Interactive Brokers vs eToro: In-Depth Analysis By Traders Union

Expert Review

So Interactive Brokers or eToro? Read the review provided by TU analysts.

eToro is a global brokerage catering to traders worldwide. Each office tailors conditions to local traders, ensuring beneficial trading. Minimum deposits vary by country: US and UK residents pay $50, Europe and Israel $50,000, UK and France territories $1,000, and others $200. eToro safeguards retail clients from negative balances and inadequate margin positions. The Financial Ombudsman Service is accessible, and some European traders’ investments have compensation protection. Leverage hinges on asset type and office location, ranging from 1:5 to 1:100.

Interactive Brokers is reliable and offers diverse trading services. It serves active traders and investors but charges inactive account fees, inconvenient for passive investors. While no minimum deposit is required, the focus is on professional US and Canadian investors. Customer support assists with claims. Detailed trading information is on their website, and potential clients are advised to study trading conditions and reviews before opening an account.

Benefits and Drawbacks

The experts have determined the main features of trading with these brokers. 

1. eToro

Pros:

• Mobile app enables smartphone trading.
• Highly licensed and regulated broker.
• Fixed withdrawal fee of $5 USD.
• Offers copy trading and ready-made portfolios for diversification.
• Client funds are held in licensed US banks.

Cons:

• Limited customer support through tickets.

2. Interactive Brokers

Pros:

• A global reach of 135 markets in 33 countries.
• Wide range of 30,000+ trading instruments.
• Licensed in the United States, the United Kingdom, and eight other countries.
• Features advanced trading platform.
• Provides free stocks upon registration.
• Offers low fees and margin rates.

Cons:

• Involves a lengthy and complex registration procedure.

Trading Conditions For Users

Analysts at Traders Union have examined the trading conditions of two brokers and here’s what they found:

1. eToro

• For those considering eToro, an initial deposit of $50 is required.
• Traders can use the eToro platform for their transactions.
• eToro offers a maximum leverage of 1:30 for futures trading.
• The markets available for trading on eToro encompass Forex, Stocks, Indices, Commodities, and Cryptocurrencies.
• With over 1000 tradable assets, users have a diverse range to choose from.
• eToro provides two account types: Standard and Demo.
• The base currency for accounts is USD.

2. Interactive Brokers

• Interactive Brokers stands out with a $0 initial deposit requirement.
• Traders can access multiple platforms: IB Trader Workstation, IBKR GlobalTrader, and Client Portal.
• Maximum leverage varies up to 1:50 for futures trading.
• The broker’s supported markets include Stocks, Forex, ETFs, Mutual Funds, Bonds, Options, Commodity Futures, Currency Futures, Cryptocurrencies, Robo-portfolios, and Hedge Funds.
• With an impressive offering of over 30,000 tradable assets, diversity is a strong suit.
• Two account types are available: Cash Account and Margin Account.
• Base currencies span USD, EUR, GBP, AUD, CAD, CZK, DKK, HKD, HUF, ILS, JPY, MXN, NZD, NOK, PLN, SGD, SEK, CHF, and CNH.

Conclusion

The offerings presented by eToro and Interactive Brokers have been subjected to a thorough evaluation by Traders Union experts, providing invaluable insights to benefit traders. Utilizing their meticulous methodology, eToro emerges as the standout contender, achieving a commendable score of 8.03/10, thus solidifying its stature as a premier brokerage platform. In a parallel manner, Interactive Brokers sustains a position of competitiveness with its respectable score of 7.45/10. For those seeking a more profound comprehension of the analysis, delving into the comprehensive TU Overall Score is recommended.