eToro versus XTB
eToro, home to 25M+ traders and a leader in social trading, continues its expansion into the cryptocurrency sector following its announcement of an NFT fund. Traders get a balanced asset selection, while CopyTrader, CopyPortfolios, and in-house managed thematic investment portfolios remain at the core of its operations. Beginner traders get a quality educational service at the eToro Academy.
XTB, publicly listed in Poland, provides traders with a quality proprietary trading platform, a balanced choice of trading instruments, and competitive trading costs. Traders also get higher leverage, a volume-based rebate program rewards high-frequency traders, and the XTB Trading Academy offers beginners quality content, aiding its market expansion approaching 450,000 traders.
I have conducted an in-depth review of eToro and XTB 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. XTB - Verdict
 |  | |
Headquarters | Israel | United Kingdom |
Regulators | ASIC, CySEC, FCA, FSA | N/A |
Tier 1 Regulator(s)? | ||
Owned by Public Company? | ||
Year Established | 2007 | 2002 |
Execution Type(s) | Market Maker | Market Maker |
Minimum Deposit | $50 - $10,000 | $0 |
Negative Balance Protection | N/A | |
Trading Platform(s) | Proprietary platform | Proprietary platform |
Average Trading Cost EUR/USD | 1.0 pips | 0.1 pips ($1.00) |
Average Trading Cost GBP/USD | 2.2 pips | 0.2 pips ($2.00) |
Average Trading Cost WTI Crude Oil | $0.05 | $0.04 |
Average Trading Cost Gold | $0.45 | $0.36 |
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 |
Neither broker supports algorithmic trading solutions, but eToro is a social trading broker, placing it ahead of XTB, which maintains a better trading environment for scalpers and high-frequency traders.
Available Markets
| | |
Currency Pairs | N/A | |
Cryptocurrencies | N/A | |
Commodities | ||
Crude Oil | ||
Gold | ||
Metals | ||
Equity Indices | ||
Stocks | N/A | |
Stocks (non-CFDs) | ||
Bonds | N/A | |
ETFs | ||
Options | N/A | |
Futures | ||
Synthetics | ||
| Get Started | Get Started |
Both brokers feature 2,000+ CFDs and maintain a balanced asset selection, with most trading instruments covering global equities. eToro takes an overall lead due to 220+ETFs, in-house managed thematic portfolios, and its choice of cryptocurrencies. They include physical cryptocurrency trading and staking. Neither has a broad-based Forex selection, but sufficient for many traders.
Typical Spreads and Fees
| | |
Average Trading Cost EUR/USD | 1.0 pips | 0.1 pips ($1.00) |
Average Trading Cost GBP/USD | 2.2 pips | 0.2 pips ($2.00) |
Average Trading Cost WTI Crude Oil | $0.05 | $0.04 |
Average Trading Cost Gold | $0.45 | $0.36 |
Average Trading Cost Bitcoin | $574 | $100.00 |
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 |
XTB bests eToro with its pricing environment. The EUR/USD costs a minimum of $1.00 at XTB versus $10.00 at eToro. The difference in average costs is narrower but remains significant. Commissions on equity CFDs are also lower at XTB versus eToro, where the latter only offers commission-free trading on unleveraged equity buy orders.
Security and Trust
| | |
Country of the Regulator | Australia, Cyprus, Seychelles, United Kingdom | Belize, Cyprus, Poland, United Kingdom |
Name of the Regulator | ASIC, CySEC, FCA, FSA | N/A |
Regulatory License Number | 491139, 109/10, 583263, SD076 | 000302/438, 522157, 169/12, 0000217580 |
Regulatory Tier | N/A | 4, 1, 1, 1 |
| Get Started | Get Started |
eToro and XTB segregate client deposits from corporate funds and offer negative balance protection. Both maintain a secure trading environment. XTB is publicly listed in Poland while eToro plans a US listing.
eToro vs IQ Option – 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 |
XTB
| Pros | Cons |
| Outstanding trading costs, ranking among the best Forex spreads industry-wide | Limited deposit and withdrawal methods |
| Well-balanced asset selection with high leverage | Absence of MT4 and no algorithmic trading |
| Fast NDD order execution and deep liquidity | |
| Quality training academy for beginner traders |
eToro offers social traders a high-quality trading environment, where equity and cryptocurrency traders get an edge over XTB. Scalpers and high-frequency traders get a superior platform at XTB, driven by lower trading costs. Overall, eToro bests XTB amid a trading environment that appeals to a broader trader base.
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FAQs
What is better than eToro?
It depends on individual preferences, with the main complaint against eToro being that its trading costs could be lower.
Is it smart to use eToro?
eToro offers social traders an edge, but it depends on what traders seek from their broker and at what cost.
Should you trust eToro?
eToro maintains a trustworthy trading environment. It complies with regulators in five jurisdictions, has enough experience, and has an overall positive track record.