AvantGardeFX Review

avantgarde-fx.com briefly

AvantGardeFX is a trading name of Pure M Global LTD, which is authorized and regulated by the Vanuatu Financial Services Commission (VFSC). It is the new way of trading with extremely low market spreads, no requotes, Real STP and DMA, absolute transparency and the latest trading technology, the company claims. Customers can trade more than 80 CFDs on currency pairs, indices, commodities, stocks, and cryptocurrencies through the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, which currently are the standard in the industry. The leverage can be up to 1:400 and you can start trading by investing USD500.

Regulation

One of the important things to check before anything else is the regulation of the company. Pure M Global LTD is authorized and regulated by the Vanuatu Financial Services Commission (VFSC) in the Vanuatu under VFSC Firm Reference Number 14801. The company claims that client money is kept in top international banks, segregated from its own funds. AvantGardeFX does not use clients’ funds for its operations or any other types of investments, the company informs. In addition, customers are insured with Falcon Insurance for the safety of their funds. It covers up to USD50,000 per claim for a total insurance coverage of USD500,000, the company says.

Account Types

There are three types of live accounts depending on the minimum required deposit and the spread of the instruments.

The “Standard Account” requires USD500 to open, and the spread will start from 2.5 pips. Trading is commission free.

You must invest USD3,000 to open a “Professional Account” and the spread will start from 1.4 pips. Trading is free of charge.

The “VIP Account” requires an initial deposit of USD50,000. The spread is close to zero at the expense of some commission.

How the Company Executes Client Orders

The only document related to the execution of the orders that we found on the webpage was the Client Agreement. It informs that clients and the company enter into every operation in the trading platform as principals and the company does not act as an agent on the client’s behalf. Although the company claims it is a real STP brokerage, the document shows that it acts as principal and is a counterparty to all client orders. Therefore, the company is a market maker. Being a market maker involves a conflict of interest because when the company executes orders, it keeps the risk to itself. Every loss for customers is a profit for the company. This is confirmed by the same document where it is written that the company may be in conflict with the interest of the client because the company acts as principal and can combine the client’s transaction with that of another client.

Client Agreement does not say anything about the type of the stop loss orders the company offers. That is why probably all types of orders are subject to slippage and stop loss orders are not guaranteed and will be filled at the next available market price.

The “Risk Disclosure” document reveals that the client may sustain a total loss of their initial margin and any additional funds deposited to maintain open positions. In other words, clients are not covered by the Negative Balance Protection policy and in the end, you can owe money to this company.

Fees

The “Client Agreement” file does not mention anything about the inactivity fee. However, it defines when the client account becomes inactive. In the case of no activity for a period of six months (no deposits, withdrawals, or trading activity) in the trading account, it becomes inactive and you should be prepared to be charged а fee.

Deposits and Withdrawals

Deposits can be made via bank transfers or electronic wallets such as Skrill, Neteller, etc., and some cryptocurrencies. The minimum deposit amount depends on the payment method and most of them charge fees that will be covered by the customer.

Withdrawals must be made by the same payment method with which the customer’s trading account is credited. There are withdrawal fees for each payment method. If a bank transfer is used as the method of payment, the withdrawal fee is 2% plus EUR35. The applicable fee for withdrawals via Skrill is 1% and for those via Neteller is 2%. Any third-party fee will be covered by customers.

There is no information about the processing time of transactions.

Trading Platforms

Customers can trade through two of the most powerful terminals in the industry – MetaTrader 4 (MT4) and MetaTrader 5 (MT5). MT4 is the preferred terminal of many traders. It unites an intuitive user interface with a customizable environment and great functionality. MT4 allows traders to use expert advisors (EAs), which expand their trading strategies. MT4 supports the MQL4 programming language and has the functionality to run and test strategies based on historical data. One-click trading directly from the charts is also available. There are 4 types of charts, 9 timeframes, 33 indicators and 30 elements for graphical analysis. The terminal is available as a desktop version and as a mobile app for Android and iOS devices.

MetaTrader 5 provides a comprehensive technical analysis software that enables users to explore charts of financial instruments using technical indicators and analytical tools. They include 38 technical indicators and 44 graphic objects, which are available for an in-depth market analysis. MetaTrader 5 supports the MQL5 programming language and offers the most sophisticated automated trading capabilities, while trading robots analyze prices and perform transactions automatically.

Assets

Currency pairs – 60 major, minor, and exotic currency pairs can be traded. Spreads depend on the account type and start from 2.5 pips in the Basic account and are close to zero in the VIP account. The leverage can be up to 1:400.

Indices – You can trade 13 of the global major indices such as DAX40, Nikkei225, Dow Jones Industrial Average, etc. Spreads are floating.

Commodities – CFDs on Gold, Silver, Crude Oil and Brent Oil are available for trading. Spreads are floating.

Shares – Nearly 300 CFDs on US Shares are available for trading via the MT5 platform only.

Cryptocurrencies – CFDs on Bitcoin, Ethereum, Litecoin and Ripple are available for trading.

Summary

AvantGardeFX is a VFSC-regulated company, which acts as a market maker (no matter what it claims); therefore, the main conflict of interest exists. Customers can trade currency pairs, commodities, indices, shares, and cryptocurrencies through the MT4 and MT5 terminals, which can be downloaded for desktop machines and as a mobile app. Clients can top up their accounts by bank transfers, e-wallets, and cryptocurrencies. Live trading can be started by investing USD500. Please be careful, there is no protection against a negative balance, and you may lose more than your initial deposit.