Discover key differences between IC Markets and eToro, including platform features, trading conditions, and target trader profiles, to choose your ideal broker.
Both IC Markets and eToro are highly respected brokers in the Forex and CFD markets, but they cater to very different types of traders. IC Markets is known for its low-latency execution, raw spreads, and professional trading platforms, making it popular among scalpers and high-frequency traders. On the other hand, eToro is a social trading platform that is favored by beginner and retail traders who want to engage in copy trading and benefit from a user-friendly experience. In this comparison, we’ll break down the key differences between IC Markets vs eToro to help you decide which broker best suits your trading needs.
Regulation and Trustworthiness
IC Markets: IC Markets is a well-regulated broker, holding licenses from the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), and the Seychelles Financial Services Authority (FSA). The broker adheres to strict regulatory standards, ensuring the protection of client funds by keeping them in segregated accounts. IC Markets’ regulatory framework provides strong security and transparency, making it a trusted choice for professional traders.
eToro: eToro is also a highly regulated broker, holding licenses from multiple jurisdictions, including the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC), and the Australian Securities and Investments Commission (ASIC). Additionally, eToro is regulated by the Financial Industry Regulatory Authority (FINRA) in the United States, making it one of the few brokers accessible to US clients. eToro is known for providing a secure and regulated environment for social traders.
Verdict: Both IC Markets and eToro are highly regulated brokers, with oversight from top-tier regulatory bodies. However, eToro has the advantage of being regulated in the United States, which may be appealing to US-based traders. Overall, both brokers offer high levels of security and trustworthiness, making them reliable choices for traders around the globe.
Trading Platforms
IC Markets: IC Markets offers a range of advanced trading platforms, including MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. These platforms are known for their advanced charting tools, technical analysis capabilities, and support for automated trading through Expert Advisors (EAs). cTrader, in particular, is favored by professional traders due to its low-latency execution and customizable features. IC Markets’ platforms are available on desktop, web, and mobile, providing a consistent trading experience across all devices.
eToro: eToro operates a proprietary trading platform designed for social trading and copy trading. The platform is web-based and is also available on mobile devices for iOS and Android. While eToro’s platform lacks the advanced charting and technical analysis tools found in MetaTrader or cTrader, it excels in social trading features, allowing users to follow and copy the trades of more experienced traders. This makes eToro a popular choice for beginner traders who want to take a more passive approach to trading.
Verdict: The choice between IC Markets and eToro in terms of platforms depends on the trader’s needs. IC Markets is the clear winner for traders who need advanced platforms like MT4, MT5, or cTrader, offering greater control and customization. However, eToro’s proprietary platform is better suited for traders who want a simplified, user-friendly experience with a focus on social trading and copy trading.
Trading Instruments
IC Markets: IC Markets provides access to over 230 trading instruments, including Forex, indices, commodities, cryptocurrencies, and shares (via CFDs). The broker is especially strong in Forex, offering more than 60 currency pairs, covering majors, minors, and exotics. IC Markets also offers access to popular commodities such as gold and oil, global indices, and cryptocurrencies, making it a versatile broker for traders looking to diversify their portfolios.
eToro: eToro offers access to over 2,000 trading instruments, including stocks, ETFs, indices, commodities, Forex, and cryptocurrencies. eToro is particularly well-known for its stock and cryptocurrency offerings, allowing traders to invest in a wide range of global stocks and leading cryptocurrencies like Bitcoin and Ethereum. Additionally, eToro offers real stocks (not just CFDs), allowing traders to invest in physical assets, which sets it apart from traditional CFD brokers like IC Markets.
Verdict: eToro has a clear advantage when it comes to the range of trading instruments, particularly for traders interested in stocks and cryptocurrencies. While IC Markets excels in Forex trading, eToro offers a broader selection of asset classes, including the ability to trade real stocks and ETFs. Traders focused on Forex may prefer IC Markets, while those looking for stock and crypto trading will likely favor eToro.
Spreads and Fees
IC Markets: IC Markets is known for its highly competitive spreads, particularly on its Raw Spread account, which offers spreads starting from 0.0 pips with a small commission per trade. The Standard account has no commission and spreads starting from 1.0 pips. IC Markets’ raw spread model is ideal for scalpers and high-frequency traders looking to minimize trading costs. Additionally, there are no fees for deposits or withdrawals, and IC Markets does not charge inactivity fees.
eToro: eToro operates a commission-free model for stock and ETF trading, but spreads on Forex and CFDs are typically wider than those offered by IC Markets. For example, spreads on major Forex pairs like EUR/USD can start from 1.0 pips or higher. eToro also charges a withdrawal fee and an inactivity fee for accounts that remain dormant for over 12 months. However, eToro’s commission-free stock and ETF trading is a major draw for traders interested in long-term investments.
Verdict: IC Markets offers lower spreads, especially for active traders using its Raw Spread account, making it a better choice for scalpers and high-frequency traders. eToro’s spreads are generally wider, but its commission-free stock and ETF trading may appeal to long-term investors. Traders focused on minimizing costs for frequent trades will likely prefer IC Markets, while those interested in stock and ETF investments may find eToro’s fee structure more attractive.
Leverage
IC Markets: IC Markets offers leverage of up to 1:500 for Forex trading for clients outside the EU and Australia, providing traders with the ability to control larger positions with smaller capital. For traders in the EU and Australia, leverage is capped at 1:30 due to regulatory restrictions. IC Markets’ high leverage is particularly appealing to experienced traders looking to maximize their exposure in the Forex market.
eToro: eToro offers leverage of up to 1:30 for retail clients in the EU and Australia in line with regulatory requirements. For non-EU clients, leverage can go up to 1:400 for Forex trading. However, leverage on other asset classes, such as stocks and cryptocurrencies, is generally much lower. eToro’s relatively lower leverage offerings make it more suitable for traders who are focused on long-term investments or those who prefer lower-risk trading.
Verdict: IC Markets has a clear advantage in terms of leverage, offering up to 1:500 for Forex traders outside of the EU and Australia. Traders who seek higher leverage will prefer IC Markets, while eToro is more suitable for traders who prefer lower leverage and a more conservative approach to trading.
Order Execution and Speed
IC Markets: IC Markets is known for its ultra-fast execution speeds, particularly on its cTrader platform, which is designed for low-latency trading. The broker uses an ECN (Electronic Communication Network) model, providing direct access to liquidity providers, which minimizes slippage and ensures fast order execution. This makes IC Markets particularly attractive to scalpers, high-frequency traders, and professionals who rely on precision and speed.
eToro: eToro operates as a market maker, meaning that it acts as the counterparty to its clients’ trades. While eToro’s execution speeds are generally reliable for retail traders, they are not optimized for high-frequency or low-latency trading like IC Markets. eToro’s platform is designed more for long-term investors and social traders, so traders who require the fastest execution speeds may find eToro’s market maker model limiting.
Verdict: IC Markets has the edge in terms of order execution and speed, particularly for professional traders and scalpers who need low-latency trading. eToro’s execution is sufficient for retail traders and investors, but IC Markets’ ECN model offers faster execution for those who rely on precision and speed in their trades.
Customer Support and Education
IC Markets: IC Markets provides 24/7 customer support via live chat, phone, and email. The broker’s support team is responsive and well-regarded for assisting traders with account-related queries, platform issues, and general inquiries. IC Markets also offers a wide range of educational resources, including webinars, tutorials, and trading guides, which cater to both beginners and experienced traders.
eToro: eToro offers 24/5 customer support through live chat and a ticket-based system. While eToro’s customer service is reliable, it does not offer 24/7 support like IC Markets. However, eToro’s customer support is highly regarded for helping retail traders, especially beginners, with platform-related queries and account issues. In terms of education, eToro excels with its rich educational resources, including an extensive help center, video tutorials, webinars, and a dedicated eToro Academy. The broker’s focus on educating beginner traders is one of its key strengths, especially for those looking to learn about social trading and investing.
Verdict: Both brokers provide solid customer support and educational resources, but IC Markets has the advantage of 24/7 customer service. However, eToro’s emphasis on beginner education and its user-friendly resources make it a great choice for newer traders, particularly those interested in social trading. IC Markets caters better to experienced traders with its advanced tools and trading guides.
Account Types and Features
IC Markets: IC Markets offers two primary account types: the Standard account and the Raw Spread account. The Standard account has no commissions, with spreads starting from 1.0 pips, while the Raw Spread account offers tighter spreads starting from 0.0 pips, with a small commission per trade. Both account types are available across MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader, allowing for flexibility depending on the trader’s preferences. IC Markets also offers Islamic accounts for traders who require Sharia-compliant trading options, as well as demo accounts for practicing strategies.
eToro: eToro offers a standard account for all traders, with no tiered account options. One of eToro’s key features is its social trading capability, which allows users to follow and copy the trades of other successful traders. This feature is ideal for beginners who want to engage in the markets without having to manually trade themselves. eToro also provides demo accounts, enabling users to test the platform and strategies risk-free. The broker offers Islamic accounts for those who require Sharia-compliant options.
Verdict: IC Markets has an edge in terms of account variety, offering both commission-free and raw spread accounts, catering to both beginners and professional traders. eToro, however, focuses more on providing a simplified, user-friendly account structure with a strong emphasis on social trading. Traders looking for low spreads and more account flexibility may prefer IC Markets, while those who prioritize simplicity and social trading will find eToro more appealing.
Deposit and Withdrawal Methods
IC Markets: IC Markets supports a wide range of deposit and withdrawal methods, including bank transfers, credit/debit cards, PayPal, Neteller, and Skrill. The broker does not charge any fees for deposits or withdrawals, and most transactions are processed within 24 hours. IC Markets also offers multiple base currencies to minimize currency conversion fees, making it a convenient option for international traders.
eToro: eToro offers a variety of payment methods for deposits and withdrawals, including bank transfers, credit/debit cards, PayPal, Neteller, Skrill, and other e-wallets. However, eToro charges a $5 withdrawal fee, and withdrawals may take up to 5 business days to process, depending on the payment method. Additionally, eToro supports several base currencies, but currency conversion fees may apply when depositing or withdrawing funds in a currency other than USD.
Verdict: IC Markets has a clear advantage when it comes to deposit and withdrawal fees, as the broker does not charge for transactions. eToro’s $5 withdrawal fee and slower processing times may be a drawback for some traders. Traders who want faster and fee-free transactions may prefer IC Markets, while eToro’s broader range of payment methods may appeal to those who prioritize flexibility.
Mobile Trading
IC Markets: IC Markets offers mobile trading through the MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader mobile apps, available for both iOS and Android devices. These apps provide full access to real-time market data, advanced charting tools, and the ability to execute trades on the go. The mobile versions of MT4, MT5, and cTrader are designed to replicate the desktop experience, making it easy for traders to manage their accounts and monitor the markets from anywhere.
eToro: eToro’s mobile app is available for both iOS and Android and is designed to provide a user-friendly experience for traders on the go. The app allows users to execute trades, monitor portfolios, engage in social trading, and follow other traders’ strategies in real time. While eToro’s mobile app lacks the advanced charting and technical analysis tools found in MT4 or cTrader, it is designed to be intuitive and easy to use, especially for beginner traders who want a simple mobile trading experience.
Verdict: IC Markets offers a more advanced mobile trading experience through MT4, MT5, and cTrader, making it the better choice for traders who need comprehensive charting and analysis tools on the go. eToro’s mobile app, while simpler, is highly intuitive and ideal for traders focused on social trading and portfolio management. The choice between the two depends on whether you need advanced tools (IC Markets) or a streamlined, social-focused experience (eToro).
Research and Market Analysis
IC Markets: IC Markets provides a range of research tools, including daily market updates, technical analysis, and an economic calendar. The broker also partners with Trading Central, providing professional market analysis and trading signals to help traders make informed decisions. IC Markets’ research tools cater to both beginner and advanced traders, offering in-depth analysis and actionable insights.
eToro: eToro focuses more on social trading than traditional market analysis. While the platform does provide some basic market research and news updates, its primary appeal is the ability to follow and copy the trades of successful traders. eToro also offers a news feed and market sentiment tools, but it lacks the depth of technical analysis and research tools available on other platforms like IC Markets.
Verdict: IC Markets has the advantage when it comes to research and analysis, offering more comprehensive tools for traders who rely on technical analysis and market insights. eToro’s social trading features make up for the lack of traditional research tools, making it more appealing to traders who prefer to copy trade and follow market sentiment rather than perform their own technical analysis.
Conclusion
IC Markets vs eToro: The Verdict
In the comparison of IC Markets vs eToro, both brokers offer unique advantages depending on the trader’s needs and experience level. IC Markets stands out for its advanced trading platforms, low-latency execution, raw spreads, and flexible account options, making it ideal for scalpers, high-frequency traders, and professional traders. Its advanced research tools and fast execution speeds make it the better choice for traders focused on performance and cost efficiency.
On the other hand, eToro is designed for social trading and is particularly appealing to beginner and retail traders who want a simplified, user-friendly platform. The ability to copy successful traders, combined with commission-free stock and ETF trading, makes eToro an excellent option for those interested in social trading and long-term investing.
Ultimately, IC Markets is the best choice for traders who prioritize low spreads, fast execution, and advanced trading tools, while eToro is better suited for traders who prefer social trading, a simplified interface, and commission-free stock trading. The choice between these brokers depends on your trading goals, whether you seek advanced trading tools or a more social, community-driven trading experience.
Published by:
Daniel Carter