Compare Forex CFD Brokers 2024 : eToro vs Webull vs AvaTrade
The ForexReviews.nl comparison tool rigorously compares forex brokers on factors like fees, platforms, licenses, apps, spreads, and ratings. Filter and narrow down brokers to find the ones that best suit your preferences compared to its competitors.
Plus500 is a CFD provider and they offer CFD service. All the instruments, including the Forex pairs, are available for trading through CFD
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Can you trust eToro?
- eToro was founded in 2007.
- eToro does not operate a bank and is not publicly traded.
- eToro is authorised to operate in the 🇪🇺 European Union.
- eToro is licensed by the world's most strict and feared regulator 🇬🇧 ASIC (AU).
- eToro is licensed by the 🇬🇧 FCA (UK).
Is eToro authorised to operate in the US?❌ No, eToro is not authorised to operate in the United States.
What licenses does eToro have to operate?eToro is authorised by the following regulators: ASIC Authorised (Australia), FCA Authorised (U.K.) and CySEC Authorised (Cyprus) .
Does eToro publicly discloses their financial statements?✅ Yes, you can view the financial statements of eToro online
Does eToro offer trading software like Meta Trader?eToro provides their own proprietary platorm .
Does eToro provide a mobile native app?✅ Yes, you can trade eToro on mobile using Mobile App (Android) and Mobile App (iOS).
Can you trust Webull?
- Webull does not operate a bank and is not publicly traded.
- Webull is not authorised to operate in the 🇪🇺 European Union.
Is Webull authorised to operate in the US?❌ No, Webull is not authorised to operate in the United States.
What licenses does Webull have to operate?Webull is authorised by the following regulators: .
Does Webull publicly discloses their financial statements?❌ No, unfortunately Webull does not list their financial statements publicly on their website.
Does Webull offer trading software like Meta Trader?No, Webull does not offer any trading software .
Does Webull provide a mobile native app?No, Webull does not provide a native app for mobile.
Can you trust AvaTrade?
- AvaTrade was founded in 2006.
- AvaTrade does not operate a bank and is not publicly traded.
- AvaTrade is authorised to operate in the 🇪🇺 European Union.
- AvaTrade is licensed by the world's most strict and feared regulator 🇬🇧 ASIC (AU).
Is AvaTrade authorised to operate in the US?❌ No, AvaTrade is not authorised to operate in the United States.
What licenses does AvaTrade have to operate?AvaTrade is authorised by the following regulators: ASIC Authorised (Australia), IIROC Authorised (Canada), CBI Authorised (Ireland), FSA Authorised (Japan), CySEC Authorised (Cyprus), Israel (ISA Authorised), CBR Authorised (Russia), SEC Authorised (Thailand) and BMA Authorised (Bermuda) .
Does AvaTrade publicly discloses their financial statements?✅ Yes, you can view the financial statements of AvaTrade online
Does AvaTrade offer trading software like Meta Trader?✅ Yes, you can trade on AvaTrade using MetaTrader 4 (MT4), MetaTrader 5 (MT5), DupliTrade and ZuluTrade trading software as well as through their proprietary trading platform .
Does AvaTrade provide a mobile native app?No, AvaTrade does not provide a native app for mobile. However, you can access the AvaTrade web platform on mobile for trading.
Comparison & Key Differences
Which brokers offer social/copy trading?Both eToro and AvaTrade offer social/copy trading on their platform.
Which brokers offer cryptocurrency (CFD) trading?Both eToro and AvaTrade offer cryptocurrency (CFD) trading on their platform.
Which brokers allow scalping?Only AvaTrade allows scalping.
Which brokers allow hedging?Only eToro allows hedging.
Which brokers provide Negative Balance Protection?Only eToro provides Negative Balance Protection.
Which brokers offer a Demo Account?None of these brokers offer an Demo Account: eToro and AvaTrade.
Which brokers offer an Islamic Account?None of these brokers offer an Islamic Account: eToro and AvaTrade.
What does it matter which licenses a broker has?
Licenses allow brokers like eToro, Webull and AvaTrade to legally provide services in those countries or regions. By having permits from regulators globally, the broker is authorized to conduct business and operate globally.
These licenses and regulations are good for consumers because they hold these companies to high standards.
For example, licenses from:
- ASIC in Australia,
- FCA in the United Kingdom,
- CFTC in the United States,
- CySEC in Cyprus,
- FSC in Belize
Require that eToro, Webull and AvaTrade follow rules around:
- Keeping customer money safe
Regulators make sure brokers keep client money separate from their own money. This stops brokers from spending customer money.
- Providing clear fees and charges
Regulators check that brokers show all fees to customers upfront. This helps customers understand and compare costs.
- Resolving complaints fairly
Regulators check brokers are dealing with customer complaints fairly. Brokers must have policies to fix complaints.
Guarding against fraud
Regulators make rules so brokers check customer identities. This helps stop criminal activity. Regulators can punish cheating brokers.
- Advertising honestly
Regulators tell brokers what they can and can't say in ads. This stops brokers making false promises. Regulators can fine brokers who break ad rules.
Which brokers are authorised by ASIC, FCA, CFTC and CFTC?
- ASIC (AU) Authorised - Both eToro and AvaTrade are licensed by the ASIC (AU).
- FCA (UK) Authorised - Only eToro is licensed by the FCA (UK).
- CFTC (US) Authorised - None of these brokers offer licensed by the CFTC (US): .
CySEC in Cyprus follows the strict rules set by the European Union called MiFID. These MiFID rules were created to strongly protect investors.
- CySEC (CY) Authorised - Both eToro and AvaTrade are licensed by the CySEC (CY).
Which brokers are not registered with ASIC, FCA or CFTC?
Not registered with CFTC (US) -
The following brokers are not licensed by the CFTC (US): eToro, Webull and AvaTrade.
This doesn't necessarily have to be a red flag as some forex brokers make the choice to only have customers who live outside of the United States. They do not accept traders who live inside the U.S. The CFTC is the agency in the U.S. that oversees brokers for U.S. residents. Since these brokers don't have any U.S. customers, the rules and registration enforced by the CFTC does not apply to those brokers. The brokers are still responsible for following the local rules where their international customers live. But they do not have to register specifically with the U.S. agency (CFTC) because they do not serve traders who reside in the United States.
Not registered with ASIC (AU) -
Only Webull is not licensed by the ASIC (AU).
Again, even though ASIC is known globally as having the strictest and most feared regulation of forex brokers, this doesn't always have to ring alarms. However, some brokers deliberately avoid Australia because ASIC aggressively examines brokers in detail and has very high standards of acceptable conduct. If ASIC finds brokers are badly mistreating customers or ignoring the strict rules, ASIC will punish them severely without waiting by issuing massive fines or shutting them down. Forex brokers know not to take ASIC rules lightly because ASIC is watching them closely and will come down hard on them if customers are harmed by their poor behavior.
Not registered with FCA (GB) -
Both Webull and AvaTrade are licensed by the FCA (GB).
Difference between shares, equity indices and , individual stocks and etfs
The main differences between forex, shares, equity indices, individual stocks, and ETFs are:
- Forex (Foreign Exchange) - Forex trading involves exchanging one currency for another in the foreign exchange market. Forex traders attempt to profit from fluctuations in currency exchange rates.
- Shares - A share represents part ownership of a company. Owning shares entitles the shareholder to a portion of the company's assets and earnings.
- Equity Indices - An equity index is a statistical measure of the performance of a basket of stocks representing a portion of the equity market. Examples include the S&P 500 and the Dow Jones Industrial Average. These indices track the overall performance of their underlying group of stocks.
- Individual Stocks - An individual stock represents ownership in a single company. The return on an individual stock depends solely on that company's performance. Individual stocks carry higher risk but also the potential for higher returns compared to broader indices.
- ETFs (Exchange Traded Funds) - An ETF is a collection of securities bundled together into a fund that trades on an exchange like a stock. ETFs can contain various asset classes but equity ETFs typically track an equity index, such as the entire stock market or a sector. ETFs offer diversification with the trading aspects of a stock.
Shares and individual stocks represent ownership in a single company, indices track groups of stocks, while ETFs are funds containing assets like stocks or indices that trade as a single security. The level of diversification, risk, and return potential differs across these asset classes.
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