I’ve been on the demo of AvaFX for a month and i’m pretty interested in oppening a account there im really happy with the plataform and the costumer service is ok (they’ve called me 3 times asking if everything was ok, if had any questions, etc.)
I’ve read the entire thread and it seems to me that AvaFx is an ok broker, of course it has its problems but, the problems shown here are the same problems that i’ve read in other threads relating other brokers.
The only critic to AvaFX that i have right now is that they should have a Forum for everyone who has a demo and/or a real acount to make it easier to find more about the company or to hear other peoples experiences (good or bad) and make a better informed decision about oppening an account with them.
I think i’m going to open an acount pretty soon, if i do i let everyone know how it goes
Ok so i’ve opened a silver account in avafx and everything went well, i’ve placed my first position and every thing went “well”, i’ve lost the trade but every thing worked good like in the demo account. The stop loss worked great, my position opening had no delays, i had no connection problems, and the client costumer support was helpfull (i had doubts about the deposits). I’ve only starded a few days but until now i have no complaints.
If some problems appear i’ll post them in the thread
i just opened a silver account with avafx but I’m not sure how cfd’s actually work.
is it that you buy low and sell high.
i was told by a guy from avafx that I’m at a risk if im selling and the price is going up.
and i am also at a risk if I’m buying and the price goes down.
I really don’t know i’ve openned the account to trade forex. I’ve also been curious to learn more about CFD, but because i don’t understand them i’ll just stay away from it and focus on Forex.
I’ve searched around for you and found a couple of links that might be usefull to understand how CFD work.
What was appealing to me about the Forex Market is that i could use a small account (100€ is a very very small account) and make profit quickly with the help of leverage.
For example: In avafx i could open a position of 5000€ with just 25€ (leverage 200:1) that means every pip in my favour would give me 0.50€ (of course the opposite is also true, ever pip against my position would make me lose 0.50€) that may not seem like a lot but if think about it if you gain 10 pips you would have made 5€ from the 25€ that i’ve invested a return of 20% of your investment. Since the Forex market is a very active market you can easily gain (or lose) more than the 10 pips i used in the example.
In terms of risk, well i think its more risky than the stock market for example, but if you use stop losses, don’t open positions too big for your account (in ava the minimum position size is 5000 wich means 25 from your account because of the 200:1 leverage), and keep your cool, i think that the risk is not that high.
If you have any doubts about investing in the Forex market you should read more about it and see how it works, unfortunatlly studying is a very important part of trading…
In the forex market how do you make a loss. Is it necessarily only when the value of a currency you have drops.
Let’s say you trade EURGBP at a price of 0.9754/.1.3579 ( I’m just making these up) and the prices falls could you leave it till when it starts to make a profit.
If you can do you get charged by avafx for doing so e.g roll over charges.
To simplify in the EUR/GBP if you open a long position (buy) and the price goes down you loose money, if you open a short position (sell) and the price goes up you loose money. Remember this is a oversimplification of what really happens.
Now for the second part if you open a position, and price starts moving against you, you can wait for it to move in your favour, but you shouldn’t wait so much that the loss is to big because:
1- The price may not move in your favour and when you decide to close your position your loss is going to be bigger than expected.
2- If the loss is bigger than your position the broker will close your position and take you out of the trade.
3- If the loss is so big that you loose your margin your account can be closed, a broker doesn’t allow its clients to have negative accounts.
Of course you can leave a position open overnight if its moving in your favour
I don’t think that rollover fees exist in forex only on CFDs but you should clear that out with the client support or read it in the site.
That i’ve heard of only dividend investors of the stock market hold on to positions that are moving against them because they are interested in reciving the dividends of the stocks and are not interested in the pips but even in that case i have my doughts that they hold on to a position like that for a long time. Of course you can also be a dividend investor in forex but not with a small account.
Don’t take this the wrong way but perhaps you should wait a bit before start to trade with a real account, try trading on a simulator or demo account for a few months and study a lot.
Leverage increaseases your purchase power and lets control positions much bigger than your account size with very little money for example in avafx you have 200:1 leverage wich means that in a 100€ account you have purchase power of 20000€ (100*200=20000). So to control a position of, say 5000€ you only need to put 25€ from your account (5000/200=25). Again this is an over simplification of how leverage works.
Please don’t take offense at the statement I’m going to make i.e. it is not intended to offend but to assist. I’m not sure how long you’ve been trading but not understanding that if you buy (go long) ANYTHING and the price goes down you lose money and if you sell (go short)ANYTHING and the price goes up you lose money is a bit worrying (unless it’s just that you thought that CFD’s work differently from spot forex of course which they don’t). I’m not sure about how AVAFx works with their CFD’s but I do know that the leverage offered on CFD’s is normally a LOT less than the leverage offered for trading spot forex so maybe that’s why you could not buy the 250 shares in Citigroup. What I DO know is that at a broker like AVAFx that uses the ACTForex trading platform (see below): 250 shares (no matter what the margin cost) would give you $250 per point movement in that stock if I’m not mistaken so I sure do hope you’ve got a HUGE account
For anyone that want decent broker reviews there is a site called forexpeacearmy.com (I’m sure most know of them). So far as I can tell it’s become the sort of ‘de facto standard’ for broker reviews (of course you do have to ‘filter’ some of the reviews i.e. ‘read between the lines’ because in a lot of cases the reviews are posted by people who’ve just wiped out their entire account and needs to blame someone so it may as well be the broker)!!!
AVAFx uses the trading platform designed by ACTForex and actually it’s a very nice platform (not that I should be giving them a punt here of course)!!! LOL!!! My very first broker used (still uses although I’d never put a single cent of YOUR money with them now) the same trading platform and it’s undergone some MAJOR changes in the last year as a matter of fact.
Yea i’ve been curious to tryout the mt4 platform, since i’ve heard a lot about it. AvaFx does let you use mt4 but i think you have to pay a montly fee to use it
My only experiences with trading platforms are with ActFx wich i like a lot and a trading plataform from a broker from Portugal (i’m not gonna say wich one because it was really bad).
How good is MT4 anyway? Is it much diferent than the ActFx trading platafform?
hallo… what i am saying is true. AVAFX is a no. 1 fraud company. i deposited money to avafx ,but it never activated into my account. i contacted them, but they told will come back shortly…but not. please dont invest ur valuable money into this fraud company…
I’ve been checking all reviews about Avafx and I’ve gotten mixed ones 70% of the review say it’s a big fraud.
I opened Anna count with them 2 weeks ago i sent wired €100 into my account and it took 3 days for the money to get there.
As it arrived the account manager refuses to reply my email nor pick up my calls. I just realized that the trading platform
Is quite different from the real one. I’ve made tons of money in the trading platform.
I was also told that Avafx uses real live prices on both forex and stock indices by the account manager which is not true. I’ve list 25% of my money but I’ve made 5% back.
I’ll wait till the new year and see if I can get in touch with him if not I’ll be closing my account.
That’s strage… i’ve also opened an account in avafx (read previous posts) and i’ve never had any problems with them they’ve always responded to my e-mails and live chat and once in a while they call me to ask if every thing is ok and/or talk about the promotions (obviouly).
The plattaform didn’t have any troubles, stop losses and quotes worked fine, but again i’ve only opened one position since i’ve opened the account like i said in the previous posts i lost the trade but every thing else went well. I didn’t oppen any more positions so far (and i’m not going to until 2011) because i didn’t have the opportunity (or lost the opportunity) and the market conditions right now are not the way i like it.
The only complaint that i have is that they didn’t tell me if the documents i sent to them were recived. But i’ve sent them an e-mail asking and the responded to me the next day saying that every thing was fine. Didn’t post this in the forum because i don’t think its really a problem.
When I used the demo account I could make trades on my iPhone but on my real account I can only buy or sell banco Santander.
I dint know why the account manager hasn’t contacted me yet I’d live. To think he’s on holidays or something but live chat is useless because they always say that the account manager will call me back and he never does. I spoke to him last on Friday and he said he would be working all week except during the weekends.
I’m a little bit worried about the trading platform. In relation to margin requirements and leverage it doesn’t add up I’ve done the maths and I believe I’m right.
It doesn’t also use live prices which I think it they ( Avafx) say they do.
What do you mean with “In relation to margin requirements and leverage it doesn’t add up…”? Leverage works well with me.
You can only buy or sell banco Santander stocks? that is really strange in my account i can buy or sell a more stocks like google for example. That is definitely something that your account maneger should be looking at.
If you are using your Iphone to place trades some dellays in price should be expected, or maybe that is related to the internet connection where you live. But i’m not sure i’ll check if i also have some delays or not.
