CMC Markets vs eToro: Comparison and Analysis

CMC Markets vs eToro: A Comparison Summary

When it comes to online brokers, CMC Markets and eToro are two popular options. Both offer a variety of investment products, including stocks, forex, and cryptocurrencies. However, there are differences between the two that investors should consider before choosing a broker.

Security

Both CMC Markets and eToro are highly regulated, with security ratings of 95. CMC Markets is regulated by ASIC, FCA, MAS, FMA, and IIROC, while eToro is regulated by CySEC, ASIC, and FCA. eToro is also registered in the USA with FinCEN, making it available for US traders.

Demo Accounts

Both CMC Markets and eToro offer unlimited demo accounts with virtual funds for investors to practise trading. CMC Markets provides $10,000 virtual funds, while eToro provides $100,000 virtual funds. CMC Markets also allows investors to open multiple demo accounts with the same email.

Account Opening

CMC Markets offers a wide range of account types, including CFD, stockbroking, spread betting, FX active, corporate, and professional accounts. There is no minimum deposit required, and account currency options include GBP, EUR, USD, AUD, CAD, NOK, NZD, PLN, SEK, and SGD. Payment methods include wire transfers, credit/debit cards, and eWallets.

eToro offers standard, Islamic, corporate, and professional accounts. The minimum deposit is $200 for most countries ($50 for some), and the account currency is only available in USD. Payment methods are similar to CMC Markets.

Social-Copy Trading

Both CMC Markets and eToro offer social-copy trading features. CMC Markets offers this feature directly on their proprietary CFD trading platform called Next Generation. eToro is known for being the best player in offering copy and social trading, which is provided through their proprietary platform.

Markets

CMC Markets offers a wider range of markets with forex, commodities, indices, crypto assets, bonds, CFD shares, ETFs, and real stocks. eToro offers forex, commodities, indices, crypto assets, stocks, ETFs, and futures and options. CMC Markets offers a larger number of CFD shares and ETFs with 12,500+, while eToro offers over 1,050 real stocks and 290+ ETFs.

Trading Fees

CMC Markets offers variable spreads with a minimum spread of 0.7 pips on forex and 0.3 pips on indices, which is below the market average. Real stock commissions have $0 brokerage commission on US, UK, Canada, and Japan markets, and $0 commission on Aussie shares up to $1,000 per stock per trading day.

eToro offers variable spreads with a minimum spread of 1 pip on forex, which is above the market average. However, there are zero-commission real stocks and ETFs for CySEC, FCA, and ASIC traders, with the possibility to start investing with just $10.

Platforms

Both CMC Markets and eToro offer proprietary trading platforms available via web and mobile devices. CMC Markets also offers the popular MT4 platform.

Education/Customer Care

Both brokers provide clients with a range of educational materials, including webinars, ebooks, podcasts, video trading, and trading guides. eToro also provides high-quality blog articles, fintech guides, trading videos, webinars, and seminars. Customer care is easy to contact via email, phone, and live chat for both brokers.

Conclusion

Both CMC Markets and eToro are reputable brokers with similar features, but with some notable differences. CMC Markets offers a wider range of markets, including bonds and a larger number of CFD shares and ETFs, making it a good choice for both short-term and long-term investments. On the other hand, eToro is known for being the best player in offering copy and social trading, and it offers zero-commission real stocks and ETFs for certain traders.