eToro versus TradeStation

eToro continues to grow its 25M+ social trading base, offering its proprietary CopyTrader and CopyPortfolios. The in-house managed thematic investment portfolios cater to passive investors, while beginners benefit from the eToro Academy, eToro plus, and The Bull Club. Its latest cryptocurrency venture, an NFT fund, expands the eToro presence in this sector, meeting client demand.

TradeStation features its cutting-edge trading platform, which supports algorithmic trading, and API trading is also available. It also maintains a dedicated crypto trading app and an IPO trading platform. Retirement accounts, margin trading, and fully paid stock lending are also available. Beginner traders get a quality educational platform and market research.

We have conducted an in-depth review of eToro and TradeStation 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)TradeStation (visit site)
Headquarter:IsraelUS
Established :
20071982
Retail Loss Rate:
UndisclosedUndisclosed
Regulation:
Minimum Deposit:
$10 - $10,000$0
Demo Account:
Managed Account:
Islamic Account:
Inactivity Fee
$10 monthly after 12 monthsNo
Deposit Fee:
Third-PartyNo
Withdrawal Fee
Yes + Third-PartyThird-Party
Funding Methods:
103
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 communityHigh-quality trade execution
Unique Feature Two:
Copy-trading platformMassive historical database
Broker Offers:
*78% of retail CFD accounts lose money

Noteworthy:

eToro offers commission-free direct share dealing, quality cryptocurrency trading tools, and plans an IPO. TradeStation pays up to 6% annual interest on eligible cryptocurrency assets.

Available Markets

Available MarketseToroTradeStation
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

eToro presents traders with more balance, but TradeStation has more quantity in its sector coverage. Forex trading is unavailable at TradeStation, but it offers mutual funds and more ETFs, ideal for retirement accounts. Most traders will find eToro a superior choice, as it caters better to the requirements of its core client base.

Typical Spreads and Fees

Typical Spreads & FeeseToroTradeStation
Minimum Raw Spreads:
Not applicableNot applicable
Minimum Standard Spreads:
1.0 pipsNot applicable
Minimum Commission for Forex:
Commission-freeNot applicable
Commission for Equity CFDs:
0.09%$5 - $14.95/trade
Cash Rebates:
Execution Type:
Market MakerMarket Maker

While eToro has relatively high Forex trading costs, equity traders have lower costs than at TradeStation, where commission-free trading only applies to select US assets under the TradeStation TS Select account. Equity traders in the TS Go account pay an additional $10 fee per trade, while other assets range between $0.60 and $14.95.

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

TradeStation

Country of the RegulatorName of the RegulatorLicense Number
US
US Securities and Exchange CommissionUndisclosed

Both brokers segregate client deposits from corporate funds, and eToro also has a $1,000,000 third-party insurance program underwritten by Lloyd's of London. The US unit of eToro and TradeStation are members of the Financial Industry Regulatory Authority (FINRA), the self-regulatory organization with SEC oversight. The Securities Investor Protection Corporation (SIPC) protects clients up to $500,000 per net equity or $250,000 for cash claims.

eToro vs TradeStation – 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

TradeStation

ProsCons
Competitive proprietary trading platform and Trading App StoreLimited deposit and withdrawal options
Quality market research and education for beginner tradersHigher overall trading costs
A secure and trustworthy trading environment
6% annual interest on eligible cryptocurrency assets

TradeStation offers a competitive trading infrastructure for short-term algorithmic traders using its cutting-edge desktop trading platform, cryptocurrency traders, and passive investors who benefit from 2,000+ commission-free ETFs. eToro presents a better overall choice, especially for beginners, mobile, and social traders, due to its high-quality custom trading services and active trading community.

FAQs

Which broker is better than eToro?

While eToro offers social traders an active community and services, some brokers offer better trading conditions in certain categories.

How good is TradeStation?

TradeStation is a good choice for US-based short-term and algorithmic traders and long-term passive portfolios due to a competitive product and services portfolio.

How many customers does TradeStation have?

TradeStation does not provide customer data, but its unaudited business metrics page stated fewer than 170,000 active accounts as of October 2021.

Can you buy Bitcoin on TradeStation?

TradeStation allows clients to buy Bitcoin.

Who is the owner of TradeStation?

Japanese financial services conglomerate Monex Group has owned TradeStation since 2011.

Is TradeStation an American company?

Cuban-born brothers founded TradeStation, which maintains its headquarters in the US but is under Japanese ownership.

How much margin does TradeStation give?

The maximum leverage at TradeStation is 1:50, resulting in a margin requirement of 2%, but it remains asset dependent.

Is eToro any good?

eToro offers a valuable environment for beginner and social traders. It is best suited to casual, social, and mobile traders.

Is it worth copying on eToro?

It depends on the thoroughness of the due diligence performed. eToro caters to retail traders, where roughly 80% operate at a loss. The absence of attractive compensation for signal providers unfortunately lowers the broad-based quality of the active eToro social trading community.