FXCM vs eToro
If you’re reading this article, you’re probably having trouble deciding between the two. Don’t worry; we’re here to help. In this FXCM vs eToro guide, we break down the aspects of each platform so you can make an informed decision on which is right for you. We cover:
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- FXCM vs eToro - Verdict
Note: Both FXCM and eToro restrict U.S. customers from Forex trading on their platforms.
 |  | |
Headquarters | United Kingdom | Israel |
Regulators | ASIC, CySEC, FCA, FSCA | ASIC, CySEC, FCA, FSA |
Tier 1 Regulator(s)? | ||
Owned by Public Company? | ||
Year Established | 1999 | 2007 |
Execution Type(s) | Market Maker, No Dealing Desk | Market Maker |
Minimum Deposit | $50 | $50 - $10,000 |
Negative Balance Protection | N/A | |
Trading Platform(s) | Other, MetaTrader 4, Proprietary platform, Web-based+ | Proprietary platform |
Average Trading Cost EUR/USD | 0.6 pips | 1.0 pips |
Average Trading Cost GBP/USD | 1.0 pips | 2.2 pips |
Average Trading Cost WTI Crude Oil | 0.034 pips | $0.05 |
Average Trading Cost Gold | 0.30 pips | $0.45 |
Retail Loss Rate | 70.0% | 74% |
Minimum Raw Spreads | 0.2 pips | 0.8 pips |
Minimum Standard Spreads | 0.7 pips | 1.3 pips |
Minimum Commission for Forex | $5.00/round lot | $0.00 |
Islamic Account | ||
Signals | ||
US Persons Accepted? | ||
Managed Accounts | ||
| Get Started | Get Started |
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 | ||
| Get Started | Get Started |
FXCM
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
The FXCM interface is straightforward and contains all the standard Forex trading tools. You can view multiple types of charts for each market, perform technical analysis with several indicators, and read through any necessary statistics. The platform allows for 400:1 leverage margin trades as well.
FXCM provides extensive material on Forex education, news, and trading guides. In addition to those resources, FXCM also offers general economic education in the Insights section of its website. The information covers the global economy, indicators, and a glossary for financial terms. Similar to several other Forex platforms, FXCM manages an up-to-date economic calendar.
If custom software scripts are part of your trading strategy, FXCM gives you plenty of API options. The company offers free REST, FIX, Java, and ForexConnect APIs.
The FXCM Trading Station platform is available online as well as on desktop and mobile devices. If you’re hesitant to commit to FXCM, the platform has a demo mode that you can try out for free.
eToro
eToro’s social trading functionality separate it from the rest of the market. One of its most popular features, CopyPortfolios, allows you to, you guessed it, copy the portfolio of other Forex traders. If you’re a novice trader, this feature enables you to learn from some of the best investors on the platform.
Alongside copying portfolios, you can scroll through a community feed discussing each Forex market and view a leaderboard of the top traders. eToro also presents you with your specific trading statistics and charts a potential return for your portfolio.
Continuing its social themes, eToro contains ample social media sharing opportunities and runs events through its eToro Club.
In eToro’s Trading Academy, you’re able to attend live webinars, take online courses, and watch trading videos to improve your knowledge base.
If you’re well-versed in Forex trading, eToro still has something to offer you. Popular Investors (the ones whose portfolios are copied the most) receive up to two percent of their assets under management as a bonus each month.
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 | ||
| Get Started | Get Started |
FXCM
FXCM supports fewer trading pairs than many of its competitors, offering just over 30 options.
FXCM offers slightly less currency trading pairs than eToro. | Source: FXCM
eToro
eToro, on the other hand, provides markets for about 50 currency trading pairs. A significant difference between the two companies is that Forex trading on eToro is done through contracts for difference (CFDs) whereas FXCM provides a direct Forex market.
Both platforms also offer cryptocurrency, commodity, and index trading.
Typical Spreads and Fees
| | |
Average Trading Cost EUR/USD | 0.6 pips | 1.0 pips |
Average Trading Cost GBP/USD | 1.0 pips | 2.2 pips |
Average Trading Cost WTI Crude Oil | 0.034 pips | $0.05 |
Average Trading Cost Gold | 0.30 pips | $0.45 |
Average Trading Cost Bitcoin | $40 | $574 |
Minimum Raw Spreads | 0.2 pips | 0.8 pips |
Minimum Standard Spreads | 0.7 pips | 1.3 pips |
Minimum Commission for Forex | $5.00/round lot | $0.00 |
Deposit Fee | ||
Withdrawal Fee | ||
Inactivity Fee | N/A | $10 monthly after 12 monthd |
| Get Started | Get Started |
Security and Trust
You can trust that both companies will keep your funds secure and provide you with a safe trading experience.
| | |
Country of the Regulator | New Zealand, Seychelles | Australia, Cyprus, Seychelles, United Kingdom |
Name of the Regulator | ASIC, CySEC, FCA, FSCA | ASIC, CySEC, FCA, FSA |
Regulatory License Number | 403326, SD045 | 491139, 109/10, 583263, SD076 |
| Get Started | Get Started |
FXCM vs eToro – Verdict
Although both FXCM and eToro are reputable platforms, they couldn’t be more different. FXCM is for the professional Forex trader. The platform offers lower fees and a suite of tools for in-depth analysis.
eToro is ideal if you’re new to Forex trading or are looking for a more casual platform. The social aspects of the eToro interface provide an inviting atmosphere for traders of any skill level.
You might also be interested in reviewing the below broker comparisons:
- FXCM vs Capital.com
- FXCM vs AvaTrade
- FXCM vs easyMarkets
- eToro vs FxPro
- eToro vs BDswiss
- eToro vs TradeStation