eToro vs Eightcap
If you are reading this article, you’re likely having trouble deciding whether eToro or Eightcap 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 Eightcap review, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:
|Feature||eToro (visit site)||Eightcap (visit site)|
|CySEC, FCA, ASIC||ASIC, FSC|
Type of Broker:
|Market Maker||Market Maker|
U.S. Clients Allowed:
Commissions / Spreads:
|*68% of retail CFD accounts lose money||.|
Features and Platforms
eToro remains a leading social trading broker, but its 2019 expansion into the cryptocurrency sector rekindled its success. Millennial traders prefer the combination of both, and eToro executes well for both groups. 75% of the more than 13,000,000 traders lose money at eToro. It relies on the active community to provide trading ideas. The competitive asset selection meets and high-cost structure and a sub-standard trading platform. Eightcap caters to active traders with better trading platforms, superior technology, and a competitive cost structure. It fully supports automated trading solutions. Eightcap also provides market commentary and educational content.
|Type of Platform:||Proprietary platform||MetaTrader 4, MetaTrader 5|
Guaranteed Stop Loss:
Guaranteed Limit Orders:
Interest on Margin:
Neither offers Forex traders an acceptable choice. eToro has 49 currency pairs against 29 listed at Eightcap versus 40+ advertised on the home page. The former shines with its cryptocurrency selection of 93, while the latter does not offer any assets in this sector. The superior offering extends in the equity markets, where eToro maintains more than 2,000 CFDs and 150 ETFs. Eightcap counters with over 150 and 0. eToro provides clients with 31 commodities for excellent exposure. Eightcap offers just four together with eight index CFDs. eToro adds thirteen, and the overall asset selection is notably better.
Typical Spreads and Fees
The commission-free trading accounts at eToro and Eightcap provide an identical minimum mark-up of 1.0 pips, which is uncompetitive. Eightcap delivers active traders with a raw spread account for a commission of $7.00 per round lot. Traders have to pay swap rates on leveraged overnight positions, while clients at each broker receive the impact of corporate actions that impact equity, index, and ETF positions. Third-party deposit and withdrawal fees apply, but eToro also levies an unacceptable $5 internal withdrawal cost. eToro charges an inactivity fee, non-existent at Eightcap, where traders enjoy a friendlier pricing environment.
Security and Trust
Both brokers maintain a spotless track record with their respective regulators. eToro and Eightcap segregate client deposits from corporate funds. Negative balance protection exists if mandated by regulators, but not across all operating entities. The Australian Securities & Investments Commission (ASIC) regulates eToro and Eightcap. Additional eToro regulators include the UK Financial Conduct Authority (FCA) and the Cyprus Securities and Exchange Commission (CySEC). Eightcap maintains oversight from the Vanuatu Financial Services Commission (VFSC). eToro also operates in the US as a FinCEN registered Money Services Business. Traders can trust both brokers with their portfolios.
eToro vs Eightcap – Verdict
Individuals who wish to follow others with a few clicks will benefit from eToro and its CopyTrader and CopyPortfolios. eToro also serves cryptocurrency traders well. It provides 93 cryptocurrency pairs, a sentiment indicator for digital assets based on Twitter, and a wallet for mobile devices. The asset selection remains competitive, but its market team represents the most valuable business unit. eToro maintains a sub-standard trading platform and a high-cost structure. Eightcap delivers a superior choice of trading platforms with the MT4 and MT5 but fails to provide necessary third-party upgrades. Since the possibility exists, the choice is better than at eToro. The raw spread account grants active traders a competitive cost structure, while the asset choice remains limited. Premium liquidity and fast execution-speed make Eightcap an excellent choice for entry-level automated trading solutions. Social and cryptocurrency traders have a better offer at eToro if they overlook the trading platform, which lacks core functionalities for demanding clients.
Is eToro or Eightcap safer for Forex and CFDs trading?
Both brokers offer an equally safe trading environment for Forex and CFD trading. eToro has more tier-one regulators than Eightcap.
How many Forex pairs and CFDs are available to trade?
eToro maintains 49 Forex pairs and 2,300+ CFDs. Eightcap lists just 29 currency pairs and 200+ CFDs.
Which broker is better for beginner traders?
Eightcap provides traders with a quality research section, making it a better choice for beginner traders. New traders who do not wish to trade but follow others will benefit more at eToro.
What about MetaTrader and copy trading?
eToro does not offer MetaTrader but features an attractive copy trading environment. Eightcap provides the MT4 and MT5 trading platform without direct support for copy trading. Each MetaTrader account supports copy trading from within the trading platform.