AvaTrade vs XTB review – Which one is a better Forex broker?

Two CFD brokers, AvaTrade and XTB attract the attention of millions of Forex traders worldwide. XTB is one of the most experienced brokers established in 2002 with AvaTrade opening after just 4 years. The traders can access around 48 currency pairs with XTB and 60 Forex pairs with AvaTrade. Additionally, these two brokers provide other financial instruments available for trading, as well. XTB provides indices, commodities, stock CFDs, ETF CFDs, and cryptocurrencies within its trading portfolio. On the other hand, AvaTrade offers stocks, commodities, indices, FX options, ETFs, bonds, and cryptocurrencies.

The leverages offered by these brokers are very flexible compared to the market average. XTB offers leverage up to 1:200 maximum on the leveraged trading assets, whereas with AvaTrade it can go up to 1:400. Both of these brokers are highly regulated by more than one top-tier financial market regulator and therefore can operate in many countries worldwide. However, they still have some geographic restrictions. XTB brokerage services are not available in around 30 countries including India, Indonesia, Pakistan, Iran, Iraq, United States, Australia, Israel, New Zealand, Japan, and Singapore. AvaTrade on the other hand restricts access to its services in the following six countries only: Belgium, Cuba, Iran, Syria, USA, and New Zealand.

Both accounts offer only single account types with convenient trading conditions. XTB and AvaTrade have very different trading platforms which we will discuss later in the article. Furthermore, they have their own promotional campaigns developed for their existing clients. Our AvaTrade vs XTB comparison review will compare the fees, platforms, bonuses, and safety measures of these two brokers.

Which broker offers better spreads and fees, XTB or AvaTrade?

At first, let’s have a look at the account types of these two brokers. Both XTB and AvaTrade have a single account type option for their clients, which is not the best-case scenario. However, those accounts are highly convenient with low trading costs and multiple benefits. Both of the brokers offer Standard trading accounts. For the Standard account, AvaTrade minimum deposit starts from 100 US dollars. The clients also have an opportunity to upgrade their accounts to Professional trading account with numerous benefits. As for the XTB minimum deposit, there is no requirement, therefore you can start trading with as much as you like. Furthermore, Islamic account options are available with two of these brokers.

Fees, commissions, and spreads

The good news is that none of the brokers charge commissions on their Standard trading accounts. Despite it, the spreads offered by the broker are very tight. With XTB Standard account you can access assets with spreads as low as 0.5 pips. For XTB Islamic account the spreads increase up to 0.7 pips. However, the Islamic account of XTB broker comes with commission rates. The commission rate starts from 10 US dollars per standard lot. On the other hand, AvaTrade offers a spread starting at 0.6 pips on the Standard account. There are no commission rates applicable to Islamic accounts, however, the spreads might increase on Forex trading assets for Islamic accounts. None of the brokers charge a fee for deposits or withdrawals.

Trade Forex with 0.6 pips at AvaTrade account

Which one has provided better software, AvaTrade or XTB?

Trading software choices are much more diverse with AvaTrade than with XTB broker. The only platform that these two brokers have in common is MetaTrader 4 software. To be honest, MetaTrader 4 is an essential and integral part of Forex trading, therefore, it would be really unwise for a broker to replace the platform with anything else. MT4 is a top choice for Forex traders since the software was specifically built to suit their needs and requirements. Nevertheless, the rest of the platform options differ greatly with these two brokers. AvaTrade offers MetaTrader 5, AvaSocial, ZuluTrade, DupliTrade, and AvaTrade GO platforms, whereas XTB supports xStation 5 and xStation Mobile.

Obviously, MetaTrader 5 is undoubtedly one of the most reliable and advanced trading platforms. ZuluTrade and DupliTrade can also be frequently found with the top Forex brokers as a perfect solution for automated trading. For copy trading, day traders, and scalpers AvaTrade offers its own innovative and ground-breaking trading platforms – AvaSocial and AvaTrade GO. While AvaSocial is a platform connecting traders’ communities, AvaTrade GO is a simplistic trading app compatible with both IOS and Android. XTB’s xStation5 platforms, on the other hand, are famous for their superior execution systems and professional analytical tools. The mobile xStation app is also compatible with all types of mobile gadgets.

Get your AvaTrade GO app for free

Which broker provides better safety for traders, XTB or AvaTrade?

Safety comes from regulations in the Forex industry. Without regulations, your funds are very insecure and susceptible to money laundering, identity theft, or simple scams. Both XTB and AvaTrade are strictly regulated within different jurisdictions. They hold licenses from some of the best regulatory bodies across the globe. XTB broker holds authorization and licenses from four different market regulators:

• International Financial Services Commission (IFSC) in Belize with the license number 000302/185
• Komisja Nadzoru Finansowego (KNF) in Poland
• Financial Conduct Authority (FCA) in the United Kingdom
• Comision Nacional del Mercado de Valores (CNMV) in Spain

XM on the other hand is a Forex broker with licenses from nine different financial regulators:

• Central Bank of Ireland (CBI) – registration number No.C53877
• Australian Securities and Investments Commission (ASIC) – license number No.406684
• B.V.I Financial Services Commission (B.V.I. FSC)
• Financial Sector Conduct Authority (FSCA) – registration number FSCA No.45984
• Financial Services Agency in Japan (FSA) – registration number 1662
• Financial Futures Association in Japan (FFAJ) – license number 1574
• Abu Dhabi Global Markets Financial Regulatory Services Authority (FRSA) – license number 190018
• Cyprus Securities and Exchange Commission (CySEC) – license number 347/17
• Israel Securities Authority (ISA) – registration number 514666577

Trade with the safest Forex broker – AvaTrade

Which one has better bonus offers, AvaTrade or XTB

Not all Forex brokers offer trading bonuses to their clients. Some of them are actually prohibited from offering the bonuses according to the regulations. Some of the market regulators, especially in the European Union region, are specifically against the Forex bonuses. Therefore, none of these two brokers actually offer them. Instead, they have different promotional campaigns. AvaTrade runs a referral program, whereas XTB offers cash rebates to its clients.

AvaTrade’s “Refer a Friend” program is an active rewarding campaign running for several years now. It is a simple scheme that encourages traders to refer a friend on a broker’s platform. For each referral that satisfies the terms and conditions of the program traders will receive cash prizes. The referral bonuses range from 50 US dollars to 250 US dollars depending on the size of the referral’s deposit. The minimum deposit amount of the referral should be at least 500 US dollars. Additionally, the referral should place at least 10 trades before the broker grants you your bonus. For a 500 USD referral deposit, you will get a 50 USD referral bonus.

XTB’s cash rebates program is available in certain jurisdictions only. It much resembles a flexible loyalty program. The prizes of the program completely depend on the trading activity of the client. The cashback amount is agreed upon between a trader and his or her dedicated account manager at the end of each month. The traders can receive cashback only on their closed positions and only at the end of the term. The amount of earned cashback will be directly deposited to the client’s trading funds.

XTB vs AvaTrade – which one is a better broker overall?

We have to take into account numerous factors before we decide that any of these two brokers is more suitable for you. But, still, there might be certain circumstances where XTB or AvaTrade suits your trading style better. For example, if you want to trade with ultra-tight spreads, ignoring the rest of the broker’s features, then you should definitely go for an XTB broker. Similarly, if you are looking to optimize the overall cost of trading then AvaTrade is a better option as there are no commissions on its accounts. However, overall, we like AvaTrade better due to several aspects of the broker. First of all, AvaTrade is highly regulated and monitored. It means that you will have unparalleled security while trading with this broker. Furthermore, the broker offers a much more diverse trading portfolio than XTB. Finally, we believe that the price value of AvaTrade’s services is better, with commission-free trading both on Standard and Islamic accounts and an opportunity to upgrade as a professional Forex trader.