More and more brokers are mushrooming each day, but not many are as popular as eToro and XTB. Both eToro and XTB are online financial intermediaries for forex and CFDs. However, they possess a range of distinctive features that set them apart from each other.
Commissions, regulations, and assets are among these dissimilarities, but the primary one is the social trading function provided by eToro, allowing you to replicate the portfolios of master traders. Read on to find out which broker, eToro or XTB, is best for you.
eToro vs XTB: what are they and how do they work?
How does eToro work?
eToro is a broker of Israeli origin established in 2007. Two years later, it introduced an online investment platform utilising Webtrader technology (without the need for downloading), although it was not until 2010 that its social trading platform was unveiled, setting it apart from the competition.
Initially, the founders aimed to enhance accessibility to online trading. However, when they developed the pioneering tool known as OpenBook, enabling copy trading (replicating the operations of other traders), it sparked a revolution in the realm of short-term financial investments.
Since that time, eToro has gained recognition as one of the leading brokers in social trading.
In 2015, they decided to merge the functionalities of Webtrader and OpenBook into a single platform. Hence, their current investment platform came into existence, which we will discuss further.
In 2019, they expanded their product portfolio to include cryptocurrencies, followed by the launch of the eToro Money investment service in 2021. In 2022, they further expanded their offerings to encompass US stocks, fractional stocks, and commission-free ETFs. Currently, eToro is a broker utilised by millions of users and maintains a presence in over 140 countries.
How does XTB work?
XTB boasts significantly more experience compared to eToro. It was established in 2002 as a Polish company and has accumulated over 20 years of expertise.
XTB stands as one of the largest and most popular brokers worldwide. It is also highly renowned and maintains offices in 13 countries, including the United Kingdom.
Initially focused on Europe, it subsequently expanded its reach to establish a presence in Latin American countries. In 2016, it was listed on the Warsaw Stock Exchange (Polish stock exchange).
Moreover, as the years passed and with the accumulation of experience, XTB diversified its range of available products.
Throughout its trajectory, XTB has garnered various industry awards and accolades.
Main features of XTB vs eToro
Comparative summary: eToro vs XTB
|Regulation||Financial Conduct Authority (FCA) in the United Kingdom||Financial Conduct Authority (FCA) in the United Kingdom|
|Financial assets||Real stocks, ETFs and crypto|
CFDs on many assets
|Account Types||2 (Standard and demo)||2 (Standard, demo)|
|Spreads||From 1pip (up to 150pips)||From 0.5 pips|
Which broker is more secure and reliable, eToro or XTB?
Both eToro and XTB are regulated brokers. Nevertheless, there are distinctions between them that are worth noting.
It is regulated by esteemed authorities including the Financial Conduct Authority (FCA) in the United Kingdom, the Cyprus Securities and Exchange Commission (CySEC), and the Australian Securities and Investments Commission (ASIC). These regulatory bodies ensure that eToro operates in compliance with established standards and provides a secure trading environment for its users.
Is eToro reliable?
Indeed, eToro is appropriately regulated in the markets where it conducts its operations, although XTB offers slightly stronger guarantees, partially due to being a listed company. Yet, some extra security measures offered by eToro include segregation of funds and negative balance protection.
XTB, with its headquarters in Poland, is regulated by the Polish Financial Supervision Authority.
Furthermore, it is listed in the registry of the National Securities Market Commission (CNMV) as a company providing services within the European Economic Area.
Moreover, XTB is regulated by multiple authorities depending on the specific geographical regions where it operates as a financial intermediary. This includes regulation by the Financial Conduct Authority (FCA) when conducting operations in the United Kingdom under the name XTB Limited.
Is XTB reliable?
Client funds are kept separate from the broker’s assets, and there are safeguards in place to protect against negative balances. This means that even when using leveraged products, customers cannot incur a negative balance or owe money to the broker.
In addition, XTB is covered by the FSCS, which protects up to £85,000 in clients’ funds.
eToro vs XTB: products and markets
Both eToro and XTB provide a wide selection of products and enable access to diverse markets. Traders using either platform can participate in trading activities across major markets in various regions, utilising comparable tools and products.
However, a notable differentiating factor between the two brokers is eToro’s exclusive offering of social trading, along with the ability to buy and sell real stocks, crypto, and ETFs.
Products and markets available with eToro
In addition to the possibility of copying other traders, eToro provides access to many markets, as outlined below.
|Instruments and Markets eToro|
|Type of instrument||Assets|
|Stocks||Over 2,700 stocks from more than 17 different markets|
|ETFs||+300 listed funds|
|Forex||+50 currency pairs|
|Indices||+20 global indices|
|CopyTrading||Possibility to copy the portfolio and operations of other traders|
|SmartPorfolios||Thematic, ready-made portfolios|
eToro also offers the option of trading without leverage (real assets). This applies to stocks, cryptocurrencies, and ETFs. This feature provides flexibility for traders who prefer to trade without leverage and want to have direct ownership of the assets they are trading.
One important aspect to note is that on the eToro platform, the assets available for trading cannot be transferred outside of the platform. They can only be bought and sold within the eToro ecosystem. As a result, users do not have voting rights or receive any type of certificate of ownership for these assets. However, users are entitled to receive dividends associated with the assets they hold on the platform.
Products and markets available with XTB
XTB is mainly a CFD broker:
|Instruments and markets XTB|
|Type of instrument (via CFDs)||Available offer|
|Stocks||+1,900 global stocks|
|Forex||+55 currency pairs|
Which broker offers better account types, eToro or XTB?
When it comes to account types, both eToro and XTB offer a single real account type for retail traders, along with a demo account for practice and testing purposes. They have chosen to keep their account offerings simple and straightforward.
However, it’s worth mentioning that XTB and eToro also provide the option for eligible individuals to apply for a professional account if they meet the specific requirements set by the brokers. Swap-free accounts are also available (i.e., Islamic accounts with no swap fees).
With regards to eToro’s account, it grants users access to the full range of financial instruments available on the platform. By opening an account, traders also become members of the eToro community and can benefit from its social trading network.
It’s important to note that for European customers, eToro adheres to the regulations set by the European Securities and Markets Authority (ESMA). As per these regulations, the maximum leverage allowed is 1:30 and applies only to major currency pairs. The minimum trade size is determined based on the specific financial instrument being traded, starting with $10 for stocks.
The eToro account is denominated in US dollars, so all deposits and withdrawals made in a currency other than US dollars must be converted to US dollars and are subject to a variable conversion fee.
In addition to the trading account, eToro allows you to join the eToro Club and enjoy some exclusive benefits depending on the membership grade.
The broker also has a demo account for those who want to familiarise themselves with its features and tools before depositing real cash.
The XTB standard account boasts 0% commissions and no minimum deposit.
Just like with eToro, the spreads vary depending on which asset you trade and the market. Also, the maximum leverage allowed in the UK is 1:30, but this only applied to forex.
eToro and XTB demo accounts
Both eToro and XTB provide their customers with a demo account to practice trading and gain experience in the markets. The demo account allows traders to trade with virtual capital, enabling them to test the broker’s trading conditions, familiarise themselves with the trading platform, and experiment with different strategies.
In the case of eToro, the demo account is offered for an unlimited time, allowing traders to continue using it as long as they need to practice and refine their trading skills.
On the other hand, XTB’s demo account is available for a period of 4 weeks, or unlimited if you open a real account as well. During this time, traders can utilise the account to learn and explore the features of the trading platform, as well as test their trading strategies in a risk-free environment.
The available balance of these demo accounts is as follows:
- eToro: $100,000
- XTB: £100,000
XTB vs eToro costs
Next, let’s see which broker is more affordable, eToro or XTB.
XTB charges 0% commissions on all trades. This applies no matter if you decide to trade stocks, indices, or other assets. However, there are certain limits on trading amounts – for instance, you need to invest at least £100 in UK stocks. Comparatively, eToro allows minimum trades of only $10.
Also, like most CFD brokers, XTB will charge a swap fee if you keep your derivative positions overnight. These are variable and depend on your chosen assets and market conditions.
Finally, the main source of income is the spread – the difference between the buy and sell price as shown on the trading platform, and is also variable, depending on your chosen asset and specific characteristics, such as liquidity or volatility.
XTB also includes an inactivity fee of £10 if you are inactive for more than 12 months.
Among the advantages of eToro is that trades are commission-free.
You will have to cover spreads and swap fees when investing through CFDs or when you want to take short positions in an asset. There is also an inactivity fee of $10 after 12 months of inactivity. However, this fee will only be charged if there are funds in the account, since, based on the current regulations, a negative balance is not allowed.
In addition, eToro will also charge $5 as a withdrawal fee and a currency conversion fee as its only base currency is USD.
eToro vs XTB: minimum deposit and account opening
What are the conditions to start trading with these brokers? Is it easy to open an account with them? We are facing two brokers which operate online and with whom opening an account is very easy. Let’s have a closer look.
Open eToro account in 3 steps
The process for opening an account is simple and entirely online:
- Click to register.
- Fill in the online form with your personal details, such as password and email address.
- Validate your account by uploading your ID and proof of address (as per current KYC regulations).
Minimum deposit eToro
For UK citizens, the requirements to open an account with eToro are minimal, requiring only an initial deposit of $50 dollars. You can make the deposit by credit or debit card, bank transfer (min. $500) or using electronic payment methods such as PayPal.
Open XTB account in 3 steps
The account opening process for XTB is similar to that of eToro and generally follows the same steps as when contracting the services of an online broker. It is conducted entirely online and is straightforward, with the broker typically guiding you through each step.
Here is the process you need to follow after accessing the XTB website or downloading its mobile application:
- Enter your email address and country of residence and fill in the personal data.
- Select the trading platform and the base currency of the account.
- Activate your account by verifying your identity and address.
Minimum deposit XTB
There is no minimum deposit when opening an account with XTB.
eToro trading platform
The eToro trading platform is specifically designed to grant access to the community and social trading network provided by this broker. In addition to the standard digital operational features such as position management and access to trading history, it boasts an appealing design and functions tailored for effective, streamlined trading. It offers financial asset statistics, news, and insights from other traders within the eToro community.
You can access the eToro application via:
|Web platform (online):||✅|
|eToro Mobile App:||✅|
Customers have the option to download the mobile application for their devices. Based on the reviews observed on the Google Play Store, it is described as a “user-friendly and intuitive” app.
XTB trading platform
The trading platform is called xStation 5 and is designed exclusively for XTB customers.
The platform offers all the essential features required for conducting effective trades, including interactive charts, a comprehensive range of technical indicators, search functions, various order types, and more.
One of the noteworthy functions available in XTB’s xStation is the calculator, which proves highly useful for performing margin, risk, and other money management calculations. Additionally, the platform includes alerts and notifications to keep users informed.
xStation from XTB is a user-friendly and customisable tool available via:
|Web platform (online):||✅|
|eToro Mobile App:||✅|
Deposits and withdrawals: XTB vs eToro
Deposit and withdrawal policies hold significant importance when evaluating an online broker, so here are more details about XTB versus eToro payment methods and requirements.
XTB: deposits and withdrawals
In the case of XTB, it has a less stringent deposit and withdrawal policy, starting with the fact that there is no minimum deposit requirement to open an account with this broker:
|Withdrawal fee (less than £50)||£30|
|Cash withdrawal fee (more than £50)||£0|
|Account in GBP||Yes|
The trading account can be opened in GBP, so you don’t have to cover any currency conversion charge.
The payment methods accepted by XTB are varied, including:
- Bank transfer
- Credit or debit card
eToro: deposits and withdrawals
On the other hand, it is true that eToro’s policy regarding deposits and withdrawals is relatively less flexible. Please refer to the following table for more details:
|Withdrawal fee (minimum $30)||$5|
|Account in GBP||No|
In addition, it’s worth noting that eToro operates with USD, and traders need to consider the exchange rate fee if they deposit funds in a currency other than the US dollar. This fee varies depending on the chosen payment method for depositing the funds
Cash deposits and withdrawals can be made via multiple methods, including:
- Credit or debit card
- Bank transfer
Withdrawals are typically processed through the same payment method and to the same bank account used for the deposit, following the common practice in this industry. However, the available withdrawal methods are limited to credit card, PayPal, or bank transfer.
Customer service: eToro vs XTB
Both XTB and eToro offer access to multichannel customer service, but there are differences between them.
XTB customer service
You can contact XTB via online chat, phone, and email. The service is fast and works well. As soon as the trader opens an account (even if it is a free demo account available for 4 weeks), XTB offers a 24-hour service from Sunday to Friday.
- Contact phone: ✅
- Email: ✅
- Live chat: ✅
XTB additionally provides a help section, and notably, an engaging training and education section offering multiple hours of online training, weekly market analysis, and lessons catering to all types of profiles, including both expert traders and beginners. This is complemented by webinars and training sessions.
eToro customer service
The eToro customer service is not available via phone, but there are still two methods of contacting the friendly and knowledgeable team:.
These are the contact channels:
- Contact phone: ❌
- Email: ✅
- Live chat: ✅
In addition, XTB provides a help centre and a dedicated training area that includes helpful articles and webinars.
eToro vs XTB: user reviews
User opinions are another crucial element to consider before making a decision. What do investors think of eToro and XTB? Users express satisfaction with the platforms. Both brokers have good ratings on Trustpilot, although eToro tends to have higher ratings and a larger number of reviews.
|eToro Reviews on Trustpilot||XTB Reviews on Trustpilot|
In this sense, eToro is the clear winner with an average rating of 4.4 stars and over 18,000 reviews, while XTB has to settle for 3.8 for a total of over 700 reviews.
This trend is also observed on Google Play, where the investment platform of XTB garners positive reviews from users worldwide. XTB receives a higher rating on Google Play compared to its rating on Trustpilot, as it includes feedback from users globally.
|eToro Reviews on|
|XTB Reviews on Google Play|
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Summary: eToro vs XTB, which broker is better?
Throughout this article, we have explored the differences between eToro and XTB, including their most popular features, strengths, and areas for improvement. Both platforms provide the opportunity to trade CFDs, and eToro also offers access to real stocks, ETFs, and crypto.
While eToro primarily functions as a CFD broker, it stands out for its large community and advanced social trading network. Notably, it stands as one of the best crypto brokers in the UK, but also as one of the best copytrading brokers.
XTB offers competitive fees, with the potential to reach 0% for certain instruments, similar to the best commission-free brokers. Furthermore, its deposit and withdrawal conditions are more flexible.
Choosing between eToro and XTB largely depends on the needs, objectives, and preferences of the individual trader. Both brokers are regulated, and provide the necessary security guarantees mandated by regulations. Furthermore, they offer competitive offerings within their respective areas of expertise.
Pros and cons of XTB vs eToro
Finally, here is a summary of XTB’s and eToro’s pros and cons:
|Strong points||✅Social trading (copy trading)|
✅Access to a multitude of markets and products
✅GBP as a base currency
✅No minimum investment.
|Weak points||❌Only allows trading in dollars|
❌Bank transfer minimum of 500$.
❌Trading platform lacks advanced analysis tools
|❌ Mid-range spreads|
In conclusion, determining which broker is better between eToro and XTB depends on individual preferences and the specific needs of each investor. It’s important to assess your own requirements and investment style before making a decision. We would be interested to hear your preference in the comments section.
Can I trade cryptocurrencies on both XTB and eToro?
No, you can only buy and sell cryptocurrencies only via eToro. Derivatives (like CFDs) on crypto are not available in the UK.
Are there any differences in the minimum deposit requirements between XTB and eToro?
Yes, there are differences. XTB does not require a minimum deposit to open an account, providing flexibility for traders. On the other hand, eToro typically requires a minimum deposit of $50.
Can I engage in social trading on both XTB and eToro?
eToro is particularly known for its advanced social trading network, allowing users to connect with other traders, follow their strategies, and even automatically copy their trades.