How Do AvaTrade Vs FXCM Compare?
This FXCM vs AvaTrade review looks at two of the leading market makers. Both forex brokers offer commission-free trading from 0.9 pips along with a wide choice of trading platforms like MT4 and social trading tools.
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*Cryptocurrency CFDs are not available to retail traders in the UK due to FCA regulations
*CFD trading is not available in the USA due to NFA and CFTC regulations, American traders spot trade in place of CFDs.
Our comprehensive comparison covers the 10 most important trading factors. Here are five key differences between FXCM and AvaTrade:
- FXCM offers lower spreads and fees compared to AvaTrade, particularly on major currency pairs.
- FXCM’s proprietary Trading Station platform excels in advanced charting and custom indicators, while AvaTrade focuses on automated trading with MetaTrader platforms.
- AvaTrade provides a simpler account structure with a one-size-fits-all approach, making it easier for traders to start without a large initial investment.
- For advanced traders who value custom indicators and charting, FXCM’s Trading Station is the preferred choice.
- FXCM is regulated by top-tier authorities, including the FCA, giving it a slight edge in trust and stringent regulation over AvaTrade.
1. FXCM: Lowest Spreads And Fees
Comparing each broker’s RAW account commissions and spreads on the most popular currency pairs, we concluded that FXCM has lower fees. Try the FXCM vs AvaTrade fee calculator below based on the most popular forex pairs and base currencies.
FXCM Spreads
FXCM offers competitive spreads across various currency pairs. The lowest spreads are EUR/USD at 0.05 and USD/JPY at 0.12. The consensus data shows average spreads like 0.44 for EUR/USD and 0.47 for USD/JPY, indicating FXCM’s advantageous position in terms of spreads.
| FXCM | EUR/USD | USD/JPY | GBP/USD | AUD/USD | USD/CAD | EUR/GBP | EUR/JPY | AUD/JPY | All-in Cost EUR/USD - Active | EUR/USD Standard Account |
|---|---|---|---|---|---|---|---|---|---|---|
| MyFxBook | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| BrokerChooser | 0.70 | 1.00 | 1.00 | 0.90 | 1.40 | N/A | N/A | N/A | N/A | N/A |
| ForexBrokers.com | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 1.38 | 1.38 |
| CompareForexBrokers | 0.56 | 0.30 | 0.60 | 0.90 | 0.40 | 0.60 | 0.70 | 0.80 | N/A | N/A |
| FXCM | 0.05 | 0.12 | 0.07 | 0.22 | N/A | 0.14 | 0.07 | 0.33 | N/A | N/A |
| Consensus | 0.44 | 0.47 | 0.56 | 0.67 | 0.90 | 0.37 | 0.39 | 0.57 | 1.38 | 1.38 |
AvaTrade Spreads
AvaTrade’s spreads are generally higher compared to FXCM. For major pairs like EUR/USD and GBP/USD, the spreads are 0.90 and 1.50, respectively. The consensus figures, such as 0.90 for EUR/USD and 1.50 for GBP/USD, reflect AvaTrade’s consistent spread structure across different sources.
| AvaTrade | EUR/USD | USD/JPY | GBP/USD | AUD/USD | USD/CAD | EUR/GBP | EUR/JPY | AUD/JPY | All-in Cost EUR/USD - Active | EUR/USD Standard Account |
|---|---|---|---|---|---|---|---|---|---|---|
| MyFxBook | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| BrokerChooser | 0.90 | 1.00 | 1.50 | 1.10 | 2.00 | N/A | N/A | N/A | N/A | N/A |
| ForexBrokers.com | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.61 | 0.92 |
| CompareForexBrokers | 0.90 | N/A | 1.50 | 1.10 | N/A | 1.50 | 1.80 | N/A | N/A | N/A |
| AvaTrade | 0.90 | 1.00 | 1.50 | 1.10 | 2.00 | 1.50 | 1.80 | 2.10 | N/A | N/A |
| Consensus | 0.90 | 1.00 | 1.50 | 1.10 | 2.00 | 1.50 | 1.80 | 2.10 | 0.61 | 0.92 |
The graph below shows the consensus data with FXCM having lower spreads by a huge margin in all major currency pairs.
When it comes to spreads and fees, both brokers have their merits, but FXCM stands out for its lower spreads.
| Criteria | FXCM | AvaTrade |
|---|---|---|
| Average EUR/USD Spread | 0.7 pips | 0.9 pips |
| Commissions | None | None |
| Overnight Fees | Yes | Yes |
FXCM offers an average EUR/USD spread of just 0.7 pips, which is slightly better than AvaTrade’s 0.9 pips. Neither broker charges commissions on trades, but both have overnight fees.
Verdict
If you’re looking for the lowest spreads and fees, FXCM is the better choice. The difference may seem small, but it can add up quickly, especially for active traders.
*Your capital is at risk ‘67% of retail CFD accounts lose money’
2. FXCM: Better Trading Platform
| Trading Platform | FXCM | AvaTrade |
|---|---|---|
| MetaTrader 4 | Yes | Yes |
| MetaTrader 5 | No | Yes |
| cTrader | No | No |
| TradingView | Yes | No |
| Copy Trading | Yes | Yes |
| Proprietary Platform | Yes | Yes |
Both brokers offer multiple trading platforms, but they excel in different areas.
FXCM offers its proprietary Trading Station platform, which is excellent for advanced charting and custom indicators. AvaTrade, on the other hand, offers its own AvaTradeGo platform alongside MetaTrader 4 and 5, which are excellent for automated trading.
Verdict
If you’re an advanced trader who values custom indicators and a charting package, FXCM’s Trading Station is unbeatable. However, if you’re into automated trading, AvaTrade’s MetaTrader platforms are more up your alley.
*Your capital is at risk ‘67% of retail CFD accounts lose money’
3. AvaTrade: Superior Accounts And Features
Both brokers offer a range of account types, but AvaTrade offers more features.
| Criteria | FXCM | AvaTrade |
|---|---|---|
| Account Types | Standard, Active Trader | Standard, Professional |
| Minimum Deposit | $300/$25,000 | $300 |
| Leverage | Up to 1:400 | Up to 1:400 |
FXCM offers a Standard account with a $300 minimum deposit and an Active Trader account that requires a hefty $25,000 minimum deposit. AvaTrade keeps it simple with a one-size-fits-all $300 minimum deposit for both its Standard and Professional accounts.
| FXCM | AvaTrade | |
|---|---|---|
| Standard Account | Yes | Yes |
| Raw Account | Yes | No |
| Swap Free Account | Yes | Yes |
| Active Traders | Yes | No |
| Spread Betting (UK) | Yes | Yes |
Verdict
When it comes to account types and features, AvaTrade is the better choice. Its straightforward account options make it easier for traders to get started without the need for a large initial investment.
4. FXCM: Best Trading Experience And Ease
In my experience, FXCM’s Trading Station is a game-changer. The platform offers advanced charting tools and custom indicators that are invaluable for any trader who takes their craft seriously.
- FXCM’s Trading Station offers advanced charting.
- AvaTrade’s MetaTrader platforms excel in automated trading.
- Both brokers offer mobile trading apps.
- FXCM and AvaTrade both provide social trading features.
AvaTrade, however, is no slouch. Its MetaTrader platforms are a paradise for those who are into automated trading. The user interface is not just user-friendly; it’s trader-friendly, catering to all levels of trading experience.
Verdict
If you’re a trader who thrives on advanced charting and custom indicators, FXCM is your best bet. But if you’re into automated trading and want a platform that’s easy to navigate, AvaTrade is the better choice.
*Your capital is at risk ‘67% of retail CFD accounts lose money’
5. FXCM: Stronger Trust And Regulation
FXCM Trust Score
AvaTrade Trust Score
FXCM is regulated by several top-tier authorities, including the Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC). AvaTrade is also regulated by multiple authorities, including the Central Bank of Ireland and ASIC.
| Tier 1 Regulators | Tier 2 Regulators | Tier 3 Regulators | |
|---|---|---|---|
| FXCM | ASIC, FCA, CySEC, CIRO, BaFin | FSCA, ISA (Israel) | |
| AvaTrade | ASIC, CIRO, CySEC | ADGM, ISA, JFSA, CBI, KNF | FSC-BVI FSCA |
Verdict
When it comes to trust and regulation, it’s a tight race. However, FXCM edges out slightly due to its regulation by the FCA, which is considered one of the most stringent regulatory bodies. If you’re a trader who places a high value on trust and stringent regulation, FXCM is the broker for you.
*Your capital is at risk ‘67% of retail CFD accounts lose money’
6. AvaTrade: Top Product Range And CFD Markets
Both brokers offer a decent range of products, but AvaTrade has a more extensive selection that’s hard to ignore.
| Broker | Forex Pairs | Commodities | Indices | Stocks | Cryptocurrencies |
|---|---|---|---|---|---|
| FXCM | 39 | 13 | 13 | 68 | 5 |
| AvaTrade | 55 | 17 | 20 | 100 | 8 |
Verdict
AvaTrade offers a more extensive range of CFDs and Markets. If you’re a trader who values variety and wants to diversify your portfolio, AvaTrade is the clear winner.
7. AvaTrade: Superior Educational Resources
When it comes to education, AvaTrade is the front-runner with an array of video tutorials, e-books, and webinars that are not just informative but also engaging.
- AvaTrade offers video tutorials.
- FXCM provides custom indicators for analysis.
- Both offer daily market analysis.
- AvaTrade has e-books.
- FXCM offers a weekly market outlook.
- AvaTrade provides webinars.
Verdict
AvaTrade offers a more comprehensive and engaging educational package. If you’re a trader keen on continuous learning and staying updated, AvaTrade is your go-to broker.
8. FXCM: Superior Customer Service
Customer service is a non-negotiable for me, and both brokers excel in this department. FXCM and AvaTrade offer a plethora of support channels, including live chat, email, and phone.
| Feature | FXCM | AvaTrade |
|---|---|---|
| Live Chat | Yes | Yes |
| Email Support | Yes | Yes |
| Phone Support | Yes | Yes |
| Multiple Languages | Yes | Yes |
| Account Managers | Yes | Yes |
Verdict
Based on our team’s in-depth analysis and scores, FXCM has a slight edge over AvaTrade in customer service. If top-notch support is a priority for you, FXCM is the broker to go with.
*Your capital is at risk ‘67% of retail CFD accounts lose money’
9. FXCM: Better Funding Options
When it comes to funding, both brokers make the process straightforward, but FXCM offers a bit more flexibility and convenience.
| Funding Option | FXCM | AvaTrade |
|---|---|---|
| Bank Transfer | ✓ | ✓ |
| Credit Card | ✓ | ✓ |
| PayPal | ✓ | ✗ |
| Skrill | ✓ | ✓ |
| Neteller | ✓ | ✓ |
Verdict
FXCM offers a broader range of funding options, including PayPal, which adds extra convenience for traders.
*Your capital is at risk ‘67% of retail CFD accounts lose money’
10. FXCM: Lower Minimum Deposit
The minimum deposit is often a deciding factor, especially for new traders or those who prefer to start with a smaller capital. FXCM offers a $50 minimum for its standard account and a significant $25,000 for its ActiveTrader account.
| Broker | Minimum Deposit | Recommended Deposit |
|---|---|---|
| FXCM | $50 | $50 |
| AvaTrade | $100 | $100 |
Verdict
FXCM offers a simpler, one-size-fits-all minimum deposit of $50.
*Your capital is at risk ‘67% of retail CFD accounts lose money’
Is AvaTrade Superior to FXCM?
FXCM is the winner because it offers a more powerful trading experience, superior customer service, and better funding options. Below is a table that summarises the key information leading to this verdict.
| Criteria | FXCM | AvaTrade |
|---|---|---|
| Lowest Spreads And Fees | ✓ | ✗ |
| Better Trading Platform | ✓ | ✗ |
| Superior Accounts And Features | ✗ | ✓ |
| Best Trading Experience And Ease | ✓ | ✗ |
| Stronger Trust And Regulation | ✓ | ✗ |
| Top Product Range And CFD Markets | ✗ | ✓ |
| Superior Educational Resources | ✗ | ✓ |
| Superior Customer Service | ✓ | ✗ |
| Better Funding Options | ✓ | ✗ |
| Lower Minimum Deposit | ✓ | ✗ |
FXCM: Best For Beginner Traders
FXCM is better for beginner traders due to its user-friendly platform and excellent customer service.
AvaTrade: Best For Experienced Traders
AvaTrade is more suited for experienced traders who are looking for a wide range of products and advanced educational resources.
FAQs Comparing FXCM vs AvaTrade
Does AvaTrade or FXCM Have Lower Costs?
FXCM has lower costs, particularly when it comes to spreads. FXCM offers spreads starting from 0.7 pips, while AvaTrade starts at 0.9 pips. For more information on low-cost brokers, you can visit our Lowest Commission Brokers.
Which Broker Is Better For MetaTrader 4?
FXCM is the better broker for MetaTrader 4 users. It offers custom indicators and advanced charting tools. For more details, check out our Best MT4 Brokers.
Which Broker Offers Social Trading?
Both FXCM and AvaTrade offer social trading features. Whether you’re into social trading or copy trading, both brokers have you covered. For more, visit our best social trading platforms.
Does Either Broker Offer Spread Betting?
FXCM offers spread betting, making it a suitable choice for traders interested in this type of trading. For more information, you can visit our best spread betting brokers page.
What Broker is Superior For Australian Forex Traders?
In my opinion, FXCM is superior for Australian Forex traders. It’s ASIC-regulated and offers a solid trading platform. For more details, check out our Best Forex Brokers In Australia page.
What Broker is Superior For UK Forex Traders?
For UK traders, FXCM is the better choice. It’s FCA-regulated and offers a range of trading platforms suitable for both beginners and experienced traders. For more information, visit our Best Forex Brokers In UK page.
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Ask an Expert
Does AvaTrade guarantee stop loss?
No but you can use a traditional stop loss as well as AvaProtect