AvaTrade Spreads

Everything you need to know about the spreads from AvaTrade
9.5

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9.1

Minimum Deposit

9.6

Platforms

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9.7

Withdrawal Processing Time

9.7

Spreads

9.7

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9.5

Education

AvaTrade's spreads are on the average-to-competitive levels, depending on your account type, and ample educational resources. This brokerage's low minimum requirements make it an ideal platform for beginner and undercapitalized traders who are looking to honing their skills. This section will tackle everything you need to know about the spreads offered by this broker.

Opening an AvaTrade account will only take around a few minutes so you can get started in no time.
Spread on the AvaTrade platform
Spread on the AvaTrade platform

01
What is a Spread?

Spread Definition

In investing terms, a spread refers to the difference between the BID price and the ASK price of a financial instrument.


02
How to Calculate a Spread?

Calculating

The sample computation of a Spread is simply ASK - BID = Spread

Example of this computation is as follows:

The Bid is priced at 1.8050 while the Ask is priced at 1.8080.

Using the formula above, the spread here is 0.00030 or 3 pips (1.8050 - 18080 = 0.00030).


03
How is AvaTrade's Spreads Compared to Other Brokers?

Comparison

The average spreads of AvaTrade in the Forex pair of USD/EUR is almost the same as industry average at 0.9 pip, just a shade of 1 pip. However, it is a little higher compared to entry level accounts offered by other brokers.

For S&P 500 CFDs, AvaTrade's spreads averages 0.5 points during peak trading hours, while in Europe 50 CFD, it is built into a 2 points spread at average during peak trading hours.


04
How to Open a Spread Betting Account?

Spread Betting Account

You can open a spread betting Avatrade account during the registration process of your initial account. To do this, simply select the "Spread Betting" drop-down option when you are prompted for "What Trading Platform" you would like to use during your Avatrade account registration.


05
Does AvaTrade Offer Fixed or Floating Spreads?

Fixed or Floating?

All of AvaTrade's spreads are over market. You can check out the "Trading Conditions" page of AvaTrade to learn more about specific spreads for each financial instrument.


What Are the Forex Trading Spread Conditions?

AvaTrade's forex spread trading conditions are as follows:


06
What's an Ideal Spread in Forex Trading?

Ideal Forex Spread

Normally, the spread between the two prices is one to five pips. The spread can, however, vary and change at a moment's notice depending on market conditions. Since speculative trades need to cover the spread and any fees, investors must monitor a broker's spread.


07
Factors That Affect Spreads

Factors

Other than your broker, here are other factors that affect a spread:


08
What's the Spread for a Professional Account?

Professional Account

For users qualifying as an elected professional trader on the platform, the spreads will be at 0.6 pips — which is seen as a highly competitive spread compared to other brokers.


09
How to Hedge a Spread?

Hedge a Spread

Spread bets of the investing act of "hedge a spread" can be done by creating opposing bets. Hedging can even be achieved even with the same provider, but you'll have to pay a secondary spread and margin because the new position needs to be hedged.


10
AvaTrade Spreads per Financial Instruments

Spread Per Asset

Below are the spreads and commissions of AvaTrade on each financial instrument:

Now that you have all the information you need about AvaTrade's spreads, it's time to start opening an account with this broker!