We compared the FP Markets who is more of a traditional forex broker to eToro which positions itself as a social or copy trading CFD broker to see how they stack up to each other. View our comparison table and writeup below.
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FP Markets and eToro are two of the best forex brokers in the industry, each with unique offerings. FP Markets, an Australian broker, is known for its raw spreads and advanced trading platforms, while eToro, based in Cyprus, is globally recognised for its social trading platform. The main differences lie in their trading costs, platforms, and account types, which we will delve into in the following sections.
When it comes to trading costs, both FP Markets and eToro have their strengths.
When it comes to the average standard account spread for each forex pair, FP Markets and eToro show some interesting differences. For the major pairs like EUR/USD and USD/JPY, FP Markets tends to have slightly tighter spreads, which can make a significant difference for active traders. However, eToro shines in pairs like GBP/USD, where their spread is notably lower.
Comparing these brokers to the industry average, both FP Markets and eToro perform quite well. FP Markets consistently comes in under the average, while eToro tends to hover around the average mark. This suggests that both brokers offer competitive pricing, but FP Markets may have the edge for traders who focus on the major pairs.
| Forex Pair | FP Markets | eToro | Industry Average |
|---|---|---|---|
| EUR/USD | 1.1 | 1 | 1.35 |
| USD/JPY | 1.3 | 1 | 1.54 |
| GBP/USD | 1.3 | 2 | 1.68 |
| AUD/USD | 1.3 | 1 | 1.63 |
| USD/CAD | 1.5 | 1.5 | 1.93 |
| EUR/GBP | 1.3 | 1.5 | 1.69 |
| EUR/JPY | 1.5 | 2 | 2.04 |
| AUD/JPY | 1.6 | 2 | 2.31 |
Standard Account Analysis Updated September 2023[1]September 2023 Published And Tested Data
In my opinion, if cost is a significant factor in your decision, FP Markets may be the more economical choice due to their consistently lower spreads on major pairs. However, it’s important to consider other factors such as platform usability, customer service, and regulatory oversight when choosing a broker. After all, a slightly lower spread won’t make up for a platform that doesn’t meet your trading needs or a broker that doesn’t have your best interests at heart.
FP Markets charges a commission of $3 per lot per side on its Raw account, while eToro operates on a commission-free model, making money through spreads instead. Depending on your trading strategy, one might be more beneficial than the other.
FP Markets does not charge any fees for deposits and withdrawals, which is a significant advantage for traders. eToro, however, charges a $5 withdrawal fee and conversion fees for deposits in currencies other than USD.
eToro charges an inactivity fee of $10 per month after 12 months of inactivity, while FP Markets does not charge any inactivity fees.
Verdict: When it comes to trading costs, FP Markets comes out on top due to its lower spreads and lack of deposit and withdrawal fees.
| Criteria | FP Markets | eToro |
|---|---|---|
| Spreads | 0.0 pips | 3 pips |
| Commissions | $3 per lot per side | None |
| Deposit & Withdrawal Fees | None | $5 withdrawal fee |
| Inactivity Fees | None | $10 per month |
The trading environment is crucial for traders, and both FP Markets and eToro excel in this area. FP Markets offers fast execution speeds, which is vital for avoiding slippage. Our 2023 testing found that FP Markets ranked 10th in terms of execution speed, which is quite impressive. On the other hand, eToro offers a unique social trading environment where traders can copy the trades of successful investors, making it an excellent platform for beginners.
Verdict: If speed is your priority, FP Markets is the clear winner. However, if you’re a beginner or interested in social trading, eToro’s environment might be more suitable.
| Criteria | FP Markets | eToro |
|---|---|---|
| Execution Speed | Fast | Standard |
| Social Trading | No | Yes |
Both FP Markets and eToro offer a range of trading platforms to suit different trading styles and preferences.
FP Markets offers both MetaTrader 4 and MetaTrader 5, the world’s most popular trading platforms known for their advanced charting features and automated trading capabilities. eToro, on the other hand, does not offer MetaTrader platforms.
FP Markets also offers cTrader, a platform known for its intuitive interface and advanced order capabilities. eToro does not offer cTrader but has a partnership with TradingView, allowing traders to utiliseadvanced charting tools.
eToro shines in this category with its proprietary platform focused on social and copy trading. This platform allows traders to interact, share strategies, and copy the trades of successful investors. FP Markets does not offer a social trading platform.
FP Markets offers VPS services for better execution speeds, while eToro does not. Both brokers provide a range of trading tools for analysis and risk management.
Verdict: FP Markets wins in terms of platform diversity, offering MetaTrader 4, MetaTrader 5, and cTrader. However, eToro’s unique social trading platform is unmatched in the industry.
| Criteria | FP Markets | eToro |
|---|---|---|
| MetaTrader 4 and 5 | Yes | No |
| cTrader and TradingView | Yes | TradingView |
| Social and Copy Trading | No | Yes |
| VPS Services | Yes | No |
FP Markets offers two main account types: the Standard account with no commission but higher spreads, and the Raw account with lower spreads but a commission per trade. They also offer a demo account for practice and testing strategies.
eToro offers one main account type with no commission but higher spreads. They also have a demo account and a unique CopyTrading account where traders can copy the trades of successful investors.
Verdict: FP Markets offers more flexibility with its two main account types, catering to different trading styles.
| Criteria | FP Markets | eToro |
|---|---|---|
| Standard Account | Yes | Yes |
| Raw/Commission Account | Yes | No |
| Demo Account | Yes | Yes |
| CopyTrading Account | No | Yes |
FP Markets is regulated by the Australian Securities and Investments Commission (ASIC) and the Cyprus Securities and Exchange Commission (CySEC), two of the most reputable regulators in the industry. They also hold client funds in segregated accounts for added security.
eToro is regulated by the Financial Conduct Authority (FCA) in the UK, the CySEC in Cyprus, and the Australian Securities and Investments Commission (ASIC). They also use top-tier banks and offer a high level of security.
Verdict: Both brokers are highly regulated and trustworthy, but eToro has a slight edge with its FCA regulation.
| Criteria | FP Markets | eToro |
|---|---|---|
| ASIC Regulation | Yes | Yes |
| CySEC Regulation | Yes | Yes |
| FCA Regulation | No | Yes |
| Segregated Client Funds | Yes | Yes |
FP Markets offers 24/5 customer service via live chat, email, and phone. They are known for their responsive and helpful support team.
eToro also offers 24/5 customer service, but it’s primarily through a ticket system and live chat. Phone support is not readily available, which can be a drawback for some traders.
Verdict: FP Markets wins this category with its more accessible customer service.
| Criteria | FP Markets | eToro |
|---|---|---|
| 24/5 Support | Yes | Yes |
| Live Chat | Yes | Yes |
| Phone Support | Yes | No |
| Email Support | Yes | Yes |
FP Markets has a minimum deposit requirement of $100 for both of its account types. eToro, on the other hand, requires a minimum deposit of $200.
Both brokers offer a variety of payment methods, including credit/debit cards, bank transfer, and e-wallets like PayPal and Skrill. FP Markets also accepts broker-to-broker transfers.
FP Markets offers over 10,000 trading instruments, including forex, indices, commodities, stocks, and cryptocurrencies. eToro offers a smaller range but includes unique markets like ETFs and CopyPortfolios.
Verdict: FP Markets wins this category with its lower minimum deposit requirement and wider range of trading instruments.
| Criteria | FP Markets | eToro |
|---|---|---|
| Minimum Deposit | $100 | $200 |
| Payment Methods | More Variety | Standard |
| Trading Instruments | More Variety | Unique Markets |
Best For Beginner Traders: eToro, with its user-friendly platform and social trading capabilities, is an excellent choice for beginners. The ability to copy trades of successful investors can be a great learning tool.
Best For Experienced Traders: FP Markets, with its raw spreads, advanced platforms, and diverse trading instruments, is more suited for experienced traders. The fast execution speeds and VPS services are also beneficial for high-frequency traders.
In conclusion, both FP Markets and eToro are excellent brokers, each with their unique strengths. Your choice depends on your trading style, experience level, and specific needs.
It depends on your trading needs. FP Markets offers lower spreads and more platforms, making it suitable for experienced traders. eToro, with its social trading platform, is excellent for beginners.
FP Markets offers over 10,000 trading instruments, including forex, indices, commodities, stocks, and cryptocurrencies. eToro offers a smaller range but includes unique markets like ETFs and CopyPortfolios.
No commission account spread propiety testing data and published wesbite spread information, centralised on our standard account spread page..
