eToro, home to 25M+ traders and a leader in social trading, continues its expansion into the cryptocurrency sector following its announcement of an NFT fund. Traders get a balanced asset selection, while CopyTrader, CopyPortfolios, and in-house managed thematic investment portfolios remain at the core of its operations. Beginner traders get a quality educational service at the eToro Academy.

XTB, publicly listed in Poland, provides traders with a quality proprietary trading platform, a balanced choice of trading instruments, and competitive trading costs. Traders also get higher leverage, a volume-based rebate program rewards high-frequency traders, and the XTB Trading Academy offers beginners quality content, aiding its market expansion approaching 450,000 traders.

I have conducted an in-depth review of eToro and XTB to determine which one presents the better overall choice and which traders will benefit the most at either broker.

Headquarters
IsraelUnited Kingdom
Regulators
ASIC, CySEC, FCA, FSAN/A
Tier 1 Regulator(s)?
Owned by Public Company?
Year Established
20072002
Execution Type(s)
Market MakerMarket Maker
Minimum Deposit
$50 - $10,000$0
Negative Balance Protection
N/A
Trading Platform(s)
Proprietary platformProprietary platform
Average Trading Cost EUR/USD
N/A0.1 pips ($1.00)
Average Trading Cost GBP/USD
2.2 pips0.2 pips ($2.00)
Average Trading Cost WTI Crude Oil
$0.05 $0.04
Average Trading Cost Gold
$0.45 $0.36
Retail Loss Rate
74%N/A
Minimum Raw Spreads
0.8 pipsN/A
Minimum Standard Spreads
1.3 pipsN/A
Minimum Commission for Forex
$0.00N/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, but eToro is a social trading broker, placing it ahead of XTB, which maintains a better trading environment for scalpers and high-frequency traders.

Available Markets

Currency Pairs
N/A
Cryptocurrencies
N/A
Commodities
Crude Oil
Gold
Metals
Equity Indices
Stocks (non-CFDs)
Bonds
N/A
ETFs
Options
N/A
Futures
Synthetics
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Both brokers feature 2,000+ CFDs and maintain a balanced asset selection, with most trading instruments covering global equities. eToro takes an overall lead due to 220+ETFs, in-house managed thematic portfolios, and its choice of cryptocurrencies. They include physical cryptocurrency trading. Neither has a broad-based Forex selection, but sufficient for many traders.

Typical Spreads and Fees

Average Trading Cost EUR/USD
N/A0.1 pips ($1.00)
Average Trading Cost GBP/USD
2.2 pips0.2 pips ($2.00)
Average Trading Cost WTI Crude Oil
$0.05 $0.04
Average Trading Cost Gold
$0.45 $0.36
Average Trading Cost Bitcoin
$574 $100.00
Minimum Raw Spreads
0.8 pipsN/A
Minimum Standard Spreads
1.3 pipsN/A
Minimum Commission for Forex
$0.00N/A
Deposit Fee
N/A
Withdrawal Fee
N/A
Inactivity Fee
$10 monthly after 12 monthd N/A
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XTB bests eToro with its pricing environment. The EUR/USD costs a minimum of $1.00 at XTB versus $10.00 at eToro. The difference in average costs is narrower but remains significant. Commissions on equity CFDs are also lower at XTB versus eToro, where the latter only offers commission-free trading on unleveraged equity buy orders.

Security and Trust

Country of the Regulator
Australia, Cyprus, Seychelles, United KingdomBelize, Cyprus, Poland, United Kingdom
Name of the Regulator
ASIC, CySEC, FCA, FSAN/A
Regulatory License Number
491139, 109/10, 583263, SD076000302/438, 522157, 169/12, 0000217580
Regulatory Tier
N/A4, 1, 1, 1
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eToro and XTB segregate client deposits from corporate funds and offer negative balance protection. Both maintain a secure trading environment. XTB is publicly listed in Poland while eToro plans a US listing.

eToro vs IQ Option – Verdict

eToro

Pros
Cons
Copy-trading with a community numbering almost 25 million tradersHigher minimum deposit requirement but within a reasonable range
User-friendly web-based trading platform and mobile appAbsence 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

XTB

Pros
Cons
Outstanding trading costs, ranking among the best Forex spreads industry-wideLimited deposit and withdrawal methods
Well-balanced asset selection with high leverageAbsence of MT4 and no algorithmic trading
Fast NDD order execution and deep liquidity
Quality training academy for beginner traders

eToro offers social traders a high-quality trading environment, where equity and cryptocurrency traders get an edge over XTB. Scalpers and high-frequency traders get a superior platform at XTB, driven by lower trading costs. Overall, eToro bests XTB amid a trading environment that appeals to a broader trader base.

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

FAQs

What is better than eToro?

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It depends on individual preferences, with the main complaint against eToro being that its trading costs could be lower.

Is it smart to use eToro?

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eToro offers social traders an edge, but it depends on what traders seek from their broker and at what cost.

Should you trust eToro?

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eToro maintains a trustworthy trading environment. It complies with regulators in five jurisdictions, has enough experience, and has an overall positive track record.