Navigating the world of online trading can be daunting, especially when choosing between top contenders like eToro and XM. As someone who's treaded these waters, I understand the importance of a detailed, side-by-side comparison to find the brokerage that aligns perfectly with your trading aspirations.
If you're weighing your options between eToro and XM, this comparison will be an invaluable resource. We've diligently compiled the most up-to-date information to showcase the strengths and unique features of each platform. Take a look below to see how eToro and XM stack up against each other in various categories.
| eToro | XM | |
| 🏢 Founded | 2007 | 2009 |
| 👥 Users | 34,000,000+ | 10,000,000 |
| 🇺🇸 Accepts US Traders | ✔️ | ❌ |
| 📟 Demo Account | ✔️ | ✔️ |
| ☪️ Islamic Account | ✔️ | ✔️ |
| 💰 Minimum Deposit | $50-$200 (depends on your country) | $5 |
| 🖥️ Platforms | Web Platform, iOS App, Android App | MetaTrader 4 (PC, Mac, Multiterminal, WebTrader, iPhone, iPad, Android), MetaTrader 5 (PC, Mac, WebTrader iPhone, iPad, Android) |
| 🛍️ Markets | 5,000+ | 1,000+ |
| 📈 Market Types | Stocks, Commodities, Currencies, Indices, Crypto, ETFs | Stocks, Commodities, Currencies, Indices, Crypto |
| 💱 Spreads | Variable | Variable, Fixed |
| 💳 Deposit Methods | Credit/Debit Card, PayPal, Neteller, Skrill, Rapid Transfer, iDEAL, Klarna/Sofort Banking, Bank Transfer, Local Online Banking (Credit Cards and PayPal are not available for deposits for users under the FCA regulation) | Credit/Debit Card, Online Bank Transfer, Neteller, Skrill (MoneyBookers), WebMoney, SticPay |
| 🖥️ Demo Account Validity | Unlimited | Unlimited if active, 60 days if inactive |
| 🏛️ Regulation | FCA (UK), CySEC (Cyprus), ASIC (Australia), FinCEN (USA) | FSC (Belize), ASIC (Australia), CySEC (Cyprus) |
| 💁 Customer Support | Email, Live Chat | Phone, Email, Live Chat, LINE, WhatsApp |
| 👑 Loyalty Program | eToro Club | XM Loyalty Program |
| 🎓 Education | eToro Academy | XM Research, XM Learning Center |
51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
eToro offers two main types of accounts: retail and professional. The professional account is available through an elective process, which includes a qualification test. Furthermore, eToro boasts a tiered membership system known as the eToro Club. Membership tiers are determined by a client’s equity size, and each tier provides access to an array of exclusive benefits:
Please note that the eToro Club loyalty program is not available to all clients due to specific regulations, and may not support all platform languages.
XM provides a diverse range of account types, each tailored with specific trading conditions that include variations in contract size, leverage, spread, and commission. These accounts are designed to meet the needs of different trading strategies and preferences:
Remember, the right choice depends on your individual trading needs and preferences. This comparison aims to provide a clear overview to help you make an informed decision.
Demo accounts serve as an essential tool for both beginners and seasoned traders. They offer a risk-free environment to explore and understand the trading platform, as beginners can learn without the fear of losing real capital. For experienced traders, these accounts are invaluable for honing trading strategies and testing new approaches.
Both eToro and XM offer demo accounts with no time limit, meaning you can use them as long as your account remains active. This unlimited access provides a consistent platform for ongoing learning and strategy development.
Here's an important distinction:
XM's demo account comes preloaded with $100,000 in virtual funds. If these funds are depleted, you have the option to open up to five additional virtual accounts to continue using the demo feature. Although there's a cap on the number of new demo accounts, the generous amount of virtual funds allows for extensive practice and experimentation.
The unlimited use of eToro and XM's demo accounts offers a practical and extended learning curve for traders at all levels. The flexibility of XM's approach, despite the limit on the number of new accounts, still provides ample opportunity for thorough exploration and practice in the trading arena.
Signing up for an account with eToro is straightforward and user-friendly. Initially, you'll only need to provide a username, password, and email address.
What's convenient is eToro's integration with social media platforms. You have the option for a quick registration using your Facebook or Google account. This feature is particularly useful if you prefer a seamless link between your existing social media accounts and your new eToro trading account.
On the other hand, the registration process with XM is more comprehensive, which might seem a bit daunting for newcomers. From the get-go, XM asks for detailed information including your full name, country of residence, preferred language, phone number, email address, as well as your preferred trading platform and account type. Remember, this is just the initial stage of the registration process. You will need to complete further steps to verify your account, which involves providing additional personal details.
Here's an important aspect to consider:
Both eToro and XM, like all licensed and regulated brokerages, are required to collect extensive information from their clients. This is in compliance with financial regulations and is a standard practice in the industry. The purpose of these detailed requirements is to safeguard your account and ensure regulatory compliance. So, while the process may seem extensive, it's a necessary measure for your security and the integrity of your trading experience.
eToro's minimum deposit starts from $50 (depending on the user’s regions) and $100 for UK and US users.
Choosing the right trading platform is crucial for a seamless trading experience. eToro and XM offer different platforms, each catering to varied trader needs and preferences.
A note about asset availability
There is a distinction in asset availability between the two platforms offered by XM. Certain instruments or asset classes available on MT4 might not be accessible on the MT5 platform. It’s crucial for traders to be aware of these differences when choosing between MT4 and MT5, ensuring that the platform they select aligns with their trading needs and preferences.
The breadth of available markets a broker offers significantly influences your ability to diversify your investment portfolio. While many brokerages offer a range of 100 to 500 tradable assets, a wider selection provides more opportunities for exploring diverse trading options.
eToro stands out with its expansive array of over 5000+ tradable instruments. What's more, they are continuously expanding their offerings, allowing clients to explore a vast range of markets. This extensive selection is a key advantage for traders looking to diversify.
As of the latest update, XM boasts approximately 1000 assets. This marks a significant increase from their earlier portfolio, which included around 250 options. This growth in XM's asset base is a positive development for traders seeking variety in their investment choices.
In summary, both eToro and XM provide a commendable range of assets, each catering to the needs of traders looking for breadth and variety in their trading endeavors. This diversity is a critical factor in crafting a well-rounded and resilient trading portfolio.
Understanding the spread dynamics is crucial when trading with online brokers like eToro and XM. Both of these platforms offer variable spreads, which means the spread can fluctuate based on market volatility. As a result, assets with higher volatility may experience wider spreads compared to more stable ones.
eToro and XM's variable spreads adjust in real-time based on market conditions. This means traders need to be mindful of market volatility, as it can impact the cost of trades.
XM provides an additional choice of fixed spreads. This option offers a consistent spread regardless of market fluctuations. However, opting for fixed spreads involves an additional insurance premium, which serves as a cost for the stability it offers.
It's important for traders to evaluate their personal preferences and market conditions when deciding which type of spread aligns best with their trading objectives. Both eToro and XM offer these options to cater to the diverse needs of their clients.
Choosing a broker with a wide array of deposit methods is crucial for flexibility and convenience in managing your online trading account. Many traders initially focus on common methods like credit cards, but unforeseen issues with banks or changes in their policies towards transactions with online brokerage firms can highlight the importance of having diverse funding options.
eToro offers a comprehensive selection of payment methods, ensuring that traders have multiple ways to fund their accounts. The available options include:
It's crucial to note that the availability of these methods may vary depending on your country, subject to local regulations and policies.
XM also supports a variety of payment options, catering to the needs of a diverse trading clientele. Their supported methods include:
Having a range of deposit methods at your disposal is more than just a convenience; it's a necessity for ensuring uninterrupted trading activities. Both eToro and XM recognize this need and provide their clients with multiple options to suit different preferences and requirements.
When it comes to withdrawals, both eToro and XM stand out for their efficiency. They process withdrawal requests within just 1 working day, which is notably quicker than many other online brokerages that typically require 3 to 5 working days.
The swift one-day processing time for withdrawals at eToro and XM offers a significant advantage, especially for traders who need quick access to their funds.
However, there are important conditions to keep in mind:
In summary, while eToro and XM offer rapid processing of withdrawal requests, the total time to receive funds includes the processing time by your payment service provider. It's important for traders to understand and plan for these timeframes, especially when managing financial strategies and cash flow needs.
Customer support is a critical aspect of the user experience with online brokers. While both eToro and XM provide customer assistance, their methods of communication and support resources vary.
Apart from standard communication channels, eToro enhances its customer service experience with additional tools:
XM maintains a basic FAQ page, designed to address frequently asked questions. While not as extensive as eToro's Help Center, it serves as a quick reference for common inquiries and issues.
In summary, while both eToro and XM provide essential customer support through email and live chat, eToro offers a more diverse set of tools for customer assistance. These options cater to different user preferences, ensuring that clients can find help in a way that suits them best.
The regulatory status of a broker is a crucial factor in assessing its reliability and safety. Licensed brokers are subject to strict oversight and must adhere to high standards of operation, offering greater security for traders.
In terms of regulatory compliance, both eToro and XM are well-positioned, holding licenses from multiple respected financial authorities. This parity in regulatory oversight demonstrates their commitment to maintaining high standards of operation and trader security. It's a crucial aspect that provides peace of mind for traders, knowing their chosen broker adheres to stringent regulatory requirements.
In my journey of exploring the nuances of online trading platforms, I've observed that eToro and XM share many commonalities. Both are robust, multi-regulated entities, offering a variety of platform choices, supporting numerous payment methods, and impressively, processing withdrawals within a single business day.
However, the devil is in the details, and that's where the subtle yet significant differences come into play. My experience with eToro revealed its edge in offering a wider array of tradable assets, spanning diverse classes. This extensive selection not only enhances the trading experience but also opens up more opportunities for portfolio diversification. Another notable strength of eToro is its social trading feature, which I found to be a game-changer, offering insights and strategies from a community of traders – an invaluable tool, especially for those new to trading.
On the flip side, XM shines with its lower barrier to entry, thanks to its minimal deposit requirement. This feature is particularly appealing to newcomers in the trading arena or those cautious about high initial investments. Additionally, XM's commitment to trader education and resources is commendable. Their comprehensive educational materials provide a solid foundation for both novice and experienced traders, enriching the trading journey with valuable learning resources.
In conclusion
hile both platforms offer compelling features, eToro stands out to me. Its combination of a vast asset portfolio and the unique aspect of social trading presents a dynamic and engaging trading environment. It's this blend of variety, innovation, and community that positions eToro a notch above, in my perspective.
eToro is a multi-asset platform which offers both investing in stocks, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
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