybe look for another broker than AvaTrade. The reason is above all, that they mostly back the Metatrader platform. And this platform does not suit beginners at all. When I traded with Metatrader for the first time, I already had two or three years of trading experience and I still had a lot of trouble. I mean I personally would only recommend Metatrader to people which really have professional ambitions. In any other case, this should not be the broker of your choice.
And this is why AvaTrade is my recommendation for semiprofessionals, that means all of you who plan to become professionals in the distant future. Then, it really pays off for you to get familiar with Metatrader or more precisely: you cannot do without it in the long run! AvaTrade somehow manages to be right in the middle between beginner and professional. On the one hand, with regard to forex, you have the brokers for beginners where you really can trade comfortably with 50 Euros and on super easy platforms. And on the other hand, you have the professional brokers which really are challenging and where the platforms may not be very appealing.
From AvaFX to AvaTrade
It is not a long time ago that AvaTrade was called AvaFX. There has been no change of ownership or anything the like. They just wanted a fresh start and turn a “forex brand” into a neutral brand – so they included “trade” instead of “FX” in their name. I personally think that this is cool because in the past, people concentrated too much on forex. There were just so many brokers appearing out of nowhere which had Forex or FX in their name. eToro and Plus500 were the first brokers to realize: hey, not everybody who wants to trade online knows about forex, so why include it in our name?
AvaTrade was rather one of the latest brokers to change its name in the year 2013. But: Better late than never! Now, AvaTrade at least appears as a neutral broker which it actually is. Because there, you cannot only trade currency pairs but much more.