User-Friendly Platform Educational Resources Social Trading Features
Wikitoro author Nick Zelver Written by Nick Zelver
Wikitoro fact checker Mike Druttman Fact checked by Mike Druttman
Updated Feb, 2024

The Foundation

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.

Side-by-side comparison of eToro vs. XM
 eToroXM
🏒 Founded20072009
πŸ‘₯ Users34,000,000+10,000,000
πŸ‡ΊπŸ‡Έ Accepts US Tradersβœ”οΈβŒ
πŸ“Ÿ Demo Accountβœ”οΈβœ”οΈ
β˜ͺ️ Islamic Accountβœ”οΈβœ”οΈ
πŸ’° Minimum Deposit$10-$200 (depends on your country)$5
πŸ–₯️ PlatformsWeb Platform, iOS App, Android AppMetaTrader 4 (PC, Mac, Multiterminal, WebTrader, iPhone, iPad, Android), MetaTrader 5 (PC, Mac, WebTrader iPhone, iPad, Android)
πŸ›οΈ Markets5,000+1,000+
πŸ“ˆ Market TypesStocks, Commodities, Currencies, Indices, Crypto, ETFsStocks, Commodities, Currencies, Indices, Crypto
πŸ’± SpreadsVariableVariable, Fixed
πŸ’³ Deposit MethodsCredit/Debit Card, PayPal, Neteller, Skrill, Rapid Transfer, iDEAL, Klarna/Sofort Banking, Bank Transfer, Local Online BankingCredit/Debit Card, Online Bank Transfer, Neteller, Skrill (MoneyBookers), WebMoney, SticPay
πŸ–₯️ Demo Account ValidityUnlimitedUnlimited if active, 60 days if inactive
πŸ›οΈ RegulationFCA (UK), CySEC (Cyprus), ASIC (Australia), FinCEN (USA)FSC (Belize), ASIC (Australia), CySEC (Cyprus)
πŸ’ Customer SupportEmail, Live ChatPhone, Email, Live Chat, LINE, WhatsApp
πŸ‘‘ Loyalty ProgrameToro ClubXM Loyalty Program
πŸŽ“ EducationeToro AcademyXM Research, XM Learning Center

 

 

Explore eToro!

76% 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.

 

 

Account Types

eToro's Account Offerings

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:

  • Silver
  • Gold
  • Platinum
  • Platinum+
  • Diamond

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's Diversity of Accounts

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:

  • Standard
  • Micro
  • XM Ultra Low Standard
  • XM Ultra Low Micro
  • Shares Account

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 Account Features

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.

 

Registration Process

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.

 

Minimum Deposit Requirements

When it comes to minimum deposit requirements, eToro and XM offer different thresholds to suit various client needs.

  • eToro: The minimum deposit amount on eToro varies based on the client's country of residence, ranging from $50 to $1,000. For clients in the US, UK, and several European countries (Austria, Germany, Ireland, Italy, Netherlands, Norway, Spain, Sweden, and Switzerland), the initial deposit can be as low as $50. However, for residents of other countries, the minimum deposit required is either $200 or $1,000, depending on the specific regulations applicable to each country.
  • XM: XM sets a very accessible entry point for new clients, with a minimum deposit as low as $5. While this low amount allows almost anyone to open an account, it's important to consider the practicality of trading with such a small capital. A more realistic starting capital for meaningful trading activities would be in the range of $100 to $200. This amount strikes a balance between accessibility for new traders and the potential for effective trading strategies.

Both eToro and XM cater to a wide range of traders, from those making their first foray into the financial markets to seasoned investors looking for a robust trading platform. These minimum deposit requirements reflect their commitment to inclusivity and accessibility in the world of online trading.

 

Platforms Overview

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.

eToro's Web Based Platform and App

  • Web-based Platform: eToro’s primary platform is accessible directly through any standard web browser like Chrome, Firefox, Edge, or Safari. This ease of access, without the need for downloads or installations, makes it convenient for trading on both computers and smartphones. Simply visit www.etoro.com to start trading on this user-friendly interface.
  • Mobile App: For those who prefer trading on the go, eToro offers a mobile app optimized for touchscreen devices, compatible with both Android and iOS. This app brings the full functionality of the web platform to your smartphone or tablet, ensuring you can trade anytime, anywhere.

XM's MT4 and MT5 Platforms

  • MT4 (MetaTrader 4): XM provides the widely popular MT4 platform, available for PC, Mac, as a MultiTerminal version, WebTrader, and mobile versions for iPhone, iPad, and Android devices. MT4 is known for its robustness and versatility, catering to a wide range of trading activities.
  • MT5 (MetaTrader 5): Alongside MT4, XM also offers MT5, which can be used on PC, Mac, WebTrader, and mobile devices (iPhone, iPad, Android). MT5 is an advanced version offering additional features and tools for traders.

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.

 

Asset Variety and Diversification

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's Asset Range

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.

XM's Asset Portfolio

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.

Benefits of a Broad Asset Selection

  • Portfolio Diversification: A broker that offers a large variety of assets provides you with more opportunities to spread your investments across different markets. This diversification is crucial in managing risk and maximizing potential returns.
  • Flexibility in Trading: With access to a wide range of assets, you're not limited to just a few stocks or currency pairs. This flexibility allows you to take advantage of different market conditions and trends.
  • Control Over Investments: A diverse asset portfolio empowers you to make more informed decisions. You can strategically place Buy and Sell orders across various markets, tailoring your investment approach to your personal goals and market insights.

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.

 

Spreads Comparison

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.

Variable Spreads

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.

Fixed Spreads Option with XM

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.

Choosing Between Fixed and Variable Spreads

  • Advantages and Disadvantages: Both fixed and variable spreads have their own sets of pros and cons. Fixed spreads provide predictability and can be advantageous in volatile markets. On the other hand, variable spreads can be lower during times of market stability, potentially reducing trading costs.
  • Risk Appetite and Trading Style: Your choice between fixed and variable spreads should align with your individual risk tolerance and trading strategy. Traders who prefer stability and can manage the additional cost may opt for fixed spreads. Conversely, those comfortable with fluctuating market conditions might find variable spreads more suitable.

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.

 

Deposit Options

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's Payment Gateways

eToro offers a comprehensive selection of payment methods, ensuring that traders have multiple ways to fund their accounts. The available options include:

  • Credit/Debit Cards
  • PayPal
  • Neteller
  • Skrill
  • Rapid Transfer
  • iDEAL
  • Klarna/Sofort Banking
  • Bank Transfer
  • Local Online Banking

It's crucial to note that the availability of these methods may vary depending on your country, subject to local regulations and policies.

XM's Deposit Options

XM also supports a variety of payment options, catering to the needs of a diverse trading clientele. Their supported methods include:

  • Credit and Debit Cards
  • Online Bank Transfer
  • Neteller
  • Skrill (MoneyBookers)
  • WebMoney
  • SticPay

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.

 

Withdrawal Efficiency

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.

Rapid Processing Time

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:

  • Account Verification: This expedited withdrawal time is contingent upon having a fully verified account. It's essential that you have submitted all necessary documents and met all requirements before initiating any withdrawals.
  • Understanding the Process: It's crucial to differentiate between withdrawal processing time and the time it takes for the funds to be reflected in your payment method. The former refers to the broker's internal processing duration, while the latter depends on the efficiency of your payment service provider.
  • Transfer Duration: After the withdrawal request is processed by eToro or XM, it generally takes about 3 to 8 business days for the funds to appear in your account. This duration is dependent on the speed at which your payment provider processes these transactions.

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 Options

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.

Communication Channels

  • Both eToro and XM offer support through email and live chat, providing direct and timely responses to queries.
  • Phone support is not available with these brokers, a trend that is becoming more common as online methods are increasingly preferred by users for their convenience and efficiency.

eToro's Additional Resources

Apart from standard communication channels, eToro enhances its customer service experience with additional tools:

  • Ticketing System: This allows for a more organized and trackable way of handling customer inquiries and issues.
  • Help Center: eToro's Help Center is a comprehensive resource, offering a wealth of information that can answer a wide range of questions and provide guidance for users. This self-help option can be particularly useful for resolving common issues and queries.

XM's Support Structure

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.

 

Regulatory Compliance

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.

eToro's Licenses

  • Cyprus Securities & Exchange Commission (CySEC): eToro (Europe) Ltd. is licensed by CySEC, with company registration # HE20058. This regulatory body ensures eToro's compliance with European financial regulations.
  • Financial Conduct Authority (FCA): eToro (UK) Ltd. is authorized and regulated by the FCA, with company registration # 7973792, ensuring adherence to stringent UK financial standards.
  • Australian Securities and Investments Commission (ASIC): eToro AUS Capital Pty Ltd holds an Australian Financial Services Licence (AFSL) 491139 issued by ASIC, confirming its compliance with Australian financial regulations.

XM's Licenses

  • International Financial Services Commission (IFSC) - Belize: XM Global Ltd is regulated by the IFSC, a regulator that provides oversight in the international financial market.
  • ASIC - Australia: Trading Point of Financial Instruments Pty Ltd (XMAU), part of XM, is licensed by ASIC, ensuring compliance with Australian financial rules.
  • Cyprus Securities & Exchange Commission (CySEC): Trading Point of Financial Instruments (XMCY) is regulated by CySEC, aligning with European financial regulatory standards.

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.

 

The Final Verdict

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 and cryptoassets, 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. 76% 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.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

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.

Wikitoro author Nick Zelver About Nick Zelver

Nick is the Senior Content Editor at Wikitoro.org with over 15 years in online marketing. A graduate of Toronto Metropolitan University, he has strategized for More Sales Inc. and led online sales at GlassesUSA.com. His journey through digital marketing, e-commerce, and account management has equipped him with a unique perspective. Every article he pens is infused with his real-world experiences, aiming to guide and inform readers.

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