⚠️ CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. X

Compare Forex CFD Brokers 2024 : XM vs eToro

Updated June 16th 2024
Welcome to the most in-depth comparison table for the following brokers :

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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Rating
Overall Rating 4.5 4.5
Offering of Investments 4 4.5
Commissions & Fees 4 5
Platform & Tools 4 4.5
Research - 4.5
Mobile Trading 4 4.5
Education - 5
Trustpilot Reviews 551 21837
Trustpilot Rating 3.2 4.4
Trustpilot Profile View View
Licenses
Tier 1 Licenses 2 2
Tier 2 Licenses 1 1
Tier 3 Licenses 1 0
Licenses - -
Investments
Forex Trading (Spot or CFDs)
Forex Pairs (Total) 1429 55
Tradeable Symbols (Total) 55 3479
U.S. Stock Trading (Non CFD)
Int'l Stock Trading (Non CFD)
Social Trading / Copy Trading
Cryptocurrency (Physical) no
Cryptocurrency (CFD)
Crypto Pairs (CFD) 58 92
Assets
CFDs
ETFs no
Forex
Indices
Shares
Commodities
Oil Trading
Licensing Jurisdiction
ASIC Authorised (Australia)
IIROC Authorised (Canada) no no
SFC Authorised (Hong Kong) no no
CBI Authorised (Ireland) no no
FSA Authorised (Japan) no no
MAS Authorised (Singapore) no no
FINMA Authorised (Switzerland) no no
FCA Authorised (U.K.)
CFTC Registered (USA) no
FMA Authorised (New Zealand) no no
CBRC Authorised (China) no no
CySEC Authorised (Cyprus)
SEBI Authorised (India) no no
Israel (ISA Authorised) no no
CBR Authorised (Russia) no no
FSCA Authorised (South Africa) no no
SEC Authorised (Thailand) no no
DFSA / Central Bank Authorised (UAE) no no
SCB Authorised (Bahamas) no
FSC Authorised (Belize) no no
FSA Authorised (Seychelles) no no
CIMA Authorised (Cayman Islands) no no
BMA Authorised (Bermuda) no no
FSC Authorised (British Virgin Islands) no no
FSC Authorised (Mauritius) no no
VFSC Authorised (Vanuatu) no no
Funding
Min. Deposit 5 50
PayPal (Deposit/Withdraw) no
Skrill (Deposit/Withdraw)
Visa/Mastercard (Credit/Debit)
Bank Wire (Deposit/Withdraw)
Webmoney (Deposit/Withdraw) no no
Crypto Funding
Bitcoin (BTC) no no
Litecoin (LTC) no no
Ethereum (ETH) no no
Tether (ERC20) no no
Tether (TRC20) no no
Dogecoin (DOGE) no no
Trading Platforms
Proprietary Platform no
Desktop Platform (Windows) no
Desktop Platform (Mac) no no
Web Platform
Social Trading / Copy Trading
Mobile App (Android)
Mobile App (iOS)
Trading Software
MetaTrader 4 (MT4) no
MetaTrader 5 (MT5) no
cTrader no no
DupliTrade no no
ZuluTrade no no
Myfxbook no no
VPS Trading no no
Cost
Average Spread EUR/USD - Standard 1.6 1
All-in Cost EUR/USD - Active 0.8 -
Active Trader or VIP Discounts no
Inactivity Fee no no
Execution: Agency Broker no
Execution: Market Maker
Research
Daily Market Commentary
Forex News (Top-Tier Sources) no
Autochartist no no
Trading Central (Recognia)
Social Sentiment - Currency Pairs
Economic Calendar
Education (Forex or CFDs)
Client Webinars
Client Webinars (Archived) no
Videos - Beginner Trading Videos
Videos - Advanced Trading Videos
Investor Dictionary (Glossary) no
Tick History no no
Major Forex Pairs
GBP/USD
USD/JPY
EUR/USD
USD/CHF
USD/CAD
NZD/USD
AUD/USD
Mobile Trading
Android App
Apple iOS App
Mobile Alerts - Basic Fields
Mobile Watchlist
Watchlist Syncing
Mobile Charting - Indicators / Studies 30 104
Mobile Charting - Draw Trendlines no
Mobile Charting - Multiple Time Frames
Mobile Charting - Drawings Autosave no no
Forex Calendar no
Trading Tools
Virtual Trading (Demo)
Alerts - Basic Fields
Watchlists - Total Fields 7 6
Charting - Indicators / Studies (Total) 30 104
Charting - Drawing Tools (Total) 15 161
Charting - Trade From Chart no
Charts can be saved
Spread
Stocks - -
Currencies - -
Indices - -
Commodities - -
Max. Leverage
Overall Max. Leverage 1:888 1:30
Stocks - 1:5
Currencies - 1:30
Indices - 1:20
Commodities - 1:10
Features
Scalping no
Hedging
Trailing Stops
Guaranteed Stop Loss no
Guaranteed Limit Orders no no
Guaranteed Execution no no
Negative Balance Protection
One-click Execution
Interest on Margin no no
Demo Account no
Web-based Trading
Mobile Native App Trading
Islamic Account no
Zero Spreads no no
Regulation
Trust Score 90 93
Year Founded 2009 2007
Compensation Fund 20000 85000
Publicly Traded (Listed) no no
Bank no no
Authorised in European Union
Member of The Financial Commission no no
The Financial Commission Profile - -
VerifyMyTrade Audit - -
Public Disclosures
Financial Statements - View
Management Team - View
Support
Email Support no
Phone Support no no
SMS Support no no
Live Chat no no
Support Hours 24/7 -
Community
Monthly Website Visitors 11.6 M 35.6 M
X Subscribers 115 K 336 K
Youtube Subscribers 104 K 71 K

Can you trust XM?

  • XM was founded in 2009.
  • XM does not operate a bank and is not publicly traded.
  • XM is authorised to operate in the 🇪🇺 European Union.
  • XM is licensed by the world's most strict and feared regulator 🇬🇧 ASIC (AU).
  • XM is licensed by the 🇬🇧 FCA (UK).
  • XM is registered by the 🇺🇸 CFTC (USA) .

Is XM authorised to operate in the US?

✅ Yes, XM is CFTC Registered (USA) which means that you are allowed to trade on their platform if you are based in the United States.

What licenses does XM have to operate?

XM is authorised by the following regulators: ASIC Authorised (Australia), FCA Authorised (U.K.) , CFTC Registered (USA) , CySEC Authorised (Cyprus) and SCB Authorised (Bahamas) .

Does XM publicly discloses their financial statements?

❌ No, unfortunately XM does not list their financial statements publicly on their website.

Does XM offer trading software like Meta Trader?

✅ Yes, you can trade on XM using MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading software as well as through their web trading platform .

Does XM provide a mobile native app?

✅ Yes, you can trade XM on mobile using Mobile App (Android) and Mobile App (iOS).

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).

XM vs eToro - Comparision & Key Differences

What are the trading options for each broker?

  • XM offers the most forex pairs with 1429 available pairs while eToro offers 55 currency pairs.
  • eToro offers the most financial instruments with 3479 tradeable symbols while XM offers 55 financial products.
  • eToro offers the most crypto currency pairs with 92 crypto pairs while XM offers 58 crypto pairs.

Which brokers offer social/copy trading?

Both XM and eToro offer social/copy trading on their platform.

Best Brokers for Social/Copy Trading

Which brokers offer cryptocurrency (CFD) trading?

Both XM and eToro offer cryptocurrency (CFD) trading on their platform.

Best Brokers for Cryptocurrency (CFD)

Which brokers allow scalping?

Only XM allows scalping.

Best Brokers for Scalping

Which brokers allow hedging?

Both XM and eToro allow hedging on their platform.

Best Brokers for Hedging

Which brokers provide Negative Balance Protection?

Both XM and eToro provide Negative Balance Protection on their platform.

Best Brokers with Negative Balance Protection

Which brokers offer a Demo Account?

Only XM offers a Demo Account.

Best Brokers Offering Demo Accounts

Which brokers offer an Islamic Account?

Only XM offers an Islamic Account.

Best Brokers Supporting Islamic Accounts

What does it matter which licenses a broker has?

Licenses allow brokers like XM and eToro 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 XM and eToro 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?

AU's ASIC, UK's FCA and America's CFTC are considered global “gold standards” in rigorous consumer protection laws and enforcement policies.

  • ASIC (AU) Authorised - Both XM and eToro are licensed by the ASIC (AU).
  • FCA (UK) Authorised - Both XM and eToro are licensed by the FCA (UK).
  • CFTC (US) Authorised - Only XM is 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 XM and eToro are licensed by the CySEC (CY).

Which brokers are not registered with ASIC, FCA or CFTC?

  • Not registered with CFTC (US) - Only eToro is not licensed by the CFTC (US).

    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) - None

    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) - None.

Background Information

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.

XM Review
75.33% of retail CFD accounts lose money
eToro Review
Your capital is at risk