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

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.

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

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

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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.