IQ Option versus eToro Broker Comparison

IQ Option started as a dominant binary options broker in the now-defunct industry and one of a few who transitioned to a CFD broker. It claims just shy of 50 million traders with monthly withdrawals exceeding 20+ million. IQ Option offers its propriety trading platform and primarily caters to first-time millennial and GenZ traders.

eToro, a market leader in the social trading scene, continues to expand its active trading community, approaching 25 million. CopyTrader, CopyPortfolios, and in-house managed thematic investment portfolios form the core at eToro. It also became a competitive cryptocurrency broker. eToro additionally has a balanced asset selection and introduced its eToro Academy for beginners.

We have conducted an in-depth review of IQ Option and eToro 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. IQ Option - Verdict

Headquarters	Israel	Cyprus
Regulators	ASIC, CySEC, FCA, FSA	N/A
Tier 1 Regulator(s)?
Owned by Public Company?
Year Established	2007	2013
Execution Type(s)	Market Maker	Market Maker
Minimum Deposit	$50 - $10,000	$10
Negative Balance Protection		N/A
Trading Platform(s)	Proprietary platform	Proprietary platform
Average Trading Cost EUR/USD	N/A	1.2 pips ($12.00)
Average Trading Cost GBP/USD	2.2 pips	1.8 pips ($18.00)
Average Trading Cost WTI Crude Oil	$0.05	$0.06
Average Trading Cost Gold	$0.45	$0.79
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	N/A
Islamic Account
Signals
US Persons Accepted?
Managed Accounts
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Features and Platforms

MT4
MT5
MT4/MT5 Add-Ons		N/A
cTrader
Proprietary Platform
Automated Trading
Social/Copy Trading		N/A
DOM?
Guaranteed Stop Loss
Scalping
Hedging
One-Click Trading
OCO Orders
Interest on Margin
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Noteworthy:

Neither broker supports algorithmic trading solutions nor provides quality research. IQ Option and eToro rely on their active trading communities and sentiment indicators.

Available Markets

Currency Pairs
Cryptocurrencies
Commodities
Crude Oil
Gold
Metals
Equity Indices
Stocks (non-CFDs)
Bonds		N/A
ETFs
Options		N/A
Futures
Synthetics
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IQ Option features a limited Forex selection with 25 currency pairs but a respectable selection of 35 cryptocurrencies, 176 equity CFDs, and 23 ETFs. eToro counters with a balanced selection focused on more than 2,000 equity CFDs, 220 ETFs, and 55 cryptocurrencies CFDs. eToro also offers physical cryptocurrency trading.

Typical Spreads and Fees

Average Trading Cost EUR/USD	N/A	1.2 pips ($12.00)
Average Trading Cost GBP/USD	2.2 pips	1.8 pips ($18.00)
Average Trading Cost WTI Crude Oil	$0.05	$0.06
Average Trading Cost Gold	$0.45	$0.79
Average Trading Cost Bitcoin	$574	$117.47
Minimum Raw Spreads	0.8 pips	N/A
Minimum Standard Spreads	1.3 pips	N/A
Minimum Commission for Forex	$0.00	N/A
Deposit Fee		N/A
Withdrawal Fee		N/A
Inactivity Fee	$10 monthly after 12 monthd	N/A
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IQ Option and eToro offer commission-free Forex trading. It presents the most notable advantage of IQ Option over eToro with minimum spreads of 0.3 pips or $3 per 1.0 lot versus 1.0 pips or $10 at eToro. eToro offers commission-free share trading for buy orders, but CFDs face a minimum commission of 0.09%.

Security and Trust

Country of the Regulator	Australia, Cyprus, Seychelles, United Kingdom	Cyprus
Name of the Regulator	ASIC, CySEC, FCA, FSA	N/A
Regulatory License Number	491139, 109/10, 583263, SD076	247/14
Regulatory Tier	N/A	1
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IQ Option operates as an unregulated but duly registered company out of St. Vincent and the Grenadines. eToro complies with six regulators. It also provides an excess of loss insurance underwritten by Lloyd’s of London with a $1M limit. Negative balance protection exists at both IQ Option and eToro.

Webull also has membership with The New York Stock Exchange (NYSE), the NASDAQ, and the CBOE EDGX Exchange (CBOE EDGX) with a clean FINRA record. Both brokers initiated the process of an IPO, with private valuations for Webull approximately at $400 million versus $2.5 billion for eToro.

eToro vs IQ Option – Verdict

eToro

IQ Option

IQ Option presents traders with low commission-free trading costs and a trading community approaching 50 million but trails eToro in all other categories. eToro offers a balanced asset selection and a quality educational platform eToro Academy for beginner traders. While IQ Option offers social trading, eToro presents higher-quality social trading tools, and clearly comes out ahead of IQ Option overall.

You might also be interested in reviewing the below broker comparisons:

• ActiVtrades vs eToro
• eToro vs BDSWISS
• Plus500 vs IQ Option
• Nadex vs IQ Option

FAQs

Can IQ Option be trusted?

Despite being unregulated and having its origin in the binary options industry, IQ Option seems to be trusted by its clients, as evident by its history.

Is there something better than eToro?

The best broker for you depends upon your individual requirements, but eToro ranks near the top of the mid-section of the brokerage industry.

Is IQ Option the best broker?

IQ Option might have the largest trading community but falls well short being competitive with the best brokers.