Capital.com vs eToro Comparison – 2024

Top Reasons to Choose Capital.com vs eToro

After thoroughly exploring both brokers, I have concluded that Capital.com is an excellent choice for high-frequency traders, while eToro is ideal for social trading. I have outlined the key reasons for these conclusions in the table below:

Capital.com: Snapshot

Capital.com is a distinguished derivatives broker operating as a market maker. This allows it to deliver fast order execution speeds below 32 milliseconds, which is ideal for high-frequency trading. The broker was established in 2016 and is headquartered in Cyprus.

Capital.com: Who is it For?

Capital.com offers a choice of versatile trading platforms, including its highly customizable proprietary platform, perfectly suited for high-frequency trading. For those interested in automated trading, Capital.com provides FIX API. Additionally, the broker has affordable trading fees and extensive educational materials catering to the needs of beginner traders.

What Makes Capital.com Stand Out?

Capital.com stands out with its dedication to providing support. I was particularly impressed by the scope of its educational materials, which excel in both quantity and quality. Novice traders can learn about the intricacies of trading psychology, which I consider of utmost importance for achieving long-term success in the market. Additionally, its average execution speed is under 32 milliseconds, which ranks it among the fastest in the industry.

eToro: Snapshot

eToro is one of the most recognizable brands in the Over-the-Counter (OTC) derivatives industry. I determined that its offering is primarily geared toward copy trading. The broker was founded in 2007 and is headquartered in Israel. eToro has a professional-grade platform with an easy learning curve. The broker charges below-average spreads and offers many supporting tools.

eToro: Who is it For?

eToro primarily caters to traders interested in copy and social trading. It has built a comprehensive environment where strategy providers and followers can interact easily, exchange trading ideas and experiences, and generally make the most out of each other’s goals and needs.

What Makes eToro Stand Out?

Unlike most other brokers that offer copy and social trading, eToro does not charge a service (commission) fee for this particular type of trading. This makes it more cost-effective for strategy providers to market their systems and for strategy followers to capitalize on their success.

Trust

Capital.com vs eToro Trust and Regulation Comparison

Capital.com is authorized by three Tier-1 regulators, including the FCA in the UK, CySEC in Cyprus, and ASIC in Australia. The broker is also licensed offshore, in the Bahamas, by the SCB. I went through Capital.com’s legal documents, including its Client Agreement and execution statements, and determined that everything is in order. Capital.com’s transparency is further underscored by the fact that it has issued a ‘best execution policy.’

eToro holds four Tier-1 regulations (CySEC in Cyprus, FCA in the UK, ASIC in Australia, and FINRA in the US) and one offshore regulation (FSA in the Seychelles). The broker adheres to the strictest safety requirements and provides essential safety mechanisms, such as the segregation of client funds and negative balance protection.

Fees

Capital.com vs eToro Spreads, Fees and Commissions Comparison

I tested Capital.com’s fees by executing several trades and found them quite competitive. Its main retail account features commission-free trading and floating spreads starting from 0.6 pips. This combination falls below the industry average and is suitable for high-frequency trading. The broker has a relatively low inactivity fee ($10), and it does not charge a handling fee for deposits and withdrawals.

eToro’s retail account features commission-free trading with floating spreads starting from 1.0 pips. This combination generally meets the industry average. Notably, eToro does not charge any extra commissions for copy trading. However, its swap charges are higher than the industry average, which means that the broker is better suited for short-term trading.

Platforms and Tools

Capital.com vs eToro Trading Platforms Comparison

Capital.com shines in this category. The broker incorporates the renowned MetaTrader 4 and the seamless TradingView. It also has developed its own proprietary platform, which I found to be highly customizable. I appreciated its intuitive design, which allows for the execution of detailed technical analyses. Capital.com’s Web Trader features over a hundred technical indicators and other chart configurations.

eToro’s proprietary platform excels in facilitating social trading, connecting strategy providers with strategy followers. Powered by the seamless TradingView technology, its charts are extremely fluid and detailed. The platform supports over 150 analytical tools, including technical indicators and drawing tools, along with other chart configurations, enabling sophisticated technical analysis.

You can also check out our guides on the best MT4 forex brokers, MT5 forex brokers, and cTrader forex brokers.

Tradable Instruments

Capital.com vs eToro Instruments Selection Comparison

Capital.com offers more than 3000 CFDs, catering to various types of traders. I particularly appreciated the assortment of 125 currency pairs, which is one of the largest in the entire industry. The bulk of Capital.com’s instruments are share CFDs, with thousands of markets available. Additionally, it offers over 100 lower-risk ETFs for hedging.

eToro provides over 5,800 tradable instruments across multiple asset classes, including FX pairs, commodities, indices, share CFDs, ETFs, and cryptocurrencies. These can be traded exclusively as CFDs. The broker balances higher-yield/risk assets and lower-risk securities, allowing traders to control their market exposure more effectively.

Customer Support

Capital.com vs eToro Customer Support Comparison

Capital.com offers fast and reliable customer support in multiple languages. The broker’s customer support can be reached 24/7 via live chat, email, and phone. The agents are polite and generally knowledgeable.

eToro offers multilingual support through email. Live chat and phone support are only available to registered clients with a minimum account balance of $5,000. Traders can submit their inquiries via the ticketing service on eToro’s website by filling out a form. Although the responses are typically well-researched and insightful, they may take several business days.

Research

Capital.com vs eToro Research Tools Comparison

Capital.com’s clients can benefit from its comprehensive research materials. The broker offers highly informative market breakdowns, trading ideas, and a frequently updated news screener. Overall, I assessed Capital.com’s research materials as both highly informative and easy to grasp.

eToro provides excellent research content developed in-house. Its market analyses and detailed breakdowns are insightful, helping traders gain a deep understanding of the unfolding trading opportunities and the factors driving them.

Deposits & Withdrawals

Capital.com vs eToro Deposit and Withdrawal Methods Comparison

Capital.com does not charge a handling fee for deposits or withdrawals, though third-party fees may apply. Traders can deposit funds via bank wire, credit or debit card, or Apple Pay. The broker processes payment requests within one business day, though transaction times may take up to six business days to complete

eToro offers deposits and withdrawals through bank wire, credit/debit cards, PayPal, Neteller, Skrill, Rapid Transfer, iDeal, Klarna, Trustly, Przelewy24, and the eToro Money Wallet. All payment transactions are instant, except for bank transfers, which may take 4 to 7 business days. While deposits are free of charge (though conversion fees may apply), withdrawals incur a $5 fee.

Account Types and Terms

Capital.com vs eToro Account Types Comparison

Capital.com’s CFD Trading account supports margin trading, whereas its 1X account is leverage-free. The broker also offers swap-free trading via its Islamic account. With a low minimum deposit requirement of $20, Capital.com’s trading accounts are quite accessible.

eToro offers a single retail account type with a $50 minimum deposit requirement and multiple tiers. The more money one has in the account balance, the better conditions one gets, such as discounts on exchange rate fees, interest on the balance, and more. The broker also has Islamic accounts that allow for swap-free trading.

Education

Capital.com vs eToro Educational Content Comparison

Education is another category in which Capital.com shines. The broker offers a mixture of educational articles, trading courses, and informative videos. The offering is perfectly balanced and tailored for novice traders. I especially liked its sharp focus on trading psychology, helping traders learn how to develop a proper trading mentality.

eToro stands head and shoulders above other brokers when it comes to the range of its educational materials. The broker provides an impressive array of 21 courses, guides, and step-by-step tutorials. Traders can delve into the intricacies of technical analysis, fundamental analysis, and trading psychology.

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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