Pepperstone has 61 currency pairs vs eToro with 47. eToro offers 16 vs 5 cryptocurrencies. Pepperstone gives you ECN priced trading through 3 trading platforms and 4 social trading tools. eToro is a social trading platform with 6 types of CFDs.
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How Do eToro Vs Pepperstone Compare?
Our full comparison covers the 10 most important trading factors, but here are five key differences to get you started:
Spreads are one of the most important factors to consider when deciding on a broker. ECN trading with low spreads (plus low commissions) means greater potential savings. This is especially important if you are a high-volume trader as these costs apply for each lot you trade.
The two brokers offer two very different pricing models. eToro offers only variable spreads while Pepperstone offers two pricing models for Forex and trading CFDs:
The advantage that Pepperstone has over eToro comes from overall lower spreads and a flexible pricing structure. At Pepperstone, traders can enjoy low spreads starting from 0.0 pips, while at eToro spreads start from 1.0 pips.
Variable Spreads Comparison
Standard Accounts – No Commissions
For a fair comparison, our team of experts took into consideration the Pepperstone spread-only model compared to eToro’s variable spreads. This comparison is fair as both these models are spread only, without the need to consider other factors such as commissions.
The average EUR/USD spread found on the Pepperstone Standard account is 1.13 pips compared to eToro’s average spread of 3.0 pips. That’s equivalent to 165.48% in trading cost savings.
The table below highlights the side-by-side spread comparison across the full spectrum of CFDs offered by the two brokers.
| Average Spreads (13/08/2020) |
Forex currencies (EUR/USD) | Index CFDs (SPX500) | Commodities CFDs (Cocoa) | Metals CFDs (Gold) | Energies CFDs (Oil) | Cryptocurrencies CFDs (Bitcoin) |
|---|---|---|---|---|---|---|
| Pepperstone | 1.13* | 0.40* | 5.0* | 0.50* | 0.50* | $10 |
| eToro | 3.0* | 0.75* | 6.5* | 0.45* | 0.50* | 0.75% |
ECN Accounts – Pepperstone Only
If we compare Pepperstone’s ECN pricing model (raw spreads) the trade cost savings go even lower with the Australian-based broker. The spread savings on forex trading with Pepperstone is 2200% lower compared to eToro’s spread cost.
Note* The spreads on eToro’s account are higher because variable spreads are subject to mark-up pricing.
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Pepperstone Spread Comparison
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|---|---|---|---|---|---|
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0.20 | 1.00 | 0.40 | 0.60 | 0.10 |
|
0.17 | 0.30 | 0.14 | 0.25 | 0.02 |
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0.20 | 0.50 | 0.20 | 0.30 | 0.10 |
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0.20 | N/A | 0.20 | 0.30 | 0.20 |
|
0.42 | 0.30 | 0.20 | 0.83 | 0.44 |
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0.30 | 0.68 | 0.24 | N/A | 0.17 |
|
0.40 | 0.70 | 0.30 | 0.70 | 0.20 |
|
0.50 | 0.80 | 0.30 | 1.10 | 0.10 |
|
0.50 | 0.40 | n/a | 0.30 | n/a |
|
1.23 | 1.23 | 0.77 | 1.41 | 0.44 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 10/01/2024
Commission Comparison
The head-to-head comparison revealed that eToro offers commission-free trading across all CFD instruments including stock trading. Traders can only incur a fee for short selling stocks or for holding overnight CFD positions. The fee is charged to cover the costs associated with using leverage.
On the other hand, Pepperstone Razor account charges a small commission to cover the costs of using the ECN pricing technology. Pepperstone allows traders of all styles to save money on trading commissions due to their low charges. Traders can expect a commission rate of USD 3.5 per side (USD 7.0 round-turn) for 1 standard lot traded.
| MT4 Razor Account | MT5 Razor Account | cTrader | |
|---|---|---|---|
| Commission USD | $3.76 ($5.53) | $3.5 ($7 round-turn) | 7 units charged of the base currency |
Verdict: Overall, Pepperstone offers the cheapest bid and ask spreads on Forex and CFDs compared to eToro. With eToro traders can only benefit from lower trading costs on Gold CFDs where the spreads are slightly lower (0.45 basis points compared to 0.50 BP on Pepperstone). The low spreads allow scalping and day trading strategies to maximise their profit potential. To learn more about Pepperstone spreads and fees view our Pepperstone Fees page.
Pepperstone ReviewVisit Pepperstone
*Your capital is at risk ‘75.3% of retail CFD accounts lose money’
Pepperstone and eToro are brokerages with a different focus. While Pepperstone aims to ensure optimal trading conditions and the most comprehensive trading tools for its clients on a range of CFD trading platforms, eToro focuses on the social side of trading and its benefits for retail clients.
eToro’s main strength is its own proprietary social trading platform. The platform is built to enable make the most of copy trading capability and a place to share and follow different trading strategies and trading signals.
Specialised Trading Platforms
In terms of specialised forex and CFD trading platforms, Pepperstone offers a suite of 3 powerful trading platforms. On the other hand, eToro’s software solution only includes its proprietary social trading platform.
Pepperstone’s MetaTrader 4 and MetaTrader 5 platforms offer some of the best conditions for CFD and Forex trading. At the same time, Pepperstone’s cTrader trading platform offers advanced order capabilities and customisation options.
Each trading platform has its own advantages, including:
MetaTrader 4 – an easily customisable trading platform that features live quotes, real-time charts, in-depth news and analytics, a variety of technical indicators and order management tools. The software also provides a good environment for automated trading (Expert Advisors)Social Trading With Pepperstone
Pepperstone, unlike eToro, only offers copy trading solution through 4 different third-party platforms:
Myfxbook – an automatic copy trading feature integrated with MetaTrader 4 and MetaTrader 5. This copy trading platform allows its users to access profile statistics and advanced analytical toolseToro Proprietary Social Trading Platform
eToro is known for offering the best social trading platforms worldwide. The software empowers retail traders to:
Additionally, the CopyPortfolios feature allows traders to allocate their funds to Top Trader Portfolios which spreads the funds across an array of professional traders. More, eToro offers CryptoPortfolios for a diversified and balanced allocation in the cryptocurrency market.
eToro Clients are able to copy up to 100 traders simultaneously. They can also discontinue the copy, pause it, add or remove funds at any time. All in all, copy trading is a way for inexperienced traders to earn a passive income with a minimum deposit of USD 200.
Verdict: Overall, Pepperstone clients can enjoy more flexibility by being offered to choose between 4 different third-parties services. At the same time, eToro’s disruptive copy trading platform remains one of the most popular social trading networks among retail traders. If you’re looking for the best Forex trading signals, Pepperstone is a better option while for social trading in general, eToro is a better fit.
Pepperstone ReviewVisit Pepperstone
*Your capital is at risk ‘75.3% of retail CFD accounts lose money’
When it comes to account types and features, Pepperstone clearly has the edge. They offer both Standard and Razor accounts, catering to different trading styles. The Razor account is particularly appealing for its lower spreads and commission-based structure, ideal for traders like us who are looking for cost-efficiency.
eToro, on the other hand, offers a one-size-fits-all account with a strong focus on social trading features like CopyTrader. While this is great for beginners or those interested in social trading, it lacks the customisability that seasoned traders often seek.
Verdict: Pepperstone offers superior accounts and features, providing more options and flexibility for different types of traders.
Pepperstone ReviewVisit Pepperstone
*Your capital is at risk ‘75.3% of retail CFD accounts lose money’
Pepperstone is a powerhouse when it comes to trading platforms. With options like MT4, MT5, and cTrader, you’re spoilt for choice. These platforms come with advanced charting tools and lightning-fast execution speeds, which are crucial for traders like us.
eToro, on the other hand, offers a unique, user-friendly platform that’s perfect for beginners. It’s web-based, so no downloads are needed, and it’s designed with social trading in mind. It’s all about what fits your trading style.
Verdict: When it comes to the best trading experience and ease, Pepperstone is the undisputed winner. With its diverse range of platforms like MT4, MT5, and cTrader, along with top-notch execution speeds, it’s tailored for traders who seek both performance and ease of use.
Pepperstone ReviewVisit Pepperstone
*Your capital is at risk ‘75.3% of retail CFD accounts lose money’
Pepperstone Trust Score
eToro Trust Score
Both brokers have the same Trust Score.
| Pepperstone | eToro | |
|---|---|---|
| Tier 1 Regulation | ASIC (Australia) FCA (UK) BaFin (Germany) CYSEC (Cyprus) |
ASIC (Australia) CYSEC (Cyprus) FCA (UK) |
| Tier 2 Regulation | DFSA (Dubai) | MFSA (Europe) ADGM (UAE) GFSC (Gilbraltar) |
| Tier 3 Regulation | SCB (Bahamas) CMA (Kenya) |
FSA-S (Seychelles) |
Verdict: Overall, it’s safe to trade with Pepperstone and eToro. Both brokers are in good standings and licensed by the world’s top regulatory agencies. At Pepperstone, client funds are held in segregated accounts with tier-1 banks National Australia Bank (NAB) and Barclays UK. eToro also uses dedicated segregated accounts with tier-1 banks to keep clients’ funds safe.
*Your capital is at risk ‘74% of retail CFD accounts lose money’
Pepperstone offers over 60 forex pairs and a wide range of CFDs including indices, commodities, and cryptocurrencies. eToro isn’t far behind, offering over 50 forex pairs and a staggering range of over 2,000 stock CFDs.
| Feature | Pepperstone | eToro |
|---|---|---|
| Forex Pairs | 60+ | 50+ |
| Stock CFDs | 60+ | 2,000+ |
| Commodity CFDs | 15+ | 10+ |
| Index CFDs | 20+ | 15+ |
| Cryptocurrency | 5+ | 15+ |
Verdict: eToro offers a broader range of stock CFDs, making it the go-to for traders looking to diversify their portfolios.
*Your capital is at risk ‘74% of retail CFD accounts lose money’
Pepperstone offers a robust educational platform with free webinars, tutorials, and a well-structured FAQ section. eToro takes it up a notch with an education centre that offers interactive courses and webinars.
Verdict: Based on our scores, eToro takes the cake for educational resources.
*Your capital is at risk ‘74% of retail CFD accounts lose money’
Pepperstone offers 24/5 customer support through live chat, phone, and email. eToro extends its customer service to the weekends but lacks phone support.
| Feature | Pepperstone | eToro |
|---|---|---|
| Live Chat | Yes | Yes |
| Phone Support | Yes | No |
| Email Support | Yes | Yes |
| FAQ Section | Yes | Yes |
| Social Media | Yes | Yes |
| Weekend Support | No | Yes |
Pepperstone offers professional 24/5 customer support service via live chat, email as well as over the phone. The live chat option is highly recommended as we managed to contact a representative from the brokerage within a minute and received adequate answers to our queries. Additionally, Pepperstone clients can also send a message to support by using the online form located in the “Contact Us” section on Pepperstone’s website.
In comparison, eToro offers 24/5 customer support service via live chat or a web-based ticketing system. By using that system, clients will get a response to their inquiries via email.
On the downside, eToro’s live chat link cannot be found immediately on its website. We discovered that the link was actually located below the FAQ in the “Help Center” section. But what we found really inconvenient was that the broker’s chat option appeared offline too frequently.
Finally, eToro does not offer client support over the phone, which we consider as another drawback.
Verdict: In today’s competitive markets we found Pepperstone’s customer support team maintains a professional reputation. The live chat connects you directly to real FX experts bypassing the hassle of dealing with a bot. Overall, it’s much easier and more accessible to get in touch with the support team at Pepperstone.
Pepperstone ReviewVisit Pepperstone
*Your capital is at risk ‘75.3% of retail CFD accounts lose money’
Pepperstone offers a variety of funding options including credit card, PayPal, bank transfer, Skrill, and Neteller. eToro also offers multiple options but lacks Skrill and Neteller.
| Funding Option | Pepperstone | eToro |
|---|---|---|
| Credit Card | ✓ | ✓ |
| PayPal | ✓ | ✓ |
| Bank Transfer | ✓ | ✓ |
| Skrill | ✓ | ✗ |
| Neteller | ✓ | ✗ |
| Crypto | ✗ | ✓ |
Verdict: Pepperstone offers a wider range of funding options, giving you more flexibility.
Pepperstone ReviewVisit Pepperstone
*Your capital is at risk ‘75.3% of retail CFD accounts lose money’
Pepperstone requires a minimum deposit of $200, which might be a bit steep for some. eToro, on the other hand, only requires a $50 minimum deposit, making it more accessible for those just starting out.
| Broker | Minimum Deposit |
|---|---|
| Pepperstone | $200 |
| eToro | $50 |
eToro actually has higher and lower minimum deposit requirements depending on the country the trader resides in as shown on the following table.
| 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: eToro is the better choice for traders looking for a lower entry point.
*Your capital is at risk ‘74% of retail CFD accounts lose money’
Pepperstone is the winner because it offers a more comprehensive trading experience, from lower spreads to superior customer service. The table below summarises the key information leading to this verdict.
| Criteria | Pepperstone | eToro |
|---|---|---|
| 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 | ✗ | ✓ |
For beginner traders, eToro is the better choice due to its user-friendly platform and educational resources.
For experienced traders, Pepperstone is the go-to for its advanced trading platforms and lower spreads.
Pepperstone has lower costs. They offer some of the lowest spreads in the industry. For more details, you can check out our Lowest Commission Brokers.
Pepperstone is the better choice for MetaTrader 4 users. They offer advanced features and tools on this platform. For more information, visit our best MT4 brokers page.
eToro is the standout for social or copy trading. They offer a feature-rich platform for this trading style. For those interested in exploring more about social trading platforms, here’s a comprehensive review of the best social trading platforms.
Neither Pepperstone nor eToro offer spread betting. For those in the UK interested in exploring spread betting further, here’s a comprehensive guide to the best spread betting brokers.
In my opinion, Pepperstone is superior for Australian forex traders. They are ASIC regulated and were founded in Australia. For more details, visit our Best Forex Brokers In Australia page.
For UK traders, Pepperstone is the better choice. They are FCA regulated and offer a robust trading environment. If you’re a UK trader looking for more insights, this list of Best Forex Brokers In UK offers a detailed breakdown.
Ask an Expert
How risky is eToro?
CFD trading is inherently risky since you can’t predict which was your trade will go and you are using leverage. eToro arguable carries an extra level of risk should you copy trade signal providers since you just do not know how they will trade. While eToro provides filters to help you find signal providers with a good track record for reliability, the past should not be used as a pointer for the future.