eToro vs Pepperstone Comparison – 2024

Top Reasons to Choose eToro vs Pepperstone

After thoroughly exploring both brokers, I have concluded that eToro is ideal for social trading, whereas Pepperstone is the better choice for technical traders. I have outlined the key reasons for these conclusions in the table below:

eToro: Snapshot

eToro specializes in social and copy trading, which makes it one of the most recognizable brands in the online trading industry. The Israel-based broker was founded in 2007 and is regulated globally. eToro offers a professional-grade platform with an easy learning curve, as well as many supporting tools. t was also one of the first brokers to introduce commission-free trading.

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.

Pepperstone: Snapshot

Pepperstone was founded in 2010. The company is headquartered in Australia and possesses multiple Tier-1 regulations. The first thing that stands out about Pepperstone is its diversity of platforms, including MetaTrader 4 and 5, cTrader, and TradingView. This diversity caters to the needs of technical traders, algo traders, and those interested in social trading. Pepperstone also offers favorable prices and a choice of lower-risk securities and higher-yield/risk assets.

Pepperstone: Who is it For?

Pepperstone is ideal for technical traders and chart artists of all levels. The availability of cTrader and TradingView, two of the most sophisticated and feature-rich platforms, gives traders a competitive edge when examining price action behavior and determining viable trading opportunities. Additionally, Pepperstone provides robust supporting content so that traders can hone their skills.

What Makes Pepperstone Stand Out?

Pepperstone achieves an average order execution speed of below 30 milliseconds, which is ideal for high-frequency trading and scalping. This pairs particularly well with the availability of professional-grade platforms like cTrader and TradingView. The broker also offers Virtual Private Server (VPS) hosting for even better execution performance.

Trust

eToro vs Pepperstone Trust and Regulation Comparison

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. eToro has also implemented a ‘best execution policy’ according to which it takes all necessary steps to provide its clients with the best price quotes.

Pepperstone is authorized by four Tier-1 regulators (ASIC in Australia, CySEC in Cyprus, FCA in the UK, and BaFin in Germany), one Tier-2 regulator (DFSA in Dubai), and two offshore entities (CMA in Kenya and SCB in the Bahamas). Pepperstone has a tight Client Categorization policy, which ensures its services are tailored to the specific goals and needs of each trader. Additionally, it also operates on a ‘best execution’ basis, ensuring that traders are given optimal price quotes under prevailing market conditions.

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

Fees

eToro vs Pepperstone Spreads, Fees, and Commissions Comparison

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.

Given Pepperstone’s two strongest aspects (fast execution and versatile platforms), I concluded that its Razor account type features the more suitable pricing mechanism. It features raw spreads from 0.1 pips and a €5.20 round-turn commission per traded lot, which falls below the industry average. The broker also does not charge an inactivity fee or a handling fee for deposits and withdrawals.

Platforms and Tools

eToro vs Pepperstone Trading Platforms Comparison

eToro’s proprietary platform excels in facilitating social trading and 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.

Pepperstone shines in the Platforms category by incorporating MetaTrader 4&5, cTrader, and TradingView. The latter two have advanced charting capabilities that offer an intricate outlook into price action behavior. TradingView, in particular, stands out with its fluid charts and over 150 technical indicators and drawing tools. On the other hand, cTrader has an intuitive strategy-builder interface that caters to the needs of those interested in algorithmic trading.

Tradable Instruments

eToro vs Pepperstone Instruments Selection Comparison

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.

Pepperstone offers more than 1200 tradable assets. The bulk of the instruments are share CFDs (900+). There are also currency pairs (major, minor, and exotic), commodities (metals, energies, and agricultural), indices, and cryptocurrencies. The broker also offers multiple lower-risk ETFs suitable for hedging trading risk.

Customer Support

eToro vs Pepperstone Customer Support Comparison

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.

Pepperstone’s customer support can be reached 24/7 via live chat, email, and phone. The agents are polite, knowledgeable, and responsive. They responded to my queries within seconds and had no problem addressing my questions regarding Pepperstone’s execution performance.

Research

eToro vs Pepperstone Research Tools Comparison

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.

Pepperstone offers a sophisticated blend of research tools developed in-house and content from third-party providers, notably Autochartist. The broker provides a variety of written and video materials, trading signals, market breakdowns, and more. These resources present traders with a well-rounded picture of current market trends and help them make informed trading decisions.

Deposits & Withdrawals

eToro vs Pepperstone Deposit and Withdrawal Methods Comparison

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.

Pepperstone accepts payments via bank wire, credit/debit card, and PayPal. The broker does not charge a handling fee for deposits or withdrawals, though third-party banking fees may apply. Transaction times vary but generally take less than three business days to complete.

Account Types and Terms

eToro vs Pepperstone Account Types Comparison

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.

Pepperstone offers two retail account types, the above-mentioned Razor account and the Standard account. The latter features commission-free trading and floating spreads from 1.1 pips. Traders can choose between four possible base currencies (EUR, USD, GBP, and CHF). The broker has a recommended minimum deposit requirement of $500, though clients can start with less.

Education

eToro vs Pepperstone Educational Content Comparison

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. There is also The Digest & Invest podcast, which features lengthy conversations between market experts on multiple trading and investing topics. Traders can delve into the intricacies of technical analysis, fundamental analysis, and trading psychology.

Pepperstone also impresses with the scope of its educational content. The broker offers nuanced articles, educational videos, webinars, and more, geared toward traders with different experience levels. Pepperstone’s guides are diverse and encompass a wide range of interesting topics related to trading volatility, trading strategies, the psychology of trading, and more.

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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