Compare FP Markets vs eToro
What is FP Markets? What is eToro ?
FP Markets is an online broker that offers forex and CFD trading on a wide range of assets, including stocks, indices, commodities, cryptocurrencies, bonds and ETFs. It was founded in 2005 and is regulated by ASIC and CySEC. It supports MT4, MT5 and IRESS platforms and offers standard and raw spread accounts with low fees and high leverage.
eToro is a multi-asset platform that offers both investing in stocks and cryptoassets, as well as trading CFDs on various markets. It was launched in 2007 and is authorized by FCA and CySEC. It is known for its social trading and copy trading features, as well as its commission-free stock trading. It has a proprietary platform and a digital wallet with multiple currencies.
FP Markets vs eToro Regulation Comparison
Both brokers are regulated by the Cyprus Securities and Exchange Commission (CySEC) and adhere to the European Union’s MiFID regulations. This means they offer investor protection, segregated funds, negative balance protection and fair trading practices.
FP Markets is also regulated by the Australian Securities and Investments Commission (ASIC), which is considered a tier-1 regulator with high standards of oversight and supervision.
eToro is also regulated by the Financial Conduct Authority (FCA) in the UK, which is another tier-1 regulator with strict rules and requirements for brokers.
Both brokers do not accept US customers due to regulatory restrictions.
FP Markets vs eToro Trading Assets Comparison
FP Markets offers a much wider range of trading assets than eToro, with over 10,000 CFDs available across various markets. These include 71 forex pairs, 10,000+ stocks, 19 indices, 20 commodities, 5 cryptocurrencies, 60 bonds and 13 ETFs.
eToro offers around 2,300 assets to trade or invest in, including 52 forex pairs, 2,000+ stocks, 13 indices, 31 commodities, 16 cryptocurrencies and 145 ETFs. However, it also offers physical delivery of stocks and cryptoassets for non-CFD trades, which means traders can own the underlying assets without leverage or fees.
FP Markets vs eToro Trading Fees Comparison
- FP Markets offers two types of accounts for forex and CFD trading: the standard account and the raw spread account. The standard account has no commission but wider spreads, while the raw spread account has tight spreads from 0.0 pips but charges a commission of $6 per round lot. The average spread for EUR/USD on the standard account is 1.2 pips and on the raw spread account is 0.7 pips (including commission).
- eToro does not charge any commission for forex and CFD trading, but instead relies on spreads as its main source of revenue. The average spread for EUR/USD on eToro is 1 pip. However, eToro also charges other fees such as currency conversion fees for non-USD accounts, withdrawal fees of $5 per transaction, inactivity fees of $10 per month after one year of no activity, and overnight fees for holding leveraged positions.
- For stock trading, eToro does not charge any commission or fees for non-CFD trades, which means traders can buy and sell stocks without paying anything to the broker. However, they still have to pay currency conversion fees if their account is not in USD or the stock’s currency. For CFD stock trades, eToro charges a spread of 0.09% per side.
- For stock trading, FP Markets charges a commission of 0.10% per side for Australian stocks and $10 or equivalent for international stocks on its IRESS platform. However, it also charges a monthly subscription fee of $55 for using the IRESS platform, which can be waived if the trader generates more than $150 in commissions per mont. FP Markets does not charge any overnight fees for holding stock CFDs.
FP Markets vs eToro Account Types Comparison
FP Markets offers two types of accounts for forex and CFD trading: the standard account and the raw spread account. Both accounts have a minimum deposit requirement of $100 and offer leverage up to 1:500 for forex, 1:200 for indices and commodities, and 1:20 for cryptocurrencies. Both accounts also support MT4, MT5 and IRESS platforms and offer Islamic swap-free accounts for Muslim traders.
eToro offers only one type of account for forex and CFD trading, which has a minimum deposit requirement of $200 (or $50 for US and Australian customers) and offers leverage up to 1:30 for forex, 1:20 for indices and commodities, and 1:2 for cryptocurrencies. eToro supports only its proprietary platform and offers Islamic accounts for Muslim traders.
FP Markets vs eToro Deposit Options Comparison
FP Markets offers a variety of deposit and withdrawal options, including bank wire transfer, credit/debit cards, Skrill, Neteller, FasaPay, PayTrust, Ngan Luong, PayPal and broker-to-broker transfer. Most of these methods are free of charge, except for international bank wire transfers which may incur fees from intermediary banks. The processing time for deposits is usually instant or within one business day, while withdrawals may take up to two business days.
eToro offers fewer deposit and withdrawal options, including bank wire transfer, credit/debit cards, Skrill, Neteller, PayPal, WebMoney, Yandex and China Union Pay. All of these methods are free of charge for deposits, except for bank wire transfers which may incur fees from intermediary banks. However, eToro charges a flat fee of $5 for every withdrawal, regardless of the amount or method. The processing time for deposits is usually instant or within one business day, while withdrawals may take up to eight business days.
FP Markets vs eToro Trading Platforms Comparison
FP Markets supports three trading platforms: MT4, MT5 and IRESS. MT4 and MT5 are the most popular platforms in the forex industry, offering advanced charting tools, technical indicators, automated trading systems (EAs), custom scripts and plugins. IRESS is a web-based platform that offers direct market access (DMA) to Australian and international stocks, as well as advanced order types, news feeds, alerts and portfolio management tools.
eToro supports only its proprietary platform, which is available as a web-based version or a mobile app. The platform is user-friendly and intuitive, offering social trading and copy trading features that allow traders to interact with each other, follow successful traders and copy their trades automatically. The platform also offers basic charting tools, technical indicators, news feeds and alerts. However, it does not support automated trading systems or custom scripts.
FP Markets vs eToro Analytical Tools Comparison
FP Markets offers a range of analytical tools and features to enhance its trading services. These include educational resources such as webinars, videos, articles and ebooks; market analysis such as daily reports, economic calendar and market news; trading tools such as Autochartist (a pattern recognition software), VPS (a virtual private server), Myfxbook (a social trading platform) and Trader Toolbox (a suite of MT4 plugins).
eToro offers fewer analytical tools and features than FP Markets. These include educational resources such as videos, articles and podcasts; market analysis such as daily market reviews, economic calendar and market news; trading tools such as CopyTrader (a copy trading feature), CopyPortfolios (a portfolio management feature) and eToro Wallet (a digital wallet).
FP Markets vs eToro . Which forex broker is better? Which forex broker should you choose?
There is no definitive answer as to which forex broker is better or which one you should choose, as different brokers may suit different traders depending on preference, their goals, strategies and risk appetite. However, here are some factors that can help you decide:
- If you want to trade or invest in a wide range of assets, especially stocks, FP Markets may be a better choice as it offers over 10,000 CFDs across various markets, while eToro offers around 2,300 assets.
- If you want to trade or invest in stocks without paying any commission or fees, eToro may be a better choice as it offers commission-free stock trading for non-CFD trades, while FP Markets charges a commission of 0.10% per side for stock CFDs and a monthly subscription fee of $55 for using the IRESS platform.
- If you want to trade forex and CFDs with low fees and high leverage, FP Markets may be a better choice as it offers tight spreads from 0.0 pips and leverage up to 1:500 on its raw spread account, while eToro charges a spread of 1 pip and leverage up to 1:30 on its standard account.
- If you want to trade forex and CFDs with social trading and copy trading features, eToro may be a better choice as it offers a user-friendly platform with a large community of traders, as well as CopyTrader and CopyPortfolios features that allow you to follow and copy successful traders automatically, while FP Markets supports only Myfxbook AutoTrade as a social trading platform.
- If you want to trade forex and CFDs with advanced trading platforms and tools, FP Markets may be a better choice as it supports MT4, MT5 and IRESS platforms, as well as Autochartist, VPS, Trader Toolbox and other features that enhance your trading experience, while eToro supports only its proprietary platform which does not support automated trading systems or custom scripts.
In the end, the best way to find out which broker is better for you is to experiment for yourself. You can open a demo account with both brokers and test their services with virtual money before deciding to open a real account with real money. You can also read more reviews and feedback from other traders who have used these online brokers.
