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AvaTrade and Plus500 are two very different brokerage companies, however, both are increasingly popular among traders worldwide. They provide different trading platforms and financial instruments and have different types of clients. But, what they have in common is reliability and trustworthiness. AvaTrade is the best solution for Forex and CFD traders with any experience in trading ranging from beginner to advanced. Whereas, Plus500 is recommended to experienced traders that are looking for innovative platforms focusing on CFD trading.
AvaTrade is one of the most experienced Forex brokers on the market with more than 15 years of dominant market presence. The broker is authorized to operate in multiple jurisdictions and holds a significant amount of licenses from top regulatory institutions globally. The trading portfolio available to the clients of the broker comprises around 1000 financial instruments. AvaTrade’s clients are furthermore secure thanks to the negative balance protection offered by the broker.
Plus500 on the other hand is a publicly traded company, also regulated by the top-tier regulatory bodies worldwide. The broker has won numerous awards in the past and has been named as one of the leading brokerage companies in the European Union. The clients of Plus500 can access more than 2000 financial assets tradable as the CFDs on the broker’s platform. Plus500 is famous for its tight spreads and commission-free trading environment.
Our AvaTrade vs Plus500 comparison review will assess the qualities of these two brokers, terms and conditions for the clients, and the benefits and limitations of trading with any of them.
|CBI, ASIC, FSCA, ISA, CySEC, B.V.I. FSA, FSRA, FSA, FFAJ
|ASIC, MAS, FCA
|MT4, MT5, AvaSocial, AvaTrade GO
We would expect Plus500 to have more convenient trading costs compared to AvaTrade since the broker is primarily popular due to its cheap brokerage services. However, AvaTrade might still be preferable for beginner and intermediate traders due to flexible pricing on different account types. Furthermore, VIP discounts and promotions for active players are mainly to be found with AvaTrade, which is another advantage of the broker. The minimum deposit requirements are the same with both brokers – 100 US dollars.
If we take the most popular Forex pair – EUR/USD as an example, AvaTrade on average provides 0.61-0.91 pips on the currency pair, whereas Plus500 has it at 0.6 pips. Furthermore, spreads on Oil and stock assets with Plus500 are variable, while AvaTrade offers fixed spreads of 0.02 on Oil and 0.13 Abv market on stocks. The difference between the spreads of Plus500 vs AvaTrade is relatively small. However, the leverages of these two brokers are contrasting. Plus500 is able to offer the maximum leverage of 1:30, whereas AvaTrade can go up to as much as 1:400. Nevertheless, it should be noted that high leverages are risky and should be used with caution.
The good news is that both AvaTrade and Plus500 offer a plethora of payment methods to their clients. It is a huge incentive since no matter where the trader lives, he or she can find a suitable payment solution supported in his or her residence country. Traders can access all the popular payment systems including Skrill and PayPal, as well as Visa/Mastercard payments and bank wire transfers. The brokers themselves do not charge for withdrawals or deposits. However, depending on the payment method you choose the payment service provider may charge you a transaction fee. The fees for the transactions are given on the official websites of Plus500 or AvaTrade.
When it comes to trading platforms and software, AvaTrade is a clear winner. Plus500 provides a custom Plus500 trading platform that can be used as a Desktop, Web, or Mobile version. On the other hand, AvaTrade supports numerous trading software along with various modifications to provide the most convenient trading environment for its clients. The platform choice of the broker also allows social trading or copy-trading for its clients. AvaTrade broker supports the leading trading platforms of MetaTrader 4 and MetaTrader 5 which remain as the absolute favorite of all traders across the globe throughout the time. In addition, the broker also offers AvaTrade GO and AvaSocial systems integrated into the platform of broker.
While MetaTraders have been tested numerous times and they seem to have no major competitors up to the moment, the innovative platforms of AvaTrade GO and AvaSocial attract thousands of traders every month. Both of these platforms are relatively recent but provide the most secure and reliable operations with multiple features included such as charting, analysis, copy-trading, subscription to signals and etc. The platforms of AvaTrade have won numerous awards throughout the past few years. They can be accessed on desktops, browsers, or IOS and Android mobile devices.
When it comes to security and the safety of traders’ funds and personal data, both brokers have their own advantages. For example, Plus500 is a publicly traded company, which means that the financial statements and general information about the broker are widely available for the public. In addition to that, Plus500 also holds three official licenses from the top regulatory authorities. Plus500 is licensed by the Australian Securities and Investments Commission (Australia), the Monetary Authority of Singapore (Singapore), and the Financial Conduct Authority (the United Kingdom). Thus, Plus500 is authorized to operate in numerous jurisdictions worldwide.
AvaTrade on the other hand is a private company that does not display its financial information to the public. However, the brokerage company does everything else to provide safety to its clients. The broker implements negative balance protection and insures its capital to avoid any unnecessary trouble caused to the traders of AvaTrade. Furthermore, the broker is one of the most regulated and transparent brokers with the licenses from following financial regulators:
Bonuses are integral parts of the Forex trading industry. However, due to various restrictions imposed by certain regulatory authorities, not all brokerage companies are able to offer them. Usually, the bonus programs by regulated brokers are lucky exceptions. More commonly you will find trading contests or referral programs with these brokers. In our AvaTrade or Plus500 comparison, you will find that AvaTrade traditionally offers referral bonuses within its promotional campaign, whereas Plus500 has numerous bonus schemes designed for its existing and newcomer users.
The referral program of AvaTrade is a great opportunity for the broker’s clients to generate extra revenue independent from the trading activities. The rules state that for each referred registered user on the broker’s platform a client will receive a cash prize, which is withdrawable at any point. According to the conditions, the referred user has to deposit at least 100 US dollars and trade with the amount for the client to be eligible for the referral bonus. For the deposits between 250-500 US dollars, the clients can receive up to 75 USD referral bonus, whereas the deposits up to 10,000 USD generate a referral bonus of 400-500 USD.
Plus500 on the other hand provides multiple bonus packages depending on the location of the client. The main bonus type that the broker offers is a deposit bonus. For instance, for the clients from Singapore, the minimum deposit eligible for the bonus is 200 Singapore USD with required T points of 50 and the respective bonus of S$ 70. To claim the bonus users have to indicate a bonus code SingaporeWelcome. The “Welcome” bonus code can be claimed once 300 Singapore dollars is deposited on the broker’s platform and 80 T-points are accumulated. The respective bonus amount is S$80. The maximum bonus amount with the broker can go up to S$3000.
|- tight spreads
|- diverse portfolio
|- advanced trading platforms
|- generous referral program
|- flexible leverage
|- numerous payment methods
|- limited bonuses
|- average prices
|- geographic restrictions
|- limited leverage
|- high min. deposit
|- higher trading costs
It is not easy to distinguish between two decent brokers with appropriate safety features, up to market standard services, and an exceptional trading environment. Whenever the brokers satisfy all the major criteria including the trading fees, platforms, promotions, and security measures the choice is up to the client. If you are looking for advanced and tested trading platforms then AvaTrade is a better option than Plus500. However, if you are looking for deposit bonuses then only Plus500 can satisfy your requirement. Therefore, we suggest that you pick a broker according to your needs and trading goals as both brokerage options are safe and strongly recommended.
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