Our eToro vs FXTM comparison looks at eToro who provide a social trading platform to trade 6 markets including 52 forex pairs and 17 cryptocurrencies. FXTM is an ECN broker with no dealing desk and offers 63 currency pairs and 4 cryptos.
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While FXTM offers a plethora of live trading account types to suit the preferences and financial objectives of a more diverse customer base, eToro offers only one type of live trading account. FXTM offers 6 main trading accounts broken down as follows:
Clients can open a Standard account with FXTM by ensuring a minimum deposit of $100 or as little as $10 for the Cent account and a minimum deposit of $100 for the Stock CFDs account, FXTM’s exclusive account for share dealings.
FXTM standard account offers the most complete solution for forex trading and CFD trading. The offering includes:
By comparison, the FXTM Cent account includes a limited number of tradable instruments. Only 25 major and minor currency pairs, as well as 2 Spot Metals, are available to trade with zero commissions on ForexTime’s MT4 platform.
Last but not least, on the FXTM share dealing account, clients can trade CFDs on more than 160 US and European Stocks on ForexTime’s MT4 platform with a maximum leverage of 1:5 (for US Shares) and 1:3 (for European Shares).
eToro essentially operates on a market maker model so, traders looking for ECN trading conditions can find a home at FXTM. At FXTM, the minimum deposit starts from $200 on the ECN Zero account and can go as high as $25,000 on the FXTM Pro Account.
Below we’ll break down the trading conditions found on the 3 ECN account types offered by FXTM:
To open a live trading account with eToro clients are required to ensure a minimum deposit of $200 (for payment methods such as credit or debit cards) and a minimum deposit of $500 (for bank transfers).
Traders from Australia and the United States are required to ensure a minimum first-time deposit of $50, while clients from Algeria, Lebanon, the Maldives and Venezuela – a minimum first-time deposit of $5,000.
The online broker will not charge any commissions for trading Forex and CFDs, since it is compensated entirely by the bid-ask spread. eToro clients are offered relatively low spreads on trading instruments, which we will discuss in the next section of the review.
Both brokers offer a free demo account for clients to test their trading skills in a risk-free environment. FXTM offers a demo account that mimics conditions on its Standard, Cent, ECN and ECN Zero accounts, while eToro offers a demo account that comes with $100,000 in virtual funds.
FXTM offers an Islamic account option on all of its Standard account types, while swap-free options are available only on its MT4 ECN account types.
eToro also offers an Islamic account for Muslim traders. No interest will be paid and no additional rollover commissions will be charged. In addition, eToro will not charge any account management fees, but it will disallow scalping and hedging.
Overall, FXTM tops eToro as its trading account offering cater to a wider audience. Each of FXTM’s 6 trading accounts comes with its unique set of features and tradable instruments. At the same time, eToro delivers an all-inclusive account package with the benefit and flexibility to meet all your trading needs.
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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.
At FXTM, spreads vary across the 3 Standard account types. Below we’re going to break down the FXTM typical spreads:
eToro also offers variable spreads which fluctuate in accordance with the market liquidity. Since August 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.
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.
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.
View eToro Review >>Visit eToro >>
When it comes to maximum leverage allowed for trading Forex and CFDs, FXTM offers leverage ratios of up to 1:2000 (in South Africa), while eToro – ratios of up to 1:400 (in Australia).
However, leverage ratios are not that high in other regulatory jurisdictions. European traders who fall under the ESMA/CySEC rules, the maximum leverage ratios both FXTM and eToro offer to retail clients can be broken as follows:
Leverage caps have also been imposed on CFD retail investor accounts offered to clients in the United Kingdom. Under ESMA/FCA rules, the maximum leverage ratios both FXTM and eToro offer in that jurisdiction are the following:
Meanwhile, in South Africa, where eToro is not regulated, there are no known leverage caps for retail Forex traders. In that jurisdiction, the maximum leverage ratios FXTM allows depend on the trading account type:
Last but not least, we should note that eToro allows clients to adjust the leverage ratios on all trading instruments, which is a flexible tool to manage risk. FXTM also allows changes to default leverage, though options are more limited compared to eToro.
Both forex brokers offer trading accounts with high leverage, in accordance with the restrictions imposed by the regulatory bodies. FXTM tops eToro due to the 1:2000 leverage offerings under the FSCA regulation. We should note that with eToro if you can acquire the professional status as an FX trader you can access leverage of up to 1:400.
FXTM and eToro tend to have different focus. 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 social 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 MQL4 environment for the development and testing of Expert Advisors (EAs). MT4 offers a single thread EA tester, optimization 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, 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 apps for iOS and Android devices.
MT4’s successor, MetaTrader 5, expands analytical, charting and customizability 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 offers not just a social trading platform, but one for sharing trading knowledge. eToro’s Web Trader is a user-friendly trading platform, which has several notable features, including:
eToro’s CopyTrader technology is the piece of resistance from 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.
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).
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.
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.
We can summarize the range of tradable financial instruments at both brokers as follows:
We should note that FXTM has not included cryptocurrencies and Futures CFDs in its product list, while eToro does not offer Bond CFDs.
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.
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 as 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 to firstname.lastname@example.org. 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.
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:
Meanwhile, eToro offers a more modest education content, including:
Additionally, eToro offers extensive market news and analysis section with publications on a daily basis.
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.
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.
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.
With eToro, clients are able to choose from the following account funding options:
The time intervals to receive funds withdrawn are presented in the following table:
Meanwhile, FXTM offers the following account funding options:
While fund withdrawals via Skrill or Neteller will incur no fees, with all other payment methods clients will be charged a withdrawal fee:
In this category, we have a tight match between FXTM vs eToro. Both brokers have pro 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.
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 authorized and regulated as follows:
Meanwhile, eToro is authorized and regulated in the following jurisdictions:
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 minimizes 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.
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 their 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.
Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.