eToro vs Interactive Brokers: Comparison and Analysis

eToro vs Interactive Brokers: Which Broker is Right for You?

Are you trying to decide between eToro and Interactive Brokers? This comparison article will provide you with a detailed breakdown of the features of both brokers, so you can determine which platform is best suited to your needs. We have compared over 100 variables and features, and divided the comparisons into a logical structure to make it easy to navigate.

Security

When it comes to security, both eToro and Interactive Brokers are highly regulated. eToro is regulated by CySEC, ASIC, and FCA. eToro has a security rating of 95. Interactive Brokers is regulated by FCA, several EU regulators, ASIC, HKSFC, SEBI, IIROC, FFAJ, MAS, SEC, and CFTC, and has a security rating of 95 as well.

Demo Account

eToro offers an unlimited demo account with virtual funds of $100,000, which can be restored by contacting customer support. Interactive Brokers also offers an unlimited demo account with virtual funds of $1,000,000, which can be restored by contacting customer support.

Account Opening

eToro requires a minimum deposit of $50 depending on the country, and only offers USD as the account currency. Payment methods include wire transfers, credit/debit cards, and eWallets. eToro offers a standard account, Islamic account, corporate account, and professional account for advanced traders.

Interactive Brokers does not have a minimum deposit requirement, but requires at least $2,000 to trade with margin. Interactive Brokers offers over 25 base currencies, including USD, EUR, AUD, and GBP, to help traders avoid currency conversion fees. Payment methods include wire transfers, credit/debit cards, eWallets, IRA transfers, checks, and several local payment methods. Interactive Brokers offers a standard account, margin account, cash account, and professional account for advanced traders.

Social-Copy Trading

eToro is the best player at offering copy and social trading, which is provided via their proprietary platform. Interactive Brokers does not offer copy-social trading.

Markets

eToro offers a wide range of trading assets, including forex, commodities, indices, crypto assets, stocks, ETFs, and futures and options. eToro offers crypto, stocks, and ETFs both as CFDs and as real assets, making it a great option for long-term investments as well as for short-term investing.

Interactive Brokers offers a wide range of trading assets, including forex, commodities, crypto assets, stocks, ETFs, and futures and options. Interactive Brokers offers a wide range of trading assets that can be traded as CFDs, as real, as options, and as futures, making it a good option for every type of trader, as it can be suitable for both short and long-term investing on every market.

Trading Fees

eToro’s spreads are variable, with spreads starting from 1 pip on forex, which is above the market average. eToro offers zero-commission real stocks (other fees may apply) and ETFs for CySEC, FCA, and ASIC traders, with the possibility to start investing with just $10.

Interactive Brokers’ spreads are variable, with spreads starting from 0.1 pip on forex, which is lower than the market average. Interactive Brokers charges commissions per lot, up to $7 per lot traded. With the IBKR Lite Plan, there are no commissions on stocks and ETFs, and financing rates start from 0.75%. With the IBKR Pro Plan, commissions start from $0.0005 per share or ETF.

Platforms

eToro offers a proprietary platform that is available via web and mobile devices. The platform is user-friendly and specialised in copy and social trading.

Interactive Brokers offers a proprietary trading platform that is available as desktop, webtrader, and mobile. All the platforms offered by Interactive Brokers allow traders to engage in algo trading. Interactive Brokers also offers VPS services, FIX API, and TWS API integration.

Education/Customer Care

eToro offers high-quality education material, including blog articles, fintech guides, trading videos, webinars, and seminars. Customer care is easy to contact via email and live chat.

Interactive Brokers offers a wide range of educational material for both beginners and advanced traders, including tutorial videos, IBKR blog, trader’s academy, and much more. Customer care is easy to contact via email, telephone, and live chat, with 8 languages available.

Conclusion

In conclusion, both eToro and Interactive Brokers are highly regulated and offer a wide range of trading assets. eToro is the best player at offering copy and social trading, while Interactive Brokers offers a wider range of base currencies and a lower spread on forex. Ultimately, the choice between eToro and Interactive Brokers will depend on your individual needs and preferences.

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. 51% 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.

Trading history presented is less than 5 complete years and may not suffice as basis for investment decision. This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Don’t invest in cryptocurrencies unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

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.