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

Features & PlatformseToro (visit site)TD Ameritrade (visit site)
Headquarter:IsraelUS
Established :
20071971
Retail Loss Rate:
UndisclosedUndisclosed
Regulation:
Minimum Deposit:
$10 - $10,000$0
Demo Account:
Managed Account:
Islamic Account:
Inactivity Fee
$10 monthly after 12 months
Deposit Fee:
Third-PartyThird-Party
Withdrawal Fee
Yes + Third-Party Third-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 communityChoice of trading platforms
Unique Feature Two:
Copy-trading platformBrick-and-mortar broker
Broker Offers:
*78% of retail CFD accounts lose money

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

Available MarketseToroTD Ameritrade
Currency Pairs:
Cryptocurrency Pairs:
Commodities and Metals:
Indices:
Equities:
Bonds:
ETFs:
Options, Futures, and Synthetics:
Maximum Retail Leverage:
1:301:50
Maximum Pro Leverage:
Undisclosed1:50

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

Typical Spreads & FeeseToroTD Ameritrade
Minimum Raw Spreads:
Not applicableUndisclosed
Minimum Standard Spreads:
1.0 pipsUndisclosed
Minimum Commission for Forex:
Commission-freeCommission-free
Commission for Equity CFDs:
0.09%$6.95/trade
Cash Rebates:
Execution Type:
Market MakerMarket Maker

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

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

TD Ameritrade

Country of the RegulatorName of the RegulatorLicense Number
US
US Securities and Exchange Commission (SEC)Undisclosed

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

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 appAbsence 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

ProsCons
Excellent asset selection across multiple sectorsLimited deposit and withdrawal options
Superior trading environment and brick-and-mortar financial planningHigher 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.

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.