Expanding its repertoire, AvaTrade, a broker dealing in Forex and CFDs, has unveiled a specialized futures trading platform named AvaFuture. Launched just yesterday, this platform offers a spectrum of futures contracts, spanning micro, mini, and standard variants.
The newly launched AvaFuture platform is poised to be a comprehensive hub, featuring futures contracts across various asset classes, encompassing indices, commodities, currencies, treasuries, cryptocurrencies, and metals. Notably, the pricing for these contracts is set at $1.75 per standard per trade.
Established in 2006, AvaTrade operates out of Ireland and caters to retail traders, offering various services including retail forex and CFDs on stocks, exchange-traded funds (ETFs), cryptocurrencies, and more. The introduction of futures trading augments its existing offerings, including options trading under the AvaOptions brand.
With a strong regulatory framework, AvaTrade holds operational licenses from regulatory authorities in Ireland, the British Virgin Islands, Australia, South Africa, Japan, the UAE, Cyprus, and Israel. While the regulatory oversight for its new futures platform remains unspecified on its website, AvaTrade can offer these services under any of its existing licenses, depending on the jurisdiction.
In addition to product diversification, AvaTrade is strategically expanding its geographical footprint and is actively considering securing a regulatory license in Spain, further solidifying its presence within the European Union.
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AvaTrade’s move into futures trading reflects a broader trend within the industry. Other brokerage firms have also recognized the potential of futures trading and have introduced similar offerings in recent years.
For instance, in 2021, London-listed FX and CFDs broker Plus500 acquired Cunningham Commodities and Cunningham Trading Systems, both US-based firms, subsequently launching futures trading services for its US-based clients. Similarly, Ingmar Mattus, the founder of Tickmill, another player in the FX/CFDs space, recently debuted MetroTrade, a futures trading platform catering to the US market.
Interestingly, a prior survey conducted by Acuiti unveiled that over 50 percent of European retail brokers expressed intent to pivot towards offering futures and options, moving away from retail over-the-counter instruments like CFDs.
