IQ Option versus eToro

IQ Option started as a dominant binary options broker in the now-defunct industry and one of a few who transitioned to a CFD broker. It claims just shy of 50 million traders with monthly withdrawals exceeding 20+ million. IQ Option offers its propriety trading platform and primarily caters to first-time millennial and GenZ traders.

eToro, a market leader in the social trading scene, continues to expand its active trading community, approaching 25 million. CopyTrader, CopyPortfolios, and in-house managed thematic investment portfolios form the core at eToro. It also became a competitive cryptocurrency broker. eToro additionally has a balanced asset selection and introduced its eToro Academy for beginners.

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

Features and Platforms

Features & PlatformseToro (visit site)IQ Option (visit site)
Headquarter:IsraelSt. Vincent and the Grenadines
Established :
20072013
Retail Loss Rate:
UndisclosedUndisclosed
Regulation:
Minimum Deposit:
$10 - $10,000$10
Demo Account:
Managed Account:
Islamic Account:
Inactivity Fee
$10 monthly after 12 months€10 monthly after 90 days
Deposit Fee:
Withdrawal Fee
Yes + Third-PartyThird-Party
Funding Methods:
104
MT4:
MT5:
cTrader:
Proprietary Platform:
Automated Trading:
Social / Copy Trading:
MT4/MT5 Add-ons:
Guaranteed Stop Loss:
Negative Balance Protection:
Bonuses and Promotions:
Unique Feature One:
Large trading communityLarge trading community
Unique Feature Two:
Copy-trading platformCopy-trading services
Broker Offers:
*78% of retail CFD accounts lose money

Noteworthy:

Neither broker supports algorithmic trading solutions nor provides quality research. IQ Option and eToro rely on their active trading communities and sentiment indicators.

Available Markets

Available MarketseToroIQ Option
Currency Pairs:
Cryptocurrency Pairs:
Commodities and Metals:
Indices:
Equities:
Bonds:
ETFs:
Options, Futures, and Synthetics:
Maximum Retail Leverage:
1:301:1000
Maximum Pro Leverage:
Undisclosed1:1000

IQ Option features a limited Forex selection with 25 currency pairs but a respectable selection of 35 cryptocurrencies, 176 equity CFDs, and 23 ETFs. eToro counters with a balanced selection focused on more than 2,000 equity CFDs, 220 ETFs, and 55 cryptocurrencies CFDs. eToro also offers physical cryptocurrency trading and staking.

Typical Spreads and Fees

Typical Spreads & FeeseToroIQ Option
Minimum Raw Spreads:
Not applicableNot applicable
Minimum Standard Spreads:
1.0 pips0.3 pips
Minimum Commission for Forex:
Commission-freeCommission-free
Commission for Equity CFDs:
0.09%Commission-free
Cash Rebates:
Execution Type:
Market MakerMarket Maker

IQ Option and eToro offer commission-free Forex trading. It presents the most notable advantage of IQ Option over eToro with minimum spreads of 0.3 pips or $3 per 1.0 lot versus 1.0 pips or $10 at eToro. eToro offers commission-free share trading for buy orders, but CFDs face a minimum commission of 0.09%.

Security and Trust

eToro

Country of the RegulatorName of the RegulatorLicense Number
US
US Securities and Exchange Commission (SEC)Undisclosed
Cyprus
Cyprus Securities Exchange Commission109/10
UK
Financial Conduct Authority583263
Australia
Australian Securities and Investments Commission491139
Seychelles
Financial Services AuthoritySD076

IQ Option

Country of the RegulatorName of the RegulatorLicense Number
St. Vincent and the Grenadines
UnregulatedUnregulated

IQ Option operates as an unregulated but duly registered company out of St. Vincent and the Grenadines. eToro complies with six regulators. It also provides an excess of loss insurance underwritten by Lloyd’s of London with a $1M limit. Negative balance protection exists at both IQ Option and eToro.

Webull also has membership with The New York Stock Exchange (NYSE), the NASDAQ, and the CBOE EDGX Exchange (CBOE EDGX) with a clean FINRA record. Both brokers initiated the process of an IPO, with private valuations for Webull approximately at $400 million versus $2.5 billion for eToro.

eToro vs IQ Option – Verdict

eToro

ProsCons
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 appNo algorithmic trading
Quality educational offering for beginner traders via videos
Balanced asset selection with a focus on equity CFDs and ETFs

IQ Option

ProsCons
Large trading community approaching 50 million tradersLimited asset selection
A user-friendly trading platform for manual tradersLimited deposit and withdrawal options
Low trading costs with commission-free spreads as low as 0.3 pipsNo algorithmic trading
Respectable choice of cryptocurrency CFDs

IQ Option presents traders with low commission-free trading costs and a trading community approaching 50 million but trails eToro in all other categories. eToro offers a balanced asset selection and a quality educational platform eToro Academy for beginner traders. While IQ Option offers social trading, eToro presents higher-quality social trading tools, and clearly comes out ahead of IQ Option overall.

Read full eToro Review

FAQs

Can IQ Option be trusted?

Despite being unregulated and having its origin in the binary options industry, IQ Option seems to be trusted by its clients, as evident by its history.

Is there something better than eToro?

The best broker for you depends upon your individual requirements, but eToro ranks near the top of the mid-section of the brokerage industry.

Is IQ Option the best broker?

IQ Option might have the largest trading community but falls well short being competitive with the best brokers.