eToro vs IC Markets

Account Type Spread And Fees

IC Markets offers the tightest spreads based on comparing both forex broker standard account spreads. A standard account is also known as a spread account with the difference between the ask and sell price being the primary way the broker makes money. Below compares the standard account types of eToro and IC Markets (and also includes other broker’s spreads).

Standard Account Spreads	EUR/USD AUD/USD EUR/GBP GBP/USD USD/JPY AUD/JPY EUR/JPY USD/CAD	EUR/USD AUD/USD EUR/GBP GBP/USD USD/JPY AUD/JPY EUR/JPY USD/CAD	EUR/USD AUD/USD EUR/GBP GBP/USD USD/JPY AUD/JPY EUR/JPY USD/CAD	EUR/USD AUD/USD EUR/GBP GBP/USD USD/JPY AUD/JPY EUR/JPY USD/CAD	EUR/USD AUD/USD EUR/GBP GBP/USD USD/JPY AUD/JPY EUR/JPY USD/CAD
	0.62	0.77	1.27	0.83	0.74
	3.00	4.00	4.00	4.00	2.00
	0.77	0.84	1.40	1.19	0.86
	1.13	1.01	1.71	1.66	1.12
	0.70	1.30	1.30	2.20	1.40
	0.80	0.90	1.70	1.80	0.80
	1.20	1.20	1.30	2.00	1.80
	1.30	1.40	1.80	1.70	1.40
	1.10	1.20	1.40	1.50	1.20
	1.30	1.50	1.80	1.80	1.80
	1.20	1.20	1.40	1.40	1.20
	1.20	1.20	1.40	1.40	1.40
	1.30	1.80	1.90	1.90	2.00

Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/10/2022

The most traded currency pairs are the EUR/USD, EUR/GBP and AUD/USD. All three currency pair average spreads are significantly lower for IC Markets (from 0.0 pips) which is why we concluded that the broker has the lowest fees overall.

It should be noted that IC Markets also has an ECN account (Raw Spread account) in our standard vs true ECN account comparison was found to be even cheaper. This is because while their ECN account has a commission charged based on volume, the reduced spreads (with STP processing) make the total fees lower. Below compares IC Markets Raw spread account to its competitors.

ECN Broker Spreads	USD/JPY USD/CAD EUR/USD EUR/GBP AUD/USD AUD/JPY GBP/USD USD/JPY USD/SGD	USD/JPY USD/CAD EUR/USD EUR/GBP AUD/USD AUD/JPY GBP/USD USD/JPY USD/SGD	USD/JPY USD/CAD EUR/USD EUR/GBP AUD/USD AUD/JPY GBP/USD USD/JPY USD/SGD	USD/JPY USD/CAD EUR/USD EUR/GBP AUD/USD AUD/JPY GBP/USD USD/JPY USD/SGD	USD/JPY USD/CAD EUR/USD EUR/GBP AUD/USD AUD/JPY GBP/USD USD/JPY USD/SGD
	0.14	0.25	0.02	0.27	0.17
	0.70	0.80	0.20	0.70	0.40
	0.26	0.47	0.17	0.40	0.24
	0.20	0.30	0.20	0.40	0.20
	0.50	0.60	0.30	0.50	0.50
	0.30	N/A	0.30	0.50	0.40
	0.20	0.83	0.44	0.40	0.42
	0.24	N/A	0.17	0.54	0.30
	0.30	0.70	0.20	0.50	0.40
	0.30	1.10	0.10	0.60	0.50
	n/a	0.30	n/a	0.60	0.50
	0.76	1.41	0.43	1.09	1.22

Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/10/2022

Overall, IC Markets has superior spreads and their Raw account has one of the lowest fees globally. They clearly have lower fees overall and if cost is a key consideration to which forex broker you choose then IC Markets is the logical cost.

View IC Markets Review >>Visit IC Markets >>

Trading Platforms Offered

IC Markets offers the most popular forex trading platforms globally (MetaTrader 4, MetaTrader 5 and cTrader). eToro on the other hand offers its proprietary platform. Due to the different types of trading platforms, they are suitable for unique traders which will be explained below.

eToro Is Better Suited For Social  And Copy Trading

The eToro investing platform and app is based on simplicity with it easy to trade currency, shares and over 3,000 assets. Their trading platform is easier to use than all three IC Markets platforms and more visually appealing. The main focus of the platform focus is copy trading portfolio management where you can find other traders and duplicate their trades. There is also advanced social trading allowing through social networks news and event to be shared making it easier to trade on news.

The eToro platform has a web platform and also Android and iOS apps. Another useful tool is InvestmentPortfolios™. Formerly called CopyPortfolios™, this is a kind of social trading index. These trading baskets that based around a theme using either machine learning and data scientist or handpicked by experts. Theme can include groupings of the best traders in the eToro network or topics such as real estate, Buffet stocks, crypto stocks or eSport.

IC Markets Is Designed For Mainstream Trading

The most popular forex trading platform is MetaTrader 4 and this is the primary software offered by eToro. The broker also offers the most popular platform for trading CFDs (MetaTrader 5). As these trading platforms are so popular it makes it easier to change brokers long-term as most other brokers also offer the software. It also means they have the largest online communities which are the most useful when algorithmic trading including hedging and scalping strategies. There is a marketplace to buy bots from other individuals (which can be backtested) that trade based on market conditions.

IC Markets also provides its own add-ons to supplement the tools offered by MT4 and MT5. This includes the MetaTrader Advanced library of widgets and indicators exclusive to the broker. These tools range from a correlation matrix, and advanced charting, to market sentiment information suitable for all trading experience levels.

IC Markets also has partnered with ZuluTrade and Myfxbook to give you access to social-trading networks, where you can copy the trades of highly successful or professional/institutional investors with the click of a button. The broker also offers cTrader for niche traders looking for advanced functionality and charting. It’s also preferred for crypto CFD trading (e.g. Bitcoin) with the ability to access the liquidity traders look for with a market maker for advanced trading strategies.

Overall, neither broker has a ‘better’ trading platform. Different software is better suited for different segments of the trading community. If you’re a beginner, like mobile apps and the social aspect of trading with the ability to copy other traders then eToro is better suited to your needs. If you’re looking more to trade based on market fundamentals or with algorithmic bots, then IC Markets has the superior software for your needs.

Regulation And Trust

eToro has the edge when it comes to this category but both brokers excel when it comes to this category. Each broker is in the ‘top 10’ when it comes to market share both in terms of market capitalisation and the number of active traders.

eToro Is More Popular

Both IC Markets and eToro were founded in 2007, making them the old guard of the online forex and derivatives broker industry. Over this period, they have developed extremely large user bases and leapt from strength to strength. IC Markets received an impressive 3.3 million views on their main website across Feb 2022, making them one of the largest forex and CFD brokers worldwide. eToro is even more popular, with over 76 million visits over the same period. However, this can be partly attributed to their significant presence in the UK, which was the largest audience visiting the eToro platform.

eToro Has More ‘Tier 1’ Regulation

The best way to stay safe when trading is to use a broker who is regulated by the financial regulator of the country or region you are trading from.

IC Markets is regulated by ASIC (Australia), CySEC (EU) and internationally by the FSA (Seychelles). This means that if you are based in Australia or the European Union, you have the full force of your home regulatory agency protecting you. International traders have slightly weaker protection but you will still be safe trading with IC Markets.

Like IC Markets, eToro is regulated by ASIC, CySEC and the FSA, giving you the same protections as traders on IC Markets get. However, eToro is also regulated by the FCA (UK), meaning that traders in the UK get an extra layer of protection when trading on eToro. As a result, UK traders should use eToro, however outside of the UK, you will be safely protected when using either broker.

View eToro Review >>Visit eToro >>

Other Account Comparison

The three main factors we recommend traders compare forex brokers is based on spreads and fees, trading platforms and reputation and trust. Below are secondary elements that may be supplemental to determine which broker is best for you.

Minimum Deposit Requirements

IC Markets has a superior minimum deposit of $0. While the forex broker doesn’t require a deposit to open an account they recommend that $200 be deposited to reach their margin requirements for trading with leverage.

eToro does have a minimum deposit requirement based on the region the trader resides in. In the UK or USA, the minimum is just $10. In European countries, The Philippines, Thailand, UAE and Singapore and Australia the minimum deposit requirement is $50. Minimum deposit requirements reach as high as $10,000 if you are trading in Israel. Within eligible countries outside those already stated the deposit amount is $200. For those making a bank deposit (discussed in the next section), the minimum initial transfer must be $500. The deposit requirement is in USD and is converted into your base currency at spot exchange rates.

Funding Methods

eToro has more funding methods for EU traders including iDEAL or Trustly. That said, the most popular funding methods are offered by both brokers as shown in the table below.

IC Markets does have some exclusive payment options for Asian customers from Vietnam and Thailand Internet Banking to FasaPay for Indonesia, and UnionPay for China.

Leverage Offered

IC Markets offers superior leverage up to 500:1 compared to 400:1 for eToro. It’s critical to note that many traders are not eligible for the highest level of leverage for either brokers’. For example, within the UK and Australia retail traders are only eligible for 30:1 based on regulator rules. Professional and institutional traders in these markets are only eligible for the higher leverage levels. In other regions, local regulators can also leverage but in some locations (e.g. Africa) the maximum leverage is available for all traders. The broker offers when it comes to leverage may also depend on the forex pairs traded with exotic sets often having lower leverage levels. ETFs and other trading instruments also may have other leverage caps.

It’s worth checking with either online broker what leverage you are eligible for. It should also be noted that most ‘tier 1’ regulators offer negative balance protection which is critical when trading high leverage as you can’t lose more than your deposit. Be aware that trading with leverage can put your funds at risk, so make sure to be careful when leverage trading (also known as margin trading).

Swap-Free Offering

Overall, we recommend eToro’s Islamic account, as they have no extra costs besides their slightly higher funding requirement than normal. Taking or paying interest (a riba) is prohibited under Sharia Law and as a result, Muslims cannot trade forex and CFD products as brokers charge their traders interest payments on margin loans known as swap fees. A swap-free or an Islamic account gives Muslims access to trading forex and CFDs on financial markets while staying in compliance with Sharia Law. Both IC Markets and eToro offer their traders an Islamic account.

eToro offers a ‘pure’ Islamic account, meaning that there are no extra fees added on for the privilege of not having to pay interest on margin loans. The only condition attached is for you to fund your account by a minimum of $1,000 USD. IC Markets also offers an Islamic account; however, they charge you an administration fee each time you hold your position past market close, replacing interest payments with a different fee.

Customer Support

IC Markets was found to have the best customer support through their Australian and Cyprus based call-centre. They also had e-mail and live chat support. Another offering was self-training courses including a range of webinars.

While eToro matches IC Markets support, the response rates and team’s product knowledge were limited.

Our 2022 IC Markets vs eToro Verdict

Traders are recommended to choose IC Markets over eToro based on the trading fundamentals including lower fees, superior trading platforms and advanced features. Only traders looking solely for copy trading that are willing to pay higher fees should choose eToro.

View IC Markets Review >>Visit IC Markets >>