eToro vs IG Markets

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:

Headquarters
IsraelUnited Kingdom
Regulators
ASIC, CySEC, FCA, FSAFCA
Tier 1 Regulator(s)?
Owned by Public Company?
Year Established
20071974
Execution Type(s)
Market MakerMarket Maker
Minimum Deposit
$50 - $10,000$250
Negative Balance Protection
Trading Platform(s)
Proprietary platformMetaTrader 4, Proprietary platform
Average Trading Cost EUR/USD
1.0 pips0.9 pips
Average Trading Cost GBP/USD
2.2 pips1.4 pip
Average Trading Cost WTI Crude Oil
$0.05 $0.03
Average Trading Cost Gold
$0.45 $0.30
Retail Loss Rate
74%Undisclosed
Minimum Raw Spreads
0.8 pipsNot applicable
Minimum Standard Spreads
1.3 pips0.8 pips
Minimum Commission for Forex
$0.00Commission-free
Islamic Account
Signals
US Persons Accepted?
Managed Accounts
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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
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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
0
Stocks (non-CFDs)
Bonds
ETFs
Options
Futures
Synthetics
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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
1.0 pips0.9 pips
Average Trading Cost GBP/USD
2.2 pips1.4 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 pipsNot applicable
Minimum Standard Spreads
1.3 pips0.8 pips
Minimum Commission for Forex
$0.00Commission-free
Deposit Fee
Withdrawal Fee
Inactivity Fee
$10 monthly after 12 monthd $12 per month after 24 months
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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

Country of the Regulator
Australia, Cyprus, Seychelles, United KingdomAustralia, Bermuda, Switzerland, Cyprus, Germany, Japan, New Zealand, Singapore, United States
Name of the Regulator
ASIC, CySEC, FCA, FSAFCA
Regulatory License Number
491139, 109/10, 583263, SD076195355, 378/19, 10148759, confirmed, but no regulaary license number, F001780, 41393, 1489, unconfirmed, 220440, 18923, 0509630, 54814
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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.

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FAQs

Does eToro or IG Markets offer lower pricing?

IG Markets provides traders with lower pricing, especially with the volume-based rebates, which allows active traders to decrease the final trading costs significantly.

Which trading platform is better: eToro or IG Markets?

Traders at IG Markets will operate with a notably better choice of trading platforms. They include the proprietary IG Trading Platform, MT4, ProRealTime, and L2 Dealer.

How many Forex pairs and CFDs are available to trade?

eToro offers 49 Forex pairs and over 2,300 CFDs versus 102 and more than 17,000 at IG Markets.

What are the minimum deposits for these brokers?

The minimum deposit at eToro is $1,000 for most clients and $300 at IG Markets.

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