eToro vs Markets.com Comparison

Which Broker Has The Best Spreads?

In this section, we’re going to compare the trading cost (spreads and commissions) of both eToro and Markets.com. Currently, both online brokers offer variable spreads across their list of CFD products. For the current review, we will present a direct comparison between minimum spreads offered by both brokers across several asset classes.

The table below highlights the minimum spreads across different asset classes and how eToro and Markets.com stack up against the competition.

Standard Account Spreads

When we look at the average standard account spreads for the forex pairs, it’s clear that there are some differences between eToro and Markets.com. For instance, eToro consistently offers a lower spread across most forex pairs, with the exception of GBP/USD and EUR/JPY where it matches or slightly exceeds Markets.com. This suggests that eToro might be the more cost-effective option for traders who frequently deal with these particular pairs.

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

However, it’s important to consider the overall picture. Markets.com, while having slightly higher spreads on some pairs, maintains a more consistent spread across all pairs. This consistency could be beneficial for traders who deal with a variety of forex pairs, as it provides a more predictable trading cost.

Comparing these brokers to the industry average, both eToro and Markets.com generally offer competitive spreads. eToro often matches or even undercuts the industry average, while Markets.com tends to hover slightly above. This suggests that both brokers offer good value, but eToro might edge out in terms of cost-effectiveness.

In conclusion, while both eToro and Markets.com offer competitive spreads, I would lean towards eToro as the cheaper option due to its lower spreads on several key forex pairs. However, traders should consider their specific trading habits and the forex pairs they deal with most frequently before making a decision.

Forex Spreads

Spreads on major currency pairs like EUR/USD start from 0.6 pips at Markets.com compared to 1.0 pip at eToro. This means that it’s 40% cheaper to trade forex on Markets.com.

Find out more about Markets.com and eToro’s spreads below:

• GBP/USD – 0.9 pips at Markets.com, 2.0 pips at eToro
• USD/JPY – 0.7 pips at Markets.com, 1.0 pip at eToro
• AUD/USD – 0.6 pips at Markets.com, 1.0 pip at eToro

Spreads on minor currency pairs like EUR/GBP start from 1.0 pips at Markets.com versus 1.5 pips at eToro. On average, the spreads on minor currency pairs are lower at Markets.com – below 2.0 pips compared to eToro’s spreads of 4.0 pips.

Spreads on exotic currency pairs like USD/SGD start from 8.0 pips at Markets.com compared to 3.0 pips at eToro.

CFD Spread Costs

Spreads on Spot Metals start from:

• Spot Gold (XAU/USD) – 0.5 pips at Markets.com, 45.0 pips at eToro
• Spot Silver (XAG/USD) – 0.03 pips at Markets.com, 5.0 pips at eToro.

Spreads on Stock Indices start from:

• S&P 500 – 1.0 points at Markets.com, 75.0 at eToro
• NIKKEI 225 – 15.0 points at Markets.com, 1000.0 at eToro
• DAX 30 – 1.2 points at Markets.com, 200.0 at eToro
• FTSE 100 – 2.0 points at Markets.com, 150.0 at eToro
• Hang Seng – 10.0 points at Markets.com, 700.0 at eToro.

Verdict On The Broker With The Best Spreads

Our Markets.com vs. eToro review clearly outlines that Markets.com remains much more competitive in terms of spreads offered on major and minor Forex pairs, Spot Metals and Stock Index CFDs, while eToro offers tighter spreads on exotic Forex pairs.

View Markets.com ReviewVisit Markets.com

*Your capital is at risk ‘70% of retail CFD accounts lose money’

What Leverage Is Available?

If we consider the maximum leverage available for trading CFDs, professional traders will access leverage ratios of up to 1:300 at Markets.com and ratios of up to 1:400 at eToro.

Retail clients will have access to considerably lower leverage ratios in all the brokers’ regulation jurisdictions, under present rules by the European Securities and Markets Authority (ESMA), the Australian Securities and Investments Commission (ASIC) and the Financial Conduct Authority (FCA). At both Markets.com and eToro, retail traders will be offered the following ratios, depending on the asset class:

• 1:30 on major currency pairs;
• 1:20 on minor, exotic currency pairs, Gold and major Stock Indices;
• 1:10 on Commodities different than Gold and minor Stock Indices;
• 1:10 on Bond CFDs (only at Markets.com);
• 1:5 on Stock CFDs;
• 1:5 on Blends (only at Markets.com);
• 1:2 on Cryptocurrencies such as Bitcoin.

While eToro allows its clients to adjust the leverage ratios on all trading instruments, which is a flexible tool to manage risk, Markets.com does not allow such an option.

At Markets.com, professional traders can access increased leverage ratios up to 300:1 for forex trading. More, other asset classes aren’t subject to restrictive leverage limits, so professional clients can enjoy more buying power with trading CFDs.

Verdict On Leverage

Leverage varies from one jurisdiction to another, so the amount of leverage you’ll be able to access will depend on your location and the regulatory frameworks. Overall, both brokers offer a decent amount of leverage, but Markets.com tops eToro as it offers leverage trading with more asset classes.

View Markets.com ReviewVisit Markets.com

*Your capital is at risk ‘70% of retail CFD accounts lose money’

What Forex Trading Platforms Do The Brokers Offer?

Markets.com and eToro have specialised in different aspects of CFD and Forex trading. While Markets.com has sought to ensure reasonable pricing across a variety of trading platforms equipped with additional trading tools for its clientele, eToro has invested heavily in its social trading platform.

With Markets.com, international traders and investors can choose from several platform options:

• MetaTrader 4
• MetaTrader 5
• Marketsx
• Marketsi
• Marketsx mobile apps.

MetaTrader 4

The broker’s MetaTrader 4 trading platform offers a plain and intuitive interface, great expert advisor compatibility, fully customisable charting options, instant trade execution and reasonable Forex spreads.

MetaTrader 5

MetaTrader 5 is a multi-asset derivatives platform that allows for position hedging, greater speeds, more comprehensive technical analysis, access to market depth and faster algorithmic trading, including in Stocks and Futures CFDs. The major benefits of Markets.com’s MT5 platform includes:

Marketsi

Marketsi is an in-house investing platform offered by Markets.com, which allows for an individual client approach to investing, regardless of the timeframe. Clients can invest in thousands of individual stocks traded at major exchanges globally or invest in entire portfolios with the platform’s innovative Investment Strategy Builder.

Upon signing up with Marketsi, clients will not be required to pay any commissions for the first three months. After that, Markets.com will charge the following:

• for EU Shares – 0.1% commission (min EUR 10)
• for UK Shares – 0.1% commission (min GBP 8)
• for US Shares – 2c commission (min USD 15)
• for Australian Shares – 0.1% commission (min AUD 10).

In addition, clients will be charged:

• a custody fee of 0.15% (min EUR 5 per month) for the first three months, 0.12% (min EUR 10 per month) after the commission-free period;
• a currency conversion fee of 0.50% for the first three months, 1% after the commission-free period.

Final Verdict On Web Trading

Web Trader By eToro

eToro’s Web Trader is a user-friendly platform, which grants access to valuable trading features such as:

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

Yet, what makes eToro’s web platform even more attractive to clients are two unique features, developed and constantly innovated by the brokerage – CopyTrader and CopyPortfolios.

CopyTrader

CopyTrader allows beginner traders to earn a passive income by following and replicating the trading activity of any other user on the broker’s platform. Top-performing traders are usually selected based on risk score, return for the past 12 months, number of copiers, drawdown and so on. The min deposit required for this copy trading feature is currently $200 and there is also a min amount required for each copied trade – $1.

Traders being copied can also benefit, as they can sign up for eToro’s Popular Investor program and earn a second income paid by the broker monthly. To join the program, traders are required to have at least $1000 in equity and at least two full months of stats on eToro’s platform.

CopyPortfolios

CopyPortfolios is an investment product that bundles together a collection of financial assets and requires a minimum investment amount of $5,000. CopyPortfolios may consist either of selected top-performing traders on the broker’s network (Top Trader Portfolio), or of selected financial instruments such as Stock CFDs, ETFs or Commodities (Market Portfolio). The CopyPortfolios feature will not incur additional management or other fees.

eToro offers not just a copy trading solution, but access to a leading social trading community trusted by millions of traders and investors worldwide who connect, share trading ideas and exchange expertise on global markets.

CFD And Forex Trading On Marketsx By Markets.com

Marketsx is Markets.com’s state-of-the-art, multi-asset web trading platform, which delivers a range of features and benefits for traders, including:

• Access to 14 exclusive fundamental, technical and sentimental trading tools for better insight into the market and more informed decisions. Some of them include Hedge Funds Investment Confidence, Trading Analyst Recommendations, Advanced Charting, Related Instruments, Advanced Alerts, Financial Commentary by ForexLive.com;
• Access to competitive spreads on trading instruments across 8 asset classes;
• Reliable order execution – over 86% of all orders had zero or positive slippage in 2019, or they were executed at the exact price or at a better price than requested by traders;
• Real-time access to expert analysis directly from the web trading platform;
• Access to VIP customer service.

Markets.com ReviewVisit Markets.com

Verdict On Mobile Trading

Both brokerages offer their clientele viable mobile trading solutions.

eToro clients can take advantage of the broker’s intuitive and innovative mobile app for iOS andAndroid Forex Platforms devices, which supports 21 languages and has the same features as eToro’s Web Trader, including Tipranks Research Tab, Virtual Portfolio and One-Click Trading.

Meanwhile, Markets.com’s Marketsx mobile app for iOS and Android are based on native designs, ensuring a smoother user experience. The app is seamlessly integrated with Marketsx accounts and allows clients to execute trades, place orders and manage alerts while on the go. Clients will find all the functionality they require for CFD and Forex trading on the app.

eToro ReviewVisit eToro

Verdict On Which Broker Has A Superior Trading Platforms

Undoubtedly, Markets.com offers a better experience and a greater choice of innovative and proprietary trading platforms and trading tools. Aside from the social trading feature, eToro has little to offer, especially considering that Markets.com offers the popular trading platform MT4 and MT5. The only drawback right now is that neither of the two brokerage trading firms offers cTrader.

View Markets.com ReviewVisit Markets.com

*Your capital is at risk ‘70% of retail CFD accounts lose money’

What Financial Instruments (CFDs) Can You Trade?

Available markets with both forex brokers are abundant, but Markets.com offers 8 different asset classes compared to 6 asset classes found at eToro. Our review has found that eToro’s main focus is set on Stocks, ETFs and Cryptocurrencies, while Markets.com focuses on Foreign Exchange, Stocks and ETFs.

Along with CFDs, eToro offers real stocks, ETFs and Cryptocurrencies. Long (buy) positions in those assets mean clients are actually investing in them, while such positions are not leveraged.

Note: that long Crypto positions are not regulated and do not ensure any protection for investors! Markets.com also offers real stocks on its Marketsi platform, as we already discussed.

Disclaimer: Investing in CFDs is associated with a high risk of rapid losses due to leverage. CFDs are complex instruments thus, clients need to make sure they fully understand how CFDs work before they trade on a live account.

Now, let us take a closer look at both brokers’ CFD product lists:

• Forex – 67 major, minor and exotic currency pairs at Markets.com accessed via its MetaTrader 4, MetaTrader 5 and Marketsx platforms vs. 49 Forex pairs at eToro accessed via its Web Trader;
• Cryptocurrencies – 25 Crypto CFDs at Markets.com vs. 26 digital currencies (including Bitcoin, Ethereum, Bitcoin Cash, Ripple, Dash, Litecoin etc.) and over 80 Crypto pairs at eToro;
• Stock Index CFDs – 40 contracts at Markets.com vs. 13 contracts at eToro;
• Commodity CFDs – 28 Spot Metals, Energies, Agricultural and Soft Commodities at Markets.com vs. 31 Metals, Energies and Soft Commodity CFDs at eToro;
• Stock and ETF CFDs – 2016 Stock CFDs and 60 ETFs at Markets.com accessed via its MetaTrader 5 trading platform vs. 2,476 stocks across 17 global exchanges and 254 ETFs at eToro accessed via its Web Trader. With eToro, clients can buy and sell real stocks traded on the NYSE and NASDAQ without the need to pay any brokerage fees. Stocks can be traded with no limits on trading volume, no markups, ticketing or management fees;
• Bond CFDs – 4 contracts (only at Markets.com);
• Blends – 14 contracts (only at Markets.com).

Verdict On Range Of Markets

Overall Markets.com has a superior asset choice, and it offers a broader Forex market exposure with 67 currency pairs. We definitely recommend Markets.com as a forex broker.

View Markets.com ReviewVisit Markets.com

*Your capital is at risk ‘70% of retail CFD accounts lose money’

Brokers Customer Support And Education Levels

Professional customer support service is another important brokerage aspect we pay attention to. With eToro and Markets.com, both online brokers offer customer support via several channels 24 hours a day, 5 days a week.

Verdict On Customer Support

Markets.com’s live chat option left us with some good impressions. We could reach a representative from the broker’s support team in about 30 seconds and we could obtain the information we required.

EToro’s live chat link is not immediately found on its website’s home page. The link is actually below the FAQ in the “Help Centre” section. What we observed was that the chat option appeared offline way too frequently. We could get in contact with a support representative on our third try. Nevertheless, we got relevant answers to our inquiries.

Another way to contact Markets.com’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, Markets.com’s customer support team can also be reached over the phone by dialling +44 203 150 0380. What surprised us was that eToro has no customer support over the phone, which is quite a drawback nowadays.

Markets.com ReviewVisit Markets.com

Verdict On Other Customer Services

Markets.com’s educational content is in the so-called “Knowledge Centre” section of the company’s website. There, clients will find:

• Free trading webinars;
• XRay – a personalised streaming service for financial commentary;
• Analysis section for deeper insight into markets;
• News section covering economic developments, trade deals, company reports, and other events that impact global markets;
• FAQs are structured by topics, including Data Protection, Trading and Platform, Account and Verification.

Meanwhile, eToro’s client education content includes:

• daily classroom courses in London’s Canary Wharf;
• three-part, 90-minute webinars on topics covering trading basics, trading strategies and risk management;
• an 18-chapter guide to Fintech, investing and CFD trading;
• a guide to social trading;
• a video tutorial section on a range of topics.

We should also note that eToro maintains an extensive live market news and analysis section.

eToro ReviewVisit eToro

Final Verdict On Customer Support

Objectively, both brokers can be contacted via multiple communication channels. They are suited for beginners as eToro and Markets.com have a built-in learning centre that educates beginners on key topics.

View eToro ReviewVisit eToro

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

Minimum Deposit And Account Funding

Markets.com requires a minimum deposit of $100 (or currency equivalent) while at eToro the minimum deposit is double respectively $200 (for debit and credit cards). However, at eToro, the minimum deposit also varies based on the deposit method.

For example, to open an eToro live trading account and deposit money via bank transfer, clients are required to transfer a minimum amount of $500. Traders from Australia and the United States are required to ensure a minimum first-time deposit of $50, while clients based in Algeria, Lebanon, the Maldives and Venezuela will need to put down a minimum first-time deposit of $5,000. Israeli clients are required to ensure an even higher initial deposit – $10,000.

Account-Based Currencies

While Markets.com allows account funding in 9 different base account currencies (USD, EUR, GBP, DKK, NOK, SEK, PLN, CZK, AED), eToro allows deposits made in USD only. We consider this as a drawback because all deposits made in currencies different from USD will be subject to a currency conversion fee!

Account Funding Options

Both brokers will not charge a deposit fee with any of the payment methods used. While Markets.com will not charge a withdrawal fee, there will be such a charge with eToro.

With eToro, international clients have a choice of the following account funding options:

• Debit card or Credit card
• Bank transfer
• PayPal
• Neteller
• Skrill
• iDEAL (only for the Netherlands)
• Rapid Transfer (only for the EEA)
• Klarna/Sofort Banking (only for Germany, Austria, the Netherlands, Switzerland, Italy, Spain, Belgium, Finland, France and Poland)
• Online Banking – Trustly (EU region – Austria, Belgium, the Czech Republic, Denmark, Estonia, Finland, Germany, Latvia, Lithuania, the Netherlands, Norway, Poland, Slovakia, Spain and Sweden).

The maximum deposit amounts, the processing times and other details are listed in the table below.

Meanwhile, with Markets.com, international clients have a more limited choice of funding options:

• Bank transfer
• Debit card or Credit card
• PayPal
• Skrill

Withdrawal Fee And Other Fees

When it comes to profit withdrawals, we should note that eToro will charge a $5 withdrawal fee, and it also requires a minimum withdrawal amount of at least $30.

Other fees that may be charged include the ones by the intermediary bank, the receiving bank or the Credit card provider and clients should also take them into consideration.

In comparison, Markets.com has the following minimum withdrawal amount requirements:

• for Credit card and Debit card – minimum USD 10/EUR 10/GBP 10;
• for Bank transfer – minimum USD 100/EUR 100/GBP 100 and EUR 20 within the EU;
• for Skrill and Neteller – minimum USD 5/EUR 5/GBP 5.

Usually, the timeframe of withdrawals depends on the payment method selected:

• for E-wallets – up to 24 hours;
• for Credit card – 2 to 7 business days;
• for Bank transfer – 2 to 5 business days.

Verdict On Which Broker Has Superior Funding Methods

There is no clear winner in this category. On the one hand, eToro has more funding options but Markets.com is more accessible to beginners because of its lower minimum deposit and the option to fund your account in 9 different currencies with no conversion fees.

View eToro ReviewVisit eToro

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

What Regulation And Risk Management Are Offered?

Since both brokerages fully comply with the regulatory standards of some of the most reputable industry regulators globally, they can be trustworthy and safe. eToro holds 4 global tier-1 licenses and, by comparison, Markets.com holds 3 Tier-1 licenses. Both brokerage trading firms hold one tier-2 license. All regulators considered, eToro has a 2.8-star TrustScore while Markets.com has a 4.1-star TrustScore.

eToro is allowed and regulated as follows:

• eToro (Europe) Ltd. is authorised to serve clients within the European Union and falls under the regulation of Cyprus-based CySEC;
• eToro (UK) Ltd. is authorised to provide online trading services to clientele based in the UK, where it is regulated by the Financial Conduct Authority (FCA). This regulation also ensures the provision of services for clients within the European Economic Area (EEA);
• eToro AUS Capital Pty Ltd. is authorised to service Australian clients and is regulated by the Australian Securities and Investments Commission (ASIC);
• eToro USA LLC is authorised by FinCEN as Money Services Business;
• eToro (Seychelles) Limited is authorised as a broker-dealer by the Seychelles Financial Securities Authority (FSA) to offer CFD products and securities to clients worldwide.

Meanwhile, Markets.com is authorised and regulated as follows:

• Safecap Investments Limited is authorised to serve clients within the EU and is regulated by the CySEC;
• Finalto Trading Ltd. is authorised and regulated by the UK’s FCA;
• Finalto (Australia) Pty Ltd. is authorised as an Australian Financial Services Provider and is regulated by the ASIC;
• Finalto (BVI) Ltd. is authorised to serve clients worldwide and is regulated by the BVI Financial Services Commission (FSC).

Insurance Policies

What the brokers’ CySEC regulation means to European clients is that they will be compensated by the Cyprus Investor Compensation Fund in an event of broker insolvency. Each covered client will be compensated for an amount of up to EUR 20,000.

But also, under FCA regulation, clients based in the UK and the EEA will receive an even higher compensation (up to GBP 85,000 per client covered by the Financial Services Compensation Scheme) in case the brokerages cannot meet their financial obligations.

Both eToro and Markets.com assure that their clients’ funds are kept fully segregated from their own corporate accounts at reputable financial institutions, which reduces the risk of misuse.

Negative Balance Protection Policy

Our review has also found that both brokers follow negative balance protection policies. What this means is clients will not have to repay any negative balances, which could come because of abrupt market movement coupled with high leverage ratios. Or retail CFD accounts cannot lose more than the initial deposit.

Verdict On Regulation By Broker

The side-by-side comparison shows both brokerages are in good standing and safe. Like all forex brokers that offer online trading services, they are regulated in multiple tier-one jurisdictions. In this category, it’s hard to proclaim a winner, but if we let the customer reviews speak, Markets.com outpaced eToro with a score of 4.2 stars versus 2.1 stars.

View Markets.com ReviewVisit Markets.com

*Your capital is at risk ‘70% of retail CFD accounts lose money’