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Two of the world’s top CFDs and Forex brokers, IG and AvaTrade are frequently compared by the Forex traders. These two brokers have so many similarities, especially in terms of the exceptional quality of their brokerage services. IG broker has been there since the 20th century making it one of the most experienced brokers on the market. Established in 1974, the broker has more than 240,000 clients currently registered on its platform. IG provides more than 17,000 financial instruments within its remarkably diverse trading assets portfolio.
AvaTrade, on the other hand, is a broker established in 2006 which has won numerous awards for its groundbreaking innovations in advanced platforms and highly competitive trading conditions. The broker holds more than ten different licenses from the world’s top regulatory authorities making it one of the safest Forex brokers in the world to trade with. With 300,000 active traders on AvaTrade’s platform, the broker is also famous for its extensive educational resources that are freely available for its clients.
With AvaTrade, you can choose among the 1250 financial instruments with tight spreads and flexible margin requirements. The financial markets of the broker include Forex currency pairs, stocks, commodities, cryptocurrencies, indices, FX options, precious metals, energies, and ETFs. The leverage on these assets can go maximum up to 1:400. Whereas IG offers a similar portfolio with the addition of the futures. IG provides maximum leverage of 1:200 on Forex and indices assets, 1:50 on commodities, and 1:20 on shares. Read the full IG vs AvaTrade comparison review to find out which one has a better fee structure, more advanced platforms, generous promotional campaigns, and better safety.
|ASIC, CySEC, FSA, FFAJ, FSCA, ISA, FRSA, CBI, B.V.I FSA
|MT4, MT5, ZuluTrade, DupliTrade, AvaTrade GO, AvaSocial
With AvaTrade, the minimum deposit requirement is pretty straightforward – you have to make an initial investment of 100 US dollars to activate your trading account. However, with IG broker things are not that clear. The broker states that there is no minimum deposit requirement, however, depending on the payment method that you choose you might still be required to comply with minimum thresholds. For example, if you fund your account with PayPal, or Mastercard/Visa credit and debit cards you will have to deposit at least 300 US dollars.
Once again, AvaTrade has a universal fee structure applicable to all traders around the globe on Standard accounts. There are no commission fees applicable to trades on AvaTrade Standard account type. The spreads start from 0.9 pips on Forex currency pairs, including the most popular pair of EUR/USD. However, IG spread and commissions are a bit more complex. First of all, the average spread on EUR/USD pair with IG is 1.13 pips. Secondly, the broker charges various fees according to the financial instruments traded by the client. For instance, Australian shares can be traded with a 0.08% commission per side, the US shares with 2 cents per share commission rate, European shares with 0.10%, and so on.
One of the biggest advantages of trading with AvaTrade or IG brokers is that they both provide a variety of trading platforms. The brokers have incorporated some of the most popular and reliable software and terminals onto their platforms, such as MetaTraders or automated trading tools. While with IG broker you can get access to inbuilt MetaTrader 4 software only, AvaTrade supports MetaTrader 5, as well for multi-asset trading purposes. However, apart from these platforms, both brokers also provide innovative options like ProRealTime trader and APIs for IG and AvaSocial, AvaTrade GO, ZuluTrade, and DupliTrade for AvaTrade clients.
All of these platforms support numerous devices, including mobile gadgets while being compatible with both IOS and Android systems. Furthermore, most of these platforms are available to be accessed from browsers instead of Desktops, which eliminates the necessity to download and install the trading terminals. Furthermore, the platforms of AvaTrade, especially AvaSocial and AvaTrade GO have won numerous awards for their excellent execution, innovative approaches, simplicity of the interface, and complexity of the tools and indicators available on the platforms.
When it comes to the safety and security of your trading funds regulations are crucial. The market regulators will oblige brokers to keep your funds on segregated accounts to ensure that your financial wellbeing is not affected by the performance of the company. Furthermore, most of the regulatory authorities also demand from the brokers that they offer Negative Balance Protection and that they are audited regularly by the leading auditing companies, such as Deloitte or KPMG. Both IG and AvaTrade brokers are regulated by the top-tier authorities. However, IG broker holds a single authorization, whereas AvaTrade is regulated by more than nine different regulatory bodies. IG Group’s brand company – IG broker holds a license from the Financial Conduct Authority in the United Kingdom (FCA).
AvaTrade, on the other hand, is a multi-regulated company with one of the strongest legal and regulatory frameworks. The broker is authorized and regulated by the following institutions:
IG broker does not provide any bonus programs or other promotional campaigns. The broker states that the reason behind the lack of promotions is the fact that the broker spends all of its resources on developing the competitive trading environment. Therefore, the conditions are convenient enough for its clients and there is no need for further promotions. Moreover, the Financial Conduct Authority regulations limit the bonus offerings to Forex traders. Similarly, AvaTrade is also restricted by the regulations to provide bonus programs or promotional campaigns. However, the broker has found a way to encourage the traders and reward them for their loyalty.
AvaTrade runs a referral program that is open for every trader registered on the broker’s platform. According to the program rules, all traders have to do is to refer a friend which will make a minimum deposit and open trades according to the trading volume requirements. Your referred friend has to deposit at least 500 USD for you to become eligible for the referral bonus. Furthermore, a referred person should place at least 10 trades on any financial instruments. You will afterward be able to claim a 50 USD referral bonus. If your friend deposits more than 500 USD, but up to 10,000 you will receive a 100 USD bonus. The bonus amount increases together with your referral’s deposit. It can reach a maximum of 250 USD.
|- low trading cost
|- no deposit requirement
|- flexible leverage
|- 17,000+ trading assets
|- mutiple regulations
|- 47+ years of experience
|- no bonuses
|- restricted leverage
|- one account type
|- single regulator
|- higher deposit requirement
|- no bonuses
IG is undoubtedly one of the most experienced Forex brokers on the market. Furthermore, it also the largest broker by the number of financial instruments available to trade. The broker holds highly reputable authorization from the leading market regulator in the United Kingdom and offers a competitive trading environment. However, AvaTrade outperforms the IG broker in several ways. First of all, AvaTrade is a holder of numerous licenses from respectable authorizations making it one of the safest brokers to trade Forex with. AvaTrade also offers much tighter spreads and more flexible leverage despite offering much fewer tradable assets. Finally, the broker runs a referral program which still counts as a promotional campaign in contrast to IG providing nothing similar. However, if you are a trader from the United Kingdom you might still prefer trading with IG since the broker holds your local regulator’s authorization.
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