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Articles / eToro vs Interactive Brokers (IBKR): 2023 Comparison

eToro vs Interactive Brokers (IBKR): 2023 Comparison

Franklin Carneiro da Silva| Updated September 18th, 2023

Are you confused about whether to choose eToro vs Interactive Brokers as a broker for your investing needs?

In this side-by-side comparison, we analyse eToro vs Interactive Brokers to help you understand how these apps compare on some of the most common features and make a better-informed decision about the best broker for you.

Below, you’ll find the pros and cons of each broker, as well as a comparison table that features the different fees charged, the financial instruments supported, the regulation, and more. Keep reading!

eToro vs Interactive Brokers (IBKR): 2023 Comparison 1
Visit eToroAsset 3

74% of retail CFD accounts lose money.

Ideal for
Social trading and commission-free stock trading

eToro is a well-known worldwide fintech startup and the leader in the social trading field (following other people’s trades), with over 30 million users worldwide.

You can also invest in other products through their platform, which is intuitive and simple to use, making it a good choice for beginners. Plus, eToro offers commission-free stock trading (other fees apply).

Opening an account and depositing is easy, and you can even try it out with virtual money (a demo account). On the downside, spreads can be high for some products.

Ideal for
Every investor (best overall)

Interactive Brokers is a global online broker and publicly listed company which surpassed major financial crises, showing resilience and a rigorous risk management process.

It offers an advanced investment platform that includes a wide range of products (stocks, options, mutual funds, ETFs, futures, bonds, and currencies) from 150 markets.

Beginners and intermediate investors have educational tools to explore, but the learning curve will be steep. Interactive Brokers also launched IBKR GlobalTrader, a modern mobile trading app to trade Stocks, Options and ETFs.

Pros and Cons

Pros

  • Commission-free stock trading
  • Social Trading and other innovative products
  • Wide variety of financial products
  • Slick, modern, and easy for anyone to use
  • Top tier regulators

Cons

  • Limited disclosed financial information
  • Withdraw and inactivity fees
  • Spread, overnight, inactivity, and currency conversion fees higher than average
  • Only one currency account (USD) - a currency conversion fee is applied if you deposit in a different currency
  • Doesn’t offer bonds, futures, or options

Pros

  • Low commissions on US stock trading (for EUR based accounts)
  • No monthly inactivity fee
  • The broadest product and markets range in the brokerage industry
  • Demo account
  • Excellent reputation (founded in 1978)
  • Extensive research and Education tools
  • Has a modern mobile trading app to trade Stocks, Options and ETFs, ideal for novice investors, IBKR GlobalTrader.

Cons

  • Complicated and lengthy account opening process (but fully online)
  • Steeper learning curve for beginners
  • Website is difficult to navigate
  • Interactive Advisors (Robo-advisor feature) is only available for US customers
eToro vs Interactive Brokers (IBKR): 2023 Comparison 3
eToro vs Interactive Brokers (IBKR): 2023 Comparison 4
  •  
  • General Information
  • Founded in
  • Demo Account
  • Account Minimum
  • Interest on unninvested cash (annually)
  • Products
  • Stocks
  • ETFs
  • Bonds
  • Funds
  • Options
  • Futures
  • CFDs
  • Leverage Products
  • Forex
  • Cryptocurrencies
  • Commodities
  • Fees
  • US stocks
  • EU stocks
  • ETFs
  • Cryptocurrencies
  • Custody Fee
  • Inactivity Fee
  • Withdrawal Fee
  • Connectivity Fee
  • Currency Conversion Fee
  • Security
  • Regulators
  • Investor Compensation Scheme(per person, per institution)
  • eToroAsset 3

    74% of retail CFD accounts lose money.

  • General Information
  • Founded in2007
  • Demo Account
  • Account Minimum$50**It varies between countries
  • Interest on unninvested cash (annually)0%
  • Products
  • Stocks
  • ETFs
  • Bonds
  • Funds
  • Options
  • Futures
  • CFDs*On Indices, Currencies, Commodities, and Stocks.
  • Leverage Products
  • Forex
  • Cryptocurrencies
  • Commodities
  • Fees
  • US stocks$0
  • EU stocks$0
  • ETFs$0**Not all ETFs are offered with 0% commissions.
  • Cryptocurrencies1%**Spread on either side of a crypto trade.
  • Custody Fee$0
  • Inactivity Fee$10/month**After 1 year login inactivity.
  • Withdrawal Fee$5**Minimum withdrawal amount is $30.
  • Connectivity Fee$0
  • Currency Conversion FeeStarts from 0.50%
  • Security
  • RegulatorsFCA, CySEC and ASIC.
  • Investor Compensation Scheme(per person, per institution)

    Up to €20,000 for clients under eToro (Europe) Ltd; Up to £85,000 for clients under eToro (UK) Ltd.

  • Interactive BrokersAsset 3
  • General Information
  • Founded in1978
  • Demo Account
  • Account Minimum€/$/£0
  • Interest on unninvested cash (annually)EUR: 2.63%; USD: 4.58%; GBP: 3.90%
  • Products
  • Stocks
  • ETFs
  • Bonds
  • Funds
  • Options
  • Futures
  • CFDs*On Stocks, Indices, Metals, and Forex.
  • Leverage Products
  • Forex
  • Cryptocurrencies
  • Commodities
  • Fees
  • US stocksTiered plan: $0.0035 per share**Min. $0.35; Max. 1% of trade value.
  • EU stocksTiered plan: 0.05% of trade value**Min. €1.25; Max. €29.
  • ETFsTiered plan: 0.05% of trade value**Min. €1.25; Max. €99.
  • CryptocurrenciesUp to 0.18% of the trade value**Only in the US.
  • Custody Fee€/$/£0
  • Inactivity Fee€/$/£0
  • Withdrawal Fee€/$/£0**One free withdrawal per month
  • Connectivity Fee€/$/£0
  • Currency Conversion Fee0.0020%
  • Security
  • RegulatorsFINRA, SIPC, SEC, CFTC, IIROC, FCA, CBI, AFSL, SFC, SEBI, MAS and MNB.
  • Investor Compensation Scheme(per person, per institution)

    Up to £85,000 for clients under IB U.K. Limited; Up to €20,000 for clients under IB Ireland Limited.

________________

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

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

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Franklin Carneiro da Silva
Co-Founder & Fintech Analyst

Franklin is a CFA Level III Candidate with 3 years of experience in Wealth Management as a Fund Research Analyst and the Host of the "Edge Over Hedge" YouTube Channel.

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