eToro vs. IG

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When you trade with an online broker, you have more options and are more comfortable because you don’t have to leave your home. They allow ordinary people to become experts, provided they enrich themselves with more knowledge.

Opening and closing trades are now made with mouse clicks and taps rather than phone calls. Online brokers give you the tools to trade instruments and stay in charge. Some give you a lot of charts and technical indicators to help you understand the market.

Online brokers are not limited to stocks, as they feature other instruments like CFDs, treasuries, bonds, cryptocurrencies, etc. Based on how much functionality you want, there are three primary types of online brokers. They include the following:

• Robo-advisers: These platforms use algorithms to provide investment advice or invest clients’ assets in the market. They have little to no human interaction.
• Full-service brokers: This type fits the bill if you need a platform that provides advice on investments, taxes, and market trends.
• Discount brokers: Have limited services, but you can access them with little deposits.

Despite heavy losses in 2022, online brokers continue to grow in popularity. Let’s review two famous ones: eToro and IG.

Overview of eToro and IG

Features	eToro	IG
💰 Account Minimum	$50	£250.00
💸 Commission Fees	Commission-free trading	Commission varies depending on the product and market
💼 Investment Options	Stocks, ETFs, Cryptocurrencies, CFDs, Indices, Commodities, Forex	Stocks, ETFs, Options, Bonds, Commodities, Forex, Cryptocurrencies, Spread Betting
🤖 Robo-Advisor	eToro’s CopyPortfolios	None
📊 Research and Analysis	Limited research and analysis tools	In-depth market research, analysis, and news
📱 Mobile App	User-friendly mobile app with a social trading feature	Advanced mobile app with customizable alerts and trading signals
🏦 Retirement Accounts	None	Stocks and Shares ISA, SIPP
🎓 IRA Accounts	None	None
📈 Trading Platform	eToro Platform, eToro WebTrader, eToro Mobile Trader	IG Trading Platform, L2 Dealer, ProRealTime, MetaTrader 4
📞 Customer Service	24/7 customer service via live chat and email	24/7 customer service via phone, live chat, and email
📚 Educational Resources	Limited educational resources	Comprehensive educational resources including webinars, articles, and trading courses
🌕 Fractional Shares	Available for stocks and ETFs	Available for some US stocks
🌱 Socially Responsible	Limited options for socially responsible investing	Offers a range of ethical investment options
🌎 International Investing	Available in 140+ countries	Global access to over 10,000 markets
💳 Cash Management	eToro Money for payment services	IG’s Smart Portfolio for cash management
🔍 Margin Trading	Available with restrictions	Available with restrictions
⚙️ Options Trading	Limited options trading capabilities	Offers options trading on stocks, indices, and forex
₿ Cryptocurrency Trading	Offers a wide range of cryptocurrencies for trading	Offers a range of cryptocurrencies for trading
🛡️ Account Security	Two-factor authentication, SSL encryption, and segregated accounts	Two-factor authentication, SSL encryption, and segregated accounts
💹 Leverage	Up to 1:30 for retail clients and 1:400 for professional clients	Up to 1:30 for retail clients and 1:200 for professional clients
⚖ Regulation	Regulated by FCA, CySEC, and ASIC	Regulated by FCA, ASIC, and other global regulators

eToro vs. IG

IG has been in the industry much longer than eToro, but that doesn’t mean the latter is inferior. Both online brokers are competitive and stand toe-to-toe with each other. More so, you can start trading with a demo account on both and learn the ropes of the industry.

eToro

For beginner traders, eToro offers an excellent platform with its social trading features, user-friendly interface, and educational resources. However, its fee structure and limited advanced trading tools may be less attractive to more experienced traders.

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IG

IG is a solid choice for beginner traders who are looking for a comprehensive trading platform with advanced tools and competitive fees. However, its higher account minimum and steeper learning curve may make it less accessible for some beginners compared to eToro’s user-friendly platform.

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Service

eToro

We know that eToro is an online broker, but how it does things makes the difference. For example, you can use its Smart Portfolios to shape your investment strategy. This platform uses powerful algorithms to put together assets and traders, which gives investment strategies a solid base.

Smart Portfolios launched in 2016, and it is available to eToro users. Another milestone for the service came in 2017 when it added cryptocurrency to its assets. However, the online broker continued trading cryptocurrencies such as CFDs and futures.

eToro Money is an all-in-one platform to manage your finances and cryptocurrencies. It can act as a crypto wallet to store your coins before and after trading. As a result, eToro is one of the few online brokers that supports the trading of physical cryptocurrencies.

Cryptocurrency trading is available for users in the United States. Likewise, US residents can trade fractional shares with zero commissions.

With eToro, you can trade stocks, cryptocurrencies, indices, commodities, ETFs, NFTs, and currencies. Delta by eToro is an NFT explorer that facilitates your NFT trading. In addition, you can connect your Web3 wallets and access them from the platform.

The NFT market reached $24.7 billion in trading volume in 2022. Enthusiasts who want the versatility of traditional online brokers will enjoy eToro’s Delta platform.

CopyTrader is one of eToro’s best-known and most successful trading platforms. With one click, you can copy the trades of successful traders. That spares you the hassle of analyzing the market and interpreting technical indicators.

IG

There is much you can do with IG’s API if you are a developer. You can build your direct market access platform and execute your trades with little to no intervention. Having direct access to the market comes with perks that average traders do not have.

Concerning the direct market access platform, IG has it ready with the L2 Dealer and the mobile applications. The latter has professional tools that you can use to tweak the experience to your taste. Furthermore, it is the most advanced you will find if you want direct access to the market.

ProRealTime is another outstanding service you can get with IG. With it, you can do the following:

• Use strike price and expiration date to filter options
• Use trend lines to place orders
• Access 100 indicators
• Build algorithms for 24-hour trading

This innovative platform from IG gives you access to automation, technical analysis, customization, and back-testing capabilities. However, it is only available on PCs and not on mobile devices.

You can use algorithms when you trade with IG International Limited and MetaTrader 4.While advanced technology & algorithmic trading can potentially give you an advantage over the regular average Joe, it can also be an opening to your downfall, financially. that is why it is recommended to consult with an expert to not lose your money. Fortunately, you can get expert support 24 hours a day on IG, except on Saturdays, which last from 8 a.m. to 10 p.m.

Apart from the trading platforms, IG offers the following markets:

• Cryptocurrency
• Thematic and basket
• Options
• Commodities
• Indices
• Shares
• Forex

There are many more as you explore the platform. You can trade on weekends in exclusive markets, including global indices, forex, and cryptocurrencies. The market opens at 3 p.m., but indices close at 5.40 a.m., forex at 3.40 a.m., and cryptocurrency at 5 a.m.

Fees

eToro

eToro makes its money off trades and other privileges users subscribe to. However, it is advantageous in the following areas:

• Zero management fees
• Zero commission on stocks
• Free $100,000 demo account

You can start trading on the platform for as little as $10. That is because of the fractionalized nature of its stock market. Still, withdrawals cost $5, and deposits and withdrawals made outside the US are charged FX fees.

All cryptocurrency trades attract a 1% fee, which tops off the market spread. You may also be charged additional fees for specific cryptocurrencies. Then, you have a 0.1% charge on all crypto conversions you do through the wallet.

Spreads can be as low as 0.15% for stocks and CFDs and up to 2 PIPs for commodities. Finally, staying inactive for 12 months will attract a charge of $10 per month.

IG

Let’s begin with the ProRealTime platform. Using it will not cost you anything for the first month, while traders with professional accounts have three months free. You can use the software for free if you make at least four monthly transactions.

IG charges $40 a month if you don’t meet that requirement, and it will deduct the money at the end of the month. Other fees include spreads and commissions when trading. One trade could cost up to 5 points, but you can still get some below 1 point.  

Other fees you should keep an eye out for include the overnight charge and the guaranteed stop premium. Leaving your trade open beyond 10 p.m. UK time attracts an admin fee. However, it does not apply to futures.

Guaranteed stop premiums will appear on your order ticket once you engage them. Review it before you proceed with the feature. Finally, you need at least $250 to open an account with IG International Limited. IG has a $300 minimum deposit for credit/debit cards and PayPal.

Customer Support

eToro

eToro has limited customer support for users at the primary level. They can only use email or support tickets to reach customer service. Nevertheless, the comprehensive FAQ section contains ample information on how to use the platform.

$5,000 in equity gives you access to telephone calls with the customer support team. As a result, you can only get that by reaching the silver level on the platform.

Live chat is also available, but everything depends on your joining the eToro Club. After you join, you can upgrade your membership to get more help with your online trading.   

IG

You can reach IG’s customer support via the following channels:

• Telephone
• Live chat
• Email

If you are yet to open an account, there is a separate email to use. The live chat option allows you to speak with a customer service representative at any time of the day. Even so, more demanding challenges are best addressed with an email.

The “Help” button at the top of the homepage will take you to a new window where you can type your queries. There are preselected categories to give you quick access and response.

Conclusion

In conclusion, both eToro and IG have their unique advantages and disadvantages for beginner traders. eToro’s social trading features, user-friendly interface, and low minimum deposit make it an attractive option for those new to trading. On the other hand, IG’s advanced trading platform, competitive fees, and wide range of assets offer a more comprehensive trading experience.

When comparing the two brokers, beginner traders should consider their individual needs and preferences, such as the importance of social trading, ease of use, and account minimums. Ultimately, both eToro and IG are reputable and well-regulated brokers, and the right choice will depend on the specific requirements and goals of the beginner trader.

Recommendations to Get the Right Broker

If physical cryptocurrencies and copy trading are essential, eToro is your best bet. It has eToro Money, which acts as a wallet, and its CopyTrader and Smart Portfolio boost copy trading. On the other hand, if you are a trader interested in automation and powerful algorithms, IG might be the way to go.