If you are reading this article, you’re likely having trouble deciding whether AvaTrade or eToro is the better Forex trading platform for you. While both platforms generally provide positive user experiences, there are some essential differences to note.
In this AvaTrade vs eToro review, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- AvaTrade vs eToro - Verdict
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Headquarters | Ireland | Israel |
Regulators | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, CySEC, FCA, FSA |
Tier 1 Regulator(s)? | ||
Owned by Public Company? | ||
Year Established | 2006 | 2007 |
Execution Type(s) | Market Maker | Market Maker |
Minimum Deposit | $100 | $50 - $10,000 |
Negative Balance Protection | ||
Trading Platform(s) | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ | Proprietary platform |
Average Trading Cost EUR/USD | 0.9 pips | N/A |
Average Trading Cost GBP/USD | 1.5 pips | 2.2 pips |
Average Trading Cost WTI Crude Oil | $0.03 | $0.05 |
Average Trading Cost Gold | $0.29 | $0.45 |
Retail Loss Rate | 77.82% | 74% |
Minimum Raw Spreads | Not applicable | 0.8 pips |
Minimum Standard Spreads | 0.9 pips | 1.3 pips |
Minimum Commission for Forex | Commission-free | $0.00 |
Islamic Account | ||
Signals | ||
US Persons Accepted? | ||
Managed Accounts | ||
| Visit Website | Visit Website Your investment value may change. Capital is at risk. |
Features and Platforms
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MT4 | ||
MT5 | ||
MT4/MT5 Add-Ons | ||
cTrader | ||
Proprietary Platform | ||
Automated Trading | ||
Social/Copy Trading | ||
DOM? | ||
Guaranteed Stop Loss | ||
Scalping | ||
Hedging | ||
One-Click Trading | ||
OCO Orders | ||
Interest on Margin | ||
| Visit Website | Visit Website Your investment value may change. Capital is at risk. |
eToro is one of the leaders in the social trading sub-sector which gives it a significant advantage for traders who need a hand with their trading However, independent traders will likely be happier trading with AvaTrade's popular platforms. Still, eToro remains popular with new traders, especially millennial ones, who prefer to follow others from their mobile devices with a few clicks. In that regard, eToro executes its business model well. AvaTrade provides traders with five trading platforms and three social trading alternatives. The proprietary WebTrader of AvaTrade remains superior to the eToro trading platform. It also offers broader social trading choices and pulls further ahead with its educational division, especially once the spun-off SharpTrader comes into consideration.
Available Markets
While AvaTrade has the edge with trading platforms, eToro provides a bigger asset selection, but AvaTrade tops eToro with quality over quantity. In fact, at the time of this Forex broker comparison, AvaTrade offered more currency pairs with 55 versus just 46 at eToro. AvaTrade also offers more commodities and indices, with 24 and 26, than eToro, where 16 and 13 are available. eToro grants notably more cryptocurrencies than AvaTrade, 92 versus 14. It also provides over 2,000 equity CFDs and ETFs, while AvaTrade features just above 1,000 but offers 42 options contracts. eToro beats AvaTrade with quantity and provides superior experience for anyone seeking cross-asset diversification.
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Currency Pairs | ||
Cryptocurrencies | ||
Commodities | ||
Crude Oil | ||
Gold | ||
Metals | ||
Equity Indices | ||
Stocks (non-CFDs) | ||
Bonds | ||
ETFs | ||
Options | ||
Futures | ||
Synthetics | ||
| Visit Website | Visit Website Your investment value may change. Capital is at risk. |
Typical Spreads and Fees
The minimum spread at AvaTrade is 0.9 pips versus 1.0 pips at eToro, which is minimal on an individual basis but adds up over volume and time. eToro advertises commission-free trading, which only applies to unleveraged buy orders. By comparison, AvaTrade grants commission-free trading across the board. The average mark-up is 0.13% at AvaTrade and eToro charges a 0.09% commission. Traders have to pay swap rates on leveraged overnight positions at both brokers. Where AvaTrade has a $50 monthly inactivity fee, versus $10 at eToro, eToro levies a $5 withdrawal fee and a 0.50% currency conversion cost, which does not exist at AvaTrade. Third-party payment processors apply at both brokers alike. Simply put, when it comes to spreads and fees, AvaTrade has a better offering than eToro.
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Average Trading Cost EUR/USD | 0.9 pips | N/A |
Average Trading Cost GBP/USD | 1.5 pips | 2.2 pips |
Average Trading Cost WTI Crude Oil | $0.03 | $0.05 |
Average Trading Cost Gold | $0.29 | $0.45 |
Average Trading Cost Bitcoin | $39 | $574 |
Minimum Raw Spreads | Not applicable | 0.8 pips |
Minimum Standard Spreads | 0.9 pips | 1.3 pips |
Minimum Commission for Forex | Commission-free | $0.00 |
Deposit Fee | ||
Withdrawal Fee | ||
Inactivity Fee | $50 quarterly after 3 months | $10 monthly after 12 monthd |
| Visit Website | Visit Website Your investment value may change. Capital is at risk. |
Security and Trust
From a security and trust perspective, AvaTrade and eToro are on par with each other. Both segregate client deposits from corporate funds, offer negative balance protection in select jurisdictions, together with an investor protection fund where required by regulators. The Central Bank of Ireland provides primary oversight over AvaTrade, complemented by six additional regulators. Clients will enjoy the most competitive trading environment from divisions under BVI, the ASIC, and the FSCA oversight. eToro maintains compliance with four regulators. AvaTrade, founded in 2006, has marginally more experience than eToro, operational since 2007, but both earned a reputation for trust and honesty and grant clients with a secure trading environment.
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Country of the Regulator | United Arab Emirates, Australia, Ireland, Israel, Japan, British Virgin Islands, South Africa | Australia, Cyprus, Seychelles, United Kingdom |
Name of the Regulator | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, CySEC, FCA, FSA |
Regulatory License Number | C53877, SIBA/L/13/1049, 406684, 45984, 1662, 190018, 514666577 | 491139, 109/10, 583263, SD076 |
| Visit Website | Visit Website Your investment value may change. Capital is at risk. |
AvaTrade vs eToro – Verdict
Neither AvaTrade nor eToro provides clients with research, but the former offers a significantly more in-depth educational program. AvaTrade's SharpTrader presents new traders with 40 sections and more than 200 videos. The trading platform choice at AvaTrade is equally more competitive, both with the proprietary webtrader and the MT4/MT5 trading platforms, which eToro ignores. AvaTrade creates more distance to eToro with a friendlier pricing environment and higher quality asset selection, where eToro beats on quantity only. eToro remains a leading social trading broker, but AvaTrade provides its traders with three alternatives, DupliTrade, ZuluTrade, and MQL5 Signal Service, which combine for a more comprehensive choice of strategies. Therefore, AvaTrade bests eToro in this category and delivers a more overall competitive trading environment. Despite offering a less favorable trading environment, eToro remains a popular choice with millennial traders. It is a testament to its excellent marketing team, the best asset at eToro. 72% of retail traders manage portfolios at a loss at AvaTrade, while eToro reports a loss rate of 68%. In the face-off between AvaTrade and eToro, we found AvaTrade to offer a wholly more superior offering.
You might also be interested in reviewing the below broker comparisons:
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