CMC Markets vs eToro Comparison – 2024

Top Reasons to Choose CMC Markets vs eToro

After thoroughly exploring both brokers, I have concluded that CMC Markets is an excellent choice for spread betting, while eToro excels in social trading. I have outlined the key reasons for these opinions in the table below:

CMC Markets: Snapshot

CMC Markets is a well-established Spread Betting and CFD trading broker. Founded in the distant 1989, the UK-based company has gained a reputation for its reliability and diverse services. CMC Markets offers spread betting with over 12,000 instruments across different markets tax-free and at competitive prices.

CMC Markets: Who is it For?

In addition to its diverse spread betting offering, CMC Markets also caters to the needs of day traders and scalpers. The broker has a feature-rich proprietary platform that gives high-frequency traders a competitive edge in volatile trading. It features guaranteed and trailing-stop orders, allowing scalpers and day traders the opportunity to exercise tight risk management and squeeze maximum profits out of winning trades.

What Makes CMC Markets Stand Out?

CMC Markets is, without a doubt, one of the most well-rounded derivatives brokers in the industry. It offers penetrating research materials and extensive educational content, providing traders with comprehensive insights. Moreover, it is tightly regulated by multiple Tier-1 regulators and is listed on a major stock exchange, which attests to its overall safety. And all of this comes with industry-leading low spreads and commissions.

eToro: Snapshot

eToro is one of the biggest and most recognizable brands in the trading industry, with an offering primarily geared towards copy trading. The broker was founded in 2007 and is headquartered in Israel. eToro has a very intuitive platform, charges below-average trading fees, and offers quite a lot of 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

CMC Markets vs eToro Trust and Regulation Comparison

Spread betting is available through CMC Markets’ UK entity — CMC Markets UK plc — regulated by the FCA. Clients of this subsidiary are ensured segregated client funds, negative balance protection, and a compensation scheme. They are protected by up to GBP 85,000 under the FSCS. Furthermore, CMC Markets is listed on the London Stock Exchange (LSE), underscoring the company’s stability and transparency.

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

CMC Markets vs eToro Spreads, Fees and Commissions Comparison

CMC Markets charges extremely low trading fees. Its spread betting account features commission-free trading with floating spreads starting from 0.3 pips. This combination not only falls below the industry average but also offers some of the most favorable conditions in the industry. The same applies to its CFDs trading account, which also provides floating spreads from 0.3 pips.

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.

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

Platforms and Tools

CMC Markets vs eToro Trading Platforms Comparison

CMC Markets’ proprietary platform features more than 150 analytical tools and chart configurations, providing chart artists with all the necessary tools for comprehensive and deep technical analysis. The platform’s charts are fluid and highly expressive. A great advantage is that traders can look back at price action from years ago, allowing them to backtest their strategies and configure them for various market sentiments.

eToro’s proprietary platform facilitates social trading, connecting strategy providers with strategy followers. Powered by the seamless Trading View 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.

Tradable Instruments

CMC Markets vs eToro Instruments Selection Comparison

CMC Markets impresses again with the scope of its instruments offering. Spread betting can be carried out using more than 12,000 instruments. Additionally, the broker offers thousands of CFDs and other lower-risk securities, such as treasuries. This diversity frees traders to exploit various trading opportunities and regulate their overall market exposure.

eToro offers more than 5,800 tradable instruments across multiple asset classes, such as 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 so that traders can control their market exposure more effectively.

Customer Support

CMC Markets vs eToro Customer Support Comparison

CMC Markets provides 24-hour multilingual support, available from Monday to Friday. Customers can reach the support team via live chat, email, or phone. While the agents are generally knowledgeable and can help even with more complex questions, their response times tend to be longer than usual.

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

CMC Markets vs eToro Research Tools Comparison

The best thing about CMC Markets’ research content is its nuanced approach. The broker offers a mix of excellent in-house research materials alongside third-party content. This combination gives clients a comprehensive overview of current trading developments from multiple perspectives.

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

CMC Markets vs eToro Deposit and Withdrawal Methods Comparison

CMC Markets facilitates deposit and withdrawal transactions via bank wire transfers, credit/debit cards, or PayPal. Both deposits and withdrawals are free of charge. Deposits are processed immediately, while withdrawals via credit/debit card can take up to 5 working days, and those via bank transfer or PayPal take 1 to 2 working days.

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, withdrawals incur a $5 fee.

Account Types and Terms

CMC Markets vs eToro Account Types Comparison

CMC Markets offers a dedicated spread betting account as well as a CFD trading account. There is no minimum deposit requirement for either account, making them highly accessible. Furthermore, the combination of commission-free trading and floating spreads from 0.3 pips makes CMC Markets’ retail accounts extremely favorable.

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

CMC Markets vs eToro Educational Content Comparison

CMC Markets delivers multifaceted educational content, including articles, guides, videos, and webinars. There is a strong emphasis on practical aspects, such as constructing trading strategies and trading during news announcements. Beginners can also learn about the basics of risk management and fundamental analysis.

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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