eToro offers 25M+ social traders its popular proprietary CopyTrader and CopyPortfolios services and maintains in-house managed thematic investment portfolios. It caters exceptionally well to its core trader base, and its latest venture is an NFT fund following numerous acquisitions in the cryptocurrency sector. The eToro Academy, eToro plus, and The Bull Club assist beginner traders.
Interactive Brokers presents one of the most competitive core trading environments available globally, with a suite of cutting-edge proprietary solutions developed for advanced traders. It supports third-party developers and algorithmic trading solutions. Beginner traders will benefit from the comprehensive IBKR Campus, one of the highest-quality educational services industry-wide.
We have conducted an in-depth review of eToro and Interactive Brokers to determine which one presents the better overall choice and which traders will benefit the most at either broker.
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- eToro vs. Interactive Brokers - Verdict
 |  | |
Headquarters | Israel | United States |
Regulators | ASIC, CySEC, FCA, FSA | N/A |
Tier 1 Regulator(s)? | ||
Owned by Public Company? | ||
Year Established | 2007 | 1978 |
Execution Type(s) | Market Maker | ECN/STP, No Dealing Desk |
Minimum Deposit | $50 - $10,000 | $0 |
Negative Balance Protection | ||
Trading Platform(s) | Proprietary platform | Proprietary platform |
Average Trading Cost EUR/USD | N/A | 0.2 pips ($2.00) |
Average Trading Cost GBP/USD | 2.2 pips | 0.4 pips ($4.00) |
Average Trading Cost WTI Crude Oil | $0.05 | $0.01 |
Average Trading Cost Gold | $0.45 | $0.17 |
Retail Loss Rate | 74% | N/A |
Minimum Raw Spreads | 0.8 pips | N/A |
Minimum Standard Spreads | 1.3 pips | N/A |
Minimum Commission for Forex | $0.00 | $1.00 - $2.00 |
Islamic Account | ||
Signals | ||
US Persons Accepted? | ||
Managed Accounts | ||
| Visit Website Your investment value may change. Capital is at risk. | Visit Website |
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 | ||
| Visit Website Your investment value may change. Capital is at risk. | Visit Website |
eToro has more active traders, but the Interactive Brokers Investor's Marketplace offers 1,500+ services, creating a distinct advantage for traders while passive investors can benefit from Interactive Advisors.
Available Markets
| | |
Currency Pairs | ||
Cryptocurrencies | ||
Commodities | ||
Crude Oil | ||
Gold | ||
Metals | ||
Equity Indices | ||
Stocks (non-CFDs) | ||
Bonds | ||
ETFs | ||
Options | ||
Futures | ||
Synthetics | ||
| Visit Website Your investment value may change. Capital is at risk. | Visit Website |
Most retail traders will find eToro’s 2,000+ CFDs focused on equities more than enough to find trading opportunities and achieve cross-asset diversification. Interactive Brokers, a prime brokerage and liquidity provider, presents traders and investors with 135 markets across 33 countries in 23 currencies, resulting in one of the broadest selections of assets available in the industry.
Typical Spreads and Fees
| | |
Average Trading Cost EUR/USD | N/A | 0.2 pips ($2.00) |
Average Trading Cost GBP/USD | 2.2 pips | 0.4 pips ($4.00) |
Average Trading Cost WTI Crude Oil | $0.05 | $0.01 |
Average Trading Cost Gold | $0.45 | $0.17 |
Average Trading Cost Bitcoin | $574 | $0.25 |
Minimum Raw Spreads | 0.8 pips | N/A |
Minimum Standard Spreads | 1.3 pips | N/A |
Minimum Commission for Forex | $0.00 | $1.00 - $2.00 |
Deposit Fee | N/A | |
Withdrawal Fee | ||
Inactivity Fee | $10 monthly after 12 monthd | N/A |
| Visit Website Your investment value may change. Capital is at risk. | Visit Website |
The pricing environment is notably cheaper at Interactive Brokers. Forex traders pay a minimum trading fee of $10 per 1.0 standard lot, commission-free, versus $3 at Interactive Brokers, including a $2 commission. Equity commissions at eToro are 0.09%, commission-free for unleveraged buy orders, and 0.05% at Interactive Brokers.
Security and Trust
| | |
Country of the Regulator | Australia, Cyprus, Seychelles, United Kingdom | United Kingdom, United States |
Name of the Regulator | ASIC, CySEC, FCA, FSA | N/A |
Regulatory License Number | 491139, 109/10, 583263, SD076 | 36418, 8-47257, 208159 |
Regulatory Tier | N/A | 1, 1 |
| Visit Website Your investment value may change. Capital is at risk. | Visit Website |
eToro has a $1,000,000 third-party insurance program underwritten by Lloyd's of London, while Interactive Brokers is a NASDAQ-listed company and constituent of the S&P 500. It remains 81.5% privately held, with $6 billion in excess regulatory capital. eToro and Interactive Brokers segregate client deposits from corporate funds, offer negative balance protection, and both rank among the most trusted brokers.
eToro vs Interactive Brokers – Verdict
eToro
| Pros | Cons |
| Copy-trading with a community numbering almost 25 million traders | Higher minimum deposit requirement but within a reasonable range |
| User-friendly web-based trading platform and mobile app | Absence of MT4 and no algorithmic trading |
| Quality educational offering for beginner traders via videos | |
| Balanced asset selection with a focus on equity CFDs and ETFs |
Interactive Brokers
| Pros | Cons |
| Cutting-edge proprietary trading platforms with support for algorithmic trading | Limited deposit and withdrawal options |
| Industry-leading asset selection and trading costs | |
| Superior trading tools consisting of 1,500+ services | |
| Low-cost passive investments from as little as $100 |
Interactive Brokers remains a global powerhouse with algorithmic trading support. Its clients receive cutting-edge trading platforms, a broad-based asset selection, and among the lowest cost structures industry wide. Its huge overall product and services portfolio may overwhelm many retail traders, making eToro a better choice for millennial and GenZ traders who prefer mobile social trading.
You might also be interested in reviewing the below broker comparisons:
