Intro
Interactive Brokers (IBKR) and eToro are perhaps two of the best online brokers out there. On top of great all-round services and low fees, IBKR has extra features catering to professional traders, while eToro is best known for its copy-trading service. Let's see how they stack up against each other across some of the main dimensions we look at in our methodology!
| eToro | Interactive Brokers | |
|---|---|---|
| Overall score | 4.8 stars | 4.9 stars |
| Recommended for | Traders interested in social trading (i.e. copying other investors’ trades) and zero commission stock trading | Traders looking for broad market access and a professional trading environment |
| Fees score | 4.3 stars | 4.5 stars |
| Account opening score | 5.0 stars | 3.2 stars |
| Deposit and withdrawal score | 3.8 stars | 3.0 stars |
| Markets and products score | 4.4 stars | 5.0 stars |
| Research score | 3.5 stars | 4.3 stars |
BrokerChooser named IBKR Best online broker in 2022, while eToro received our Best broker for cryptos badge. Overall, IBKR comes out on top with an overall score of 4.9 versus 4.8 for eToro. This is just a minor difference though, coming down to a few points either way:
- Trading fees are similar but IBKR doesn't charge an inactivity fee
- Account opening is easier and faster at eToro
- IBKR has a superior product range and more in-depth research
- eToro has more (but also more expensive) deposit and withdrawal options
See below for additional details.
eToro vs IeToro vs Interactive Brokers
Fees and funding
Fees
Both brokers charge low trading fees across nearly all product categories. eToro offers commission-free stock and ETF trading, a feature that Interactive Brokers extends only to US customers using the IBKR Lite plan. In one big difference, eToro charges a $10 per month inactivity fee if you don't use your account for more than 12 months.
For more information, check out our detailed analysis of eToro fees and Interactive Brokers fees.
Deposit and withdrawal
Deposit and withdrawal are a bit more convenient at eToro, as you can also fund your account using a credit/debit card in addition to bank transfer, which is the only option at IBKR. However, deposit and withdrawal can also be more costly eToro, as it charges a $5 withdrawal fee, whereas at IBKR the first withdrawal each month is free. In addition, eToro will charge a conversion fee for converting any non-USD deposits to USD, the only account currency available.
eToro vs IeToro vs Interactive Brokers
Platforms and products
Account opening
eToro offers a better account opening experience. Your account will be ready for trading within a day, and the minimum deposit is small at $50 in most countries ($10 in the US/UK). By contrast, account verification may take 3 days at IBKR and involves a lengthy registration process (though no minimum deposit in most cases).
Trading platforms
eToro's web and mobile trading platforms are more user-friendly than those of Interactive Brokers, especially when it comes to eToro's mobile app. At the same time, eToro doesn't offer a desktop trading platform; whereas the desktop platform of Interactive Brokers is among the most complex in the industry, making it a great option for professional traders.
Markets and products
Interactive Brokers has exceptional product and market coverage, offering virtually all asset types, traded on dozens of international markets. eToro's product selection is also great but slightly thinner overall, focusing mostly on CFDs and forex (except in the US). A special service offered by eToro is copy trading, where you can track and copy the trades of other investors.
eToro vs IeToro vs Interactive Brokers
Research, education and support
Research and education
IBKR offers a wider range of research tools than eToro, including excellent charting, data and trading ideas. Both brokers offer a demo account for those who want to try out the platforms first without committing any money.
Customer service
This is an area where both brokers have room for improvement. Customer support at IBKR is helpful but sometimes slow to respond; while the only way to contact eToro is via a web-based ticketing system. Neither provider offers 24/7 support.
eToro vs IeToro vs Interactive Brokers
FAQ
Is there something better than eToro?
Overall, Interactive brokers is slightly better than eToro, thanks to its low fees and better asset selection.
Which broker is better than eToro?
When it comes to fees, available products and market coverage, Interactive Brokers can be considered better than eToro.
Is Interactive Brokers a good fit for beginners?
No, Interactive Brokers is not the best choice for beginners. eToro's trading platforms are better suited for beginners, while Interactive Brokers is a better fit for more experienced or professional traders.
