If you are reading this article, you’re likely having trouble deciding whether eToro or FP Markets 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 FP Markets 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 FP Markets - Verdict
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Headquarters | Israel | Australia |
Regulators | ASIC, CySEC, FCA, FSA | ASIC, CMA, CySEC, FSCA |
Tier 1 Regulator(s)? | ||
Owned by Public Company? | ||
Year Established | 2007 | 2005 |
Execution Type(s) | Market Maker | ECN/STP |
Minimum Deposit | $50 - $10,000 | $100 |
Negative Balance Protection | ||
Trading Platform(s) | Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based |
Average Trading Cost EUR/USD | N/A | 1.2 pips |
Average Trading Cost GBP/USD | 2.2 pips | 1.4 pips |
Average Trading Cost WTI Crude Oil | $0.05 | $0.02 |
Average Trading Cost Gold | $0.45 | $0.16 |
Retail Loss Rate | 74% | 70.70% |
Minimum Raw Spreads | 0.8 pips | 0.0 pips |
Minimum Standard Spreads | 1.3 pips | 1.0 pips |
Minimum Commission for Forex | $0.00 | $6.00 per Round Lot |
Islamic Account | ||
Signals | ||
US Persons Accepted? | ||
Managed Accounts | ||
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Features and Platforms
| | |
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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Social traders who prefer to follow other traders hassle-free and those without intention to learn how to trade will feel at home at eToro. With more than 13,000,000 traders, it offers access to one of the largest trading communities. While 75% of traders lose money at eToro, per its account, the fifty most-copied traders in 2019 achieved an average return of 29.1%. FP Markets caters to sophisticated traders and fund managers. It fully supports automated trading solutions and enables social trading via eToro competitor Myfxbook AutoTrade. The Traders Toolbox, consisting of 12 MT4 add-ons, adds tremendous value to clients.
Available Markets
One of the best features at eToro is its overall asset selection above 2,300, but FP Markets takes the lead, where traders have more than 10,000. At both brokers, equity CFD accounts for the bulk of them. eToro maintains just 49 currency pairs, well below average compared to all online brokers, while FP Markets has more than 60. eToro shines with its 93 cryptocurrency pairs, an area where FP Markets fails to deliver choices with just five. Most retail traders have more than enough assets for cross-asset diversification, but FP Markets maintains a visible edge for demanding traders.
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Currency Pairs | ||
Cryptocurrencies | ||
Commodities | ||
Crude Oil | ||
Gold | ||
Metals | ||
Equity Indices | ||
Stocks (non-CFDs) | ||
Bonds | ||
ETFs | ||
Options | ||
Futures | ||
Synthetics | ||
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Typical Spreads and Fees
The commission-free trading accounts at eToro and FP Markets feature high mark-ups, with a minimum of 1.0 pips at both. FP Markets has a commission-based alternative with a raw spread of 0.0 pips for a commission of $6.00 per round lot. Fees for equity trading at eToro are 0.09% and 0.10% at FP Markets with a $10 minimum cost. Swap rates on leveraged overnight positions apply at both, and eToro and FP Markets pass corporate actions on to traders. eToro charges an unacceptable $5 withdrawal fee, and an inactivity charge is present at both brokers. FP Markets maintains a lower overall cost structure.
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Average Trading Cost EUR/USD | N/A | 1.2 pips |
Average Trading Cost GBP/USD | 2.2 pips | 1.4 pips |
Average Trading Cost WTI Crude Oil | $0.05 | $0.02 |
Average Trading Cost Gold | $0.45 | $0.16 |
Average Trading Cost Bitcoin | $574 | $21.08 |
Minimum Raw Spreads | 0.8 pips | 0.0 pips |
Minimum Standard Spreads | 1.3 pips | 1.0 pips |
Minimum Commission for Forex | $0.00 | $6.00 per Round Lot |
Deposit Fee | ||
Withdrawal Fee | ||
Inactivity Fee | $10 monthly after 12 monthd | No |
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Security and Trust
From a security and trust perspective, eToro and FP Markets deliver an equal trading environment. Both have oversight from the Cyprus Securities and Exchange Commission (CySEC) and the Australian Securities & Investments Commission (ASIC). eToro operates a unit in the US, registered as a Money Services Business with FinCEN, and FP Markets caters to most international traders from its unregulated but registered entity out of St. Vincent & the Grenadines. Both segregate client deposits from corporate funds and maintain a clean regulatory track record. FP Markets has more operating history than eToro, which has more clients, and both are trustworthy brokers.
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Country of the Regulator | Australia, Cyprus, Seychelles, United Kingdom | Australia, Cyprus, Kenya, South Africa |
Name of the Regulator | ASIC, CySEC, FCA, FSA | ASIC, CMA, CySEC, FSCA |
Regulatory License Number | 491139, 109/10, 583263, SD076 | 286354, 103, 371/18, 50926 |
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eToro vs FP Markets – Verdict
While eToro provides social traders with a competitive selection of assets and one of the largest trading communities, it fails to cater to all other traders. CopyTrader and CopyPortfolios remain attractive for those seeking to copy others and help eToro expand its client base. The simplicity makes both products appareling to new traders without experience, time, and desire to become traders. The absence of the MT4 trading platform and its advanced possibilities is notable. FP Markets caters to social trading via Myfxbook AutoTrade, directly from the MT4 trading platform. Traders may also opt for MT5 or the proprietary Iress, but availability is geographically restricted. FP Markets maintains a more competitive cost structure, superior asset selection, and higher leverage. Its trading tools further distance it from eToro, unable to compete with the product and services portfolio at FP Markets. FP Markets provides a better trading environment across the board.
You might also be interested in reviewing the below broker comparisons:
- eToro vs Freetrade
- eToro vs Fidelity
- eToro vs Degiro
- FP Markets vs BlackBull
- FP Markets vs OctaFX
- FP Markets vs Markets.com
