If you are reading this article, you’re likely having trouble deciding whether eToro or Pepperstone 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 Pepperstone 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 Pepperstone - Verdict
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Headquarters | Israel | Australia |
Regulators | ASIC, CySEC, FCA, FSA | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB |
Tier 1 Regulator(s)? | ||
Owned by Public Company? | ||
Year Established | 2007 | 2010 |
Execution Type(s) | Market Maker | No Dealing Desk, NDD |
Minimum Deposit | $50 - $10,000 | $0 |
Negative Balance Protection | N/A | |
Trading Platform(s) | Proprietary platform | Other, MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Trading View+ |
Average Trading Cost EUR/USD | N/A | 1.1 pips |
Average Trading Cost GBP/USD | 2.2 pips | 1.4 pips |
Average Trading Cost WTI Crude Oil | $0.05 | $2.50 |
Average Trading Cost Gold | $0.45 | $0.15 |
Retail Loss Rate | 74% | 74-89% |
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 (cTrader) / $7.00 per round lot (MT4/MT5) |
Islamic Account | ||
Signals | ||
US Persons Accepted? | ||
Managed Accounts | ||
| Visit Website Your investment value may change. Capital is at risk. | Visit Website 75-95% of traders on margin lose |
Features and Platforms
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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 | ||
| Visit Website Your investment value may change. Capital is at risk. | Visit Website 75-95% of traders on margin lose |
eToro is home to one of the largest social trading communities with over 13,000,000. It comes against a drawback of a more expensive trading environment and a below-average trading platform for clients seeking to trade and not copy others. Cryptocurrency traders will benefit from the visible extension into this sector by eToro via a duo of acquisitions and another duo of in-house developed solutions. Pepperstone offers traders superior technology and remains an excellent choice for automated trading solutions. The competitive cost structure increases the trader-friendly trading environment, enhanced by smart trading tools, propelling Pepperstone into one of the best online brokers.
Available Markets
Forex traders at eToro have only 49 currency pairs, which does not deliver adequate market coverage. It does offer 93 cryptocurrency pairs, making it a leader among multi-asset CFD brokers. Pepperstone maintains 61 currency pairs and nice cryptocurrency pairs, including three baskets, relying on quality versus quantity. Commodity traders have an excellent choice at both brokers, with 31 at eToro and 23 at Pepperstone. eToro delivers over 2,000 equity CFDs and more than 150 ETFs versus less than 70 and 0 at Pepperstone. eToro maintains a superior overall asset selection, but Pepperstone offers a quality mix from a more competitive trading environment.
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Currency Pairs | ||
Cryptocurrencies | N/A | |
Commodities | ||
Crude Oil | ||
Gold | ||
Metals | ||
Equity Indices | ||
Stocks (non-CFDs) | N/A | |
Bonds | N/A | |
ETFs | ||
Options | N/A | |
Futures | ||
Synthetics | ||
| Visit Website Your investment value may change. Capital is at risk. | Visit Website 75-95% of traders on margin lose |
Typical Spreads and Fees
eToro provides its social traders with an above-average cost structure, not suitable for demanding or active traders. While Forex traders can trade commission-free, the minimum spread is 1.0 pips. Pepperstone offers its traders the same but delivers an excellent pricing environment in its commission-based Razor account, where raw spreads of 0.0 pips meet a commission of $7.00 per round lot. eToro CFD traders pay a 0.09% commission versus a minimum of $0.02 per share at Pepperstone, where the Active Trader Program reduces costs further. Swap rates on leveraged overnight positions and third-party payment processor costs apply at both brokers.
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Average Trading Cost EUR/USD | N/A | 1.1 pips |
Average Trading Cost GBP/USD | 2.2 pips | 1.4 pips |
Average Trading Cost WTI Crude Oil | $0.05 | $2.50 |
Average Trading Cost Gold | $0.45 | $0.15 |
Average Trading Cost Bitcoin | $574 | 25 |
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 (cTrader) / $7.00 per round lot (MT4/MT5) |
Deposit Fee | ||
Withdrawal Fee | ||
Inactivity Fee | $10 monthly after 12 monthd | $0 |
| Visit Website Your investment value may change. Capital is at risk. | Visit Website 75-95% of traders on margin lose |
Security and Trust
The UK Financial Conduct Authority (FCA) and the Australian Securities & Investments Commission (ASIC) provide regulatory oversight of eToro and Pepperstone. eToro also maintains an operating license from the Cyprus Securities and Exchange Commission (CySEC) and registration with the US FinCEN as a Money Services Business. The Securities Commission of the Bahamas (SCB) and the Dubai Financial Services Authority (DFSA) provide additional regulation of two Pepperstone subsidiaries. Client deposits remain segregated, and both have earned their clients' trust amid a transparent trading environment and clean regulatory track record. eToro and Pepperstone maintain an equally secure and trustworthy operation.
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Country of the Regulator | Australia, Cyprus, Seychelles, United Kingdom | United Arab Emirates, Australia, The Bahamas, Cyprus, Germany, Kenya, United Kingdom |
Name of the Regulator | ASIC, CySEC, FCA, FSA | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB |
Regulatory License Number | 491139, 109/10, 583263, SD076 | 414530, 91279, 128, 388/20, F004356, 684312, F217 |
| Visit Website Your investment value may change. Capital is at risk. | Visit Website 75-95% of traders on margin lose |
eToro vs Pepperstone – Verdict
The biggest asset at eToro is its marketing team, which attracts millions of traders to a below-average trading environment. The addition of cryptocurrency trading, where eToro carved out a leadership position among multi-asset CFD brokers, revitalized its business. CopyTrader and CopyPortfolios continue to serve the social trading crowd well, and the equity CFD asset selection remains competitive. Pepperstone supports social trading via Myfxbook AutoTrade and MetaTrader Signals directly from inside the MT4/MT5 trading platforms, together with DupliTrade. The three providers offer social traders better exposure to strategies than eToro. Pepperstone also offers a superior trading platform selection with MT4, MT5, and cTrader. The excellent trading tools, including 28 MT4/MT5 plugins and Autochartist, deliver a competitive edge. Expanding the lead over eToro is the trader-friendly cost structure, education, and research. Cryptocurrency and equity traders will favor eToro. All others will benefit from Pepperstone, which maintains a notably superior trading environment.
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