AvaTrade or eToro?

Posted by: Freddie NorthJuly 31, 2021 Updated: July 31, 2021

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This post is also available in: Indonesia Português

Every broker has its strengths and weaknesses. We have compared AvaTrade vs eToro to help you make an informed decision. These privately-owned companies are based in Ireland and Cyprus, respectively. Both have been in business for over a decade, and they are authorized by top-tier organizations. While they target the same audience, their range of assets, services, spreads, and tools differ. eToro has a stronger focus on social trading and stocks, while AvaTrade offers a broad portfolio, allowing you to trade across several terminals. 

AvaTradeeToro
AboutA forex and CFD broker regulated in Ireland, Australia, Japan, South Africa, and BVI. Operating since 2006.
A forex and CFD broker regulated in Cyprus, the UK, and Australia. Operating since 2006.
Why choose them12+ years of operation. Regulated in several jurisdictions. 
12+ years of operation. Regulated in several jurisdictions. 

HeadquartersDublinLimassol

Overview of Trading Services Offered

Traders choose AvaTrade or eToro based on the width of the portfolio and the range of services. As you can see below, you have similar opportunities with both brokers. However, eToro is focused on social and copy trading, which is the core of its philosophy. Spread betting is not offered. Either company will let you trade directly or indirectly — through CFDs. 

AvaTradeeToro
Spot forex
Forex CFD
CFD
Spread Betting
Social trading

Markets & Instruments

Now, let’s look at the variety of assets you can trade through these companies. To understand whether to choose AvaTrade or eToro, think about the instruments you would like to use today and in the future. The companies offer a different range of services and markets. 

AvaTrade has more currency pairs (59 against 47). The range of commodities (like gold, silver, and crude oil) is also wider. On the other hand, eToro has almost 10 times as many stocks! You can trade Bitcoin with either system, and altcoins (Ethereum and Ripple) are also supported. 

  • Forex (currency pairs)

All currencies are traded in pairs — Major, Minor, and Exotic. Traders can profit from any combination if they understand the drivers of the two economies. 

  • Commodities Offered

These are goods whose price is set by the market supply and demand. Crude oil, gold, and silver are common examples. Both brokers support them. 

  • Stocks Offered

These are shares of publicly traded companies. They can be traded directly or through derivatives — CFDs. 

  • Bitcoin

The world’s leading cryptocurrency can be traded directly or indirectly (through CFDs). eToro is one of the few platforms that allows you to buy and sell coins using an e-wallet. The brokers offer other cryptocurrencies, too — Ethereum and Ripple.

  • Majors

These are the most stable currency pairs like EUR/USD. They represent the world’s biggest economies. The popularity of these instruments makes them highly liquid. 

  • Indices

These assets reflect the performance of a basket of securities. For example, S&P 500 is linked to stocks of the 500 biggest US corporations by market capitalization. Trading indices makes you less dependent on the performance of a single company.

  • US Stocks

The shares of the largest US corporations, such as Facebook, can be bought and sold online. Growth stocks are particularly attractive, as they are linked to the thriving tech giants. 

  • Penny Stocks

These are stocks of small companies. They are usually priced at less than $1 per share. 

  • Energies

Online traders can invest in crude oil and natural gas. For example, you can buy and sell CFDs on Brent or WTI. 

  • Metals

Gold, silver, and platinum are perceived as a safe haven in times of economic turmoil. They can be paired with currencies or linked to CFDs.  

  • Agricultures

These are stocks of publicly-traded companies in the farming sector. This is one of the less common instruments for online traders. 

  • FTSE

This is one of the biggest market indices. It is linked to 100 companies listed on the London Stock Exchange. 

  • Dow Jones

Also known as the Dow, this index measures the performance of 30 big corporations listed on the US stock exchange.

  • Dax

This is a total return index based on the performance of 30 blue-chip companies in Germany. Their shares are traded on the Frankfurt Stock Exchange. 

  • Nikkei

This index reflects the dynamics on the Tokyo Stock Exchange. It reflects the financial results of 225 big corporate players.

  • ETF

Exchange-traded funds are securities whose value may be connected to an economic sector, index, commodity, etc. They can be bought and sold throughout the day — just like the usual stocks. 

  • IPO

During Initial Public Offering, a company starts selling its stock to the public. This is a great way to be among the first investors. 

AvaTradeeToro
Forex (currency pairs)5947
Commodities Offered166
Stocks Offered99957
Bitcoin
Majors
Indices
US Stocks
Penny Stocksnot availablenot available
Energies
Metals
Agricultures
FTSE
Dow Jonesnot available
Dax
Nikkei
ETF
IPOnot available

Platforms & Features

Now, let’s examine the software and digital services offered by AvaTrade and eToro. There is a world of difference between the two platforms! eToro has only one system — its proprietary software for desktop and mobile use which does not work within browsers. The rival has a richer digital collection. 

eToro has a strong focus on interaction, and the system has features reminiscent of Facebook (e.g., feeds and profiles). Traders can view profiles of any members, follow or copy them. This is a fusion of trading and social media. It includes similar funding methods and standard risk management tools like Stop Loss.

Etoro risk management tool

Clients of AvaTrade choose between reputable generic systems like MetaTrader 4 and the company’s own ones — AvaTradeAct and AVAOptions.  The former gives access to different account types and instruments, while the latter is reserved for Vanilla Options. However, eToro’s trading features are easier to use, and its platform can offer a superior research arsenal.

AvaTrade reputable generic system
AvaTradeeToro
MT4
MT5
MT4 Mac
Web Trader
Mirror Trader
Zulu Trade
Sirix
cTrader
PAMM
Custom PlatformsAvaTradeAct, AVAOptionsCopy Trader

Apps

To compare AvaTrade vs eToro apps, we have looked at the user-friendliness, ease of navigation, research tools, and other features. Both systems can be used on any popular OS. Clients can trade on the go and monitor the market at a glance. Overall, we have found eToro’s app slightly more convenient.  

AvaTradeeToro
iOS
Android
Windows
Available LanguagesEnglish, Italian, German, French, Greek, Hebrew, Spanish, Arabic, Malay, Russian, Chinese, Portuguese, and DutchEnglish, German, Spanish, French, and Italian

Account Information

You can open a free demo account with AvaTrade or eToro. Both brokers offer a range of accounts to suit a vast audience. You can get started with little investment, or opt for an expert version. Islamic accounts allow traders to comply with Sharia law — i.e., avoid earning interest. 

AvaTradeeToro
Demo Account
Mini Account
Micro Account
Standard Account
ECN Account
Islamic Account
Zero Spread Account
VIP Account
Fixed Spreads
Variable Spreads

Trading condition comparison

To compare the conditions of AvaTrade vs eToro, consider your goals and needs. Traders pursue different strategies. Scalpers prefer the shortest timeframes and hectic action. Swing traders choose larger volumes and less frequent trades. Which company facilitates your methods?

Only AvaTrade supports short strategies. The company supports hedging and allows the integration of EAs or Forex robots. Clients can automate trades and receive trading signals around the clock. However, neither of the companies supports VPS, so technical disruptions can affect your results.  

AvaTradeeToro
Scalping
Hedging
Expert Advisors (EAs)
Virtual Private Server
Direct Market Access
STP Broker
Market Maker
Min Trade0.01 Lot$25
Max TradeNone20% of equity
Min Deposit$100$200

Risk management

To keep their risks under control, clients of AvaTrade and eToro should use a range of risk management features and techniques. This is essential for any strategy. The opportunities differ. 

A trader who likes using EAs or specific strategies (for example, hedging or scalping)should choose AvaTrade, as the rival does not support these systems. Neither broker offers negative balance protection, but they have useful features that lower the risks: stop losses, limit orders, and price alerts.  You can also use secure funding methods.

AvaTradeeToro
Stop Losses
Limit Orders
One-Click Trading
Trailing Stops
Price Alerts
Signal Trading

Comparison of Funding Methods

Both brokers allow their clients to transfer funds through different systems. If the bank account is denominated in another currency, conversion to and from dollars is automatic. You can send money in any convenient way, and your financials will be protected. Depending on the method, you may need to wait to enter the stock exchange — processing times vary.

AvaTradeeToro
Credit Card
Bank Transfer
Standard Account
PayPal
Neteller
Skrill
Payment Processing Timedepends on the methoddepends on the method
Withdrawal Processing Timedepends on the methoddepends on the method

Fees

No comparison of AvaTrade vs eToro is complete without an overview of fees, which differ from spread rates. Regardless of the account types, eToro will charge you for inactivity. The deposit/withdrawal fees also differ, as collecting your funds via AvaTrade is free. On the upside, neither of the brokers has commissions on trades, no matter what currency pair you choose. 

AvaTradeeToro
Inactivity Fee
Commission
Deposit Fee
Withdrawal Fee
Featured InBest MT4 BrokersBest Social Trading Brokers

Detailed Info

Both AvaTrade and eToro allow their traders to contact them by phone and online. eToro offers a Live Chat feature on its website. Either broker offers around-the-clock support every weekday. The AvaTrade customer service supports more languages. 

AvaTradeeToro
Excluded CountriesBE, BR, NZ, US, KE, IN, GHIR, KP, BE, CA, JP, SY, TR, IL, SG, HK, NZ
Emailcustomer@avatrade.comsupport@etoro.com
Phone(44) (0) 800520042344-866-350-0881
Live Chat
Websitehttp://www.avatrade.comwww.etoro.com

Spreads

The spread is the difference between the Ask and Bid price. Tighter spreads mean the costs for the client are lower. AvaTrade offers variable spreads: for example, 1.0 pips for GBP/USD, and 1.7 pips for EUR/GBP. 

eToro has fixed spreads depending on the pair. While for GBP/USD they are twice as big (2.0 pips), they are lower for EUR/GBP (1.5 pips). This information is easy to find, as neither of the brokers is a scam. Consider the spreads for the other instruments in our table below:

AvaTradeeToro
Apple0.068
Facebook0.18
Alphabet0.227.0
Snapchat0.10.0024
BP0.40.0024
Tesco0.20.0024
Barclays0.40.0024
Lloyds0.0024
Last Updatehttp://www.avatrade.com/ on 01/07/2021www.etoro.com on 01/07/2021
CompanyAvaTrade’s spreads are not the tightest, but the broker offers plenty of useful tools like stop loss and hedging. It has been in business since 2006, which makes it one of the oldest providers. This broker based in Israel allows users to trade in different financial sectors, including hundreds of stocks.  
Popular comparisonsBest MT4 BrokersBest Social Trading Brokers

The Verdict: AvaTrade or eToro?

So, should you choose AvaTrade or eToro? No company can please everyone. As a trader, you can make your own verdict. Think about your goals, preferred strategies, and resources. How much would you like to start with? What markets do you want to engage in? 

  • Based on reliability, eToro has an advantage. 
  • AvaTrade boasts a broader selection of tradable instruments. 
  • AvaTrade’s spreads for popular currency pairs are also tighter, so clients can trade Majors at a lower cost.
  • eToro and AvaTrade offer demo access. You can explore their platforms free of charge, which is crucial for beginners. 

Before making a final decision, test both demo accounts and terminals. Both platforms are user-friendly, but their interface is very different. Choose an environment that feels the most convenient. 

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This post is also available in: Indonesia Português

No information, nor financial advice related to online trading is offered through contact.

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