If you are reading this article, you’re likely having trouble deciding whether eToro or XM 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 XM 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 XM - Verdict
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Headquarters | Israel | Cyprus |
Regulators | ASIC, CySEC, FCA, FSA | ASIC, CySEC, DFSA, FSC Belize |
Tier 1 Regulator(s)? | ||
Owned by Public Company? | ||
Year Established | 2007 | 2009 |
Execution Type(s) | Market Maker | Market Maker |
Minimum Deposit | $50 - $10,000 | $5 |
Negative Balance Protection | N/A | |
Trading Platform(s) | Proprietary platform | MetaTrader 4, MetaTrader 5, Proprietary platform |
Average Trading Cost EUR/USD | N/A | 0.1 pips |
Average Trading Cost GBP/USD | 2.2 pips | 0.2 pips |
Average Trading Cost WTI Crude Oil | $0.05 | $0.05 |
Average Trading Cost Gold | $0.45 | $0.19 |
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
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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 | ||
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Social trading broker eToro is home to 13,000,000+ traders, making it one of the Top 5 trading communities based on size. Millennial traders prefer the commission-free trading environment, CopyTrader and CopyPortfolios, while ignoring the high actual trading costs. eToro does not support automated trading or advanced trading solutions. XM serves more than 3,500,000 clients and provides them with a competitive trading environment via upgraded MT4/MT trading platforms. A trader-friendly cost structure, excellent research and education, and a generous bonus program result in one of the most competitive multi-asset CFD brokers today.
Available Markets
Forex traders at eToro have 49 currency pairs but 93 cryptocurrency pairs. The former ranks eToro towards the bottom, while the latter places it near the top. XM provides clients with 57 currency pairs but no cryptocurrency pairs. The 31 commodities and 13 index CFDs at eToro compare to 15 and 28, respectively, at XM. eToro offers more than 2,000 equity CFDs versus 1,243 at XM. eToro maintains a larger asset selection, but XM has an edge in Forex and index CFDs, making it a better choice for traders with a preference in those sectors. eToro shines in cryptocurrencies.
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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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Typical Spreads and Fees
eToro deploys an above-average cost structure to compensate for its commission-free Forex trading environment. The minimum spread for currency pairs is 1.0 pips. While it advertises commission-free equity trading, it only applies to unleveraged buy orders. Otherwise, a 0.09% fee applies. XM features a minimum mark-up of 0.6 pips and a cost between $1.00 and $9.00 for equity trades. Swap rates on leveraged overnight positions apply at both brokers, and both brokers pass corporate actions on to clients. eToro also maintains a $5 internal withdrawal fee plus third-party costs. XM lists a $5 inactivity cost.
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Average Trading Cost EUR/USD | N/A | 0.1 pips |
Average Trading Cost GBP/USD | 2.2 pips | 0.2 pips |
Average Trading Cost WTI Crude Oil | $0.05 | $0.05 |
Average Trading Cost Gold | $0.45 | $0.19 |
Average Trading Cost Bitcoin | $574 | 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 |
Deposit Fee | N/A | |
Withdrawal Fee | N/A | |
Inactivity Fee | $10 monthly after 12 monthd | N/A |
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Security and Trust
eToro and XM are among the most trusted online brokers with a clean regulatory track record and sufficient experience. The former exists since 2007 and considers an IPO in 2021. The latter serves clients since 2009. eToro has oversight from three Tier 1 regulators and operates in the US as a Money Services Business registered with FinCEN. XM maintains oversight from five regulators and grants clients with a more trade-friendly environment. Client deposits remain segregated at eToro and XM alike. Negative balance protection applies, where mandated by regulators. Both offer their traders a secure, trustworthy trading environment.
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Country of the Regulator | Australia, Cyprus, Seychelles, United Kingdom | United Arab Emirates, Australia, The Bahamas, Belize, Cyprus, United Kingdom, United States |
Name of the Regulator | ASIC, CySEC, FCA, FSA | ASIC, CySEC, DFSA, FSC Belize |
Regulatory License Number | 491139, 109/10, 583263, SD076 | 705428, 120/10, 443670, 000261/397, F003484, SIA-F201, 0516820 |
Regulatory Tier | N/A | 1,1,1,4,2,4,1 |
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eToro vs XM – Verdict
Traders will have an overall more competitive trading environment at XM, except cryptocurrency traders, where eToro provides a competitive edge. Those who prefer to follow others and have no interest in trading themselves will benefit from CopyTrader and CopyPortfolios at eToro. eToro does not offer research and education to traders, relying solely on the community, while XM maintains an excellent selection in both. XM additionally supports retail account management via the popular MT4 MAM terminal. The cost structure at XM remains trader-friendly versus an uncompetitive choice at eToro. Both brokers maintain more than enough assets to take advantage of broad trading opportunities. XM enhances its excellent trading environment with a bonus program.
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