eToro vs Pepperstone

Which is the better broker to choose for online trading? Is it eToro or Pepperstone? No need to get confused or undecided. Check out this detailed and side-by-side comparison of these two brokerage firms and their features so you will be able to make the right decision. Let's go!

Already considering to test eToro’s app if possible?

Here’s the deal: You’ll be able to do that but only after you register for an online account with eToro. There’s no need to make a deposit yet if you’re not ready for live trading. You’ll just need to open an account to be able to use the demo account or virtual portfolio for free. And should you decide to continue trading in live mode then that will be the time for you to make your first deposit.

YES, TAKE ME TO ETORO!

67% 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.

Comparison

Here is a detailed comparison table of eToro vs Plus500's features. This data is based on the most recent information that we have gathered from these 2 brokers.

 

Side-by-side comparison of eToro vs. Pepperstone

Broker	eToro	Pepperstone
Minimum Deposit	$50 - $1000 (depends on country)	$0 (Standard account only)
Markets	3000+	1000+
Market Types	Stocks, Commodities, Currencies, Indices, Crypto, ETFs	Stocks, Commodities, Currencies, Indices, Crypto
Spreads	Variable	Variable
Deposit Methods	Credit/Debit Card, PayPal, Neteller, Skrill, Rapid Transfer, iDEAL, Klarna/Sofort Banking, Bank Transfer, Local Online Banking	Credit/Debit Card, POLi, Bank Wire Transfer, Bpay, PayPal, Neteller, Skrill, UnionPay
Demo Account	Yes (Unlimited)	Yes (30 days)
Regulation	FCA (UK), CySEC (Cyprus), ASIC (Australia)	FCA (UK), BaFin (Germany), ASIC (Australia)
Customer Support	Email, Live Chat	Phone, Email, Live Chat

Account Types

Users can open an eToro account and decide to have either a retail or professional account. Retail accounts only have basic requirements while professional account will need to go through an elective process and examination before they are granted this type of account.

There’s also the eToro Club which is a tiered membership system that comes with specific perks and benefits based on the level of the account. The club membership is automatically assigned according to the size of the equity.

• Silver
• Gold
• Platinum
• Platinum​+
• Diamond

It’s important to remember that this membership system is available for all clients of eToro. This will depend on your country of residence, the regulation that you account is under and the language of the platform that you’re using.

Pepperstone clients are also given the choice of several account options upon sign-up and these are the following:

• Joint
• Individual
• Company
• Trust
• Trust Corporate
• Introducing Broker
• Demo

The difference here is that Pepperstone has already combined various account types including those that want to sign-up as affiliates (introducing broker) or those who just want to open a demo account.

For those who are planning to open an individual account, there would be another choice between the Standard and Razor account. The Standard version is ideal for newbies or those who prefer to have a basic account while the Razor is the better option for scalpers and those who are used to utilizing EA or Expert Advisors.

Demo Account

Here's the thing:
A demo account allows users to check out a broker’s platform and get familiarized with the interface minus the risks of live trading. Novice users will be able to understand how the platform works and they can even use it for honing their skills especially if the account has no expiry. This is also beneficial for experienced traders so they can apply various strategies in practice mode to see which one is the most effective before going into live mode.

Here’s some good news: Both eToro and Pepperstone offer demo accounts for their clients and this can be easily accessed after opening an account.

eToro’s demo is called “Virtual Portfolio” and comes with $100,000 virtual balance which doesn’t expire. This can be accessed from the web-based platform or any of their mobile apps.

To open a demo account with Pepperstone, you can do so by doing it straight from the initial part of the registration and choosing “Demo” among the options. Alternatively, you can already open a live trading account and then request for a demo account from the dashboard.

Whatever method you choose, you will be asked for several specifications for the demo account and this includes the platform type (MetaTrader 4, MetaTrader 5, cTrader), account type (Razor, Standard), leverage (1:1, 1:25, 1:30, 1:50, 1:100, 1:200, 1:300, 1:400, 1:500) demo funds (200, 500, 1000, 5000, 10000, 25000, 50000) and currency (AUD, EUR, CAD, CHF, GBP, JPY, NZD, SGD, USD, HKD).

Want to try out the demo?

If you’re interested to test the demo, you can simply click the button below and you will be taken to the quick registration form. Simply accomplish this and you’ll be able to have access to your free demo account.

TRY THE ETORO DEMO!

67% 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.

Registration

eToro’s initial registration process only takes less than a minute to do. You’ll only be asked for your preferred username and password, and the email address that you want to associate with this account.

There’s also another way:
If you have a Facebook or Google account then you can quickly register by simply logging in to your account and allowing eToro to register via this method.

Pepperstone’s initial registration is also very basic. You’ll be asked for your email address, preferred account type, country of residence and password.

 

eToro vs. Pepperstone initial registration requirements

Broker	eToro	Pepperstone
Registration requirements	Username, Email Address, Password	Email Address, Account Type, Country, Password

Look: Eventually, you will be required to fully complete the registration by providing more information about yourself. This process would require a few more minutes of your time but it is essential that you complete this in order to verify and authenticate your account. Since these brokerages are licensed, they require such information to prevent fraud and ensure the safety of your account so keep in mind that these are mandatory.

Minimum Deposit

The initial minimum deposit for eToro clients is based on which country they reside and it ranges from $50 to $1000. A resident from the US, UK, Austria, Germany, Ireland, Italy, Netherlands, Norway, Spain, Sweden or Switzerland will be able to make a first minimum deposit of $50.

Meanwhile, Pepperstone has no minimum deposit requirement for their clients but only for those who are going to open the Standard account. That means they can fund their account with any amount that they are comfortable to put into their capital. Razor accounts on the other hand will need to deposit a minimum of $200.

 

eToro and Pepperstone minimum deposit comparison

Broker	eToro	Pepperstone
Minimum Deposit	$50 - $1000 (depends on country of residence)	$0 (Standard account only)

Platforms

eToro’s platform options have been simplified. Users can choose to trade via the web-based version which is accessible using web browsers like Chrome, Firefox, Edge, Safari, etc. This can be opened on a desktop, laptop, tablet or smartphone as long as it has a web browser that can open www.etoro.com.

Another option is by using their mobile applications for devices running on Google’s Android or Apple’s iOS. The look and feel of these apps are almost the same as the web-based version and the only difference is that they have a standalone app which has been developed for touchscreens. Whatever platform you choose, you’ll be able to access all the markets and features including their unique copy trading service.

Pepperstone has various platform offerings for their clients:

• MetaTrader 4 (MT4)
• MetaTrader 5 (MT5)
• cTrader
• Social Trading

Those who are used to MetaTrader have the choice of using the traditional MT4 or the new and improved MT5. There’s also the cTrader that comes advanced trading features such as fast entry and execution and customized coding.

In addition, Pepperstone has also started introducing social trading options that are similar with what eToro is offering:

• Myfxbook
• MetaTrader Signals
• DupliTrade

The downside?
Not all platforms provide access to all the markets that Pepperstone is offering. Some instruments may not be accessible on MT4 while some are only available on MT5 and cTrader.

 

Platforms offered by eToro and Pepperstone

Broker	eToro	Pepperstone
Web-based	✔	✔
Android	✔	✔
iOS	✔	✔
Windows	❌	✔
Mac	❌	✔

Assets

Remember this:
Diversity is key if you want to lessen the risks and have better chances of making good trading decisions. This is very much applicable particularly with the markets you’re investing on so if they are more choices, there are more trading opportunities. Most brokerage firms only have around 100 to 500 tradable assets and while this can already be considered as plenty, having more is much better.

eToro and Pepperstone’s assets compared

eToro has already over 3000 products comprising of various asset classes including stocks, commodities, currencies, indices, crypto and ETFs. In comparison, Pepperstone has increased their available assets to over 1000 and these are comprised of stocks, commodities, currencies, indices and crypto.

So that’s 3000 vs 1000. In this category, eToro edged out Pepperstone as it offers 3 times more products.

Spreads

eToro and Pepperstone are both offering variable spreads for their traders. That means there could be wider spreads for particular assets that are naturally experiencing high volatility as compared to those that are more stable.

Note: Both fixed and variable spreads have their own pros and cons. Your investment preferences and risk appetite would still be the basis as to which is much effective for your trading needs.

Spreads are Pepperstone’s territory with the Razor account having the lowest spreads from 0 pips and incredibly low commissions while the Standard account has higher spreads on average sans the commissions.

Deposit

It’s better to choose a broker that supports plenty of payment methods for funding their online trading account rather than one that only accepts a few options.

Here's a fact: Most traders tend to overlook this feature just because they are used to making deposits via credit cards but what if you suddenly had problems with your bank or they decided not to accept transactions from online brokerage firms? That will be the time you’ll realize that having more options to fund your account is a necessity.

If you’re an eToro trader, you’ll be able to add funds into your account via a selection of payment gateways including the most common methods and some several new options. You can use credit/debit cards, PayPal, Neteller, Skrill, Rapid Transfer, iDEAL, Klarna/Sofort Banking, bank transfer and local online banking. It’s important to remember that some of these methods that we mentioned may not be available in your country due to regulations or other policies.

Pepperstone on the other hand also supports multiple payment options. They support some of the most common options including credit and debit cards, online bank transfer, Neteller, Skrill (MoneyBookers), WebMoney and SticPay.

Withdrawals

Here’s some good news: Both eToro and Pepperstone process withdrawal requests in just 1 working day. That’s a lot faster as compared to other online brokerages which usually take longer ranging around 3 to 5 working days.

Do take note that these expedited withdrawal processing times are only guaranteed on the condition that your account has been fully verified and that all necessary documents and requirements have been sent prior to making any cash outs.

Always remember: The process of requesting to take out the funds from your account is the withdrawal processing time. This is different from the time it takes to see the actual funds reflect on your payment method since this is mainly reliant on how fast your payment service provider is handling them. This usually takes around 3 to 8 business days.

Customer Service

Contacting the customer support departments of these brokers can be done via email and live chat only. Unfortunately, there’s no phone support but most brokerages have already removed this option since going online is the most common option.

With eToro however, there are more complementary options for such as opening a ticket or using the Help Center which has a comprehensive library of information which might be useful for their users. Pepperstone on the other hand has a basic FAQ page.

Regulation

Important to keep in mind: The best broker to choose is one that is regulated or has a license to operate. A much better choice is one that has more than one regulation as it further proves that it is serious in making business with their clients.

eToro is a multi-regulated brand and currently has licenses from the following financial authorities:

• Cyprus Securities & Exchange Commission (CySEC) – eToro (Europe) Ltd. is licensed with company registration # HE20058.
• Financial Conduct Authority (FCA) – eToro (UK) Ltd. is authorised and regulated with company registration # 7973792.
• Australian Securities and Investments Commission (ASIC) – eToro AUS Capital Pty Ltd. is the holder of an Australian Financial Services Licence (AFSL) 491139 issued by this regulator.

Pepperstone is also regulated by several financial authorities. As of this writing, they have these active licenses:

• Australian Securities & Investments Commission (ASIC) – Pepperstone Group Limited is the holder of an Australian Financial Services Licence (AFSL) 414530 issued by this regulator.
• Securities Commission of The Bahamas (SCB) – Pepperstone Markets Limited is licensed and regulated with license # SIA-F217.
• Cyprus Securities and Exchange Commission (CySEC) – Pepperstone EU Limited is authorised and regulated with license # 388/20.
• Dubai Financial Services Authority (DFSA) – Pepperstone Financial Services (DIFC) Limited is regulated with license # F004356.
• Federal Financial Supervisory Authority (BaFin) – Pepperstone GmbH is regulated with registration # 151148.
• Capital Markets Authority (CMA) – Pepperstone Markets Kenya Limited is licensed and regulated with license # 128.
• Financial Conduct Authority (FCA) – Pepperstone Limited is regulated with registratuin #684312.

Bottom line? Both eToro and Pepperstone are multi-regulated brands since they have licenses from trusted financial authorities.

Conclusion

eToro and Pepperstone have such similarities and one of which is that they are regulated and have licenses from known financial authorities like FCA, CySEC and ASIC. Both brands also have several platform offerings for their clients allowing them to trade on a variety of devices. And lastly, they are also capable of processing withdrawal requests in just 1 business day, something that is much faster than the standard which usually takes longer.

But the difference stops there. eToro has the edge when it comes to social trading as it allows its users to access all types of markets in any of the platforms that they offer. They also have 3 times more tradable instruments compared to their competition. Pepperstone on the other hand offers more competitive spreads and a lower minimum deposit requirement although this only applies for their Standard account only.

In general, you have a choice between 2 known and well-established brokerage firms but if you want to get the best online trading experience then eToro is the wiser choice.

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. 67% 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.

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.