FXCM vs eToro
If you’re reading this article, you’re probably having trouble deciding between the two. Don’t worry; we’re here to help. In this FXCM vs eToro guide, we break down the aspects of each platform so you can make an informed decision on which is right for you. We cover:
Note: Both FXCM and eToro restrict U.S. customers from Forex trading on their platforms.
|Feature||FXCM (visit site)||eToro (visit site)|
|FCA, ASIC, FSCA||CySEC, FCA, ASIC|
Type of Broker:
|No Dealing Desk, Dealing Desk||Market Maker|
U.S. Clients Allowed:
Commissions / Spreads:
|Yes for clients under FXCM LTD, FXCM AU and FXCM ZA|
|.||*74% of retail CFD accounts lose money|
Features and Platforms
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
The FXCM interface is straightforward and contains all the standard Forex trading tools. You can view multiple types of charts for each market, perform technical analysis with several indicators, and read through any necessary statistics. The platform allows for 400:1 leverage margin trades as well.
FXCM includes the standard functionality you need for effective Forex trading. | Source: FXCM
FXCM provides extensive material on Forex education, news, and trading guides. In addition to those resources, FXCM also offers general economic education in the Insights section of its website. The information covers the global economy, indicators, and a glossary for financial terms. Similar to several other Forex platforms, FXCM manages an up-to-date economic calendar.
If custom software scripts are part of your trading strategy, FXCM gives you plenty of API options. The company offers free REST, FIX, Java, and ForexConnect APIs.
The FXCM Trading Station platform is available online as well as on desktop and mobile devices. If you’re hesitant to commit to FXCM, the platform has a demo mode that you can try out for free.
eToro’s social trading functionality separate it from the rest of the market. One of its most popular features, CopyPortfolios, allows you to, you guessed it, copy the portfolio of other Forex traders. If you’re a novice trader, this feature enables you to learn from some of the best investors on the platform.
Alongside copying portfolios, you can scroll through a community feed discussing each Forex market and view a leaderboard of the top traders. eToro also presents you with your specific trading statistics and charts a potential return for your portfolio.
eToro’s bread-and-butter is the platform’s social trading capabilities. | Source: eToro
Continuing its social themes, eToro contains ample social media sharing opportunities and runs events through its eToro Club.
In eToro’s Trading Academy, you’re able to attend live webinars, take online courses, and watch trading videos to improve your knowledge base.
If you’re well-versed in Forex trading, eToro still has something to offer you. Popular Investors (the ones whose portfolios are copied the most) receive up to two percent of their assets under management as a bonus each month.
Earn additional income as a Popular Investor on eToro. | Source: eToro
|Type of Platform:||MetaTrader 4, Proprietary platform, Web-based||Web-based, Other|
Guaranteed Stop Loss:
Guaranteed Limit Orders:
Interest on Margin:
FXCM supports fewer trading pairs than many of its competitors, offering just over 30 options.
FXCM offers slightly less currency trading pairs than eToro. | Source: FXCM
eToro, on the other hand, provides markets for about 50 currency trading pairs. A significant difference between the two companies is that Forex trading on eToro is done through contracts for difference (CFDs) whereas FXCM provides a direct Forex market.
Both platforms also offer cryptocurrency, commodity, and index trading.
|Yes(Non-US Clients Only)|
Typical Spreads and Fees
|When evaluating the cost of both platforms, FXCM is the clear winner with lower fees. If we look at popular trading pairs such as EUR/USD and GBP/USD, FXCM has average spreads that are less than half the size of the spreads on eToro. The typical spreads on those markets are 1.5 pips and 1.6 pips, respectively on FXCM.||On eToro, the typical spreads average around three pips and four pips each. |
You’ll typically find higher spreads on eToro than you will on FXCM. | Source: eToro
|FXCM doesn’t charge any withdrawal fees but does have an inactivity fee of 50 base currency units for accounts that are inactive for over a year.||eToro implements a $5 withdrawal fee with a $50 minimum withdrawal amount. Regarding inactivity, eToro charges a $10 monthly fee to accounts with over one year without activity.|
Security and Trust
You can trust that both companies will keep your funds secure and provide you with a safe trading experience.
|FXCM began in 1999 and was effectively bought out by Leucadia Investments in 2015. Leucadia, now Jefferies Financial Group Inc., is a publicly traded company on the New York Stock Exchange, and as a public company, must adhere to strict regulations.||eToro launched in 2007, making it much younger than FXCM. The company keeps your funds safe in exclusively tier 1 European banks. And, it adheres to the regulations in each country it operates. Those regulatory bodies include the U.K.’s Financial Conduct Authority (FCA), the Australian Security and Investments Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC), which covers Cyprus and parts of Europe.|
FXCM vs eToro – Verdict
Although both FXCM and eToro are reputable platforms, they couldn’t be more different. FXCM is for the professional Forex trader. The platform offers lower fees and a suite of tools for in-depth analysis.
eToro is ideal if you’re new to Forex trading or are looking for a more casual platform. The social aspects of the eToro interface provide an inviting atmosphere for traders of any skill level.