Alex Manea
Choosing your broker is fundamental. Several factors contribute to a safe and all-around pleasant investing experience, including fees, reliability, security, among a few others. Before deciding between eToro or Degiro, make sure you keep reading to find out which is the best platform for you.
When choosing a broker, you must consider important factors like fees, reliability and reputability, instruments offered, and other distinctive features.
Choosing the right broker for you between eToro vs XTB will come down to personal preference. After reading this article, you’ll be ready to make an informed decision before opening an account and starting trading.
eToro is one of the most advertised FinTech companies in the world. Established in Israel in 2007, it’s currently one of the most popular social trading brokers globally.
It operates worldwide and is regulated by top-tier authorities guaranteeing its safety. Besides that, it is notorious for its low fees and CopyTrader function that allows you to use the platform almost like a social network for investors. This tool will come in handy for beginner investors that will be able to copy the actions of reputable users with more experience.
XTB originated in Poland in 2002. Its current headquarters are in Warsaw and London, and the company has offices in more than 13 countries worldwide. It’s also one of the few brokers listed on the stock exchange.
Along with that, a few factors that make XTB safe are the fact that it publishes its financial statements with transparency, and the track record has been nothing short of impeccable.
It is one of the biggest and most reputable brokers out there, operating in several countries worldwide and specializing in a few products. With XTB, the default selection includes CFDs, but if you’re a European client, you will be able to invest in popular assets like ETFs and stocks. Bonds, mutual funds, options, and futures are not provided.
In both cases, fees are generally considered low across the whole platform. The commission broker's take is an important factor that can help you decide which is the best option for you.
eToro doesn’t charge a deposit fee unless you’re topping up your account with something other than US Dollars. Euros, Pounds, or any other currency will suffer from an in-house conversion rate of around 0.4%. As a side note (if your card is not in USD), make sure to make your deposit via bank transfer; otherwise, you might lose up to 1% more of your deposit amount.
On the flip side, XTB has a transparent zero deposit fee no matter the currency you’re transferring to the platform. Make sure you opt for a bank transfer when depositing because the platform might charge you for credit card movements.
When it comes to withdrawal fees, eToro charges a flat 5$ commission. This is a high value when compared to its direct competitors.
XTB, on the other hand, does not set a withdrawal fee above a certain sum that will vary depending on your country of residence. This threshold can be anywhere between $50 and $250. Above this value, you are guaranteed to keep 100% of the amount you withdraw.
Now for the trading fees, you should know that both of these brokers are among the best in the “discount” platforms you can find. While neither charges a fee per se, the broker has a spread commission structure.
eToro usually has 0.7 points spread during peak trading hours for S&P 500 CFD, but the built-in fee for Europe 50 CFD is not so cheap, amounting to 3 points spread during peak trading hours, which is average. For stocks and ETFs, eToro does not charge fees.
Taking the same examples as above, XTB has 0.6 points spread on S&P 500 CFD, which is lower than eToro, and 1.9 points spread on Europe 50 CFD, which is significantly lower than eToro as well. However, XTB also charges fees on stocks and ETFs. A volume-based fee of 0.08% is the standard, but the minimum value equals $8.
With eToro, you can expect a rich offering, and pretty much every instrument is provided. Anything from ETFs, stocks, and everything in between. eToro also has a cryptocurrency market, making it a great option for crypto enthusiasts.
eToro USA LLC does not offer CFDs, only real Crypto assets available.
XTB has more of a narrow offering. CFDs are the only instrument present in the platform’s default selection. In Europe, you’ll be able to trade ETFs and stocks too. If you’re interested in trading different assets, your best bet is to find a different broker.
Both brokers are safe and have an extensive background to prove it.
eToro is regulated by authorities like the FCA (UK), ASIC (Australia), and CySEC (Cyprus).
Just like eToro, XTB is regulated by top-tier authorities across several countries. The FCA, CySEC are just some examples. One theoretical advantage it has over eToro is that it is listed in the stock exchange.
As far as ease of use, you will be well set with either option. eToro and XTB are both user-friendly and have mobile and desktop apps suitable for every level of investor.
Perhaps the most famous tool across all the trading apps out there is the social trading feature that eToro offers. The CopyTrader offers you the chance to copy the actions taken by more experienced traders that will give you (in theory) a higher chance of success. This feature can be especially helpful when you’re starting out.
XTB doesn’t offer this but has a few other features that can be interesting to some entry-level investors. The platform provides educational training articles and videos, valuable when you’re just getting started with investing.
When you take every topic into account, you can clearly see that there is no better option. Between XTB vs eToro, your best bet is to choose the one that makes sense for you and your investment objectives.
If you’re still unsure which platform is best suited for you, check out our trading app comparison tool before opening an account. By answering a few simple questions, our algorithm will show you the best trading app for you.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
