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eToro vs AvaTrade
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eToro vs AvaTrade: Which Investment Platform is Better for You

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. 

About eToro

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. 

About AvaTrade

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. 

eToro vs AvaTrade: Fees 

eToro

  • The only price you will pay on eToro is the bid and ask market spreads. In other words, eToro’s fee structure only applies to withdrawals, trades, and deposits.
  • eToro charges 0% commission on stocks, and there is no management fee, including when you copy other traders and invest in portfolios. There are no rollover fees, ticket fees, and no added broker fees on stocks and ETFs. You can buy in bulk or a fraction for as low as $10. 
  • Crypto: eToro charges 1% for selling and buying crypto, and this fee is included in the price that is displayed when you close or open a position. The 1% fee is automatically added to the bid-ask spread that comes from a distributed ledger technology licensed trading platform affiliated with eToro AU and eToro EU. When you open a new position, the displayed profit or loss will automatically include the 1% buy or sell fee and is then adjusted to reflect the market price of the asset at that time. 
  • CFDs: eToro charges from 1 pip for currencies and 2 pips for commodities. In contrast, it charges from 0.75 points for indices and 0.09% on stocks and ETFs (CFDs). CFD positions that are opened overnight might incur a small fee relative to the value of the position as determined by the forces of demand and supply driving the market. 
  • Other fees: There are no extra fees or hidden costs for using copytrader and thematic ready-made portfolios. The deposit is free, and the withdrawal fee is $5. You can also convert withdrawals and deposits in USD from 1-150 pips, and the inactivity fee is $10 per month after 12 months of inactivity. 

AvaTrade

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: 

  • USD account – USD 100
  • EUR account – €100
  • GBP** account – £100
  • AUD** account – AUD 100
  • Credit card deposit
  • USD account – USD 100
  • EUR account – €100
  • GBP** account – £100
  • AUD** account – AUD 100

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 vs AvaTrade: What you can trade 

eToro

  • 264 ETFs 
  • 49 currencies 
  • 13 indices 
  • 2736 stocks 
  • 64 cryptocurrencies 
  • 32 commodities 

AvaTrade 

  • 56 currency pairs 
  • 27 commodities 
  • 16 cryptocurrencies 
  • 31 index CFD 
  • Equity traders get 58 ETFs, 44 Options, and 614 assets. 

eToro vs AvaTrade: Security 

eToro 

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: 

  • Related services, cf. the Securities Trading Act § 2-6 (1): covers lending, storage, and management of financial instruments, dissemination and preparation of investment recommendations, and services related to foreign exchange activities connected with the provision of investment services. 
  • Investment services, cf. the Securities Trading Act § 2-1 (1): This covers receipt and transmission of orders, self-trading, execution or order, and portfolio management. 

AvaTrade 

  • Ava Trade EU is regulated by the central bank of Ireland (No.C53877)
  • Ava Capital Markets Australia Pty Ltd is regulated by ASIC No.406684.
  • Ava Trade Markets Ltd. is regulated by the B.V.I Financial Services Commission
  • Ava Capital Markets Pty is regulated by the South African Financial Sector Conduct Authority (FSCA No.45984).
  • AVA Trade EU Ltd is regulated by the Central Bank of Ireland. (No.C53877)
  • Ava Trade Markets Ltd. is regulated by the B.V.I Financial Services Commission
  • Ava Capital Markets Australia Pty Ltd is regulated by ASIC No.406684.
  • Ava Capital Markets Pty is regulated by the South African Financial Sector Conduct Authority (FSCA No.45984).
  • DT Direct Investment Hub Ltd. is regulated by the Cyprus Securities and Exchange Commission (No. 347/17).
  • Ava Trade Japan K.K. is licensed and regulated in Japan by the Financial Services Agency (License No.: 1662) and the Financial Futures Association of Japan (License No.: 1574).
  • ATrade Ltd is regulated in Israel by the Israel Securities Authority (No. 514666577).
  • Ava Trade Middle East Ltd is regulated by the Abu Dhabi Global Markets (ADGM) Financial Regulatory Services Authority (FRSA) (No.190018).

eToro vs AvaTrade: Ease of Use 

Type of platform 

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. 

Account types

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. 

Customer support 

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%68%
Regulations Yes Yes 
Minimum standard spreads 0.9 pips 1 pip 
Minimum commission No commission Commission free for forex, 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 feeThird-party $5 per withdrawal + third party 
Funding method 5

eToro vs AvaTrade: Conclusion

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.

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