eToro Vs XM In 2024 [Fees, Safety, Investment Options & More]
Welcome to our comprehensive guide on eToro vs XM, where we will help you find the best broker for your trading needs in 2023. With numerous online brokers offering different features and benefits, choosing the right one can be a daunting task.
Both eToro and XM are well-established brokers in the trading industry, each with its own unique set of features, advantages, and disadvantages.
In this blog, we will provide an in-depth comparison of eToro and XM, highlighting their key differences, strengths, and weaknesses to help you make an informed decision on which broker to choose. So, whether you are a beginner or an experienced trader, read on to determine which broker is the right fit for you.
eToro is a social trading and multi-asset brokerage firm that allows users to trade and invest in stocks, cryptocurrencies, forex, and other assets. The company was founded in 2007 and had offices in Australia, Israel, Cyprus, and the United Kingdom.
eToro's social trading platform, which allows users to copy and follow the trades of other successful traders, is a distinguishing feature. This feature is designed to help novice traders learn from more experienced traders and profit from their trades.
In regards, eToro offers a variety of educational tools and resources to help users improve their trading skills and stay abreast of market trends. The company is governed by the Financial Conduct Authority (FCA) in the United Kingdom and the Australian Securities and Investments Commission (ASIC).
XM is a forex and CFD (Contracts for Difference) broker that provides a trading platform for financial instruments such as currency pairs, commodities, stocks, and indices. In addition to its headquarters in Cyprus, the company has offices in the United Kingdom, Australia, and Belize. It was founded in 2009.
XM provides a variety of trading account types, including demo accounts for novice traders to hone their trading strategies and real accounts for experienced traders with variable trading conditions and leverage levels.
The platform also offers educational tools, such as webinars, tutorials, and market analysis, to help users improve their trading skills and make more informed trading decisions.
XM is distinguished by its stringent regulatory oversight. The company is regulated by a variety of financial authorities, including the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) in the United Kingdom, and the Australian Securities and Investments Commission (ASIC). This provides an additional layer of protection and security for user funds.
eToro Vs XM: Investment Options
In terms of investment options, both eToro and XM offer a range of products for traders to choose from. Both brokers offer forex trading options, including spot and CFDs.
They also provide social trading or copy trading, allowing traders to copy the trades of successful traders. However, regarding the number of forex pairs available, XM has a slightly larger offering with 57 pairs, while eToro has 49.
eToro stands out in cryptocurrency trading, offering physical cryptocurrency trading and cryptocurrency CFDs, while XM only offers cryptocurrency CFDs. eToro provides a much larger selection of tradeable symbols, with 3,458 options, compared to XM's 1,352.
Both brokers also offer non-CFD stock trading, including U.S. and international stocks. In summary, while both eToro and XM provide a good selection of investment options, eToro has an edge in cryptocurrency trading and a much larger selection of tradeable symbols, while XM has a slightly larger offering of forex pairs.
eToro Vs XM: Cost
Regarding the cost of trading, there are several factors to consider. eToro and XM both offer competitive pricing for their trading services.
Regarding the average spread for standard accounts, eToro has a slightly lower spread on EUR/USD, at 1 pip compared to XM's 1.6 pips. However, when it comes to all-in costs for active traders, XM offers a lower cost at 0.8 pips, while eToro's all-in cost is unavailable.
eToro provides discounts for active traders or VIPs, whereas XM does not offer such discounts. eToro operates as an agency broker, meaning that it executes trades on behalf of its clients, while XM operates as a market maker, which means it creates a market for its clients' trades.
Overall, both eToro and XM offer competitive pricing, and the choice between the two may come down to factors such as the type of trader you are and the trading strategy you use. It is essential to compare costs and other features when selecting a broker to ensure you find the best fit for your needs.
eToro Vs XM: Funding
eToro and XM offer various funding options to their clients, but there is a difference in their minimum deposit requirements. eToro has a minimum deposit range of $10-$10,000, whereas XM requires a minimum deposit of only $5. However, eToro has an advantage as it allows deposits and withdrawals through PayPal, which XM lacks.
Both brokers also support Skrill and bank wire transfers for the deposit and withdrawal of funds. Both eToro and XM accept Visa/Mastercard for credit and debit card deposits.
The choice between eToro and XM may come down to personal preferences and factors such as the minimum deposit requirement and payment methods available.
eToro Vs XM: Trading Platform
eToro and XM offer trading platforms that are distinct from one another. eToro's proprietary platform is a social trading platform that allows users to interact with other traders and copies their trades. In contrast, XM does not provide a proprietary platform.
Windows users have access to a web-based platform and a desktop platform. XM also supports the well-known MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, renowned for their advanced charting capabilities, order types, and algorithmic trading capabilities. Neither broker provides cTrader nor DupliTrade as alternative trading platforms.
eToro Vs XM: Mobile Experience
EToro and XM offer a superior mobile trading experience on Android and iOS devices. Both brokers' mobile applications permit account management, market monitoring, and trade execution on the go.
Moreover, both brokers provide mobile alerts with basic fields and the ability to create watchlists for monitoring preferred instruments.
Moreover, when it comes to mobile charting, a number of significant differences exist. With only five available technical indicators or studies, eToro offers a more streamlined mobile charting experience.
XM's mobile charting, on the other hand, is significantly more comprehensive, offering up to 30 technical analysis indicators or studies. Likewise, XM's mobile charting allows users to draw trendlines directly on the chart, enabling more advanced technical analysis.
Finally, both eToro and XM provide adequate mobile trading experiences, but traders who place a premium on advanced charting and analysis on mobile devices may find XM to be the superior option.
eToro Vs XM: Research Facility
EToro and XM provide various tools for traders to keep up with the latest market trends. Both brokers provide daily market commentary and access to Trading Central (Recognia), a leading provider of technical analysis, to keep traders informed.
Moreover, both brokers offer social sentiment analysis for currency pairs, allowing traders to gauge the sentiments of other traders regarding particular assets.
In this category, however, there are differences between the two brokers. XM has a distinct advantage over eToro regarding forex news, as they offer access to top-tier sources while eToro does not. eToro, on the other hand, does not provide Autochartist, a popular technical analysis tool offered by XM.
Both brokers provide ample research facilities, but traders can select the broker that provides the specific instruments they require to inform their trading decisions.
eToro Vs XM: Forex Pairs
Both eToro and XM offer a vast selection of currency pairs for trading. Both offer well-known currency pairs, including GBP/USD, USD/JPY, EUR/USD, USD/CHF, USD/CAD, NZD/USD, and AUD/USD.
Both brokers are suitable for traders interested in trading major currency pairs. EToro and XM offer exotic currency pairs, which may appeal to traders interested in trading uncommon currency pairs.
Notable is the fact that eToro offers 49 forex pairs while XM offers 57. Despite the fact that the difference may not seem significant, traders interested in particular currency pairs should investigate which brokers offer them.
Pros And Cons Of eToro
eToro has numerous benefits for traders, including its social trading platform, extensive research facilities, and copy-trading features. On the other hand, there are some drawbacks to consider as well.
- eToro lets beginners learn from successful traders by copying their trading strategies.
- Traders can monitor and execute trades on the go with the eToro mobile app's advanced trading features.
- Trading stocks, commodities, currencies, and indices on eToro makes portfolio diversification easy.
- Some traders can't use eToro because it's not available everywhere.
- Cryptocurrency trading pairs are unavailable on eToro. This restricts cryptocurrencies-only traders.
Pros And Cons Of XM
XM is a well-established broker with attractive features and access to top-tier research. Still, traders should weigh the advantages against the drawbacks of XM before deciding if it's right for them.
- For low-cost stock CFDs and withdrawals, XM is a good choice.
- XM accounts are easy to open and verify in a few hours.
- XM offers webinars, tutorials, and market analysis to help traders learn.
- XM's product portfolio may deter traders looking to trade many financial instruments.
- XM has low stock CFD and withdrawal fees but average forex and stock index CFD fees, making them less competitive than other brokers.
- Non-EU client investor protection may concern regulated traders.
Who Should Use eToro?
eToro is suitable for novice traders and those interested in social trading. With eToro's low minimum deposit requirement, novice traders can test the platform with a small initial investment.
eToro provides a proprietary trading platform and social trading functions that enable users to copy the trades of experienced traders. eToro provides access to a limited number of forex pairs, allowing novices to concentrate on a smaller selection of assets.
But even so, advanced traders who require a wider selection of forex pairs and access to advanced charting tools like MT4 and MT5 may find eToro wanting. eToro's spreads are wider than some of its competitors, which may concern experienced traders who are more cost-conscious.
Who Should Use XM?
XM is a good option for traders who value a variety of trading platforms, including MetaTrader 4 and MetaTrader 5, as well as advanced charting tools with 30 indicators/studies and the ability to draw mobile trend lines.
XM is also a good choice for traders who value low minimum deposits, which begin at just $5, and a wide variety of forex pairs to trade, including exotic pairs.
In addition, XM provides various research tools, including Forex news, Autochartist, Trading Central, and Social Sentiment, which can be helpful for traders seeking market insights.
Overall, XM may be a suitable option for traders who place a premium on various trading tools, low minimum deposit requirements, and a vast array of forex pairs.
FAQ About eToro And XM
What are the differences between eToro and XM?
eToro and XM differ in trading fees, funding options, research tools, and platforms. XM has more financial instruments than eToro's social trading platform.
Which is better, eToro or XM?
Preferences and priorities determine the answer. XM is best for traders who need a wide range of financial instruments and advanced research tools, while eToro is best for social traders.
What are the pros and cons of using eToro or XM?
The ability to copy other traders and eToro's user-friendly social trading platform are pros. Cons include higher trading fees and limited research tools. Low trading fees and advanced research tools are XM's pros, but its platform is less user-friendly.
How do eToro and XM compare in terms of fees?
eToro offers VIP and active trader discounts, but XM has lower trading fees. eToro has a more straightforward account funding process than XM.
How does eToro compare to XM in terms of the trading platform?
XM offers MetaTrader 4 and 5, while eToro has its own social trading platform. XM's charting and analysis tools are more advanced, while eToro's are simpler.
What are the similarities and differences between eToro and XM?
Forex, stocks, and commodities are available from eToro and XM. Unlike XM, eToro focuses on social trading and has limited research tools.
Is eToro or XM better for beginners?
Beginners may find XM's wide range of financial instruments and advanced research tools overwhelming, but eToro's social trading platform is easy to use.
In conclusion, both eToro and XM are reputable and trustworthy brokers that provide traders with distinctive features and benefits. While eToro may be more suitable for social trading and novices, XM may be a better option for experienced traders who prefer the MetaTrader platform and advanced research tools.
The two choices will ultimately depend on personal preferences and trading styles. By carefully considering the information presented in this guide, traders in 2023 can make an informed decision and choose the best broker for their needs.