eToro vs FXTM

Which Broker Has The Best Spreads?

Both brokers offer variable spreads across their CFD product lists. The floating spreads can widen depending on the market conditions. For the purpose of the current review, we will present a direct comparison between minimum spreads offered by FXTM (Standard accounts) and eToro across several asset classes.

Forex Trading Spreads

At FXTM, spreads vary across the 3 Standard account types. Below we’re going to break down the FXTM typical spreads:

• Standard account – traders can take advantage of spreads starting from 1.3 pips on major Forex pairs
• Cent account – traders can take advantage of spreads starting from 1.5 pips on major Forex pairs
• Stock CFD account – traders can take advantage of spreads starting from $0.1 and no trading commissions.

eToro also offers variable spreads which fluctuate in accordance with the market liquidity. Since Nov 2020, at eToro spreads start from just 1 pip on the 10 most popular currency pairs. eToro undertook an FX spread reduction process so it can offer more affordable trading costs to its clients.

Placed side-by-side, the EUR/USD and USD/JPY spread at eToro is just 1 pip compared to 1.6 pips (1.7 pips for USD/JPY) minimum spread on FXTM standard. While the GBP/USD minimum spread is 1.8 pips at FXTM compared to eToro’s 2.0 pips spread.

Note* Spreads on minor and exotic currency pairs are more favourable at FXTM as compared to eToro’s spreads.

Standard Account Spreads

Looking at the data, it’s clear that the spreads vary quite a bit between eToro, FXTM, and the industry average. eToro generally offers lower spreads than FXTM. For example, the spread for EUR/USD is 1 for eToro and 1.9 for FXTM. This pattern is consistent across most forex pairs, with eToro offering lower spreads than FXTM.

Standard Account Analysis Updated September 2023[1]September 2023 Published And Tested Data

However, when we compare these brokers to the industry average, the picture becomes a bit more nuanced. For some pairs, like EUR/USD and USD/JPY, both eToro and FXTM offer spreads that are lower than the industry average. But for other pairs, like GBP/USD and AUD/USD, eToro’s spreads are higher than the industry average, while FXTM’s are significantly higher.

In my opinion, eToro seems to be the cheaper option when it comes to spreads. However, it’s important to remember that spreads are just one part of the overall cost of trading. Other factors, like commission fees and overnight financing costs, can also have a significant impact on your trading costs. So while eToro may have lower spreads, that doesn’t necessarily mean it’s the cheaper broker overall.

It’s also worth noting that the industry averages are just that – averages. They represent the middle ground, but there’s a lot of variation around those averages. Some brokers may offer much lower spreads, while others may offer much higher spreads. So while it’s useful to compare eToro and FXTM to the industry averages, it’s also important to consider the wider context.

CFD Trading Spreads

Overall, eToro comes ahead of FXTM in terms of the trading cost involved with CFD trading. Trading index CFDs and Energy CFDs with eToro can save you money. When it comes to Gold trading, traders will find the same 0.45 points spread with both brokers.

Lowest Spread Verdict

Overall, FX traders looking to trade the major currency pairs have lower spreads at eToro but the minor and exotic pairs come with a tighter spread at FXTM. More, FXTM offers even tighter spreads (starting from 0.0 pips) on its Pro Account under the condition that clients maintain a minimum account balance of $25,000 all the time.

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*Your capital is at risk ‘68% of retail CFD accounts lose money’

FXTM vs eToro Trading Platform Comparison

FXTM and eToro tend to have different focuses. While FXTM aims to ensure competitive trading conditions and extra trading tools for clients across its MetaTrader suite of CFD trading platforms, eToro has invested time and effort in its best social trading apps.

FXTM’s MetaTrader 4 Trading Platform

The Forex trading standard, MetaTrader 4, comes equipped with a variety of features and offers notable benefits for FXTM clients. First, the trading platform grants access to a full technical analysis suite, containing 30 technical indicators, 31 graphical objects and 9-time frames with real-time quotes in MarketWatch.

Second, the trading software offers 3 order execution modes (Instant, Market, Request) and 4 pending order types (Buy Limit, Buy Stop, Sell Limit, Sell Stop).

For automated trading, the platform grants access to the MQL4 environment for the development and testing of Expert Advisors (EAs). MT4 offers a single thread EA tester and optimisation plus it features position hedging. To run your algorithms, the online broker grants access to a reliable VPS hosting service, which can be completely free for clients given they meet certain trading volume criteria.

More, ForexTime’s MT4 ensures access to additional Forex trading indicators such as Pip Value Calculator, Pivots SR Levels and Day Bar info among others.

In terms of compatibility, the trading platform offers good Windows and Mac OSX compatibility, while its Web Trader version is compatible with six browsers, including Internet Explorer, Microsoft Edge, Mozilla Firefox, Google Chrome, Safari and Opera. FXTM also offers MT4 mobile trading apps for iOS and Android devices.

ForexTime’s MetaTrader 5 Trading Platform

MT4’s successor, MetaTrader 5, expands analytical, charting and customisability options for traders, as it offers the following features and benefits: 38 technical indicators, 44 graphical objects and 21-time frames.

The most important thing is that the trading platform grants access to a wider range of tradable assets, including CFDs, Stocks and Futures. We expanded more on the main MetaTrader 5 features in the table below.

eToro Social Trading Platform

eToro offers not just a best social trading apps, but one for sharing trading knowledge. eToro’s Web Trader is a user-friendly trading platform, which has several notable features, including:

• One-click Trading option, allowing clients to open a new trade with ready-made parameters
• Standard order management tools such as Stop Loss and Take Profit orders as well as Trailing Stop Loss
• ProCharts professional technical analysis tool
• TipRanks Research Tab, which provides market insight from investors and leading analysts from top financial institutions across the globe
• Offline Trading – clients are able to place specific trading orders even when the platform is down for maintenance.

eToro’s CopyTrader technology is the piece of resistance to its platform offerings. CopyTrader enables eToro clients to follow and replicate the trading activity of any other user on eToro’s platform by depositing as little as $200, while this process will not incur any management fees or other hidden costs.

Traders being copied can also benefit, as they can sign up for eToro’s Popular Investor program and earn a second income. To join the program, traders need to ensure at least $1000 in equity and at least two full months of stats on the broker’s platform. The Popular Investor program is structured in four different tiers, each having specific requirements and bringing particular benefits.

To become eligible for a Cadet rank, every trader needs to ensure minimum equity of $1,000 and min value of allocated funds by copiers, or assets under management, of $500.

FXTM vs. eToro: Mobile Trading Options

Along with mobile apps for MT4 and MT5, ForexTime also offers the FXTM Trader mobile app.

This proprietary software allows clients to open, close and modify trade orders in seconds and features state-of-the-art charting tools and some of the most popular technical indicators. The FXTM Trader mobile app also offers a one-click trading option and an opportunity to trade across more than one device (for example, clients can open a trade on their Desktop PC and close it from their iPhone).

At the same time, eToro offers an innovative mobile app for iOS and Android devices, which supports 21 languages and offers the same features as eToro’s Web Trader (including Virtual Portfolio, Tipranks Research Tab and One-Click Trading).

Trading Platform Verdict

In terms of trading platforms, eToro and FXTM make for a very apple-to-orange comparison. For social trading and copy trading features, eToro offers a better experience while for CFD trading and forex trading FXTM’s technological solution is better suited. Both brokers offer full-service platforms accessible via desktop, browser and mobile Apps. On the downside, neither eToro nor FXTM offers cTrader.

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*Your capital is at risk ‘68% of retail CFD accounts lose money’

What FX Pairs And Financial Instruments Can You Trade?

In regard to financial instruments available for trading, our broker review found that eToro’s main focus is set on Stocks, ETFs and Cryptocurrencies, while FXTM focuses more on Forex trading.

We should note that, along with the CFD option, eToro offers real Stocks, ETFs and Cryptocurrencies and long (buy) positions in those assets mean clients are actually investing in them. Such positions are not leveraged. Of course, eToro clients are free to choose trading Stocks and ETFs as CFDs, while only short (sell) positions in Cryptocurrencies can be executed as CFDs and fall under the regulation of bodies such as FCA or CySEC. Long (buy) Crypto positions are not regulated and do not ensure any protection for investors!

Risk Disclaimer: On the other hand, trading complex instruments such as CFDs on retail investor accounts is associated with a high risk of rapid capital losses as high leverage ratios are used. Therefore, clients need to make sure they fully understand how CFDs work before they start operating with such instruments on a live trading account.

Range Of CFD Instruments Comparison

We can summarise the range of tradable financial instruments at both brokers as follows:

• Forex – 62 major, minor and exotic currency pairs at FXTM accessed via its MetaTrader 4 and MetaTrader 5 software vs. 47 Forex pairs at eToro accessed via its Web Trader
• Cryptocurrencies – 16 digital currencies (including Bitcoin, Ethereum, Bitcoin Cash, Ripple, Dash, Litecoin etc.) and over 80 Crypto pairs at eToro;
• Commodity CFDs – 8 Spot Metals and Spot Energies at FXTM vs. 19 Metals, Energies and Soft Commodity CFDs at eToro;
• Stock Index CFDs – 11 contracts at FXTM vs. 13 contracts at eToro;
• Stock and ETF CFDs – 141 US Stock CFDs and 50 European Stock CFDs at FXTM accessed via its MetaTrader 5 trading platform vs. 2,038 Stocks across 17 global exchanges and 151 ETFs at eToro accessed via its Web Trader. eToro offers an opportunity to buy and sell real stocks traded on the NYSE and NASDAQ without charging any brokerage fees. Clients can trade Stocks with no limits on trading volume and without the need to pay markups, ticketing or management fees. At FXTM, only non-EU clients are able to trade real Stocks on the NYSE and NASDAQ with no fees.

We should note that FXTM has not included cryptocurrencies and Futures CFDs in its product list, while eToro does not offer Bond CFDs.

Range Of CFDs and Forex Pair Verdict

eToro tops FXTM as its online trading service includes almost all major financial markets like stocks, Forex currencies, commodities, cryptocurrencies, indices and ETFs. When placed side-by-side, eToro has more instruments in each asset class compared to FXTM with the only exception being FX trading where FXTM has more currency pairs. In conclusion, in terms of the range of offerings, we can safely say eToro is a better pick.

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*Your capital is at risk ‘68% of retail CFD accounts lose money’

Do The Brokers Offer Good Customer Support And Services?

Professional customer support service is another metric we used in our eToro vs FXTM review. In the case of FXTM and eToro, both brokerages offer customer support via several channels 24 hours a day, 5 days a week.

We must say we were very impressed with FXTM’s live chat option. We were able to reach a representative from the broker’s support team in less than 30 seconds and we were treated in a professional, respectful manner. But what is more, we managed to obtain useful, precise information regarding the matters we asked about. We were interested in FXTM’s ECN pricing model. Along with the live chat, the broker offers some other chat options such as WhatsApp, Viber, Telegram and Facebook Messenger.

In comparison, eToro’s live chat link is not immediately found on its website’s home page. That link can actually be found below the FAQ in the “Help Center” section. But this was not what we considered a concern. It was rather the fact that the company’s chat option appeared offline way too often. Nevertheless, we managed to reach eToro’s support team and received some relevant answers to our inquiries.

Another way to contact FXTM’s support team is via email. Meanwhile, eToro has a web-based ticketing system, with which clients will receive a response to their inquiries via email.

And finally, FXTM’s customer support team can also be reached over the phone by dialling +357 25 55 87 77. eToro, on the other hand, does not offer customer support service over the phone, which we consider as a drawback.

FXTM vs. eToro: Forex Education And Research Services

Our broker review has discovered that FXTM does offer diverse Forex education content to the benefit of both beginners and more advanced traders.

What clients can find in FXTM’s education section includes:

• An extensive glossary with the most important Forex trading and Forex industry terms;
• Short Forex trading videos are structured in categories such as forex basics, trading basics, technical analysis etc.
• A selection of free eBooks on diverse topics
• A selection of Forex trading strategies, including The Pop ‘n’ Stop Trade, Forex Dual Stochastic Trade, The Bladerunner Trade etc.
• Explanation of popular Forex technical indicators, including Ichimoku Kinko Hyo, Stochastic Oscillator, Bollinger Bands etc.
• Explanation of different Forex trading styles, including day trading, scalping, swing trading and position trading;
• Free Forex webinars are conducted on a regular basis with a focus on risk management, trading psychology and sophisticated trading strategies.

Meanwhile, eToro offers a more modest education content, including:

• An 18-chapter guide to Fintech, investing and trading CFDs
• Daily classroom courses in London’s Canary Wharf
• Three-part, 90-minute webinars focusing on trading basics, strategies and money management
• A guide to social trading
• A section containing video tutorials on various topics.

Additionally, eToro offers extensive market news and analysis section with publications on a daily basis.

Customer Support Verdict

Both brokers have customer support service that is up to industry standards. However, FXTM tops eToro in terms of educational resources and research offerings making it the best broker in this category. eToro focuses more on providing live classroom courses which are conducted face-to-face by eToro’s market specialist, Henry Ward.

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What Are The Minimum Deposit Requirements?

At eToro, the minimum deposit ranges from $50 (US-based clients) and it can go as high as $5,000 – for certain countries in South America and Africa. Additionally, depending on the payment option used, eToro requires different account minimums – see table below.

By comparison, FXTM clients need to ensure a minimum deposit of $10 (Cent Account) or $25,000 for the professional trading account.

Account-Base Currencies

While FXTM allows account funding in 7 different base account currencies (USD, EUR, GBP, PLN, CZK, INR, NGN), eToro allows deposits made in USD only. We consider this as a certain drawback because all deposits made in currencies different from USD will be subject to a currency conversion fee.

Both brokers will not charge any deposit fees, but there will be fees on withdrawals depending on the payment method selected. eToro will charge a $5 withdrawal fee and it also requires a minimum withdrawal amount of at least $30. There may also be fees charged by the intermediary bank, the receiving bank or the credit card provider, which clients should take into consideration.

Deposit And Withdrawal Methods

With eToro, clients are able to choose from the following account funding options:

• Bank transfer
• Credit Card or Debit Card
• PayPal
• Skrill
• Neteller
• RapidTransfer
• China UnionPay
• Klarna/Sofort Banking.

The time intervals to receive funds withdrawn are presented in the following table:

Meanwhile, FXTM offers the following account funding options:

• Bank transfer
• Debit Card or Credit Card
• PayPal
• Skrill
• Neteller
• Dotpay
• Western Union Quick Pay.

While fund withdrawals via Skrill or Neteller will incur no fees, with all other payment methods clients will be charged a withdrawal fee:

1. USD 3 for bank transfer
2. 2% for PayPal withdrawals

Minimum Deposit Verdict

In this category, we have a tight match between FXTM vs eToro. Both brokers have pros and cons as on the one hand, FXTM supports more funding currencies while eToro supports more payment options. On the downside, the withdrawal fee is a little bit higher at Forextime vs eToro.

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*Your capital is at risk ‘68% of retail CFD accounts lose money’

What Regulation And Risk Management Do The Brokers Offer?

The side-by-side FXTM vs eToro comparison shows that eToro holds 3 global Tier-1 licenses (UK, EU and Australia), while FXTM holds 2 global Tier-1 licenses (UK and EU). This means that both FXTM and eToro abide by the regulatory standards imposed by some of the most respected Forex regulators worldwide.

FXTM is authorised and regulated as follows:

• Cyprus Securities and Exchange Commission (CySEC) with CIF License number 185/12
• Financial Sector Conduct Authority (FSCA) with FSP number 46614
• Financial Conduct Authority (FCA) of the United Kingdom with license number 777911
• Financial Services Commission (FSC) of the Republic of Mauritius with Investment Dealer License number C113012295

Meanwhile, eToro is authorised and regulated in the following jurisdictions:

• Cyprus Securities and Exchange Commission (CySEC) with license number 109/10 – tier-1 license
• Financial Conduct Authority (FCA) of the UK with license number 583263 – tier-1 license
• Australian Securities and Investments Commission (ASIC) with AFSL number 491139 – tier 1 license

Funds Security

Given their strong regulation, both brokers can be considered safe. In addition, both brokers assure that their clients’ funds are kept fully segregated from their own corporate accounts at reputable financial institutions. This significantly minimises the risk of fraudulent behaviour.

Since both brokerages are members of the Cyprus Investor Compensation Fund, retail clients should have peace of mind that they will be compensated in an event of broker insolvency.

Our review has also found that both FXTM and eToro follow negative balance protection policies. In case any negative balances occur, clients will not be required to repay the respective amount to the brokers. Instead, their account balance will simply be brought back to zero. Or, we can say that client losses cannot exceed their initial deposits.

Regulation And Trust Verdict

Our review clearly highlights that eToro appears to be the better choice as it holds forex licenses only in Tier-1 jurisdictions. On top of that eToro also offers its clients free insurance of up to USD 1 million from the world’s largest insurance services provider Lloyd’s of London. Overall, both brokers are considered to be safe.

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*Your capital is at risk ‘68% of retail CFD accounts lose money’