We compared social trading specialist eToro with market maker XM. The eToro trading platform allows you to trade Forex and CFDs using the wisdom of the crowd, while the XM has MT4 and MT5. Find out the winner in our eToro vs XM review.
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Our comprehensive comparison covers the 10 most crucial trading factors to help you make an informed decision.
Regarding trading costs and fees, Our Methodology largely focuses on spreads, those that the broker advertises and those we’ve tested. All up, this encompasses 60% of our overall trading costs score.
| Standard Account | eToro Spreads | XM Spreads | Industry Spreads |
|---|---|---|---|
| Overall Average | 1.5 | 2.11 | 1.6 |
| EUR/USD | 1 | 1.6 | 1.2 |
| USD/JPY | 1 | 2 | 1.4 |
| GBP/USD | 2 | 1.8 | 1.6 |
| AUD/USD | 1 | 2.3 | 1.5 |
| USD/CAD | 1.5 | 2.3 | 1.8 |
| EUR/GBP | 1.5 | 1.8 | 1.5 |
| EUR/JPY | 2 | 2.1 | 1.9 |
| AUD/JPY | 2 | 3 | 2.1 |
Standard Account Analysis Updated January 2025[1]January 2025 Published And Tested Data
Looking at the data, it’s clear that eToro consistently offers lower spreads across all forex pairs compared to XM. For instance, the EUR/USD pair, one of the most traded forex pairs, shows a spread of 1 for eToro and 1.6 for XM. This trend continues across all pairs, making eToro the more cost-effective option in terms of spreads.
However, it’s essential to consider the industry average as well. The industry average spread for EUR/USD is 1.2, which is higher than eToro’s but lower than XM’s. This pattern is consistent across all forex pairs, placing eToro below the industry average and XM above.
In conclusion, based on the spread data, I would argue that eToro offers a more cost-effective trading environment in terms of spreads. However, it’s crucial to remember that spreads are just one aspect of trading costs. Other factors such as commission fees, withdrawal fees, and inactivity fees can also impact the overall cost of trading. Therefore, traders should consider all these aspects when choosing a forex broker.
This fee calculator explains how smaller spreads influence costs. Pick your base currency, the amount, and pair to calculate the fee.
Verdict
eToro offers lower spreads across the board, whereas XM just can’t compete and adds additional fees which doesn’t help the broker’s cause.
For some traders, your trading platform is the most important aspect a broker offers. When rating brokers based on trading platforms, we weighted more towards third-party platforms, particularly the MetaTrader platforms (30%), cTrader (10%) and TradingView (10%). The rest of our weighting is evenly distributed across proprietary platforms, demo accounts, automation, copy trading and mobile trading.
As such, XM scores big points offering both MetaTrader 4 and MetaTrader 5. eToro, by comparison, only offers proprietary platforms. While these platforms are all very solid, we only give proprietary platforms a 5% weighting in our rating.
To learn whether MT4 or MT5 is better suited for your trading style, you can read our full MetaTrader 4 vs MetaTrader 5 comparison.
XM also offers its own proprietary platform, so scores points there too. eToro offers better social and copy trading, given its specialisation in social trading, while XM wins in the automated trading department.
| Trading Platform | eToro | XM |
|---|---|---|
| MetaTrader 4 | No | Yes |
| MetaTrader 5 | No | Yes |
| cTrader | No | No |
| TradingView | No | No |
| Copy Trading | Yes | Yes |
| Proprietary Platform | Yes | Yes |
Verdict: Overall, XM is just above average in its trading platform range, but eToro is well below average. Not offering at least one of the most popular trading platforms in MT4 or MT5 hurts eToro’s cause considerably.
Both eToro and XM offer a range of account types, but they cater to different trading styles and needs. eToro is known for its social trading accounts, which allow you to copy the trades of successful traders. This is a fantastic feature for beginners or those who don’t have the time to monitor the markets constantly.
Here’s a table summarising the key features of the accounts offered by each broker:
| eToro | XM | |
|---|---|---|
| Standard Account | Yes | Yes |
| Raw Account | No | Yes |
| Swap Free Account | Yes | Yes |
| Active Traders | No | No |
| Spread Betting (UK) | No | No |
Verdict: If you’re looking for a more traditional trading experience with the option for micro accounts and lower spreads, XM is the better choice. However, if social trading or a professional account is more your style, eToro has what you’re looking for. Overall, XM offers a more versatile range of accounts and features, making it the superior choice in this category.
eToro and XM offer unique trading experiences that cater to different types of traders. eToro is particularly strong in the social trading arena. The platform allows you to follow other traders, learn from their strategies, and even copy their trades. This is a fantastic feature for beginners or those looking to diversify their trading strategies.
XM, on the other hand, offers a more traditional trading experience. The platform is robust, highly customisable, and offers excellent execution speeds. This is particularly beneficial for traders who rely on quick decision-making and execution.
Verdict: If you’re a trader who values efficiency, customisation, and quick execution, XM is the better choice for you. However, if you’re new to trading or value a community-based trading experience, eToro is the way to go.
XM Trust Score
eToro Trust Score
When it comes to trust and regulation, both eToro and XM have made significant efforts to operate under multiple regulatory bodies. This is a critical factor for traders who want to ensure that their investments are safe and that the broker operates under strict guidelines.
Here’s a table that outlines the regulatory bodies overseeing each broker:
| eToro | XM | |
|---|---|---|
| Tier 1 Regulation | ASIC (Australia) CYSEC (Cyprus) FCA (UK) | ASIC (Australia) FCA (UK) CYSEC (Cyprus) |
| Tier 2 Regulation | MFSA (Europe) ADGM (UAE) GFSC (Gilbraltar) | DFSA (Dubai) |
| Tier 3 Regulation | FSA-S (Seychelles) | FSC-BZ |
Verdict: While both brokers are highly regulated, XM has a slight edge due to its regulation by four different bodies, including the DFSA in Dubai and IFSC in Belize, which adds an extra layer of trust and security. Therefore, if you’re looking for a broker with stronger trust and more diverse regulation, XM is the superior choice.
Both brokers offer a wide range of products, but they excel in different areas. eToro is your go-to for a diversified portfolio, especially if you’re interested in cryptocurrencies and commodities. XM, however, offers a broader range of forex pairs and indices, which is excellent for traders focusing on these markets.
| Product Type | eToro | XM |
|---|---|---|
| Forex Pairs | 47 | 57 |
| Cryptos | 16 | 5 |
| Commodities | 31 | 21 |
| Indices | 13 | 18 |
| Stocks | 2000+ | 1200 |
Verdict: If you’re a trader who wants a broad spectrum of forex pairs and indices, XM is the better choice. However, if you’re looking to diversify into cryptocurrencies and commodities, eToro offers a more comprehensive range.
Both eToro and XM offer a plethora of educational resources, but they cater to different levels of traders. eToro provides a variety of webinars, articles, and quizzes that are particularly useful for beginners. XM offers a more in-depth educational suite, including video tutorials and forex seminars.
Verdict: If you’re a beginner or intermediate trader looking for a well-rounded educational experience, XM is the better choice. Their educational resources are more comprehensive and cater to a broader range of trading expertise.
Customer service is a critical aspect of trading, and here XM takes the lead. While eToro offers 24/5 customer support, XM provides 24/7 service, which can be a significant advantage for traders who operate in different time zones.
| Feature | eToro | XM |
|---|---|---|
| Live Chat | Yes | Yes |
| Phone Support | No | Yes |
| Email Support | Yes | Yes |
| FAQ | Yes | Yes |
| Response Time | 5 min | 2 min |
Verdict: If customer service is a priority for you, XM is the clear winner. Their 24/7 availability and quicker response times make them a more reliable choice for traders who need immediate assistance.
Both brokers offer a variety of funding options, but eToro has a slight edge due to its acceptance of PayPal, which adds an extra layer of convenience.
| Funding Option | eToro | XM |
|---|---|---|
| PayPal | ✓ | ✗ |
| Skrill | ✓ | ✓ |
| Neteller | ✓ | ✓ |
| Wire Transfer | ✓ | ✓ |
| Credit Card | ✓ | ✓ |
Verdict: If you value a wide range of convenient funding options, eToro is your best bet. Their acceptance of PayPal gives them a slight edge over XM in this category.
The minimum deposit can be a significant factor for new traders or those with a limited budget. eToro requires a minimum deposit of USD 50, whereas XM only asks for USD 5.
| Broker | Minimum Deposit |
|---|---|
| eToro | USD 50 |
| XM | USD 5 |
| Trader is a redident in: | Minimum First Deposit (USD) |
| Australia, United Kingdom, Germany, Malaysia, Singapore, Thailand, Ireland, Spain, Sweden | $50 |
| France, Poland, Slovakia, Belgium, Czech Republic | $100 |
| Eligible countries outside of the list | $200 |
| New Zealand | $1,000 |
| Israel | $10,000 |
| Uniited States | $10 |
Verdict: If you’re a beginner or a trader with a limited budget, XM is the clear winner. Their low minimum deposit of USD 5 makes it much easier to start trading without a significant financial commitment.
XM is the winner because it offers a more comprehensive trading experience, from lower spreads and fees to superior customer service. The table below summarises the key information leading to this verdict.
| Criteria | eToro | XM |
|---|---|---|
| Lowest Spreads And Fees | ✗ | ✓ |
| Better Trading Platform | ✗ | ✓ |
| Superior Accounts And Features | ✗ | ✓ |
| Best Trading Experience And Ease | ✗ | ✓ |
| Stronger Trust And Regulation | ✗ | ✓ |
| Top Product Range And CFD Markets | ✗ | ✓ |
| Superior Educational Resources | ✗ | ✓ |
| Superior Customer Service | ✗ | ✓ |
| Better Funding Options | ✓ | ✗ |
| Lower Minimum Deposit | ✗ | ✓ |
eToro is better suited for beginner traders due to its user-friendly interface and social trading features.
XM is the better choice for experienced traders, offering a robust trading platform and a wider range of tradable assets.
XM has lower costs. They offer spreads as low as 0 pips on their XM Zero Account. For more information on low spreads, you can visit our Lowest Commission Brokers page.
XM is the superior choice for MetaTrader 4 users. They offer a seamless integration with the platform. For more details, check out our best MT4 brokers page.
eToro is the go-to broker for social trading. They pioneered the concept of social trading and have a robust platform for it. For more, visit our best social trading platforms page.
Neither eToro nor XM offer spread betting. If you’re interested in spread betting, you might want to check other brokers on our best spread betting brokers page.
In my opinion, XM is superior for Australian Forex traders. They are ASIC regulated and offer a robust trading platform. For more details, you can visit our Best Forex Brokers In Australia page.
For UK traders, XM is the better choice. They are FCA regulated and offer a more comprehensive trading experience. For more information, you can visit our best UK forex brokers page.
No commission account spread propiety testing data and published wesbite spread information, centralised on our Standard Account Spreads page.
Ask an Expert
Is XM an offshore broker?
No exactly. While XM does have an offshore subsidiary, clients in Australia, Europe and UK will not be registered with this offshore division.
Not exactly. While XM does have an offshore subsidiary, clients in Australia, Europe and UK will not be registered with this offshore division.