Understanding Inactivity Fees in Forex Trading
Inactivity fees are charges levied by brokers on trading accounts that have remained dormant for a specified period, typically ranging from a few months to a year. These fees are designed to offset administrative costs associated with maintaining an inactive account. While seemingly minor, they can add up, especially for traders who have multiple accounts or pause their trading activities for extended periods. It's crucial to understand each broker's specific policy to avoid unexpected deductions.
Exness Inactivity Policy
Exness is known for its transparent and often client-friendly fee structure. At the time of writing, Exness does not charge an inactivity fee on its trading accounts. This policy is a significant advantage for traders who might experience periods of dormancy, as their capital remains untouched by such charges. This can be particularly appealing to long-term investors or those who trade infrequently.
Avatrade Inactivity Policy
In contrast, Avatrade does implement an inactivity fee. According to their terms, an inactivity fee of €50 (or equivalent currency) is charged after three consecutive months of non-use. Additionally, a €100 administration fee is applied if there has been no trading activity for 12 consecutive months. While these fees are standard practice for many brokers, they are a definite consideration for traders who anticipate sporadic activity or prolonged breaks from trading. Avatrade typically provides notice before applying these charges.
Exness vs Avatrade: A Broader Comparison
Beyond inactivity fees, a holistic view of Exness and Avatrade reveals their distinct strengths and weaknesses across various trading parameters. Below is a comparison table outlining key features.
| Feature | Exness | Avatrade |
| :-------------------- | :----------------------------------------------- | :----------------------------------------------- |
| Spreads (EUR/USD) | Typical 0.3 pips (Raw Spread), 0.7 pips (Standard), at time of writing — check broker site | Typical 0.9 pips (Retail), at time of writing — check broker site |
| Spreads (GBP/USD) | Typical 0.6 pips (Raw Spread), 1.0 pips (Standard), at time of writing — check broker site | Typical 1.6 pips (Retail), at time of writing — check broker site |
| Spreads (XAU/USD) | Typical 15-20 cents (Raw Spread), at time of writing — check broker site | Typical 25-35 cents (Retail), at time of writing — check broker site |
| Commission (per lot) | From $3.5 (Raw Spread, Pro), $0 (Standard, Standard Cent), at time of writing — check broker site | $0 (spread-inclusive), at time of writing — check broker site |
| Min Deposit | From $10 (Standard Cent/Standard), at time of writing — check broker site | From $100, at time of writing — check broker site |
| Regulators | FCA (UK), CySEC (Cyprus), FSCA (SA), CMA (Kenya), FSC (BVI), FSA (Seychelles), CBCS (Curaçao & Sint Maarten) | CBI (Ireland), ASIC (Australia), FSC (BVI), FSA (Japan), FSCA (SA), ADGM/FRSA (UAE), IIROC (Canada) |
| Platforms | MT4, MT5, Exness Terminal, Exness Trade App | MT4, MT5, AvaTradeGO, WebTrader, AvaOptions, DupliTrade, ZuluTrade |
*Note: Figures are typical, at time of writing — check broker site for the most up-to-date information.*
Key Differences and Considerations
Trading Costs
Exness generally offers competitive spreads, particularly on its Raw Spread and Pro accounts, which come with a commission. Its Standard accounts offer wider, commission-free spreads. Avatrade, on the other hand, operates on a spread-only model for most retail clients, with spreads that are generally wider than Exness's raw spread offerings but competitive for its model. For high-volume traders, Exness's commission-based accounts might offer better overall value, while casual traders might prefer Avatrade's simpler, spread-only structure.
Regulatory Environment
Both brokers are regulated by reputable financial authorities across multiple jurisdictions, offering a degree of security to traders. Exness holds licences from bodies like the FCA (UK) and CySEC (Cyprus), while Avatrade is regulated by the CBI (Ireland) and ASIC (Australia), among others. The specific regulatory protections available to you will depend on your country of residence and the entity you are onboarded with.
Trading Platforms
Exness focuses primarily on the MetaTrader suite (MT4 and MT5), supplemented by its proprietary Exness Terminal and mobile app. Avatrade offers a broader range of platforms, including MT4, MT5, its own AvaTradeGO app, and specialised platforms like AvaOptions for options trading, and social trading solutions like DupliTrade and ZuluTrade. Traders looking for a wide variety of platform choices might find Avatrade more appealing, while those comfortable with MetaTrader will find Exness more than adequate.
Verdict by Trader Type
* For Cost-Sensitive, Active Traders: Exness, particularly its Raw Spread or Pro accounts, could be more advantageous due to potentially tighter spreads and the absence of inactivity fees. The lack of an inactivity fee is a major draw for those who might take breaks.
* For Beginner and Casual Traders: Both brokers are viable. Avatrade's all-inclusive spreads might simplify cost calculations, but its inactivity fee is a point to note. Exness's Standard accounts also offer a straightforward, commission-free experience with no inactivity fee.
* For Traders Seeking Platform Variety: Avatrade has a clear edge with its extensive range of trading platforms, catering to various trading styles and preferences, including social and options trading.
* For Traders Concerned About Dormancy Charges: Exness is the clear winner here, with its policy of not charging any inactivity fees.
Ultimately, the choice between Exness and Avatrade depends on your individual trading preferences, frequency, and risk tolerance. It's always advisable to open a demo account with both to experience their platforms and conditions firsthand before committing capital. Remember, CFD trading carries significant risk and can result in the loss of your invested capital.
As a trusted partner for UK traders, we recommend considering Vantage. With competitive trading conditions and robust platforms, Vantage is an excellent choice for navigating the forex markets. Open a Vantage account for a premium trading experience.
Frequently Asked Questions (FAQs)
Q: What is an inactivity fee?
A: An inactivity fee is a charge levied by a broker on a trading account that has not shown any trading activity (opening or closing trades) for a specified period, typically a few months.
Q: Does Exness charge an inactivity fee?
A: No, at the time of writing, Exness does not charge any inactivity fees on its trading accounts, making it a favourable option for traders who may experience periods of dormancy.
Q: How much is Avatrade's inactivity fee?
A: Avatrade charges an inactivity fee of €50 (or equivalent) after three consecutive months of non-use, and an additional €100 administration fee after 12 consecutive months of no trading activity.
Q: Which broker is better for low minimum deposit?
A: Exness generally offers lower minimum deposit requirements, with some account types starting from as little as $10, making it more accessible for traders with smaller initial capital compared to Avatrade's typical $100 minimum deposit.
Next step
Open a Vantage account. CFDs carry a high risk of losing money.