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!
IBKR vs eToro
- Interactive Brokers is our recommended choice overall
- eToro is best for social trading and low commission stock trading
Side-by-side comparison
| Category | Interactive Brokers | eToro |
| Demo account | Yes | Yes |
| Account minimum | $0 | $50 (varies between countries) |
| Interest on uninvested cash (annually) | EUR: 2.734%; USD: 4.33%; GBP: 4.546% (as of November 2024) | Up to 4.8% in USD |
| US stocks fees | Tiered plan: $0.0035 per shareMin. $0.35; Max. 1% of trade value. | $1 |
| EU stock fees | Tiered plan: 0.05% of trade valueMin. €1.25; Max. €29. | $1 |
| ETFs | Tiered plan: 0.05% of trade valueMin. €1.25; Max. €99. | $0 |
| Currency conversion fee | Up to 0.0020% | Starts from 0.50% |
| Regulators | FCA, CySEC and ASIC. | FINRA, SIPC, SEC, CFTC, IIROC, FCA, CBI, AFSL, SFC, SEBI, MAS and MNB. |
About Interactive Brokers
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.
Interactive Brokers pros and cons
Pros
- Low commissions on US stock trading
- 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.
- Offers interest on uninvested cash balances
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
About eToro
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.
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.
eToro’s pros and cons
Pros
- Low stock trading fees (from $0 per trade)
- Commission-free ETFs (other fees apply)
- Social trading and other innovative products
- Wide variety of financial products
- Slick, modern, and easy for anyone to use
- European users have access to three account currencies: EUR, USD and GBP
- Top tier regulators
Cons
- Limited disclosed financial information
- Withdraw and inactivity fees
- Spread, overnight, inactivity, and currency conversion fees higher than average
- Doesn’t offer bonds, futures, or options
eToro vs IBKR: our veredict
Interactive Brokers
Our recommended choice overalleToro
Best for social trading and commission-free stock trading
Choosing between these two online brokers isn’t always an obvious decision. The differences between eToro vs Interactive Brokers come from the trading platforms, products, fees, and security. Do you prefer a basic trading platform? Do you want to invest in ETFs only? Do you value security more?
Ultimately, the best online broker for you will depend on your profile, personal preferences, and objectives. Explore the websites above and decide for yourself!
Want to know more about eToro vs Interactive Brokers? Explore our in-depth broker reviews, comparison table, and BrokerMatch tool.
Disclaimer
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% 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.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
