If you are reading this article, you’re likely having trouble deciding whether eToro or IG Markets 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 IG Markets 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 IG Markets - Verdict
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Headquarters | Israel | United Kingdom |
Regulators | ASIC, CySEC, FCA, FSA | ASIC, BaFin, CySEC, DFSA, FCA, FINMA, FMA, FSCA, JFSA, MAS |
Tier 1 Regulator(s)? | ||
Owned by Public Company? | ||
Year Established | 2007 | 1974 |
Execution Type(s) | Market Maker | Market Maker |
Minimum Deposit | $50 - $10,000 | €0 |
Negative Balance Protection | ||
Trading Platform(s) | Proprietary platform | Other, MetaTrader 4, Proprietary platform, Trading View+ |
Average Trading Cost EUR/USD | N/A | 0.9 pips |
Average Trading Cost GBP/USD | 2.2 pips | 1.4 pip |
Average Trading Cost WTI Crude Oil | $0.05 | $0.03 |
Average Trading Cost Gold | $0.45 | $0.30 |
Retail Loss Rate | 74% | 70.00% |
Minimum Raw Spreads | 0.8 pips | Not applicable |
Minimum Standard Spreads | 1.3 pips | 0.6 pips |
Minimum Commission for Forex | $0.00 | Commission-free |
Islamic Account | ||
Signals | ||
US Persons Accepted? | ||
Managed Accounts | ||
| Visit Website 51% of retail CFD accounts lose money. | Visit Website 71% of retail spread bet and CFD accounts lose money |
Features and Platforms
| | |
MT4 | ||
MT5 | ||
MT4/MT5 Add-Ons | ||
cTrader | ||
Proprietary Platform | ||
Automated Trading | ||
Social/Copy Trading | ||
DOM? | ||
Guaranteed Stop Loss | ||
Scalping | ||
Hedging | ||
One-Click Trading | ||
OCO Orders | ||
Interest on Margin | ||
| Visit Website 51% of retail CFD accounts lose money. | Visit Website 71% of retail spread bet and CFD accounts lose money |
eToro is a social trading broker with more than 13,000,000 traders, making it the largest one. While it fails to provide traders with access to the MT4 trading platform, it continues to grow its user-base with its proprietary CopyTrader and CopyPortfolios solutions. eToro is also a leading online broker in the cryptocurrency sector. IG Markets remains one of the best online brokers globally with an excellent choice of trading platforms, support for automated traders, and competitive trading tools to provide clients with an edge. It provides broad market coverage and a superior trading environment for demanding traders.
Available Markets
| | |
Currency Pairs | ||
Cryptocurrencies | ||
Commodities | ||
Crude Oil | ||
Gold | ||
Metals | ||
Equity Indices | ||
Stocks (non-CFDs) | ||
Bonds | ||
ETFs | ||
Options | ||
Futures | ||
Synthetics | ||
| Visit Website 51% of retail CFD accounts lose money. | Visit Website 71% of retail spread bet and CFD accounts lose money |
eToro provides traders with more than 2,300 assets versus above 17,000 at IG Markets. The 93 cryptocurrencies at the former are among the highest across all non-cryptocurrency brokers, and equity traders enjoy 2,000+ choices. The latter maintains an asset selection with which eToro cannot compete. It includes 70 extended-hours CFDs. Forex traders at eToro have only 49 currency pairs, ranking it near the bottom compared to all online brokers. IG Markets provides Forex traders with 99 currency pairs and three choices for weekend trading for a total of 102. Besides granting more than 17,000 assets, IG Markets can write new CFDs for clients.
Typical Spreads and Fees
| | |
Average Trading Cost EUR/USD | N/A | 0.9 pips |
Average Trading Cost GBP/USD | 2.2 pips | 1.4 pip |
Average Trading Cost WTI Crude Oil | $0.05 | $0.03 |
Average Trading Cost Gold | $0.45 | $0.30 |
Average Trading Cost Bitcoin | $574 | $90 |
Minimum Raw Spreads | 0.8 pips | Not applicable |
Minimum Standard Spreads | 1.3 pips | 0.6 pips |
Minimum Commission for Forex | $0.00 | Commission-free |
Deposit Fee | ||
Withdrawal Fee | ||
Inactivity Fee | $10 monthly after 12 monthd | |
| Visit Website 51% of retail CFD accounts lose money. | Visit Website 71% of retail spread bet and CFD accounts lose money |
Both brokers offer commission-free Forex trading, but eToro has an above-average spread starting from 1.0 pips. IG Markets maintains a competitive one at 0.6 pips. Equity traders may find a marginally lower initial cost at eToro at 0.09% versus a minimum of 0.10% at IG Markets. With the volume-based rebates, active traders at IG Markets will achieve a superior cost structure. Swap rates on leveraged overnight positions apply at both brokers, while eToro levies a $5 withdrawal cost. Traders will face third-party payment processor costs at eToro and IG Markets, and both pass corporate actions on to clients. IG Markets maintains a superior cost structure.
Security and Trust
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Country of the Regulator | Australia, Cyprus, Seychelles, United Kingdom | United Arab Emirates, Australia, Bermuda, The Bahamas, Switzerland, Cyprus, Germany, Japan, New Zealand, Singapore, United Kingdom, United States, South Africa |
Name of the Regulator | ASIC, CySEC, FCA, FSA | ASIC, BaFin, CySEC, DFSA, FCA, FINMA, FMA, FSCA, JFSA, MAS |
Regulatory License Number | 491139, 109/10, 583263, SD076 | 195355, 378/19, 10148759, confirmed, but no regulaary license number, F001780, 41393, 1489, unconfirmed, 220440, 18923, 0509630, 54814 |
Regulatory Tier | N/A | 1, 1, 1, 1, 2, 2, 1, 1, 1, 1, 4 |
| Visit Website 51% of retail CFD accounts lose money. | Visit Website 71% of retail spread bet and CFD accounts lose money |
eToro and IG Markets maintain a well-regulated trading environment, with oversight from multiple regulators. IG Markets is also a publicly-listed company on the London Stock Exchange and a constituent of the FTSE 250. It has had significantly more experience, being founded in 1974. Rumors have it that eToro plans to file an IPO for 2021, fourteen years after its founding in 2007. Client deposits remain segregated at both brokers, and negative balance protection exists in jurisdictions where it remains mandated by regulatory requirements. The same applies to an investor compensation fund. Both earned the trust of traders due to their transparency and security.
eToro vs IG Markets – Verdict
eToro remains solely focused on social trading, where it enjoys success. The addition of cryptocurrency trading from 2019 revitalized its popularity. eToro acquired Danish blockchain company Firmo and Belgian crypto portfolio tracker application Delta, marking its expansion into the sector. It followed with the release of its cryptocurrency wallet for Android and iOS devices and its Twitter-based sentiment indicator. The lack of support for automated trading, the MT4 trading platform, and the high-cost structure are notable. IG Markets offers investors and traders across the board with an excellent product and services portfolio. It ranges from asset selection through cost structure and from trading platforms to trading tools. With full support for automated trading solutions and third-party developers, IG Markets, a liquidity provider to other brokers, maintains an overall trading environment significantly superior to eToro except for cryptocurrencies. Despite this, eToro has more than 13,000,000 traders versus less than 250,000 at IG Markets.
You might also be interested in reviewing the below broker comparisons:
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- IG Markets vs Avatrade
