eToro is a leading social trading broker with a growing presence in cryptocurrencies. It is home to 25M+ traders, making it one of the most active communities, built on CopyTrader, CopyPortfolios, and in-house managed thematic investment portfolios. Its latest venture is an NFT fund, meeting the demand of its core client base. Beginners will benefit from eToro Academy, eToro plus, and The Bull Club.
Libertex caters to nearly 3.0M traders who get the out-of-the-box MT4/MT5 trading platforms and a proprietary mobile app. It maintains a loyalty program, a welcome bonus, and introduced Bitcoin cloud mining, a controversial service. Beginner traders receive a 3-hour educational course.
We have conducted an in-depth review of eToro and Libertex 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. Libertex - Verdict
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Headquarters | Israel | Saint Vincent and the Grenadines |
Regulators | ASIC, CySEC, FCA, FSA | FSA |
Tier 1 Regulator(s)? | N/A | |
Owned by Public Company? | N/A | |
Year Established | 2007 | 1997 |
Execution Type(s) | Market Maker | Market Maker |
Minimum Deposit | $50 - $10,000 | 50$ |
Negative Balance Protection | N/A | |
Trading Platform(s) | Proprietary platform | MetaTrader 4, MetaTrader 5, Web-based |
Average Trading Cost GBP/USD | 2.2 pips | N/A |
Average Trading Cost WTI Crude Oil | $0.05 | N/A |
Average Trading Cost Gold | $0.45 | N/A |
Retail Loss Rate | 74% | 85.9% |
Minimum Raw Spreads | 0.8 pips | Not applicable |
Minimum Standard Spreads | 1.3 pips | 0.1 pips |
Minimum Commission for Forex | $0.00 | 0.0003% |
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? | N/A | |
Guaranteed Stop Loss | ||
Scalping | ||
Hedging | ||
One-Click Trading | N/A | |
OCO Orders | ||
Interest on Margin | ||
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Noteworthy:
Forex Club, the owner of Libertex, has a history of regulatory fines, including the temporary suspension of its CySEC license.
Available Markets
| | |
Average Trading Cost GBP/USD | 2.2 pips | N/A |
Average Trading Cost WTI Crude Oil | $0.05 | N/A |
Average Trading Cost Gold | $0.45 | N/A |
Average Trading Cost Bitcoin | $574 | N/A |
Minimum Raw Spreads | 0.8 pips | Not applicable |
Minimum Standard Spreads | 1.3 pips | 0.1 pips |
Minimum Commission for Forex | $0.00 | 0.0003% |
Deposit Fee | ||
Withdrawal Fee | ||
Inactivity Fee | $10 monthly after 12 monthd | N/A |
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eToro offers traders a balanced asset selection with 2,000+ CFDs, direct share dealing, and in-house managed thematic portfolios. Libertex features significantly fewer trading instruments but enough for most retail traders to get a sector introduction. It also allows fractional share investments, ideal for smaller portfolios. Both brokers offer above-average cryptocurrency CFD selections.
Typical Spreads and Fees
Trading costs at Libertex are notably lower than at eToro, where minimum Forex costs commence from $10.00 per 1.0 lot versus $4.00 at Libertex. Traders using the Libertex mobile app may get trading costs down to $0.20 per lot, while MT4 traders face a $7.00 commission, but both offer commission-free share dealing.
Security and Trust
| | |
Country of the Regulator | Australia, Cyprus, Seychelles, United Kingdom | N/A |
Name of the Regulator | ASIC, CySEC, FCA, FSA | FSA |
Regulatory License Number | 491139, 109/10, 583263, SD076 | N/A |
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eToro offers a $1,000,000 third-party insurance program underwritten by Lloyd's of London, but both brokers segregate client deposits from corporate funds and offer negative balance protection. Most international traders will deal with the unregulated unit in St. Vincent and the Grenadines, company registration number 1277 LLC 2021, operated jointly by Forex Club and Mauritius FSC-licensed MAEX Limited.
eToro vs Libertex – 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 |
Libertex
Pros | Cons |
|---|---|
| 25+ years operational | Questionable regulatory history and numerous fines for violations |
| Competitive spreads, high leverage, and competitive cryptocurrency selection | Limited overall asset selection and few deposit methods |
| 3-hour trading course for beginner traders | Inactivity fee after 90 days |
| Welcome Bonus and Loyalty Program |
Libertex trumps eToro in trading costs and availability of the MT4/MT5, supporting algorithmic trading. However, eToro remains the better all-around brokerage, with a broader asset selection and quality trading services unavailable at Libertex. Additionally, eToro is more trustworthy and caters better to its core trader base.
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FAQs
What is the downside to eToro?
eToro does not support algorithmic trading and has above-average trading costs.
Can eToro use in MT4?
Regrettably, eToro does not offer the MT4 trading platform.
What is the minimum deposit on eToro?
The minimum deposit is between $10 and $10,000, dependent on geographic location.
Is my money safe in eToro?
Deposits are safe at eToro, which complies with five regulators, segregates client deposits from corporate funds held at tier 1 banks and has a $1,000,000 third-party insurance program underwritten by Lloyd's of London.
Is eToro good for beginners?
eToro is a good choice for beginners, who benefit from the eToro Academy, eToro plus, The Bull Club, and the active social trading community.
Is eToro good for the long term?
With commission-free direct share dealing, ETFs, and in-house managed thematic investment portfolios, eToro offers long-term investors with good options.
Is eToro good for day trading?
Day traders trading high frequencies may find eToro’s typical spreads a challenge to accommodate within their trading model.
How much is the eToro withdrawal fee?
Besides third-party processor costs, eToro levies an internal withdrawal fee of $5.