Alex Manea
Is eToro better than AvaTrade? If you are reading this article, chances are that you are seeking an answer to that question. If yes, then you are not alone. When it comes to trading financial instruments, your broker sometimes determines whether you will succeed or fail. As a result, most beginners and even experts try their best to pick out the top brokers from a multitude. In this eToro vs AvaTrade review, we will outline the features of each trading platform and what makes them stand out.
eToro is a leading social investment network and a community where users can connect, share, and earn. Established in 2007, the Israeli platform was designed to reduce dependency on traditional financial institutions and make trading available to everyone. EToro currently has more than 17 million registered users. Therefore, it has one of the largest trading communities. It also offers securities trading to customers in major parts of the world.
AvaTrade was established in 2006 and has steadily grown into one of the most well-known brokers. The online trading platform has seven regulations across six continents and offers a wide choice of assets and trading conditions. The company’s total trading volume currently surpasses $70 billion per month, and it has more than 300,000 registered customers globally.
AvaTrade is a multi-national company with administrative headquarters in Dublin, Ireland, and regional offices and sales centers in Milan, Sydney, Tokyo, and Paris.
Your account must be verified and confirmed to process a withdrawal from your AvaTrade account. The reason is that identity verification is one of the requirements of the regulatory bodies, and AvaTrade follows a strict KYC process to reduce the risk of illegal withdrawal.
The AvaTrade withdrawal process takes one or two working days, excluding weekends, public holidays, and festive days included in the official calendar. Because of anti-money laundering regulations, you can only withdraw through the payment methods by which you funded the account. Also, you must withdraw up to 100% of your deposit to your debit or credit card.
AvaTrade offers various deposit options including wire transfers and credit cards for global clients. Also, you can complete your deposits via e-payments like Neteller, Skrill, and Webmoney, except for Australian and EU clients. Each deposit method has its processing time, but card payments are credited instantly. Wire transfers can take up to 7 business days, and other e-payments can take up to a day.
The following are the minimum deposit amounts required to open an AvaTrade account:
Wire transfer deposits:
Like eToro, AvaTrade only generates revenue from the spread. However, you will pay $50 after three months of inactivity and a $100 administration fee after one year of inactivity.
eToro USA LLC does not offer CFDs, only real Crypto assets available.
eToro segregates client deposits and offers negative balance protection. Since it is a publicly-traded company on NASDAQ, it must comply with related financial standards and regulations. The platform operates following the ASIC, CySEC, and FCA rules, and client funds are secured in tier 1 banks. Not only this but all customer personal information is protected under SSL protection.
EToro is licensed by the Norwegian Financial Supervisory Authority to perform cross-border activities, and eToro Europe is regulated by the Cyprus Security and Exchange Commission.
Other related licenses include:
AvaTrade offers MT4/MT5 and web-based and proprietary platforms. On the other hand, eToro does not have algorithmic and API trading features. It only offers a proprietary trading platform.
eToro
All retail traders on eToro have the same account type. However, there are variations in restrictions, protections, and regulatory environment. Professional traders can request an account upgrade upon qualification, and the broker offers a $100,000 demo account with no time limit for newer traders.
AvaTrade
Like eToro, AvaTrade offers the same account type to all traders, and you can qualify for a professional account if you meet the requirement and statutory stipulations. There is also a demo account you can use for 21 days.
eToro offers 24/5 customer service and live chats for existing users. Visitors can open a support ticket on the website, and users can reach the company via an email or phone number. Likewise, you can reach AvaTrade through email or phone support, and there is a multi-lingual customer support team that is always ready to help during market hours. Also, you can use the chatbot or the FAQ section to find answers.
| Features | AvaTrade | eToro |
|---|---|---|
| Retail lose rate | 71% | 51% |
| Regulations | Yes | Yes |
| Minimum standard spreads | 0.9 pips | 1 pip |
| Minimum commission | No commission | 0.9% on CFDs |
| Minimum deposit | $100 | $50-$10,000 depending on your location |
| Demo account | Yes | Yes |
| Islamic account | Yes | Yes |
| Inactivity fee | $50 after three months, recurring | $10 a month after 12 months of inactivity |
| Deposit fee | No | No* |
| Withdrawal fee | Third-party | $5 per withdrawal + third party |
| Funding method | 5 | 9 |
*a conversion fee may be applied as withdrawals and deposits are conducted in USD. Any other currency will have to be converted
Our Avatrade vs eToro review revealed that AvaTrade offers an in-depth educational program of more than 200 videos that new traders can take advantage of. It also offers competitive mt4/mt5 and proprietary webtrader platforms, which eToro does not have. The platform has a higher asset collection and a friendlier price environment.
EToro gives traders access to three social trading platforms: ZuluTrade, MQL5 signal service, and DupliTrade.
Verdict: AvaTrade is best for traders that desire diversification across markets. On the other hand, eToro is best for GenZ and millennial traders that prefer to use their phones to copy trades from other traders.
