If you are reading this article, you’re likely having trouble deciding whether eToro or Forex.com 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 eToro vs Forex.com 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
- eToro vs Forex.com - Verdict
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Headquarters | Israel | United States |
Regulators | ASIC, CySEC, FCA, FSA | ASIC, CFTC, CIMA, CySEC, FCA, FSA, IIROC, NFA |
Tier 1 Regulator(s)? | ||
Owned by Public Company? | ||
Year Established | 2007 | 2001 |
Execution Type(s) | Market Maker | Market Maker |
Minimum Deposit | $50 - $10,000 | $100 |
Negative Balance Protection | ||
Trading Platform(s) | Proprietary platform | MetaTrader 4, MetaTrader 5, Proprietary platform, Trading View |
Average Trading Cost EUR/USD | N/A | 1.1 pips |
Average Trading Cost GBP/USD | 2.2 pips | 1.3 pips |
Average Trading Cost WTI Crude Oil | $0.05 | $0.035 |
Average Trading Cost Gold | $0.45 | $0.63 |
Retail Loss Rate | 74% | 73.00% |
Minimum Raw Spreads | 0.8 pips | 0.0 pips |
Minimum Standard Spreads | 1.3 pips | 0.8 pips |
Minimum Commission for Forex | $0.00 | $5 per $100K |
Islamic Account | ||
Signals | ||
US Persons Accepted? | ||
Managed Accounts | ||
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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 | ||
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eToro primarily caters to social and cryptocurrency traders, while Forex.com provides Forex traders with a competitive trading environment. With more than 13,000,000 traders as of May 2020, 75.0% operate at a loss. eToro remains popular with millennial traders who prefer to follow more established ones with a few clicks from their mobile devices. Forex.com, operational since 2001, became part of publicly listed StoneX in 2020. It is one of the largest MetaTrader brokers per active serves as of April 2019, but traders may also use its proprietary Advanced Trading Platform. 74% of retail traders operate at a loss at Forex.com.
Available Markets
With only 49 currency pairs at eToro, Forex traders have notably more choices at Forex.com, which maintains 84, making it one of the best ones among all Forex brokers. eToro does provide more overall assets, with more than 2,300. Traders at eToro have 31 commodities and 13 index CFDs, while Forex.com offers 18 and 18, respectively. eToro has a clear edge in cryptocurrencies with 93 versus just eight at Forex.com. Equity traders have a significant advantage at eToro with 2,039, as Forex.com provides a disappointing 69. The 151 ETFs at eToro expand its lead over Forex.com, except for Forex and index CFD trading.
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Currency Pairs | ||
Cryptocurrencies | N/A | |
Commodities | ||
Crude Oil | ||
Gold | ||
Metals | ||
Equity Indices | ||
Stocks (non-CFDs) | ||
Bonds | N/A | |
ETFs | ||
Options | N/A | |
Futures | ||
Synthetics | ||
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Typical Spreads and Fees
eToro shows a minimum spread of 1.0 pips, creating a costly price structure. It is commission-free but above-average. Forex.com advertises a minimum mark-up of 0.8 pips with an average of 1.1 pips, making it slightly more expensive. It does provide traders with a commission-based direct market access (DMA) account and spreads as low as 0.1 pips for a cost of $6.00 per lot. Active traders can lower it to $2 per lot. It represents one of the best offers available. CFDs at eToro face a 0.09% commission. Swap rates on leveraged overnight positions apply at both, but eToro also charges a $5 withdrawal fee.
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Average Trading Cost EUR/USD | N/A | 1.1 pips |
Average Trading Cost GBP/USD | 2.2 pips | 1.3 pips |
Average Trading Cost WTI Crude Oil | $0.05 | $0.035 |
Average Trading Cost Gold | $0.45 | $0.63 |
Average Trading Cost Bitcoin | $574 | $60 |
Minimum Raw Spreads | 0.8 pips | 0.0 pips |
Minimum Standard Spreads | 1.3 pips | 0.8 pips |
Minimum Commission for Forex | $0.00 | $5 per $100K |
Deposit Fee | ||
Withdrawal Fee | ||
Inactivity Fee | $10 monthly after 12 monthd | $15 monthly after 12 months |
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Security and Trust
Both brokers maintain a secure and trustworthy trading environment. The UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), and the Australian Securities & Investments Commission (ASIC) provide regulatory oversight at eToro. In the US, eToro maintains registration with FinCEN as a Money Services Business. Forex.com is a trading name of UK-based Gain Capital, which operates under the oversight of the FCA. Since October 2020, Gain Capital is part of US publicly-listed StoneX. Therefore, Forex.com has sufficient capital reserves. Client deposits at both brokers remain segregated, and select jurisdictions have an investor compensation fund.
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Country of the Regulator | Australia, Cyprus, Seychelles, United Kingdom | Australia, Canada, Cyprus, Japan, Cayman Islands, Singapore, United Kingdom, United States |
Name of the Regulator | ASIC, CySEC, FCA, FSA | ASIC, CFTC, CIMA, CySEC, FCA, FSA, IIROC, NFA |
Regulatory License Number | 491139, 109/10, 583263, SD076 | 0339826,291, Undisclosed, 446717, 400/21, 25033, 345646, Undisclosed |
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eToro vs Forex.com – Verdict
Pure Forex traders will find the trading environment at Forex.com superior. Forex.com provides more sophisticated trading platforms, a trader-friendly cost structure, and fully supports automated trading solutions with superior technology and VPS hosting. New traders have quality education and valuable research, which adds overall value to the competitive trading environment. Social trading is at the core of eToro, which fails to supports advanced automated trading solutions, relying solely on copy trading. CopyTrader and CopyPortfolios remain popular among millennials, and eToro has more than 13,000,000 traders, making it home to one of the largest networks. The educational tools remain limited, and the research consists of market commentary. eToro relies on the community to deliver tradeable information. It enjoys a leadership position in cryptocurrency trading thanks to its excellent market coverage and tools. Equity traders will benefit from more than 2,000 CFDs.
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