This eToro vs markets.com guide compares these two market maker forex brokers. eToro has a social trading platform so you can copy the best traders, Markets.com has tights spreads with no commissions. See how the brokers differ in this guide
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Comparing eToro and Markets.com side by side, we have found that both online brokers currently offer a limited range of account types. Both forex brokers offer an all in one trading account solution for all your needs.
eToro was founded in 2006 in Israel, eToro is a brokerage company that operates a market maker model, grants access to a range of market segments through its user-friendly web-based trading platform, and welcomes clients from all parts of the globe. eToro is one of the originators and innovators of social trading and currently operates one of the most prominent networks of traders and investors globally.
Markets.com was founded in 2008, Markets.com is a subsidiary of Playtech, a fintech company listed on the London Stock Exchange. The brokerage offers CFD trading as well as long-term investment solutions for clients of all skill levels across a wide range of asset classes. Markets.com also operates a market maker model.
With Markets.com, clients are able to open two types of live trading accounts:
In comparison, eToro offers one trading account type with an all-inclusive spread. The brokerage will not charge any commissions for trading Forex and CFDs, since it is compensated entirely by the spread.
Clients are offered relatively low variable spreads on over 2,000 trading instruments across a variety of asset classes. The minimum deposit required varies, depending on the account funding options and clients’ residence.
Both online brokers do offer a Swap-free option (Islamic Account) for clients of the Muslim faith.
The minimum deposit required for eToro’s Islamic account is $1,000. No interest will be paid and no additional rollover commissions will be charged on contracts lasting more than 24 hours. Additionally, there will be no account management fees charged. However, eToro will not allow scalping and hedging on this type of accounts.
Similar conditions are offered on Markets.com’s Islamic account.
Both brokerages offer a free demo account that mimics conditions on a live trading account. Clients can explore trading tools and test trading strategies risk-free. Markets.com offers a demo account with no trial period equipped with $10,000 in virtual money, while eToro offers a demo account that comes with $100,000 in virtual funds.
Our review has found that both eToro and Markets.com will charge an inactivity fee. eToro will begin charging an inactivity fee of $10 per month if clients do not log in to their live account for a period of 12 months. Markets.com will start charging such a fee of $10 per month, in case a client’s trading account has remained inactive for 3 months.
Though eToro and Markets.com both provide the same account types, Markets.com tops eToro due to the fact that it offers more features. Markets.com has lower spreads, more trading platforms, more trading instruments and tools. Click the button below to claim your free demo account.
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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 purpose of 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.
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:
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.
Spreads on Spot Metals start from:
Spreads on Stock Indices start from:
Our Markets.com vs. eToro review clearly outlines that Markets.com remains much more competitive in terms of spreads offered on major, minor Forex pairs, Spot Metals and Stock Index CFDs, while eToro offers tighter spreads on exotic Forex pairs.
If we consider the maximum leverage available for trading CFDs, professional traders will be able to access leverage ratios of up to 1:300 at Markets.com and ratios of up to 1:400 at eToro.
On the other hand, retail clients will have access to considerably lower leverage ratios in all of 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:
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 are able to 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.
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.
Markets.com and eToro have specialized 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:
The broker’s MetaTrader 4 trading platform offers a plain and intuitive interface, great expert advisor compatibility, fully customizable charting options, instant trade execution and reasonable Forex spreads.
MetaTrader 5 is a multi-asset derivatives platform that allows for position hedging, greater speeds, more comprehensive technical analysis, access to market depth as well as faster algorithmic trading, including in Stocks and Futures CFDs. The main benefits of Markets.com’s MT5 platform include:
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 are able to 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:
In addition, clients will be charged:
eToro’s Web Trader is a user-friendly platform, which grants access to valuable trading features such as:
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 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 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.
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:
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 and Android 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 is 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.
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 offer the popular trading platform MT4 and MT5. The only drawback right now is that neither of the two brokerage trading firms offers cTrader.
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 tends to be 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 start trading on a live account.
Now, let us take a closer look at both brokers’ CFD product lists:
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.
Professional customer support service is another important brokerage aspect we pay attention to. In the case of eToro and Markets.com, both online brokers offer customer support via several channels 24 hours a day, 5 days a week.
Markets.com’s live chat option left us with some good impressions. We were able to reach a representative from the broker’s support team in about 30 seconds and we were able to obtain the information we required.
On the other hand, eToro’s live chat link is not immediately found on its website’s home page. The link is actually located below the FAQ in the “Help Center” section. What we observed was that the chat option appeared offline way too frequently. We were able to get in contact with a support representative on our third try, but still, we got relevant answers to our inquiries.
Another way to contact Markets.com’s support team is via email to email@example.com. 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, on the other hand, was that eToro has no customer support over the phone, which is quite a drawback nowadays.
Markets.com’s educational content is located in the so-called “Knowledge Center” section of the company’s website. There, clients will find:
Meanwhile, eToro’s client education content includes:
We should also note that eToro maintains an extensive live market news and analysis section.
Objectively, both brokers can be contacted via multiple communication channels. Additionally, they are suited for beginners as eToro and Markets.com have built-in learning centre that educates beginners on key topics.
View eToro Review >>Visit eToro >>
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.
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!
Both brokers will not charge a deposit fee with any of the payment methods used. On the other hand, 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:
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:
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:
Usually, the timeframe of withdrawals depends on the payment method selected:
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 due to their lower minimum deposit and the option to fund your account in 9 different currencies without any conversion fees.
Since both brokerages are fully compliant with the regulatory standards of some of the most reputable industry regulators globally, they can be considered trustworthy and safe. eToro holds 4 global tier-1 licenses and by comparison, Markets.com holds 3 Tier-1 licenses. Additionally, 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 authorized and regulated as follows:
Meanwhile, Markets.com is authorized and regulated as follows:
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 what is more, 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 fail to meet their financial obligations.
Additionally, 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.
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 as a result of abrupt market movement coupled with high leverage ratios. Or, retail CFD accounts cannot lose more than the initial deposit.
The side by side comparison shows both brokerages are in good standings 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.
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.