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-logo
etoro-logo


High Bonuses, Now With Low Spreads!

Free Social Trading and Low Fees

Overall Rating

Feature

XM Group

eToro

Overall

⭐️⭐️⭐️⭐️

⭐️⭐️⭐️⭐️⭐️


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)

🚫

🚫

Bank

🚫

🚫

Tier-1 Licenses

2

2

Tier-2 Licenses

1

1

Tier-3 Licenses

0

0

Authorized in the European Union

✅

✅

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)

✅

✅

IIROC Authorized (Canada)

🚫

🚫

SFC Authorized (Hong Kong)

🚫

🚫

FSA Authorized (Japan)

🚫

🚫

MAS Authorized (Singapore)

🚫

🚫

FINMA Authorized (Switzerland)

🚫

🚫

FCA Authorized (UK)

✅

✅

CFTC Registered (USA)

🚫

🚫

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

🚫

✅

Commissions & Fees

⭐️⭐️⭐️⭐️

⭐️⭐️⭐️

Winner

✅


Funding

Feature

XM Group

eToro

Minimum Initial Deposit

$5-100

$200

Bank Wire (Deposit/Withdraw)

✅

✅

Visa/Mastercard (Credit/Debit)

🚫

✅

PayPal (Deposit/Withdraw)

🚫

✅

Skrill (Deposit/Withdraw)

✅

✅

Trading Platforms

Feature

XM Group

eToro

Proprietary Platform

🚫

✅

Desktop Platform (Windows)

✅

🚫

Web Platform

✅

✅

Social Trading / Copy-Trading

✅

✅

MetaTrader 4 (MT4)

✅

🚫

MetaTrader 5 (MT5)

✅

🚫

cTrader

🚫

🚫

Trading Tools

Feature

XM Group

eToro

Virtual Trading (Demo)

✅

✅

Alerts - Basic Fields

✅

✅

Watchlists - Total Fields

(MT4/MT5)

6

Charting - Indicators / Studies (Total)

(MT4/MT5)

66

Charting - Drawing Tools (Total)

(MT4/MT5)

13

Charting - Trade From Chart

✅

🚫

Charting - Drawings Autosave

✅

✅

Order Type - Trailing Stop

✅

✅

Platform & Tools

⭐️⭐️⭐️

⭐️⭐️⭐️⭐️

Winner


✅

Mobile Trading

Feature

XM Group

eToro

Android App

✅

✅

Apple iOS App

✅

✅

Trading - Forex

✅

✅

Trading - CFDs

✅

✅

Alerts - Basic Fields

✅

🚫

Watch List

✅

✅

Watch List Syncing

✅

✅

Charting - Indicators / Studies

(MT4/MT5)

5

Charting - Draw Trend Lines

✅

🚫

Charting - Trend Lines Moveable

🚫

🚫

Charting - Multiple Time Frames

✅

✅

Charting - Drawings Autosave

🚫

🚫

Forex Calendar

🚫

🚫

Mobile Trading

⭐️⭐️⭐️

⭐️⭐️⭐️⭐️

Winner


✅

Research

Feature

XM Group

eToro

Daily Market Commentary

✅

✅

Forex News (Top-Tier Sources)

✅

🚫

Weekly Webinars

✅

🚫

AutoChartist

✅

🚫

Trading Central (Recognia)

🚫

🚫

Delkos Research

🚫

🚫

Social Sentiment - Currency Pairs

✅

✅

Economic Calendar

✅

✅

Research

⭐️⭐️⭐️

⭐️⭐️⭐️⭐️

Winner

✅


Education

Feature

XM Group

eToro

Has Education - Forex

🚫

✅

Has Education - CFDs

🚫

🚫

Client Webinars

✅

✅

Client Webinars (Archived)

🚫

🚫

Videos - Beginner Trading Videos

✅

✅

Videos - Advanced Trading Videos

✅

✅

Investor Dictionary (Glossary)

🚫

✅

Education

⭐️⭐️⭐️⭐️

⭐️⭐️⭐️⭐️

Winner


✅

Major Forex Pairs

Feature

XM Group

eToro

GBP/USD

✅

✅

USD/JPY

✅

✅

EUR/USD

✅

✅

USD/CHF

✅

✅

USD/CAD

✅

✅

NZD/USD

✅

✅

AUD/USD

✅

✅

Overall

Feature

XM Group

eToro


XM Group Review

eToro Review

Overall

⭐️⭐️⭐️⭐️

⭐️⭐️⭐️⭐️⭐️

Winner


✅

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.

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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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