AvaTrade, a forex and contracts for differences (CFDs) broker, has expanded its offerings with the launch of a dedicated futures trading platform, AvaFuture. Launched yesterday (Tuesday), the new platform offers micro, mini, and standard futures contracts.

The Launch of AvaFutures

As seen on its website, AvaFuture provides futures contracts across a range of asset classes, including indices, commodities, currencies, treasuries, cryptocurrencies, and metals. It further highlighted that it is pricing the contracts at $1.75 per standard per trade.

Founded in 2006, AvaTrade is an Ireland-headquartered brokerage offering retail forex and CFDs of stocks, exchange-traded funds (ETFs), cryptocurrencies, and other asset classes. The latest offerings of futures are an extension of its existing services to retail traders. It also offers options trading under the brand AvaOptions.

The Irish broker is also well-regulated, as it holds operational licenses from the authorities in Ireland, the British Virgin Islands, Australia, South Africa, Japan, the UAE, Cyprus, and Israel. Although the website of the new futures platform did not specify any particular regulator for its services, AvaTrade can offer the services under any of its licenses, depending on the jurisdiction.

Apart from product expansion, AvaTrade is also focused on geographies and is contemplating obtaining a regulatory license in Spain, thus further bolstering its services within the European Union.

CFDs Platforms Shift Towards Futures

Meanwhile, AvaTrade is not the only broker to see value in futures, as other brokers have also launched futures offerings in recent years.

In 2021, Plus500, a London-listed FX and CFDs broker, acquired Cunningham Commodities and Cunningham Trading Systems, two US-based firms, and has launched futures trading for its clients in the US. Furthermore, Ingmar Mattus, the founder of Tickmill, another FX/CFDs broker, recently launched MetroTrade, a futures trading platform in the US market.

Interestingly, an earlier survey by Acuiti revealed that over 50 percent of European retail brokers would look to offer futures and options instead of retail over-the-counter instruments, such as CFDs.