Home Brokers comparison eToro vs XM Group: Most Reliable Forex Broker in 2020?

eToro vs XM Group: Most Reliable Forex Broker in 2020?

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Is eToro better than XM Group? Both eToro and XM Group are top forex brokers in 2020. To determine which is the better of the two, we researched, tested, and compared them along with the top 30 best forex brokers over several months. We believe that when it comes to eToro vs. XM Group, eToro is the better broker for 2020 due to its user-friendly copy-trading platform. Of course, eToro is a bit more expensive, but based on our research, eToro provides superior results.

You can read the full eToro review here and the full XM review here.

All trading involves risk. More than 75% of investors lose money in Forex and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.

XM-logoetoro-logo

High Bonuses, Now With Low Spreads!

Free Social Trading and Low Fees

Overall Rating

Feature

XM Group

eToro

Rating

4/5
5/5

XM Group Review

eToro Review

73.57% of retail CFD accounts lose money

75% of retail CFD accounts lose money

Regulation

Feature

XM Group

eToro

Trust Score

81

91

Year Founded

2009

2007

Publicly Traded (Listed)

No
No

Bank

No
No

Tier-1 Licenses

2

2

Tier-2 Licenses

1

1

Tier-3 Licenses

0

0

Authorized in the European Union

Yes
Yes

All trading involves risk. More than 75% of investors lose money in Forex and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.

Tier-1 Licenses

Feature

XM Group

eToro

ASIC Authorized (Australia)

Yes
Yes

IIROC Authorized (Canada)

No

SFC Authorized (Hong Kong)

No
No

FSA Authorized (Japan)

​No

No

MAS Authorized (Singapore)

No

No

FINMA Authorized (Switzerland)

No
No

FCA Authorized (UK)

Yes
Yes

CFTC Registered (USA)

No
No

Investments

Feature

XM Group

eToro

Forex: Spot Trading

Social Trading / Copy-Trading

Currency Pairs (Total Forex pairs)

57

47

CFDs – Total Offered

1247

1980

Cryptocurrency traded as actual

Cryptocurrency traded as CFD

Offering of Investments

Winner

Cost

Feature

XM Group

eToro

Average Spread EUR/USD – Standard

1.6 (as of Mar 2020)

3 (Mar 2020)

All-in Cost EUR/USD – Active

0.8 (Mar 2020)

N/A

Active Trader or VIP Discounts

No

Yes

Commissions & Fees

4*
3*

Winner

Yes

 

Funding

Feature

XM Group

eToro

Minimum Initial Deposit

$5-100

$200

Bank Wire (Deposit/Withdraw)

Yes

Yes

Visa/Mastercard (Credit/Debit)

​No

Yes

PayPal (Deposit/Withdraw)

​No

Yes

Skrill (Deposit/Withdraw)

Yes

Yes

Trading Platforms

Feature

XM Group

eToro

Proprietary Platform

No
Yes

Desktop Platform (Windows)

Yes

No

Web Platform

Yes

Yes

Social Trading / Copy-Trading

Yes
Yes

MetaTrader 4 (MT4)

Yes

No

MetaTrader 5 (MT5)

​Yes

​No

cTrader

No
No

Trading Tools

Feature

XM Group

eToro

Virtual Trading (Demo)

Yes
Yes

Alerts – Basic Fields

Yes

Yes

Watchlists – Total Fields

(MT4/MT5)

6

Charting – Indicators / Studies (Total)

(MT4/MT5)

66

Charting – Drawing Tools (Total)

(MT4/MT5)

13

Charting – Trade From Chart

​Yes

​No

Charting – Drawings Autosave

​Yes

Yes

Order Type – Trailing Stop

​Yes

​Yes

Platform & Tools

3*

4*

Winner

Yes

Mobile Trading

Feature

XM Group

eToro

Android App

Yes
Yes

Apple iOS App

Yes

Yes

Trading – Forex

Yes

Yes

Trading – CFDs

Yes

Yes

Alerts – Basic Fields

Yes

No

Watch List

Yes

Yes

Watch List Syncing

Yes
Yes

Charting – Indicators / Studies

(MT4/MT5)

5

Charting – Draw Trend Lines

Yes

​No

Charting – Trend Lines Moveable

No

No

Charting – Multiple Time Frames

Yes

​Yes

Charting – Drawings Autosave

No
No

Forex Calendar

No
No

Mobile Trading

3*
4*

Winner

Yes

Research

Feature

XM Group

eToro

Daily Market Commentary

Yes

Yes

Forex News (Top-Tier Sources)

Yes

No

Weekly Webinars

Yes

​No

AutoChartist

Yes

No

Trading Central (Recognia)

No

 
 
 

Delkos Research

No

No

Social Sentiment – Currency Pairs

Yes

Yes

Economic Calendar

Yes

Yes

Research

3*

4*

Winner

Yes

Education

Feature

XM Group

eToro

Has Education – Forex

No
Yes

Has Education – CFDs

No

No

Client Webinars

Yes

Yes

Client Webinars (Archived)

No

No

Videos – Beginner Trading Videos

Yes

Yes

Videos – Advanced Trading Videos

Yes

Yes

Investor Dictionary (Glossary)

No

Yes

Education

4*

3*

Winner

Yes

Major Forex Pairs

Feature

XM Group

eToro

GBP/USD

Yes
Yes

USD/JPY

Yes

Yes

EUR/USD

Yes

Yes

USD/CHF

Yes

Yes

USD/CAD

Yes

Yes

NZD/USD

Yes

Yes

AUD/USD

Yes

Yes

Overall

Feature

XM Group

eToro

 

XM Group Review

eToro Review

Overall

4*

5*

Winner

Yes

Analyzing various forex brokers can be challenging, but after months of testing and research, we compiled the following review.

Price differences between eToro and XM Group

When it comes to trading costs, an accurate comparison is difficult to achieve because fees, commissions, and spread data are often not easily accessible. But our annual analysis for both trading platforms revealed that XM forex has better prices.

Safety concerns for forex and CFDs trading with eToro and XM Group

Since we’re committed to keeping track of over 30 forex and CFD brokers using several international databases, we came up with the following conclusion. eToro and XM Group come with two global Tier-1 licenses and one Tier-2 license. For this reason, we rated both eToro and XM Group with a trust score of 91.00.

What to choose: eToro vs. XM Group?

After analyzing all the features and capabilities of both trading platforms, we concluded that eToro provides a better experience. The best part is that eToro comes with superior market research and an excellent mobile trading app.

Are these forex broker tools suitable for MetaTrader and copy trading?

The most common and frequently used platform for forex and CFD trading is MetaTrader 4. XM Group offers access to MetaTrader 4, while eToro does not. Copy trading is a fantastic trading style that eToro has pioneered. XM Group also offers copy trading through MetaTrader 4; however, the copy-trading platform at eToro is easier to use, faster, and more intuitive than MetaTrader 4.

Which forex pairs and CFDs are available with eToro and XM Group?

XM Group offers 57 currency pairs (e.g., USD/EUR), while eToro has only 47. However, we recommend eToro because it offers 1980 CFDs compared to XM Group, which only provides 1247. That’s a difference of over 700 financial instruments.

Verdict

When it comes to choosing between eToro and XM Group, based on our research and testing, eToro is the better broker.

eToro compared to other brokers:

eToro review


Methodology 

The mission of Business24-7 is to provide comprehensive, unbiased ratings and reviews of online providers. User experience, the mobile experience, customer service, costs and fees, security, the quality of trade executions, the products available on their platforms are all part of our six-month evaluation of a providers’s platform. The rating scale was based on thousands of data points that have been weighted into the scoring system.

Providers were also required to fill out a multi-point survey regarding every aspect of their platform. In-person demonstrations and evaluations were provided by the majority of the online providers we reviewed.

Stefan Grasic, along with our team of industry experts, conducted our reviews and developed this methodology for ranking what form is used in online investing.

Business24-7 maintains high editorial standards and provides the best advice and recommendations. The products and companies that we review may compensate us when you click on the links on this website. Click below to find out more about our review process and methodology.

Disclosure

All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.

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Braden Chase is an investor, trading specialist, and former research specialist for Forex.com who helps aspiring investors develop the confidence and habits they need to make an income from the market. Braden has served as a registered commodity futures representative for domestic and internationally-regulated brokerages and has also spoken & moderated numerous forex and finance industry panels across the globe.

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