Israeli social trading and multi-asset investment platform eToro vs Forex.com focuses on offering copy trading and financial services. The company has registered offices in Cyprus, the United Kingdom, the United States, and Australia, and its headquarters in Central Israel.
Features and Platforms
Forex.com offers Forex traders a competitive trading environment, whereas eToro primarily targets social and cryptocurrency traders. 75.0% of the more than 13,000,000 traders operate at a loss as of May 2020. Millennial traders, who prefer to follow more established traders with a few clicks from their mobile devices, continue to use eToro. Forex.com has been around since 2001 and joined publicly traded StoneX in 2020. As of April 2019, it is one of the largest MetaTrader brokers by active users, but traders can also use its own Advanced Trading Platform. At Forex.com, 74% of retail traders lose money.
While eToro only offers 49 currency pairs, Forex traders have access to 84 at Forex.com, making it one of the best Forex brokers overall. With more than 2,300 total assets, eToro does offer more. Thirty-one commodities and 13 index CFDs are available to traders at eToro, whereas Forex.com provides 18 and 18, respectively. There are 93 cryptocurrencies on eToro, compared to just eight on Forex.com. With 2,039 equity trades, eToro has a significant advantage over Forex.com, which has a disappointing 69. Except for Forex and index CFD trading, eToro’s 151 ETFs extend its lead over Forex.com.
Typical Spreads and Fees
eToro has a price structure with a high minimum spread of 1.0 pips. It is above average but does not charge commissions. With an average markup of 1.1 pips and a minimum markup of 0.8 pips, Forex.com is slightly more expensive. It does provide traders with a direct market access (DMA) account that is commission-based and has spread as low as 0.1 pips for $6.00 per lot. It can be reduced to $2 per lot by active traders. It is one of the best deals out there. At eToro, CFDs carry a commission of 0.09%. At both, leveraged overnight positions are subject to swap rates; however, eToro also charges a $5 withdrawal fee.
Trust and Security
The trading environment is kept safe and reliable by both brokers. At eToro, regulatory oversight is provided by the Australian Securities & Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), and the UK Financial Conduct Authority (FCA). eToro keeps its registration as a Money Services Business with FinCEN in the United States. Gain Capital, based in the United Kingdom, trades under the name Forex.com, which the FCA regulates. Forex.com has sufficient capital reserves because Gain Capital has been a part of the publicly traded StoneX in the United States since October 2020. Both brokers separate client deposits, and certain jurisdictions have an investor compensation fund.
Comparison of eToro and Forex.com:
Pure Forex traders will prefer Forex.com’s trading environment, particularly active traders who prefer the commission-based DMA account. Forex.com offers more advanced trading platforms, has a price structure that is affordable for traders, and fully supports automated trading solutions with superior technology and VPS hosting. The competitive trading environment benefits from new traders’ access to high-quality training and useful research about MultiBank review.
Social trading is at the heart of eToro, which only supports copy trading and does not support advanced automated trading solutions. Millennials continue to use CopyTrader and CopyPortfolios, and eToro is home to one of the largest networks thanks to its more than 13,000,000 traders. The research consists of market commentary, and the educational tools remain limited. Information that can be traded on eToro is provided by the community. Due to its excellent market coverage and tools, it holds the lead in cryptocurrency trading. More than 2,000 CFDs will be beneficial to equity traders.