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eToro vs AvaTrade

Is eToro better than AvaTrade? Who offers lower spread, better trading conditions and is a safe broker to trade?

We provide answers to all questions in this eToro vs AvaTrade Comparison Review. For this Review we opened real accounts and deposit over US$ 6,000 in total to compare both offerings, account opening process at eToro vs AvaTrade also the fees, trading conditions, platform selection and withdrawal process.   

eToro vs AvaTrade

What is eToro and AvaTrade

eToro is one of the largest, Best Social trading Brokers and platforms with a good range of portfolios and Top number of investors.

AvaTrade is a large and popular broker that offers trading with forex, indices, commodities, bonds, cryptocurrencies, stocks, and ETFs.

Some of the highlights of eToro vs AvaTrade are:

eToroAvaTrade
πŸ’» Websitewww.etoro.comwww.avatrade.com
πŸ›‘οΈFounded year20062006
🏦 HeadquarterIsraelDublin, Ireland
πŸ—ΊοΈ Authorized & Regulated inUSA, UK, Australia, CyprusIreland, Japan, Australia, UAE, South Africa, British Virgin Islands
πŸ”’ Is Broker safeYesYes
πŸ’° EUR/USD Spread0.970.87
πŸ’³ Minimum depositUS$50 or US$500US$100
πŸ’° Withdrawal feeUS$5US$0
πŸ–₯️ Trading PlatformeToro’s own trading platformMT4, MT5, AvaTradeGO, AvaOptions
πŸ“ˆ Markets offeredIndices, Forex, Commodities, Stocks, Cryptocurrencies, ETFsForex, Indices, Commodities, Bonds, Cryptocurrencies, Stocks, ETFs
πŸ“‰ Number of Products986796
πŸ”Ž Our Detailed RevieweToro ReviewAvaTrade Review

Licenses and Regulation

Both Brokers are safe to trade and are highly reliable, low risk trading Brokers due to regulations and are not a scam.

eToro is licensed by some of the top global regulators, including the UK’s FCA, CySEC, ASIC, and FinCEN.

AvaTrade has gained 7 regulatory licenses from some of the top regulators, including Australia, Ireland, Abu Dhabi, and Japan.

For this review, we opened an account under eToro (Europe) Limited regulated by CySEC and with Ava Trade EU Ltd which is regulated by the Central Bank of Ireland

We recommend you register your account with the eToro UK or CySEC entity and with the AvaTrade Irish, Australian, or Abu Dhabi entity.

 eToroAvaTrade
πŸ”’ LicensesASIC,
CySEC,
IE Singapore,
FCA,
NFA
ASIC,
ADGM,
FRSA,
FSA,
FFAJ,
FSCA,
BVI FSC
Top Tier Licenseβœ”οΈβœ”οΈ
Publically Traded❌❌
Compensation Schemeβœ”οΈ (depending on entity)βœ”οΈ (depending on entity)

eToro vs AvaTrade Fees

eToro vs AvaTrade fees are similar and mainly built into a spread basis, there are no commission based accounts.

There are additional fees charged by two Brokers; eToro charges a few non-trading fees, while AvaTrade charges an inactivity fee of $50 or €50 or Β£50 every quarter after 3 months of account inactivity. In addition, the broker charges administration fees of US$100 or €100 or Β£100 after a year of inactivity.

 eToro FeesAvaTrade Fees
Fees based on spreadβœ”οΈβœ”οΈ
Floating Spreadβœ”οΈβœ”οΈ
Fixed Spread❌❌
Commission based fees❌❌
Inactivity Fee$10$50 or €50 or Β£50
Deposit fee0$0$
Withdrawal fee5$0$
Active trader/ VIP Programsβœ”οΈβŒ

Spreads Charged in Our Trades

For our test trades on eToro vs AvaTrade accounts, we chose popular instruments in each market. We placed 3 trades for each instrument to get the average spread, we found both negative and positive sides for each Broker spreads.

eToro spreads for Indices and Forex are below the industry average. For commodities and stock CFDs spreads are above the industry average. Cryptocurrencies in our trades are more than double the industry average.

Through our testing we found that AvaTrade’s spreads for forex are much below the industry standards. The offered spreads on indices and commodities are also below the average industry benchmark. On the negative side, cryptocurrency and stock spreads are above the industry average.

MarketsInstrumentseToro Avg. spreadAvaTrade Avg. spreadIndustry avg. spread
IndicesFTSE 1001.41.171.65
ForexEUR/USD0.970.871.16
CommoditiesGold4.53.673.53
StocksAAPL2.232.11.75
CryptocurrenciesBitcoin102.7157.9372.81
ETFsQQQ0.530.130.45

Account Types Compared

eToro vs AvaTrade both offer a single account with access to all tools and services from one account.

Opening a new account on eToro was very simple and easy. The registration process took merely 11 minutes.

Opening a new account with AvaTrade is fast and easy. The registration process took merely 15 minutesOur account was verified after 1 business day.

 eToro AccountsAvaTrade Accounts
Standard Accountβœ”οΈβœ”οΈ
ECN / Commission Based Account❌❌
Islamic Accountβœ”οΈβœ”οΈ
PAMM Account❌❌

Markets and Products

AvaTrade offers a wider range of instrument selection compared to eToro, however all are traded as CFDS. While eToro is primarily a Forex and CFD broker, it also offers trading services with real Stocks, ETFs, and Cryptocurrencies.

MarketseToro InstrumentsAvaTrade Instruments
Indices1323
Forex4955
Commodities3129
Stocks726614
Cryptocurrency1614
ETFs15159
Bonds –2

Trading Conditions

Putting side by side the trading conditions of eToro vs AvaTrade, we found that on eToro they are fair and suitable for beginning traders, however, the broker does not allow scalping.

On the other hand, AvaTrade allows both hedging and scalping. It also offers copy trading services with two third-party services: DupliTrade and ZuluTrade.

Trading MethodeToroAvaTrade
Hedgingβœ”οΈ (eToro will retain the profits)βœ”οΈ
ScalpingβŒβœ”οΈ
Change Leverageβœ”οΈβŒ
Copy trading/ Social tradingβœ”οΈβœ”οΈ
Beginners Tradingβœ”οΈβœ”οΈ
Professional Tradingβœ”οΈβœ”οΈ

Deposit and Withdrawal

The deposit and withdrawal processes on eToro are simple enough, supporting various funding methods. However, eToro charges a flat fee of $5 for every withdrawal. 

AvaTrade does not charge withrawal fee, still, our experience with the withdrawal process was mixed. We faced some issues with our initial withdrawal requests, but they were quickly resolved.

We tested the deposit process on eToro using multiple payment modes and the deposits were received instantly.

We have tested the deposit process on AvaTrade using multiple payment modes. There was no deposit fee and for most of the payment methods, funding was instant.

eToroAvaTrade
πŸ’° Deposit Fee❌❌
πŸ’° Withdrawal fee5$❌
πŸ’³ Minimum depositUS$50 or US$500US$100
Bank Transferβœ”οΈβœ”οΈ
Debit/ Credit Cardsβœ”οΈβœ”οΈ
PayPalβœ”οΈβœ”οΈ
Skrillβœ”οΈβœ”οΈ
Neteller❌ βœ”οΈ

Trading Platform

eToro uses its own unique trading platform and does not offer any other alternative. AvaTrade offers multiple trading platforms like MetaTrader 4, MetaTrader 5, WebTrader (AvaTrade’s propriotary web-based platform), AvaOptions (for forex vanilla options), AvaTradeGo (for mobile trading).

eToro is known for its social trading feature. In fact, it gained popularity because of this feature. It basically has two features: CopyTrader and CopyPortfolio.

MetaTrader platforms are among the widely used third-party trading platforms and have many advatages. AvaTrade’s own web trading platform and its mobile trading platform are also very clear and easy to use for the traders.

eToro PlatformAvaTrade Platform
Proprietary Platformβœ”οΈβœ”οΈ
Web Platformβœ”οΈβœ”οΈ
Desktop Platform❌❌
Mobile Appβœ”οΈβœ”οΈ
Alternative PlatformsβŒβœ”οΈ
MetaTrader4βŒβœ”οΈ
Simple to use platformβœ”οΈβœ”οΈ
Demo Account Tradingβœ”οΈβœ”οΈ
Execution Agency ModelβŒβœ”οΈ
Researchβœ”οΈβœ”οΈ
Advanced Research toolsβŒβœ”οΈ

Education and Support

eToro does not offer high quality education resources. In contrast, AvaTrade offers excellent trading educational materials for new traders.

We found eToro developing its learning materials and established eToro Trading School.

AvaTrade offers tutorial videos on trading and platform-tools, eBooks and web-based guides on trading, as well as webinars.

eToro SupportAvaTrade Support
Trading School for Beginnersβœ”οΈβœ”οΈ
Tutorialsβœ”οΈβœ”οΈ
Trading VideosβŒβœ”οΈ
Webinarsβœ”οΈβœ”οΈ
Daily News and Analysisβœ”οΈβœ”οΈ
Economic Calendarβœ”οΈβœ”οΈ
Live Chatβœ”οΈβœ”οΈ
Email Supportβœ”οΈβœ”οΈ
24/7 availabilityβŒβœ”οΈ

Conclusion on eToro vs AvaTrade

Comparing eToro vs AvaTrade side by side we found both brokers reliable and with good standing. The proposals are different with eToro focusing on Social Trading and AvaTrade as CFD Trading Broker with a large number of instruments and easy-to-use platforms.

In addition, in this eToro vs AvaTrade comparison, we found that eToro costs are based on spread with no commission with a competitive trading environment, whereas, AvaTrade offers impressive spreads on forex pairs.

Our trading experience on eToro platform was smooth. eToro is good for beginners and experienced/popular traders. It has some attractive features like social trading and is Best for the number of Top Traders.

Overall, our experience with AvaTrade is positive. Our experience with customer support was also good. We also recommend AvaTrade to traders who focus on trading currencies and traders who would like to run hedging or scalping as their trading strategies.

eToroAvaTrade
Recommended forβœ”οΈ Best for Social Trading
βœ”οΈ Beginning Traders
βœ”οΈ Trading Currency Pairs
βœ”οΈ Cryptocurrency Trading
βœ”οΈ Stocks Trading
βœ”οΈCFD Trading
βœ”οΈ Experienced traders
βœ”οΈ Beginning Trader
βœ”οΈ Scalping trader
βœ”οΈ Hedging trader
βœ”οΈ EA trader
βœ”οΈ Trading through MT4/MT5 platform
Might not be fit for❌ Scalping trader
❌ Hedging trader
❌ EA trader
❌ Trading through MT4/MT5 platform only
❌ Commission based trading
❌ Futures Trading
❌ Trading of real Stocks
❌ Commission based trading