eToro vs Interactive Brokers Comparison – 2024

Top Reasons to Choose eToro or Interactive Brokers

Our research shows that eToro is a beginner-friendly broker offering copy trading and an intuitive platform. In contrast, Interactive Brokers is geared more towards experienced traders, featuring low fees, robust trading platforms, and a vast range of tradable instruments. The key reasons for our decision are outlined in the table below.

eToro: Snapshot

CFD industry giant and copy trading pioneer eToro was founded in 2007. The Israeli broker is authorized in multiple jurisdictions by four Tier-1 regulators and one offshore regulator. eToro stands out from the crowd with its well-designed platform and innovative offerings, such as copy portfolios.

eToro: Who is it For?

eToro is a strong choice for beginners in trading and investing. The intuitive platform, wide range of instruments, and solid educational resources make it a breeze for newbies to get started. eToro clients can trade markets using their own strategy or copy seasoned traders with a proven track record.

What Makes eToro Stand Out?

eToro does not charge a service fee (commission) for copying other traders and their strategies, which is quite uncommon among brokers geared toward copy and social trading.

Interactive Brokers: Snapshot

Founded in 1978, Interactive Brokers provides retail traders access to 150 global markets, low fees, and advanced trading technology. Clients can trade stocks, options, futures, currencies, bonds, and funds from a single unified platform. The Greenwich, Connecticut-based broker is publicly traded and regulated by multiple top-tier financial authorities globally. The combination of rock-bottom fees and professional-grade tools gives Interactive Brokers its unique edge.

Interactive Brokers: Who is it For?

We judged Interactive Brokers to be best suited for advanced and professional traders. However, the offering is also improving for beginners, thanks to the new user-friendly GlobalTrader app and extensive educational materials.

What Makes Interactive Brokers Stand Out?

With outstanding fees, robust trading platforms, and a massive range of tradable instruments, Interactive Brokers has established itself as one of the best brokers for advanced and professional traders.

Trust

eToro vs Interactive Brokers Trust and Regulation Comparison

eToro is authorized in multiple jurisdictions by four Tier-1 regulators and one offshore regulator. Founded in Tel Aviv in 2007, marking 17 years of experience, eToro stands out as a seasoned CFD industry veteran. The broker adheres to the most stringent safety requirements and guarantees its clients a very high degree of protection. We assessed eToro to be transparent and trustworthy.

Interactive Brokers is one of the world’s largest and most stable brokers. The Greenwich, Connecticut-based giant traces its origins to 1978 and has thousands of employees. The company is listed on Nasdaq (IBKR), has $11.6 billion in equity capital, and over 2.1 million clients. It is also licensed and regulated by multiple top-tier financial authorities globally. We judged Interactive Brokers to be highly transparent, well-capitalized, and trustworthy.

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

Fees

eToro vs Interactive Brokers Spreads, Fees and Commissions Comparison

We found eToro’s fees to be mixed. In our tests, we recorded better-than-average spreads of 0.9 pips in EUR/USD. In other cases, we found room for improvement, for example the Dow 30 index, where spreads were observed at 6 pips. In addition, we noted that the swap fees (the cost of holding a position overnight) are relatively high. The broker’s non-trading fees (inactivity fee and withdrawal fees) are fairly standard. Overall, fees at eToro are pretty average for the industry.

Interactive Brokers stands out as highly competitive in the area of fees, often recognized for having the lowest costs in the industry, sometimes by a considerable margin. Our hands-on tests of forex and CFD instruments confirmed this. I was wowed by spreads of 0.2 pips plus commission, which work out to be way lower than the industry average. While swap fees were found to be average, another bonus is the absence of inactivity fees at Interactive Brokers. Low fees are a major selling point for this broker, and our review confirms that it lives up to the hype in this area.

Platforms and Tools

eToro vs Interactive Brokers Trading Platforms Comparison

eToro has invested heavily in their proprietary web and mobile platforms, and the result is impressive. Having tested dozens of leading platforms, I rate it as one of the easiest to use. I liked the minimalist design and the detailed statistics like the percentage of profitable trades and the maximum drawdown for traders you can copy. Popular features like alerts, one-click trading, and trading from the chart are available. Additionally, traders have access to advanced order types, including trailing stops. eToro offers its Web Trader platform and mobile app but does not offer any third-party platforms.

Interactive Brokers offers a range of award-winning platforms, including the web-based Client Portal, the Trader WorkStation (TWS) platform, and two proprietary mobile apps. The flagship TWS platform offers trading in stocks, options, futures, currencies, bonds, and funds on over 150 markets worldwide with a single log-in.

TWS goes beyond the capability of most trading platforms with features like its Market Scanners, which can search specified markets and return contracts based on the defined criteria. Unlike eToto’s platform, TWS is highly customizable, allowing traders to tailor the layout to their individual preferences. We assessed the TWS platform as geared more towards experienced and professional traders, but the newer GlobalTrader app is more accessible to beginners.

Tradable Instruments

eToro vs Interactive Brokers Instruments Selection Comparison

eToro offers a diverse range of over 5,800 instruments, including CFDs on shares, ETFs, commodities, currencies, indices, and cryptocurrencies. We rated it as particularly strong in the area of shares and ETFs. eToro also adds a unique dimension with its selection of experienced traders available for copying and its innovative Smart Portfolios product. These are long-term investment portfolios, curated by eToro analysts, covering themes like ‘Metaverse Life’ and ‘Dividend Growth’. eToro truly shines in this category, and we rate it among industry leaders.

Interactive Brokers offers an excellent range of products to trade, including stocks, options, futures, currencies, bonds, and funds. In the realm of CFD instruments, Interactive Brokers boasts an impressive range of over 8,200 share CFDs and 85 currency pairs. I was impressed by the exhaustive number of major, minor, and exotic currency pairs available.

There is room for improvement in the variety of commodity CFDs, but keep in mind that there are many commodities available at IBKR via the futures markets. Interactive Brokers is a global leader in tradable instruments, and it reaches far beyond the CFD market — again catering to more experienced and professional traders.

Customer Support

eToro vs Interactive Brokers Customer Support Comparison

eToro offers multilingual support via various channels, including email, live chat, and phone. However, access to live chat and phone support is exclusive to active traders with at least $5000 in their accounts. Visitors to eToro’s website can send a request form to the customer support. There is also a dedicated FAQ section. In our tests, we noted that it took a couple of days to receive a reply via email, but the answers were comprehensive and satisfactory.

Customer service at Interactive Brokers is accessible via chat, phone, and contact form from Sunday afternoon to Friday evening, New York time. Support is not available on Saturday. In our tests, we found the quality of customer support to be mixed. In some instances, I received assistance from highly knowledgeable industry professionals, but at other times, the experience felt more like a call center. In the category of customer service, Interactive Brokers does not quite match the level of excellence it reflects in other categories.

Research

eToro vs Interactive Brokers Research Tools Comparison

eToro offers excellent in-house research materials and incorporates content from third-party providers. Traders have access to multiple video breakdowns, written articles, market sentiment tools, and more. I particularly liked the news feed within the platform, which keeps users up to date on any instrument in their watchlist or portfolio, along with commentary from other traders worldwide. As a whole, eToro’s research content affords a 360-degree overview of current market developments and is ideal for beginners.

Interactive Brokers offers outstanding market commentary and coverage of financial news via Traders’ Insights, available on the website and trading platforms. A steady feed of fresh content in text and video format is provided by the analyst team at IBKR, along with third-party contributors such as Nasdaq, Investopedia, and Redwall Analytics. Traders can learn about the general market outlook for the day, get up to speed with upcoming economic releases, and browse technical trade ideas from various contributors. This professional-grade offering caters to the most experienced traders.

Deposits & Withdrawals

eToro vs Interactive Brokers Deposit and Withdrawal Methods Comparison

eToro clients can deposit and withdraw funds via bank wire, credit card, and a wide range of electronic payment methods, including PayPal, Skrill, and Neteller. Deposits are charge-free (though conversion fees may apply), while withdrawals are liable for a $5 fixed fee plus any third-party banking fees that may apply. The flat $5 withdrawal fee is about average for the industry. Transactions are processed fairly quickly.

Interactive Brokers sticks to its cost-cutting mantra in this category: it does not charge any fees for deposits and withdrawals, beating the average broker. In addition, all deposits and withdrawals are processed quickly — within 1 business day. However, funding/withdrawals methods are somewhat limited. Clients can deposit funds through bank wire, ACH transfer, check, and, in certain regions, via Wise. Withdrawals can be made via bank wire and ACH transfer. Some popular methods, such as credit cards, are unavailable for deposits/withdrawals.

Account Types and Terms

eToro vs Interactive Brokers Account Types Comparison

eToro offers a Standard Account and an unlimited Demo Account, allowing you to hone your skills without risking any money. Additionally, eToro provides a swap-free Islamic Account that adheres to the principles of Sharia law. The benefits available within a Standard Account differ based on your account balance and tier within the ‘eToro Club’ program. The minimum deposit is just $10, and the only available base currency is USD. The available leverage can go as high as 1:500 but varies based on your region.

There is no minimum required deposit to open an account at Interactive Brokers. The Individual account caters to standard traders, but many other account types are available, accommodating the specific needs of trading professionals, for example, the Family Office and Money Manager accounts. Interactive Brokers provides a free demo account that traders can use across all platforms. A swap-free Islamic account is not offered. Traders can choose between 19 base currencies. Leverage is available up to 1:30, but this may differ by region.

Education

eToro vs Interactive Brokers Educational Content Comparison

eToro’s educational content provides beginners with a solid foundation in trading basics, effectively covering essential concepts in an accessible manner. Clients can take advantage of 21 trading courses available from the ‘Academy’ section of the website, educational guides, step-by-step tutorials, and the Digest & Invest podcast. The material serves as a useful introduction to the fundamentals of trading and an archive of key concepts. However, for those seeking to delve into more advanced topics and strategies, external resources will be necessary to complement this foundational knowledge.

The Interactive Brokers’ Traders’ Academy provides over 65 finance courses broken down into beginner, intermediate, and advanced levels. The high-quality materials go into substantial depth and include interactive quizzes to aid the learning process. Lessons are presented in video format and cover a broad range of topics, such as the basics of various markets, technical and fundamental analysis, and platform tutorials. Several live webinars held each month complement the educational courses. Overall, we rated educational materials as better than average for the industry, with valuable content for both beginners and advanced traders.

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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