eToro has distinct differences and similarities with other brokerages, exchanges and CFD service providers. In some cases, eToro may have the edge over specific brands while on the other hand, its competitor may have specific features that are superior than eToro.
So how does eToro compare with them? If you are considering to look for eToro alternatives and would like to see a comparison with specific competitors then this page will have the information that you will need so continue reading to make an informed decision for yourself.
AvaTrade vs eToro
Just like eToro, AvaTrade is a CFD service provider and has a license from the ASIC. In addition, it is also regulated by the Central Bank of Ireland, the Financial Sector Conduct Authority FSCA in South Africa, the Abu Dhabi Global Market in UAE and the Financial Services Regulatory Authority of Ontario in Canada.
eToro’s Assets: 8x More Than AvaTrade
In comparison with eToro, which offers over 3000 assets, AvaTrade’s clients can access around 1000 instruments including stocks, commodities, currencies, indices, cryptocurrencies, ETFs and bonds via this broker’s platforms.
Copy Trading But with Differences
When it comes to copy trading, AvaTrade supports ZuluTrade and DupliTrade, which are automated platforms for accessing signal providers and traders including their stats that can be copied by their clients.
Look:
This is not the same as the social trading platform of eToro where users can access profiles of traders directly from the platform and start copying their trading positions because with AvaTrade, you would still need to connect your account with either ZuluTrade or Duplitrade and then setup the auto execution in order to begin copying trades.
Comparison with Plus500
eToro and Plus500 are two options that are often recommend for trading Forex CFDs. Plus500 has been operating since 2008 while eToro has been around slightly longer with the company being founded in 2007.
Multi-Regulated Brands
They are both licensed by the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) in the UK, and the Australian Securities and Investments Commission (ASIC).
In addition…
Plus500 is licensed by the Monetary Authority of Singapore (MAS), the Financial Markets Authority (FMA) in New Zealand, the Financial Sector Conduct Authority (FSCA) in South Africa, and the Seychelles Financial Services Authority (FSA). On the other hand, eToro is registered with the Financial Crimes Enforcement Network (FinCEN) as a Money Services Business and has licenses with state-level regulators.
A Suite of Platforms
Both providers offer several platforms with advanced trading options so that users can lock in on the profits or minimize the losses. Plus500 has apps for Windows 10, mobile apps for Android and iOS and a web-based platform while eToro also has mobile apps for Android and iOS devices and a web-based platform as well. Testing these platforms is possible via the demo accounts that do not expire.
For US residents, Plus500 is not available while eToro accepts US traders and their platform only supports cryptocurrency trading while they are still in the phase 1 stage.
Over A Thousand Assets Available
eToro's platforms have over 3000 instruments while Plus500 has more than 2000. Both have the same instrument categories including stocks, commodities, currencies, indices, cryptocurrencies and ETFs.
These two brokerage firms make money from the spreads but have particular fees on other matters with Plus500 charging an inactivity fee of $10 per month and overnight fees for positions that have been left open. eToro on the other hand also charges overnight fees and a $25 fee for every withdrawal.
eToro’s Social Trading Advantage
The main difference of eToro from Plus500 is that it has social trading features so aside from giving users the option to trade and make a decision on their own, they can also explore the profiles of other traders and copy their trades. This trading method is not available from any of Plus500’s platforms.
Similarities and Differences with ZuluTrade
ZuluTrade and eToro are two of the most common brands that are primarily associated with the social trading industry where users can copy the strategies and positions of more experienced traders.
eToro has over 20 million users since it commenced operations in 2007 while ZuluTrade started on the same year and has around more than 2 million clients with connections to over 150 brokerages.
Users of these platforms have the option to do practice trades via the demo accounts.
The Social Trading Difference
Here’s the deal:
ZuluTrade is not a broker. In order to use its social trading features, one needs to open an account first with a specific broker that supports this platform and connect this account. The linking process is the most important part because this is the way for brokerage account to be able to utilize the platform’s copy trading services.
On the other hand, eToro is a brokerage firm and its social trading services are exclusive to its registered users. It cannot be linked or connected with other brokerages so this means you can only follow and copy trades from eToro clients and not from other brokers.
Social Trading Costs
In general, the copy trading services are free to use but there are some certain fees to pay depending on the transaction or activity.
Since ZuluTrade is a platform that is linked with a variety of brokers, the spreads and rollover fees vary between brokers so it would greatly depend on your strategy especially if you are going to copy traders who usually leave their positions overnight.
With eToro, the applicable spreads are those only from eToro, which are typically lower than the industry average and only charged once when it was bought, and then it is automatically adjusted when the user decides to sell it.
Available Risk Management Tools
Both copy trading features come integrated with advanced risk management tools that users can utilize to maneuver through different market conditions.
ZuluTrade has the Margin Call-o-Meter that that routinely makes a risk estimation of all the copied traders so that the account will not be overexposed and limit the possible losses. For eToro’s case, clients can enter their own risk-management parameters via the copy stop-loss (CSL) which allows them to set controls for the entire copy relationship with values that can be adjusted from 5% to 95% as a safety net.
Interested to trade with eToro?
Now that you see eToro in comparison with other brokerages and service providers, you're probably interested about broker and wondering how you can open an account with them. Wonder no more because you can click the button below and you'll be taken directly to their sign-up page.
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77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Coinbase & eToro Comparison
eToro and Coinbase both offer a digital exchange for various cryptocurrencies such as Bitcoin, Ethereum and other altcoins. And while there are some similarities with their services, each are meant to provide a different experience for their clients.
What’s the Difference?
Coinbase is a purely cryptocurrency and fiat exchange while eToro has a wallet, a digital exchange and a social trading platform which allows its users to invest not just on crypto but also other asset types including stocks, commodities, indices, currencies and ETFs.
Coinbase has a full suite of investment services while eToro focuses in providing an interface where uses can copy and follow other traders who are also on board the platform. And while these are distinct functionalities, both companies offer a digital exchange for trading cryptocurrencies.
These brands also have stark differences with their fee schedules with Coinbase having fixed rates ranging from 1.49% to 3.99% depending on which country the user is a resident of plus a $25 wire transfer fee and a nominal fee for withdrawals if it was done in the single euro payments area (SEPA). eToro on the other hand imposes variable spreads which of 0.75% to 5% for buying crypto coins. Transferring of crypto starts at 0.005 units.
The Common Ground: Crypto Exchange
These brands may have some differences in terms of the services that they provide but both have platforms which have advanced features that can benefit their users including powerful charting features so traders can make informed decisions.
When comparing the cryptoassets that are offered by these two brands, eToro has more than 25 coins while Coinbase supports more than that at 4500+. Taking into consideration the variety of digital assets, both companies feature the most stable coins including Bitcoin, Ethereum and Cardano.
Ayondo vs eToro
Both eToro and Ayondo have been in the business for over a decade with the former being established in 2007 and the latter just a year later.
Unfortunately, Ayondo’s social trading business has ceased operations since 2019 and its shares have been suspended from trading as well.
Binance and eToro: The Pros and Cons
Another popular comparison in the crypto community is between Binance and eToro. Both brands enjoy a fairly good reputation as they are among the biggest names for trading these digital assets and are often compared due to their similarities in providing a platform for investing in cryptocurrencies.
A Crypto Exchange vs a Multi-Asset Platform
However, there are some stark differences with these brands. Binance is a pure cryptocurrency exchange, which means it only supports trading of digital coins with over 100 options to choose from. eToro on the other hand is a multi-asset brokerage firm where its users can invest on over 3000 assets comprising of not only crypto but also other markets including forex, commodities, indices, stocks and ETFs.
eToro’s Social Trading Advantage
When it comes to the trading features, both platforms have advanced trading functions and support margin trading (depending on your country) but eToro’s advantage is that it offers social trading which allows its members to copy the trades of more experienced users.
License Check
In terms of regulation, eToro has the edge as it complies with regulators and has multiple licenses. Binance on the other hand does not have a license from any specific regulatory agency, which means its investors do not have the protection of any financial industry authority.
Which Brokerage to Choose? Degiro or eToro?
eToro and Degiro are often compared in the online trading space due to their platform features and services.
The former is a brokerage firm providing financial and copy trading services on different asset types including stocks, forex, indices, cryptocurrencies, commodities and ETFs. The latter is a discount broker offers access to over 60 security exchanges where its members can buy and sell stocks, bonds, options, futures and leveraged products.
Minimum Deposit and Supported Methods
Degiro’s advantage is that it doesn’t have any minimum deposit requirement so users can fund the account with any amount they prefer via bank transfer or electronic wallets only. eToro users from most countries meanwhile are required to deposit $200 initially ($50 in the US, UK, Austria, Germany, Ireland, Italy, Netherlands, Norway, Spain, Sweden and Switzerland) on their account in order to start trading and funding methods have more variety including credit/debit cards, PayPal, Neteller, Skrill, bank transfer and other options.
| eToro | Degiro |
|---|---|
| Credit/Debit card | Bank transfer |
| PayPal | Electronic wallets |
| Neteller | |
| Skrill | |
| Rapid transfer | |
| iDEAL | |
| Klarna/Sofort banking | |
| Bank transfer | |
| Local online banking |
Trading Features Compared
eToro’s unique social trading feature is its greatest advantage over Degiro which only has limited trading tools which are only available via their website for Dutch and UK users.
Robinhood and eToro: Popular Rivals
eToro is among Robinhood's top competitors and their features are often compared in the industry. Robinhood has the a much lower minimum deposit requirement since their clients can deposit any amount on their account while eToro’s first deposit prerequisite is a tad higher at $200.
It’s important to remember:
Depositing funds into your account doesn’t mean that you’ve already invested this amount. This is basically your starting capital that you can use for trading on your broker’s platform. If you wish to get this money back, you can file a withdrawal request from your account and have it transferred back to its original funding source (*terms and conditions apply).
Tradable Assets: Diversity Compared
Robinhood has the higher number of tradable markets at 5000+ but majority of them are stocks. In comparison, eToro has more than 3000 instruments.
Look: The numbers have a huge difference but what's more interesting to focus on are the variety of instruments. Robinhood’s platform is lower in terms of the diversity of markets that they offer which only covers stocks, options, commodities and cryptocurrencies. In comparison, eToro provides access to stocks, commodities, currencies, indices, cryptocurrencies and ETFs via their all-in-one platform.
| Asset Type | eToro | Robinhood |
|---|---|---|
| Stocks | ✔ | ✔ |
| Commodities | ✔ | ✔ |
| Currrencies | ✔ | ❌ |
| Indices | ✔ | ❌ |
| Cryptocurrencies | ✔ | ✔ |
| ETFs | ✔ | ❌ |
| Options | ❌ | ✔ |
Maximum Leverage: Size Matters
Leverage can be used to take advantage of small price movements in the market as it increases the exposure to an underlying asset.
To make it short: Leverage allows you to use a larger capital, which you borrowed from a broker to opening a position or basically trade.
The maximum leverage that these brokers offer have a huge difference with Robinhood at 2:1 and eToro at 30:1. It does not mean that these maximum leverages apply to all assets. Some instruments may have much lower ratios depending on their category.
Keep in mind that trading with leverage will increase your market exposure and the risk as well. You may invest in an asset without leverage if this is your preference.
In addition, most financial regulators like the FCA[1] and ESMA[2] have set a ceiling on the amount of leverage that their licensed brokerages can offer to their clients.
Kraken and eToro: Similarities and Differences
eToro and Kraken are often compared due to their similarity in providing crypto services in the US and other countries. Both brands are registered and licensed by FinCen as a Money Services Business (MSB) the USA and are also regulated in the UK by the Financial Conduct Authority (FCA).
Kraken operates as a crypto exchange. It is also one of the oldest exchanges in the world and the largest in terms of euro volume and liquidity. eToro operates as a diversified trading platform where its users can invest on various types of assets like stocks, indices, forex and crypto. In the US however, they are only offering crypto trading services.
Given that Kraken is a full-fledged digital exchange, it supports more cryptocurrencies and stablecoins and as of this writing, 50+ choices are available. eToro on the other hand supports 15+ crypto coins but its platform also has crosses with commodities (e.g. GOLDBTC), currencies (e.g. BTCEUR, BTCUSD) and crypto (e.g. BTCEOS, XRPDASH) although this type may not be available to some countries due to regulation.
Social Trading with eToro Compared to Tradeo
eToro and Tradeo both offer social trading where their clients can copy the trades of more experienced and professional users. These brands have been operating for over a decade now with the former being founded in 2007 and the latter in 2011.
Since these two brokerages have more similarities, much of their features can be compared side by side. Platform-wise, eToro uses its own technology and does not use any third party service for their clients. Tradeo however supports the MetaTrader 4 (MT4) platforms and has integrated the social trading functions.
Their initial minimum deposit requirements are the same $200 although this number varies a bit for eToro depending on the country you are in (e.g. $50 minimum deposit for traders in the US, UK, Austria, Germany, Ireland, Italy, Netherlands, Norway, Spain, Sweden and Switzerland).
Users and Assets: Numbers Matter
When it comes to asset diversity, these two brokers are keeping up with the competition as they offer 6 asset classes but in terms of numbers, eToro has increased its offering with over 3000 instruments accessible on any of its platforms. Tradeo on the other hand has around 200. Talking about user growth, eToro has amassed over 20 million clients since it was launched while Tradeo’s client population is around 10,000.
FXTM or eToro?
How does eToro compare with FXTM or ForexTime? As you can see from the table at the beggining of this page, both brokers have their own strengths and weaknesses.
Based on the comparison table, FXTM only requires a minimum of $10 for their Cent account and this is higher than eToro’s $200 minimum initial deposit. But when we compare the number of users, FXTM has around 3 million clients which is less compared to eToro's massive 20 millon user base. Since both brokers provide copy trading features, having a bigger social trading network is more advantageous because there are possibly more experienced traders to follow and copy.
FXTM’s platform has over 1300 assets while eToro has more than 3000 instruments. That's more than 2x its competitor. And when talking about diversity, FXTM's clients will be able to invest on stocks, commodities, currencies and indices. As for eToro, traders can invest on stocks, commodities, currencies, indices, cryptocurrencies and ETFs.
Leverage-wise, FXTM offers a much higher ratio at 1000:1 as compared to eToro's 30:1. Keep in mind that this isn't applicable on every asset and using leverage may increase not just your position sizes but also the risks.
As for the spreads, FXTM offers both fixed and variable types for their clients while eToro’s are only variable or floating.[3]
Take note:
Variable spreads are much lower when markets are fluctuating while fixed spreads provide protection during these kinds of volatilities.
So which one is better? In general, the spread is the commissions these brokers get for letting you into the markets so both fixed and variable spreads have their own pros and cons.
Your decision on which on to use should be based on your trading strategies, preferences and the platform that you’re using.
Convinced with eToro?
If you think that eToro is the better choice for trading and interested to invest with this broker then you can click the button below and you'll be directed to the registration page. The process of opening an account takes only a few minutes so you can start trading right away.
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eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
References
- ^ PS19/18: Restricting contract for difference products sold to retail clients FCA
- ^ ESMA to renew restrictions on CFDs for a further three months from 1 May 2019 ESMA
- ^ Why does the spread vary? - Help Center eToro