eToro vs City Index

Does eToro or City Index Have Superior Pricing?

When it comes to pricing, both eToro and City Index have unique offerings that cater to different types of traders. Let’s explore the various aspects of their pricing structures.

1. Standard Account Spreads

Standard accounts feature no commissions, which generally widens a broker’s spreads. As this can significantly impact your trading costs, it’s important to pick a broker with competitive standard account spreads. We’ve compared the “Published Average Standard Account Spreads” of eToro and City Index.

eToro offers an average spread of 1.30 pips for the top 5 most traded forex pairs, while City Index offers a slightly lower average spread of 1.24 pips. Both brokers have competitive spreads against the industry average of 1.52 pips for the top 5 most traded forex pairs. Our chief of technology research, Ross Collins tested standard accounts and City Index actually had an average spread of 1.79 pips for the major currency pairs, wider than its published spreads.

Here’s a table showing the spread for each forex pair and the industry average:

Verdict: In terms of standard account spreads, City Index has a slight edge over eToro. The difference is minimal, but for traders who focus on the most traded pairs, City Index offers a more competitive spread.[1]September 2023 Published And Tested Data

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2. RAW Account Spreads

The RAW account spreads are often preferred by experienced traders for their potentially lower costs when factoring in commissions. [2]Raw account spreads published on each broker's website (updated monthly) plus our own testing As a market maker, eToro doesn’t offer a RAW (or commission-based) account type so we’ve compared the “Published Average Raw Account Spreads” of City Index with the industry average. Please note, City Index only offers a RAW FX account for Australian-based traders, which is limiting.

For the “Top 5 Most Traded Average Spread,” City Index has an average spread of 0.33, while eToro’s data is not available in the provided sheet. In the “Tested Raw Spreads” section, City Index scored 0.25 for EUR/USD, and it also achieved 100% in “Zero Spread Testing.”

Verdict: Given eToro doesn’t offer a RAW spread account, we compared City Index with the industry average, which it outperforms against the top 5 most traded average spreads. With more competitive spreads and better performance in zero spread testing, City Index offers a more attractive option for traders focusing on RAW accounts.

City Index ReviewVisit City Index

*Your capital is at risk ‘71% of retail CFD accounts lose money’

3. RAW Account Commission Rates

Commission rates are another essential aspect to consider, especially for those trading with RAW accounts. Against the industry average, City Index is competitive, especially if you use Webtrader, which lowers your cost by $1 per-round turn trade. [3]Commission rates taken from broker's website monthly

Verdict: Given eToro doesn’t offer a RAW spread account, the comparison is not like-for-like. Against the industry average, however, City Index offers competitive commission rates. This difference might seem small, but it can add up over time, especially for active traders.

City Index ReviewVisit City Index

*Your capital is at risk ‘71% of retail CFD accounts lose money’

4. Deposit & Withdrawal Fees

Both eToro and City Index offer various deposit and withdrawal methods, including credit card, bank transfer, and e-wallets. While eToro charges no deposit fees, City Index also follows suit, providing free deposits across all methods. For withdrawals, eToro charges a flat fee of $5, while City Index offers free withdrawals.

Verdict: City Index takes the lead in this section by offering free withdrawals, making it more cost-effective for traders who frequently withdraw funds.

City Index ReviewVisit City Index

*Your capital is at risk ‘71% of retail CFD accounts lose money’

5. Other Fees To Consider

Other fees to consider include “Inactivity Fee,” “Currency Conversion,” and “Overnight Fee (Swap Free).” Both brokers charge inactivity fees, with eToro charging $10 per month after 12 months of inactivity, and City Index charging $15 a month after 2 years of inactivity. While City Index’s inactivity fees are higher, the broker gives you an extra year of inactivity before charging fees. Currency conversion fees are also comparable, with slight variations depending on the currency pair.

Verdict: The other fees are quite similar between the two brokers, with no significant differences to sway the decision one way or the other.

City Index ReviewVisit City Index

*Your capital is at risk ‘71% of retail CFD accounts lose money’

Overall Verdict: Based on the comprehensive analysis of the fees, City Index emerges as the broker with overall lower fees. With slightly more competitive Standard account spreads, industry beating RAW spreads, competitive commission rates, and free withdrawals, City Index offers a more cost-effective trading experience.

City Index ReviewVisit City Index

*Your capital is at risk ‘71% of retail CFD accounts lose money’

Which Broker Can You Trust More?

Trust is paramount in the world of forex trading. Regulation and oversight by reputable authorities ensure that brokers operate transparently and adhere to strict guidelines. Let’s explore the regulatory environment of both eToro and City Index.

1. eToro Markets Regulation

eToro is regulated by several top-tier authorities, including the Financial Conduct Authority (FCA) in the United Kingdom, the Cyprus Securities and Exchange Commission (CySEC) in Europe, and the Australian Securities and Investments Commission (ASIC) in Australia.

2. City Index Regulation

City Index, a part of the GAIN Capital group, is also regulated by the Financial Conduct Authority (FCA) in the United Kingdom, the Monetary Authority of Singapore (MAS), and the Australian Securities and Investments Commission (ASIC).

3. Trust Comparison

Both eToro and City Index are regulated by some of the most respected authorities in the financial industry. While eToro has a broader regulatory coverage, City Index’s association with GAIN Capital adds to its credibility.

Verdict: Trustwise, even though eToro is more regulated, both brokers are on par, with robust regulatory frameworks ensuring the safety and security of traders’ funds.

City Index ReviewVisit City Index

*Your capital is at risk ‘71% of retail CFD accounts lose money’

What Broker Offers Better Trading Platforms?

Trading platforms are the gateway to the financial markets, and the choice of platform can significantly impact a trader’s experience. Let’s compare the trading platforms offered by eToro and City Index.

1. MetaTrader 4 and MetaTrader 5

eToro does not offer MetaTrader 4 or MetaTrader 5, focusing instead on its range of proprietary platforms. City Index, on the other hand, offers MetaTrader 4, but not MetaTrader 5, although MT4 is still one of the most popular forex trading platforms on the market.

2. cTrader and TradingView

Neither eToro nor City Index offers cTrader but City Index does offer TradingView, while eToro doesn’t. Both brokers have developed their own platforms, with eToro focusing on social trading features and City Index offering advanced trading tools including SMART signals and Performance analytics.

3. Social Trading And Copy Trading

eToro is renowned for its social trading features, allowing traders to follow and copy the trades of experienced traders. City Index only offers social/copy trading in the form of MetaTrader Signals, instead focusing more on traditional trading tools (which it has plenty of).

4. VPS and Other Trading Tools

City Index offers VPS services and other advanced trading tools, while eToro does not provide VPS but has a range of unique tools tailored to social trading.

5. Execution Speeds

When comparing execution speeds of 20 top brokers across limit and market orders using MT4, City Index was fairly competitive, coming in as our 6th fastest broker overall. Given eToro doesn’t offer MT4, we were unable to test like-for-like execution speeds with City Index.

Verdict: In terms of trading platforms, eToro stands out for its innovative social trading features, while City Index offers more traditional platforms including MetaTrader 4 and TradingView. Overall, which broker has better trading platforms depends on your trading style and experience. eToro offers user-friendly, proprietary platforms, focussing on social/copy trading which will suit beginners while City Index offers great charting and advanced trading tools to analyse the markets with, which could easily suit beginners and experienced traders alike.

eToro ReviewVisit eToro

Other Trading Factors

Trading factors such as minimum deposit, payment methods, and execution speeds can influence a trader’s choice of broker. Let’s explore these aspects for both eToro and City Index.

Minimum Deposit

eToro requires a minimum deposit starts at $50, while City Index has a minimum deposit requirement of $150, or $250 if you use debit or credit card.

Trading Products

City Index offers a wider range of products than eToro, across most asset classes. Where City Index really stands out is its 84 forex pairs and over 4500 shares CFD range. eToro still offers a good range of products, particularly its diverse range of almost 3000 shares across multiple global exchanges. Both brokers stand out with complex derivatives that the other doesn’t offer. City Index offers over 4500 options to trade while eToro offers over 300 ETFs (Exchange Traded Funds).

Payment Methods

Both brokers offer a variety of payment methods, including credit card, bank transfer, and e-wallets. Here’s a comparison table:

Verdict: Overall, City Index wins this section marginally mainly due to a wider range of products and a good range of funding methods. eToro still offers a good range of products, a decent range of funding methods and a lower minimum deposit.

City Index ReviewVisit City Index

*Your capital is at risk ‘71% of retail CFD accounts lose money’

What Account Types Are Available?

Choosing the right account type is essential for a tailored trading experience. Both eToro and City Index offer various account types to suit different trading needs.

1. Trading Accounts

eToro only offers a standard account, while City Index provides a standard account, an MT4 account, a RAW FX account (Australia-only) and a DMA account (Singapore-only). Both brokers offer a demo account.

2. Base Currencies

eToro offers accounts in USD, EUR, and GBP, while City Index offers accounts in multiple currencies, including USD, EUR, GBP, AUD, and SGD.

Which Broker Has Superior Customer Support

Customer support is vital for a smooth trading experience. Based on our Standard Account Analysis, here’s a comparison table of the key features:

This table doesn’t tell the full story though. eToro’s live chat only serves current clients, whilst City Index has human and bot live chat interactions. Where eToro also falls down is in its lacklustre website navigation and average FAQ section whilst City Index has both of those things. This is why we scored City Index an excellent 9/10 while we could only give eToro a 5/10 for customer service.

Our Take On Which Broker Is Best

In our analysis, both eToro and City Index have their own unique strengths and cater to different types of traders.

Best For Beginner Traders: eToro, with its user-friendly platforms and social trading features, is best suited for beginner traders looking to learn from others and engage in copy trading.

Best For Experienced Traders: City Index, with its advanced trading tools, MetaTrader support, and competitive spreads, is ideal for experienced traders seeking a robust trading environment.