AvaTrade vs eToro Comparison – 2024

Top Reasons to Choose AvaTrade or eToro

Our evaluation shows that AvaTrade is ideal for long-term position traders due to its low overnight swap fees, as well as intermediate traders looking for a variety of trading platforms and tools. eToro is well-suited for beginners who want access to a popular copy trading platform with over 20 million members, and experienced traders interested in generating additional revenue from copy subscribers.

AvaTrade: Snapshot

Established in 2006 and based in Ireland, AvaTrade operates across seven global entities, three of which are licensed by Tier-1 regulators. Traders can access over 840 commission-free markets through a variety of platforms, including MT4, MT5, AvaWebTrader, AvaTradeGO, AvaSocial, and AvaOptions. The broker also offers a comprehensive range of educational resources, including courses, videos, and e-books.

AvaTrade: Who is it For?

AvaTrade is well-suited for beginners, offering extensive educational materials, commission-free accounts, and copy trading tools. Advanced traders will appreciate its low overnight swap fees and diverse trading platforms, including those supporting forex options trading.

What Makes AvaTrade Stand Out?

AvaTrade stands out by offering a broad range of trading platforms tailored to both beginner and advanced traders, including those focused on copy trading and forex options.

eToro: Snapshot

Founded in 2007 and headquartered in Israel, eToro is regulated by four Tier-1 financial authorities. The broker has revolutionized the social and copy trading landscape with its innovative proprietary platform, offering one-click copy trading, pre-made investment portfolios, and zero-commission trading on over 3,500 instruments.

eToro: Who is it For?

eToro is ideal for novice traders who want to benefit from copying successful traders and for experienced traders looking to earn additional income from copy subscribers. The platform also caters to stock investors of all levels with commission-free investing and pre-built investment portfolios.

What Makes Trading eToro Stand Out?

eToro stands out as a leader in the copy trading industry, enabling users to easily view and replicate the trades of other investors with a single click. Additionally, eToro offers Smart Portfolios, pre-built stock investment portfolios focused on global themes.

Trust

AvaTrade vs eToro Trust and Regulation Comparison

Established in 2006, AvaTrade operates through seven global entities, with three licensed by Tier-1 regulators, including the CBI (Ireland), ASIC (Australia), and JFSA (Japan). Three others are regulated by Tier-2 authorities, while the remaining entity is overseen by a Tier-3 regulator. The broker provides strong safety features like AvaProtect and a client categorization system to help traders manage risk. Based on our research, including the presence of a ‘best execution policy,’ we consider AvaTrade a reliable and secure broker for trading.

Established in 2007, eToro is regulated by four Tier-1 authorities, including the FCA (UK), CySEC (Cyprus), ASIC (Australia), and FINRA (USA), providing a high level of safety and security. Additionally, one entity is regulated by a Tier-3 authority. The FCA-regulated UK entity complies with strict regulations and operates under a ‘best execution’ policy, guaranteeing optimal price quotes. Based on these factors, we assess eToro as a safe and trusted broker.

If you want to learn more about brokers’ regulations, be sure to check out our article on the top regulated forex brokers.

Fees

AvaTrade vs eToro Spreads, Fees and Commissions Comparison

We assessed that AvaTrade offers competitive spreads and commissions. Using AvaTrade’s commission-free Standard CFD Account, we observed that the spread for EUR/USD averaged 0.9 pips during both the London and New York sessions, beating the industry average of 1.08 pips. The broker also has very low swap fees. However, there is also a monthly inactivity fee of $50 after three months of no trading activity. The fee structure is suitable for strategies with medium to long-term holding times, such as swing and position trading.

Our analysis of eToro’s commission-free CFD account revealed that the EUR/USD spread averaged 1.0 pips at the London open and 0.9 pips at the US open, both below the industry average of 1.08 pips. Generally, the spreads for most of the instruments meet the industry average, though some are quite elevated. Swap fees ranged from average to high in our tests. There is also a $10 monthly inactivity fee, after 12 months of no trading activity. eToro’s fees are highly competitive for copy and social trading, as the broker does not charge a service commission for following other traders’ strategies.

For more options, you can also check out our list of the best forex brokers with the lowest spreads.

Platforms and Tools

AvaTrade vs eToro Trading Platforms Comparison

AvaTrade offers a broad selection of platforms suitable for both novice and experienced traders. Advanced traders can take advantage of MT4 and MT5, known for their algorithmic trading capabilities. For beginners, AvaWebTrader provides a user-friendly interface with popular charting tools and indicators. AvaTradeGO, the mobile app, offers easy access to trading for those on the go. Social and copy trading is available through AvaSocial and DupliTrade, both of which feature advanced filters to help users find top traders to follow. Additionally, the AvaOptions app caters to forex options traders.

eToro’s proprietary web platform and mobile app are designed for beginner and intermediate traders. The web platform features an intuitive interface with charts powered by TradingView, including 105 technical indicators, over 55 drawing tools, 9 timeframes, and 9 chart types. Although customization options are somewhat limited, the platform is ideal for beginners due to its simple one-click copy trading feature. The mobile app mirrors the web platform’s functionality, including the popular copy trading option.

Tradable Instruments

AvaTrade vs eToro Instruments Selection Comparison

AvaTrade offers access to over 840 tradable instruments, including 53 forex pairs, 19 commodities, 34 indices, 59 ETFs, 2 bonds, 19 cryptocurrencies, and 603 share CFDs. Additionally, the broker features a dedicated app for trading 64 vanilla forex options contracts, a unique offering in the industry. This extensive selection of instruments suits a wide variety of trading preferences and strategies.

eToro offers more than 5,800 tradable instruments across various asset classes, including forex pairs, commodities, indices, share CFDs, ETFs, and cryptocurrencies. These can be traded exclusively as CFDs. This broad range of instruments caters to traders at all levels, from beginners to advanced. Additionally, longer-term investors have the option to purchase real shares and ETFs.

Customer Support

AvaTrade vs eToro Customer Support Comparison

AvaTrade provides 24/5 customer support via live chat, with additional support through phone and email during office hours. In our tests, live chat provided the fastest response time. While the agents struggled with more complex questions, they were informative and helpful with simpler inquiries.

eToro offers support through a ticketing system, with responses typically within two business days. Active traders with account balances of $5,000 or more gain access to live chat and phone support. In our live test, we received a comprehensive and detailed response within the two-day timeframe after submitting a ticket.

Research

AvaTrade vs eToro Research Tools Comparison

AvaTrade offers a variety of market research tools for both beginner and advanced traders. Through the AvaWebTrader platform, users can access a news screener to stay updated on the latest market developments. AvaTrade’s in-house analysts contribute weekly market reports, available in both article and video formats. Additionally, trading signals from Trading Central, with clear entry, stop-loss, and take-profit levels, are directly accessible from the web platform.

eToro provides a broad range of in-house and third-party research resources, including a news and analysis section, an earnings calendar, a news screener, and video market updates on its YouTube channel. This content primarily caters to beginner traders. Additionally, each stock on the eToro platform features analysis, news, and stats tabs with research from TipRanks, offering analyst price forecasts and targets suitable for traders of all experience levels.

Deposits & Withdrawals

AvaTrade vs eToro Deposit and Withdrawal Methods Comparison

AvaTrade offers fee-free deposits and withdrawals in four currencies: USD, EUR, GBP, and AUD. Supported methods include bank transfers, credit/debit cards, Skrill, Neteller, and WebMoney. Deposits are processed within 24 hours, although bank transfers may take up to seven business days. Withdrawals are typically handled within 48 hours, with bank transfers potentially taking up to 10 business days.

eToro provides a wide range of deposit and withdrawal options, including bank transfers, credit/debit cards, PayPal, Neteller, Skrill, Rapid Transfer, iDeal, Klarna, Trustly, Przelewy24, and the eToro Money Wallet. Most transactions are processed instantly, except for bank transfers, which can take 4 to 7 business days. Deposits are free of charge, but withdrawals incur a $5 fee.

Account Types and Terms

AvaTrade vs eToro Account Types Comparison

AvaTrade provides both standard retail and professional trading accounts. The retail account features commission-free trading, a $100 minimum deposit, and a quick account opening process. The professional account provides higher leverage but requires traders to meet strict regulatory criteria based on trading experience and portfolio size.

eToro offers a variety of account options for retail traders, including a CFD trading account with a $50 minimum deposit for personal and copy trading. It also offers an investing account for real shares and Smart Portfolios. The CFD trading account includes multiple membership tiers, with larger account sizes unlocking additional products, services, and discounts, making it suitable for a diverse range of traders and investors.

Education

AvaTrade vs eToro Educational Content Comparison

AvaTrade provides an extensive selection of educational resources, including over 150 lessons covering topics like Advanced Trading Techniques and an Introduction to Technical Analysis. Their YouTube channel also offers a dozen platform tutorials and webinars. These materials are tailored for both beginner and intermediate traders.

eToro focuses on educating novice traders through the eToro Academy, which includes 21 trading courses with articles and videos on a variety of general investing topics. The Digital & Invest podcast dives into various trading and investing subjects in detail. Additionally, eToro offers numerous step-by-step tutorials and guides on how to navigate its platform and utilize its services effectively.

Our Methodology

Since 2011, FX Empire has developed a detailed methodology for evaluating CFD brokers, involving over 250 variables across nine crucial categories. Our team of experts, with deep industry knowledge, conducts live testing and research by interacting with the brokers directly. We check regulations, open accounts, test spreads, account costs, platform functionality, instrument variety, customer support reliability, and the quality of research and educational content. This granular analysis helps us identify each broker’s strengths and weaknesses, keeping our comparisons current with market trends and ensuring our guides meet traders’ needs.

We strive to evaluate each broker objectively, considering how their offerings align with the diverse trading goals and preferences of our readers. Our focus is on providing a balanced overview of each broker’s strengths and weaknesses. This method ensures that our readers receive clear, insightful comparisons to aid in making well-informed trading decisions.

We employ a comprehensive rating system across nine key categories:

• Trust
• Fees
• Platforms and Tools
• Tradable Instruments
• Customer Support
• Research
• Deposits and Withdrawals
• Account Types and Terms
• Education

In each category, we conduct an in-depth analysis for both brokers, outlining features, advantages, and disadvantages and determining their suitability for different trader profiles. By blending insights from our extensive reviews with first-hand experiences and observations, we ensure each comparison is balanced, informative, and tailored to the trader’s unique needs. You can read more about our review process here.

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