eToro vs AvaTrade
In this article
AvaTrade is an online trading platform established in 2006. On the other hand, eToro is a renowned Cyprus, UK financial brokerage trading platform established a year later, in 2007.
AvaTrade is regulated by the South African Financial Sector Authority (FSCA), Australian Securities and Investment Commission (ASIC), Central Bank of Ireland and Financial Services Authority (FSA).
Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) and Markets in Financial Instruments Directive (MiFID) regulate eToro.
eToro serves over 27,000,000 customers as a well-known trading platform, and over 300,000 traders have taken advantage of the AvaTrade platform.
|Established in||2007||2006 HQ in Dublin|
|Regulated by||FCA and CYSEC||FSCA, ASIC, IIROC, and FSC|
|Minimum spread||EUR/USD: 1 pip
GBP/USD: 2 pips
USD/JPY: 1 pip
AUD/USD: 2.5 pips
|EUR/USD: 0.6 pips
GBP/USD: 1.5 pips
USD/JPY: 1 pip
AUD/USD: 1.1 pips
|Trading platforms||Mobile, private||MT4, MT5, Mobile, WebTrader|
|Account currencies||USD, EUR, GBP, CAD, JPY, CZK||USD, EUR, GBP, CAD, AUD|
|Broker types||STP/NDD||Market Maker|
|Deposit/withdrawal methods||MasterCard, Bank transfer, Visa, Skrill, Neteller, Revolut, and PayPal||MasterCard, Bank transfer, Visa, Skrill, Neteller, PayPal, Union Pay, and WebMoney|
Variety is what gives life and spice, and this also applies in the financial markets. Therefore, a diverse portfolio regarding investments is always recommended.
If the investment portfolio is diverse, it will help protect the asset from a considerable loss and downfall that can mainly occur in a potential forex trading market. For example, other products go higher when the product’s stocks go up. Of course, putting all the eggs in a single basket is a positive side.
When the opposite tends to happen, a disaster falls. The best portfolio can save investments, cover the potential danger and involve stocks and businesses from all walks of life.
Financial instruments, commodities, and assets available to the trader on the AvaTrade and eToro platforms will help you build more diverse investments.
AvaTrade does not allow the traders to share any dealing offers. However, around 1,250 instruments are available for the traders, and roughly 2,000+ instruments are available at the spot for traders on eToro.
eToro gives the traders direct access to share the dealing offers. Around 2,042 shares are available for trade for traders on eToro, and on AvaTrade, only 1,000 shares are available overall.
eToro and AvaTrade have several shares for different countries and their currencies; UK, US, Japanese and German stocks are the most used and traded by the traders.
The eToro is offering around 31 total commodities, and 17 commodities are available for the traders on the AvaTrade, including both the metal commodity offers and the energy commodity offers on both currency brokers. eToro offers a wide range of forex trading currency pairs. Around 50 currency pairs are available for the traders.
In addition, AvaTrade offers its traders to enjoy currency exchange in over 55 different currency pairs. These pairs include the major and minor pairs and the exotic currency pairs for the trade. eToro and AvaTrade also offer the traders, Contract For Difference trading (CFD) and social trading.
Commission and fee
Traders should know the commission and trading fee with the eToro and the AvaTrade. For most of the cases of the AvaTrade, there are 1,250 instruments and eToro, around 2,000 financial instruments.
The price presented to the trader will be a factor that the fee broker takes. For example, if a financial asset is 79.6, the trader must pay 79 to enter. At the start, you will have a slight loss with AvaTrade and eToro. The bigger the fee is, the bigger it creates the issue.
Some financial assets charge you the hold on to the assets overnight or at weekends. This is usually true with the shares and commodities you are using leverage on. Please check the fee for both AvaTrade and eToro before making any investment because it is essential to know what you are paying.
AvaTrade and eToro fee depends on the region you are living in. Some brokers charge an inactivity fee, AvaTrade does not charge the traders any inactivity fee, while eToro charges a significantly low inactivity fee.
The minimum deposit for the eToro is $10, with a small inactivity fee. On the other hand, AvaTrade has a minimum deposit limit of $100 and does not charge any inactivity fee.
There is a relatively high withdrawal fee on the eToro platform but no additional deposit fee. On the other hand, AvaTrade charges its traders a 0$ withdrawal fee and no side deposit fee.
With eToro, there are two general platforms for the traders to choose from. The first is the website based version which can be accessed via any website browser.
You need to have Firefox. Chrome or Safari on your smartphone, computer or any other internet-based device and go to eToro’s official website, www.etoro.com, to be able to trade on this user based interface. There is no need to download the web-based version.
If you have a tablet or smartphone powered by iOS or Android, you can easily download the official mobile-friendly eToro trading application. This application is optimised for touchscreen devices. eToro does not support mac and windows based trading platforms.
For the AvaTrade trading platform, there are several more enhanced options for the traders to choose from, and you can decide on whatever based on your market and trading preference.
- Web trading
- MetaTrader 5
- MetaTrader 4
- Automated Trading
- Mac Trading
Some of the assets are not available on these platforms of AvaTrade. For example, some instruments can only be accessed on the online website trading platform and are unavailable for MetaTrader 4 traders.
The more markets you can access with the broker, the better you can diversify your investment portfolio. But unfortunately, the majority of the brokerages only have around 100 to 500 tradeable assets, which is not quite diverse enough for the trader to explore other trading opportunities.
So which of the trading brokers has more tradeable assets? eToro currently has a well above 3000 different instruments for the traders to choose from; they continue to add more so that there are many other choices. AvaTrade, as a press of time, owns around 1000 tradeable assets, which are three times more than their previous assets, which were only 250+.
There are two types of spreads in the trading world, fixed and variable. As the name suggests, fixed spreads are the kind of spreads which do not change regardless of the market’s high and low conditions.
In contrast, the variable spreads may vary based on the market’s current performance.
eToro usually provides spreads with the variable type of instruments susceptible to high volatility, like the crypto will have a wider spread than the classes with stable assets.
In contrast, AvaTrade provides fixed spreads, so these are primarily calculated using a fixed rate and are not changed regardless of whether the market is booming or crashing. Depending on your trading preferences and needs, variable and fixed spreads have benefits and drawbacks.
The deposit policy is very similar to when you are going to fund your bank account; if you are given vast options to deposit your funds, that will make it easier to use since there are many ways to do this compared to the one or two typical options.
On eToro, traders can fund their accounts using PayPal, Skrill, Rapid Transfer, Sofort/Kalarna Banking iDeal, credit/debit card, local online banking and bank transfers. These payment methods depend on the trader’s country and the regulators supervising your account.
AvaTrade platform has fewer banking methods as it only allows and accepts payments through MasterCard, Visa credit and debit cards, Wire Transfer, Skrill, and PayPal. However, this is not an issue if you use any of the supported methods provided by AvaTrade.
Still, in that event, if your payment service provider faces any technical inconvenience or issue or has decided to ban them from the online trading platform, then you have only fewer options left.
eToro and Avatrade have the following account types:
A demo account is an essential and beneficial account for beginners or account people with no trading experience. This way, there is no real risk, and it helps you test your trading skills in a safe environment.
For people without knowledge of trading, eToro and AvaTrade provide an entirely secure demo account for them to sign up.
A micro account allows traders to place their money on the forex market. This is for those who make risk-averse trades and focus mainly on the forex currency.
Beginners usually use this. Both AvaTrade and eToro offer traders with micro-accounts.
A standard account is available for more up to date and experienced traders. This account allows the traders to trade cryptocurrency, commodities and stocks. To open this account, traders must trade at least $100. This is the famous and mainly used account by most traders.
Multi-Account Manager Account (MAM)
This is a beneficial account for serious and experienced traders who want to use one account to place all their trades.
A software tool allows the single trader to execute the block trades on all the accounts operating under a single master account. AvaTrade and eToro both allow and offer their traders to use Multi-Account Manager Account (MAM) access.
AvaTrade and eToro also offer their traders other different types of accounts, such as
- Islamic accounts and
- Managed account
Research and education
eToro does feature a research and education part with a lot of videos. However, far greater knowledge is available for free on YouTube and trading websites. As a result, this eToro section is average at best.
Sharp Trader, AvaTrade’s premium instructional website with exclusive information for AvaTrade users, was developed with this portion of their platform in mind.
The sharp trader provides a complete selection of videos, articles, daily news, and trading tools that will take you from trading basics to advanced strategies used by top professional traders.
CopyPortfolio, eToro’s next-generation investing product, is a feature not available on any other cryptocurrency site. CopyPortfolios enables eToro users to simply invest in top trader portfolios to replicate the trades of the website’s finest traders. eToro customers that invest in a CopyPortfolio allow eToro to manage their cash and properly eliminate the guesswork of trading.
AvaTrade may connect to third-party systems like ZuluTrade for copy and social trading. There is also support for the automated trading platform DupliTrade, an MT4 compliant platform that allows traders to automatically follow the signals and methods of expert traders in real-time.
MQL5, a signal service with hundreds of external signal providers that you may utilise when trading, is another MT4 integrated service.
Customer trade is essential trading. Even the experienced and professional traders also need the help of AvaTrade and eToro support. If you are a beginner, you will want to ensure that the eToro and the AvaTrade customer support are always available when you need them.
AvaTrade offers their customers a live one to one session with the trading experts, while eToro does not offer the live chat feature. However, eToro and AvaTrade provide their traders with full email and phone support.
Is eToro a good choice?
eToro was established in 2006. It is regulated by Cyprus Securities and Exchange Commission (CySEC), Financial Conduct Authority (FCA), Markets In Financial Instruments Directive (MiFID), and Australian Securities and Investments Commission (ASIC). As such powerful authorities regulate it, it is a good choice.
Which is better, eToro or AvaTrade?
Both eToro and AvaTrade have quite famous and excellent reputations in the trading market; deciding which is better is not easy. Take your time to examine and determine which is better based on your priorities.
Do the brokers provide MetaTrader and copy trading?
eToro does not provide MT4 or MT5, instead focusing on its copy trading platform, which has seen significant success.
AvaTrade offers the standard MT4/MT5 trading platforms and social trading options DupliTrade, ZuluTrade, and MQL5 Signal Service.
When you are beginning to trade, it is essential to guarantee that your money is in safe hands while making an account for either AvaTrade or eToro.
Ask experts or experienced traders before your every step, and it will help you figure out the correct and authentic trade to do. Beware of the risks while trading and fully use the financial research and educational tools provided by eToro and AvaTrade.
There are some of the valuable features that both AvaTrade and eToro have. They are both regulated and licenced by strong and trusted financial authorities, a suite of platforms for their traders and offer a diversity of tradeable assets.
And just like any comparisons, it is expected for the two brokers to both have some strengths and weaknesses. eToro has more tradeable instruments and is also fast at processing withdrawal requests, while AvaTrade, on the other hand, has five-star phone support and more platform offerings.
Jason Morgan is an experienced forex analyst and writer with a deep understanding of the financial markets. With over 13+ years of industry experience, he has honed his skills in analyzing and forecasting currency movements, providing valuable insights to traders and investors.
Forex Content Writer | Market Analyst