eToro vs XM

Can’t decide if you should trade with eToro or XM? If you’re confused and looking for some clarity then you better see this detailed side-by-side comparison so you can choose the right brokerage that matches your trading needs.

Do you want to test eToro’s platform?

You’re probably wondering about that already and the good news is that yes, you can and you can do it risk-free by using their demo feature. In order to do this, you’ll need to sign-up for an account first so you can utilize the virtual portfolio. You can click on the button below and this will redirect you to their quick online registration page.

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

Want to see a quick comparison of eToro and XM? Check out the table below to see their features and find out on which categories they are stronger. Keep in mind that the data we've gathered here were based on the most recent info when we did this review.

 

Side-by-side comparison of eToro vs. XM

Broker	eToro	XM
Minimum Deposit	$50 - $1000 (depends on country)	$5
Markets	3000+	1000+
Market Types	Stocks, Commodities, Currencies, Indices, Crypto, ETFs	Stocks, Commodities, Currencies, Indices
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, Online Bank Transfer, Neteller, Skrill (MoneyBookers), WebMoney, SticPay
Demo Account	Yes (Unlimited)	Yes (Unlimited)
Regulation	FCA (UK), CySEC (Cyprus), ASIC (Australia)	IFSC (Belize), ASIC (Australia), CySEC (Cyprus)
Customer Support	Email, Live Chat	Phone, Email, Live Chat

Account Types

eToro clients can sign-up for a retail or professional account with the latter requiring an elective process and test in order to determine they are qualified for such designation.

In addition, there's also a tiered membership system called the eToro Club where the tier assignment is based on the equity size of the client. Each tier has access to certain perks and privileges so the higher the tier, the more benefits they get to enjoy:

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

Note: This loyalty program however is not available for all clients. Specific regulations and the platform languages are not supported.

XM on the other hand has different account types and each has certain trading conditions including contract size, leverage, spread, commission, etc.:

• Standard
• Micro
• XM Ultra Low Standard
• XM Ultra Low Micro
• Shares Account

Demo Account

Look:
Demo accounts can be very useful both for newbies and experienced traders as well. If you’re a novice user, this will give you the opportunity to explore the platform sans the risk since you’re not going to use your real capital. And if you’re an advanced trader then you can utilize this to further improve your trading skills.

What's interesting is that eToro and XM's demo account can be used for an unlimited amount of time. That means there’s no expiry period so you can use it on the condition that your account is still active.

But here’s the thing:
XM’s demo account is preloaded with $100,000 virtual funds and in the event that these funds have been used up, you’ll need to open another virtual account to be able to access the demo feature again and this can be only done for up to 5 instances.

Of course, a completely lifetime demo account has more advantages but the limit up to 5 times is not that bad since the $100,000 virtual fund is generous enough for you to do a couple of test trades.

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

Signing-up for an account with eToro is just a breeze and the first part will only require you to provide your desired username and password, and the email address that you would like to use for it.

Here’s the deal:
eToro also supports quick registrations via Facebook or Google so if you have an existing account with any of these services then you can link them with your eToro account if you wish to.

The registration process with XM requires a lot more information which can be a bit of a nuisance especially for newbies. They will already ask for your first and last name, country of residence, preferred language, phone number, email address, trading platform type and account type. Do take note that this is just the initial part of signing-up and you’ll have to complete and verify your account later on by providing more info.

 

eToro vs. XM initial registration requirements

Broker	eToro	XM
Registration requirements	Username, Email Address, Password	First Name, Last Name, Country of Residence, Preferred Language, Phone Number, Email Address, Trading Platform Type, Account Type

Here’s what you need to know: Licensed and regulated brokerages require all of their clients to provide additional information, identification and documentation in compliance with financial regulators. There’s no need to fret over these supplementary requirements as these are standard protocols for the protection of your account.

Minimum Deposit

eToro’s minimum deposit requirement ranges from $50 to $1000 and this is based on their client’s country of residence. For example, a client that resides in the US, UK, Austria, Germany, Ireland, Italy, Netherlands, Norway, Spain, Sweden or Switzerland can make a first deposit of as low as $50. One that is a resident of a different country however can make a minimum deposit of $200 or $1000.

For clients of XM, they can start with as low as $5 as starting capital although this wouldn’t make sense because why would you just have such a small amount in your account if you’re going to trade? Ideally, a capital of $100 to $200 is the more reasonable initial deposit for trading.

 

eToro and XM minimum deposit comparison

Broker	eToro	XM
Minimum Deposit	$50 - $1000 (depends on country of residence)	$5

Platforms

With eToro, there are 2 platforms in general to choose from. The first is the web-based version which can be accessed directly via any web browser. You just need to have Chrome, Firefox, Edge or Safari on your computer or smartphone and go to www.etoro.com to be able to trade on this user interface. There’s no need to download or install anything.

If you have a smartphone or tablet that’s powered by Android or iOS then you also have the option of installing their mobile app which have been optimized for touchscreen devices.

For XM traders, there are several more options to choose from and you can decide on which one to use based on your trading and market preferences:

• MT4 (PC, Mac, Multiterminal, WebTrader, iPhone, iPad, Android)
• MT5 (PC, Mac, WebTrader, iPhone, iPad, Android)

So what's the catch?
Some assets are not available on the other platform. That means specific instruments or asset classes that you see on the MT4 are not accessible on the MT5 platform so you should be aware of this.

 

Platforms offered by eToro and XM

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

Assets

Look:
The more markets you can access with a broker, the better you can diversify your investment portfolio. Majority of brokerages have only around 100 to 500 tradable assets so that’s not quite diverse enough for you to explore other trading opportunities.

So how many products does eToro and XM have?

eToro has around 3000+ tradable instruments and what's interesting is that they they continue to add more giving their clients a lot of markets to explore. XM as of press time has around 1000 assets which is quite an improvement given that they previously had around just 250 options to choose from.

What can I benefit from this?
A broker that has more accessible assets will give you the opportunity to diversify your trading portfolio. That means you won’t just settle for a few stocks or currency pairs, and this will give you more control over your investments since you can place Buy and Sell contracts on other interesting markets.

Spreads

Both eToro and XM offer variable spreads so highly volatile assets are prone to having wider spreads than the more stable ones.

In addition, XM also offers their clients the choice of using fixed spreads but in order to use this feature, there’s an additional insurance premium that you need to shoulder.

It's important to remember that fixed and variable spreads have their own advantages and disadvantages so it generally depends on your risk appetite and trading preferences.

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.

XM 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 XM 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. XM on the other hand has a basic FAQ page.

Regulation

Remember this: A broker that has a license to operate from a trusted regulator is a lot more safe than one that doesn’t have any.

eToro has a license from the following:

• 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.

On the other hand, XM currently has licenses from the following financial authorities:

• IFSC (Belize) – XM Global Ltd
• ASIC (AU) – Trading Point of Financial Instruments Pty Ltd (XMAU)
• CySEC (CY) – Trading Point of Financial Instruments (XMCY)

In this category, it’s tie between eToro and XM because both brands have existing licenses from various financial authorities.

Conclusion

There’s a lot of similarities between eToro and XM. They are both multi-regulated brands, have a suite of platform offerings for their clients, support a long list of payment methods and are capable of processing withdrawal requests within 1 business day.

But there are also some categories where one is stronger than the other with eToro having the advantage of offering more tradable assets with more diversified classes. It also has the social trading advantage which is one of its greatest strengths against its competitors. XM on the other hand has a much lower minimum deposit requirement and an extensive trading education and resources for their clients.

Overall, you’ve got 2 interesting options but if there’s one that really stands out, that would be eToro.

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.