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Do you remember the days when you would walk into a stock exchange and see people making calls by the minute? What we now know as the modern stock exchange started in Amsterdam with the Dutch East India Company. One could trade in two ways: either by themselves or through a third party.
The broker was the third party that would open and close client trading positions. Online brokers have taken center stage, but in a different capacity. They allow you to open and close trading positions on various financial instruments.
Brokers come in different types, depending on their reach of financial instruments and capabilities. They include:
- Stock brokers that deal primarily in company and industry shares.
- Forex brokers that trade on currencies on your orders.
- Full-service brokers that add services like tax advice, retirement, and investment advice.
- Discount brokers that only execute your orders without any guidance or add-ons.
The brokerage industry has expanded to include cryptocurrencies since Bitcoinmarket went live in 2010. Today, we will examine two titans in the industry, eToro, and AvaTrade. You will learn about their capabilities, services, and fees to determine which is best for you.
Overview of AvaTrade and eToro
|💰 Account Minimum||$100||$50|
|💸 Commission Fees||No commission on trades, spreads only||No commission on trades, spreads only|
|💼 Investment Options||Forex, CFDs, Stocks, Cryptocurrencies, Bonds, ETFs, Options, Futures, Indices, and Commodities||Stocks, ETFs, Cryptocurrencies, Indices, Commodities, and CFDs|
|🤖 Robo-Advisor||No||Yes, CopyPortfolio feature|
|📊 Research and Analysis||Daily market analysis, economic calendar, and trading signals||News feed, market analysis, and social trading feed|
|📱 Mobile App||AvaTradeGO for iOS and Android||eToro mobile app for iOS and Android|
|🏦 Retirement Accounts||No||No|
|🎓 IRA Accounts||No||No|
|📈 Trading Platform||MetaTrader 4, MetaTrader 5, AvaTradeGO, and WebTrader||eToro trading platform|
|📞 Customer Service||24/5 live chat, phone, email, and social media support||24/7 live chat and ticket-based support|
|📚 Educational Resources||Video tutorials, eBooks, webinars, and market analysis||Trading academy, webinars, and e-course|
|🌕 Fractional Shares||No||Yes, for stocks|
|🌱 Socially Responsible||No||Yes, a selection of stocks and ETFs|
|🌎 International Investing||Yes, in 60+ countries||Yes, in 140+ countries|
|💳 Cash Management||Yes, debit card and wire transfer options||Yes, eToro Money debit card and multiple deposit/withdrawal options|
|🔍 Margin Trading||Yes, up to 1:400 leverage||Yes, up to 1:30 leverage|
|⚙️ Options Trading||Yes, on forex and CFDs||No|
|₿ Cryptocurrency Trading||Yes, 16 cryptocurrencies available for trading||Yes, 16 cryptocurrencies available for trading|
|🛡️ Account Security||Regulated by the Central Bank of Ireland, ASIC, FSA, and FSB||Regulated by the FCA, ASIC, and CySEC|
|💹 Leverage||Yes, up to 1:400||Yes, up to 1:30|
|⚖ Regulation||Regulated by the Central Bank of Ireland, ASIC, FSA, and FSB. Registered with FSP and FSCA||Regulated by the FCA, ASIC, and CySEC|
Avatrade vs. eToro
Avatrade and eToro are prominent trading platforms that cater to various financial instruments. However, minor differences between them might make you consider one over the other. These and many more are what we will look at in the next few minutes.
This trading platform brings different functionalities to the average trader. It launched in 2006 but is available in several countries today. With coverage in 20 languages, you will have little to complain about regarding communication.
Benefits and Drawbacks of Avatrade
- It has 1260 tradeable symbols.
- It works with MetaTrader 4 and 5.
- The platform is available on Android and iOS devices.
- It supports copy trading
- Traders that deposit $1,000 and above will get a personal account manager
- It does not support the trading of physical cryptocurrencies.
- The inactivity fee is relatively high
- It requires $100 to open an account.
One astonishing thing about AvaTrade is its licensing. The platform is regulated in several markets worldwide to boost its credibility. Some of its licenses include the following:
- Central Bank of Ireland
- Polish Financial Supervision Authority
- Australian Securities and Investment Commission
- British Virgin Islands Financial Services Commission
- Financial Services Agency in Japan
- Financial Regulatory Services Authority in Abu Dhabi
- Israel Securities Authority
AvaTrade most likely has an operating license, regardless of which continent you are on.
Avatrade offers a complete trading service that covers forex, CFDs, stocks, commodities, cryptocurrencies, etc. You can also trade bonds, treasuries, and ETFs with it. While the PC web platform contains all the functionalities, AvaTrade is also available on mobile.
Commodities on the platform include crude oil, natural gas, copper, gold, silver, wheat, gasoline, etc. You can also access stocks from prominent global companies like Tesla, Apple, Microsoft, Netflix, American Express, etc. Avatrade throws in many features on its platform.
The major trading platforms you can use include the following:
- AvaOptions (for currency pairs)
- AvaTradeGo (mobile app)
- MetaTrader 4
- MetaTrader 5
WebTrader is the primary platform, and it is likely that you will use it the most. It has everything, including the critical “Education” section, where economic indicators can be found. AvaTrade also lets you do technical analysis, use online trading strategies, and place different orders.
AvaTradeGo is the mobile version of this trading platform. It is helpful because of its portability while still providing an excellent experience.
You can also use the DupliTrade platform to copy the trades of experts. It is an excellent choice if you are a beginner. Still, you should be cautious while copying trades from the best traders.
Avatrade has its own in-house risk management tool, AvaProtect, which protects against losses if you trade through AvaTradeGO or WebTrader. That is among the many cutting-edge technologies you will get with this trading platform.
We will explore its fees more in the following section. In the meantime, here is a summary of its core features:
- It deals with CFDs, indices, bonds, ETFs, cryptocurrencies, stocks, and commodities.
- Available in 20 languages.
- Dedicated account manager for a first deposit of $1,000 or more
Like all trading platforms, AvaTrade has fees for its users. They range from administrative charges to commissions from the trades. However, you need at least a $100 deposit to start trading on the platform.
Fees on the platform include the following:
- Buy and sell spreads
This fee is the compensation you pay the platform when you open a position. It can range from below 1% to 2%, depending on which instrument you trade. Search for the instrument and scroll to the “Info” section to see the spread.
Alternatively, you can see the spreads, among other parameters like margins, when searching for instruments.
- Overnight premium
Leaving a position open beyond its pre-fixed time will cost you. AvaTrade will deduct this amount from your account.
- Inactivity fee
Customer trading accounts that have been inactive for three months will be charged.
- Administration fee
Unless prohibited by law, all accounts are subject to an annual administration fee. For the most part, it is often $100.
The live chat icon will immediately welcome you when you open the web platform. It stays on the bottom right corner of the screen, sticking through your scrolls. One click opens the chat window, where you can communicate with a customer service representative.
Avatrade offers the following customer support channels: telephone, email, live chat, FAQ, and WhatsApp.
The “Help” button at the top of the homepage (web platform) will bring out the options. Pick which channel you want and reach out to the support team. The response is generally quick, except for the email.
eToro has offices in the UK, USA, Cyprus, and Australia, and more than 25 million people use its trading platform. It can be found on the web, and there are apps for Android and iOS mobile devices. However, its multi-asset coverage is its greatest strength.
The Benefits and Drawbacks of eToro
- It has 3458 tradable symbols.
- Users can trade physical cryptocurrencies.
- The eToro Money works as a wallet for cryptocurrencies and fiat currencies.
- It supports copy trading
- Users can start trading with as little as $10.
- There is no automated trading or MetaTrader support.
- Telephone support is only available to silver members of the club.
- The US version is limited compared to the international version.
Since its start in 2006, eToro has added new features and platforms it works with to reach more people. Smart Portfolios came in 2016, while cryptocurrency trading debuted on the platform in 2017. In 2019, the online brokerage eliminated stock trading commissions.
EToro has merged all its instruments and features to create one robust ecosystem. It supports the following markets:
This online brokerage has several licenses that show it is a reliable business in its field. It is Tier-1 and Tier-2 rated, containing about seven licenses between the two. Some of them include the following:
- The Financial Conduct Authority in the UK
- Cyprus Securities Exchange Commission
- Australian Securities and Investment Commission
- Financial Services Authority Seychelles
- Financial Crimes Enforcement Network in the US
eToro wins traders over with its features and capabilities. It has the basic requirements to manage a trade but adds a few others that take things up a notch. For example, the CopyTrader helps you replicate the actions of other investors.
On the investment side, eToro has the following:
- Zero percent commission stocks
- Investment portfolios
- Crypto staking
- Environmental, social, and governance (ESG) scores
eToro has ESG scores for over 2,700 assets on its platform. That allows you to make informed decisions about which stocks to add and which ones to remove. Indeed, it is valid, given the rift between US officials and Wall Street regarding ESG.
Cryptocurrency enthusiasts will understand cryptocurrency staking better. It is the practice of leaving digital assets with a broker or exchange to earn long-term rewards.
Stocks on eToro include Meta, Microsoft, MasterCard, Carvana, NetScout Systems, Bancorp Inc., etc. The list goes on once you start exploring the platform. Switching to commodities brings up options like gold, natural gas, sugar, platinum, cotton, aluminum, gasoline, etc.
This platform also has eToro Plus, which tells you about the latest daily and quarterly trends. It is one way to keep up with the market and fine-tune your strategy. You can also enroll in the eToro Academy to learn basic and advanced trading training.
Once registered, eToro will fund you with a $100,000 demo account. You can practice with it if you are a beginner or skip it if you are a pro trader.
The platform’s fees are not easy by any means. Its charges depend on which instrument you trade. Nevertheless, stock trading remains at zero commission, management, and ticket fees.
eToro charges spread and fees for trades and withdrawals. For example, withdrawals from stock or ETF trades cost $5 per transaction.
Crypto trades have a 1% spread, but there are other charges as follows:
|Crypto to crypto conversion||0.1%|
|Daily transaction limit||$200,000|
|Single transaction limit||$50,000|
The final significant fee is a monthly charge of $10 after 12 months of inactivity. Always view your trade details to know what costs you will pay.
eToro has tiered customer support for its members. Those at the primary level have limited options, with contact only through email or support tickets. But the platform has a lengthy FAQ section.
Joining the eToro Club grants you access to more customer support options. Still, the channels available depend on your level of membership. There are live chat and telephone options.
Only members with an equity of $5,000 can call the support representative. You must reach the silver level to access this customer support channel.
Avatrade and eToro are full-service online brokerages that offer traders a variety of ways to trade. They both offer demo accounts to get you started if you are new to trading. In addition, their regular analysis will keep you updated.
eToro supports more tradeable symbols than Avatrade, but your choice depends on the instruments you want to trade. The fact that the first one lets you trade stocks with no fees may be more appealing, but you might want to use AvaTrade’s automated features instead.
Recommendations to Get the Right Broker
AvaTrade’s support for MetaTrader 4 and 5 places it ahead of eToro. If automated trading is fundamental to your strategy, then go with it.
On the other hand, eToro provides more instruments with support for actual cryptocurrency trading. It is an excellent choice to trade crypto and engage in copy trading.
StockHax strives to provide unbiased and reliable information on cryptocurrency, finance, trading, and stocks. However, we cannot provide financial advice and urge users to do their own research and due diligence.Read More