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.

Headquarters
United KingdomIsrael
Regulators
ASIC, CySEC, FCA, FSCAASIC, CySEC, FCA, FSA
Tier 1 Regulator(s)?
Owned by Public Company?
Year Established
19992007
Execution Type(s)
Market Maker, No Dealing DeskMarket Maker
Minimum Deposit
$50$50 - $10,000
Negative Balance Protection
N/A
Trading Platform(s)
Other, MetaTrader 4, Proprietary platform, Web-based+Proprietary platform
Average Trading Cost EUR/USD
0.6 pips1.0 pips
Average Trading Cost GBP/USD
1.0 pips2.2 pips
Average Trading Cost WTI Crude Oil
0.034 pips$0.05
Average Trading Cost Gold
0.30 pips$0.45
Retail Loss Rate
70.0%74%
Minimum Raw Spreads
0.2 pips0.8 pips
Minimum Standard Spreads
0.7 pips1.3 pips
Minimum Commission for Forex
$5.00/round lot$0.00
Islamic Account
Signals
US Persons Accepted?
Managed Accounts
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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
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FXCM

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 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

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.

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.

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
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FXCM

FXCM supports fewer trading pairs than many of its competitors, offering just over 30 options.

Currency trading pairs

FXCM offers slightly less currency trading pairs than eToro. | Source: FXCM

eToro

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.

Typical Spreads and Fees

Average Trading Cost EUR/USD
0.6 pips1.0 pips
Average Trading Cost GBP/USD
1.0 pips2.2 pips
Average Trading Cost WTI Crude Oil
0.034 pips$0.05
Average Trading Cost Gold
0.30 pips$0.45
Average Trading Cost Bitcoin
$40 $574
Minimum Raw Spreads
0.2 pips0.8 pips
Minimum Standard Spreads
0.7 pips1.3 pips
Minimum Commission for Forex
$5.00/round lot$0.00
Deposit Fee
Withdrawal Fee
Inactivity Fee
N/A$10 monthly after 12 monthd
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Security and Trust

You can trust that both companies will keep your funds secure and provide you with a safe trading experience.

Country of the Regulator
New Zealand, SeychellesAustralia, Cyprus, Seychelles, United Kingdom
Name of the Regulator
ASIC, CySEC, FCA, FSCAASIC, CySEC, FCA, FSA
Regulatory License Number
403326, SD045491139, 109/10, 583263, SD076
Get StartedGet Started

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.

You might also be interested in reviewing the below broker comparisons:

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