eToro versus TD Ameritrade
eToro continues to expand its active client base, presently above 25M traders, on the back of CopyTrader, CopyPortfolios, and in-house managed thematic investment portfolios. It also makes ongoing investments in its cryptocurrency infrastructure, with an NFT fund being its latest venture. The eToro Academy, eToro plus, and The Bull Club are quality services catering to beginner traders.
TD Ameritrade, a stalwart among US brokers, combines high-quality online trading services with a brick-and-mortar financial advisory business. It is now part of Charles Schwab, making it the US leader for self-directed investors and traders. Its traders benefit from superior trading platforms and high-quality trading tools.
We have conducted an in-depth review of eToro and TD Ameritrade to determine which one presents the better overall choice and which traders will benefit the most at either broker.
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- eToro vs. TD Ameritrade - Verdict
 |  | |
Headquarters | Israel | United States |
Regulators | ASIC, CySEC, FCA, FSA | N/A |
Tier 1 Regulator(s)? | ||
Owned by Public Company? | ||
Year Established | 2007 | 1971 |
Execution Type(s) | Market Maker | ECN/STP, Market Maker |
Minimum Deposit | $50 - $10,000 | $50 |
Negative Balance Protection | N/A | |
Trading Platform(s) | Proprietary platform | Proprietary platform, Web-based |
Average Trading Cost EUR/USD | 1.0 pips | 1.4 pips ($14.00) |
Average Trading Cost GBP/USD | 2.2 pips | 1.3 pips ($12.00) |
Average Trading Cost WTI Crude Oil | $0.05 | Undisclosed |
Average Trading Cost Gold | $0.45 | Undisclosed |
Retail Loss Rate | 74% | N/A |
Minimum Raw Spreads | 0.8 pips | N/A |
Minimum Standard Spreads | 1.3 pips | N/A |
Minimum Commission for Forex | $0.00 | N/A |
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 |
Noteworthy:
eToro is a leading social trading broker with an expanding cryptocurrency presence. TD Ameritrade supports algorithmic trading, offers managed portfolios, and is a dominant IRA account provider.
Available Markets
| | |
Currency Pairs | ||
Cryptocurrencies | ||
Commodities | ||
Crude Oil | ||
Gold | ||
Metals | ||
Equity Indices | ||
Stocks | N/A | |
Stocks (non-CFDs) | ||
Bonds | ||
ETFs | ||
Options | ||
Futures | ||
Synthetics | ||
| Get Started | Get Started |
Traders at eToro get a balanced asset selection, with 2,000+ CFDs plus direct share dealing for longer-term investors. It has also expanded its ETF selection while offering in-house managed thematic portfolios. TD Ameritrade maintains significantly more assets across all sectors except for cryptocurrencies, including mutual funds, managed accounts, bonds, annuities, and IPO trading.
Typical Spreads and Fees
| | |
Average Trading Cost EUR/USD | 1.0 pips | 1.4 pips ($14.00) |
Average Trading Cost GBP/USD | 2.2 pips | 1.3 pips ($12.00) |
Average Trading Cost WTI Crude Oil | $0.05 | Undisclosed |
Average Trading Cost Gold | $0.45 | Undisclosed |
Average Trading Cost Bitcoin | $574 | Undisclosed |
Minimum Raw Spreads | 0.8 pips | N/A |
Minimum Standard Spreads | 1.3 pips | N/A |
Minimum Commission for Forex | $0.00 | N/A |
Deposit Fee | N/A | |
Withdrawal Fee | N/A | |
Inactivity Fee | $10 monthly after 12 monthd | N/A |
| Get Started | Get Started |
Both brokers offer commission-free Forex trading, but eToro extends this to direct share purchases. TD Ameritrade provides commission-free trading for US-listed equities and ETFs but charges a low minimum commission of $6.95 per trade on non-US items compared to 0.09% at eToro for equity CFDs. eToro provides traders with cheaper swap rates than the unacceptably high 9.50% charged by TD Ameritrade.
Security and Trust
| | |
Country of the Regulator | Australia, Cyprus, Seychelles, United Kingdom | United States |
Name of the Regulator | ASIC, CySEC, FCA, FSA | N/A |
Regulatory License Number | 491139, 109/10, 583263, SD076 | 7870, 801-60469, 8-23395 |
Regulatory Tier | N/A | 1 |
| Get Started | Get Started |
eToro and TD Ameritrade both segregate client deposits from corporate funds and offer negative balance protection. eToro plans a US listing and has a $1,000,000 third-party insurance program underwritten by Lloyd's of London. TD Ameritrade, part of publicly listed Charles Schwab, and the US-based eToro subsidiary are both members of the Financial Industry Regulatory Authority (FINRA), the self-regulatory organization with SEC oversight. Traders also get Securities Investor Protection Corporation (SIPC) protection, up to $500,000 per net equity or $250,000 for cash claims. Both brokers have earned a trustworthy reputation.
eToro vs TD Ameritrade – Verdict
eToro
| Pros | Cons |
| Copy-trading with a community numbering almost 25 million traders | Higher minimum deposit requirement but within a reasonable range |
| User-friendly web-based trading platform and mobile app | Absence of MT4 and no algorithmic trading |
| Quality educational offering for beginner traders via videos | |
| Balanced asset selection with a focus on equity CFDs and ETFs |
TD Ameritrade
| Pros | Cons |
| Excellent asset selection across multiple sectors | Limited deposit and withdrawal options |
| Superior trading environment and brick-and-mortar financial planning | Higher overall trading costs |
| Competitive trading platforms with support for algorithmic/API trading | |
| High-quality research and educational tools |
TD Ameritrade remains a well-rounded brokerage, supporting algorithmic trading with a well-rounded asset selection, excellent research, and quality education. TD Ameritrade also offers brick-and-mortar financial planning with superb customer service. eToro is a leading social trading broker with a growing cryptocurrency presence and a more compelling choice overall for most younger traders.
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FAQs
Is TD Ameritrade better than eToro?
It depends on the individual requirements, as both brokers cater well to their respective core client bases.
Does eToro have fees?
Yes, eToro charges fees like all brokers, and lists all trading costs and fees transparently on its website.
What cryptos are on eToro?
eToro offers a selection of 46 cryptos, consisting of market cap leaders and promising newer projects.
Is my money safe in eToro?
eToro segregates client deposits from corporate funds held at tier 1 banks, offers 2FA, and has a $1,000,000 third-party insurance program underwritten by Lloyd's of London, resulting in a highly secure environment.
Is eToro good for beginners?
eToro offers beginner traders quality services like the eToro Academy, eToro plus, and The Bull Club, making it a good broker for beginners.
Is eToro good for the long term?
eToro provides investors direct share dealing, ETFs, and in-house managed thematic investment portfolios, catering well to long-term and dividend income portfolios.
Is eToro good for day trading?
Day traders trading high frequencies may find eToro’s typical spreads a challenge to accommodate within their trading model.
How much is the eToro withdrawal fee?
eToro levies a $5 internal withdrawal fee plus third-party processor costs.