Home Brokers comparison IQ Option Vs. eToro in 2020: Showdown 

IQ Option Vs. eToro in 2020: Showdown 

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Are you interested in switching brokers and have your eye on either IQ Option or eToro? Not sure which is best? Then you're in the right place because this is a broker showdown, and you'll find the information you need to so you can make the decision that's best for you. 


IQ Option

eToro


iq-options
etoro-logo


Rating

⭐️⭐️⭐️⭐️⭐️

⭐️⭐️⭐️⭐️⭐️

Trust Score

99/100

98/100

Year Founded

2013

2006

Licensed in UK

Licensed in Europe (Cysec)

Licensed in Australia (ASIC)

Licensed in USA (CFTC)

🚫

Authorized in Asia

Licensed in South Africa (FBS)

Forex Assets

2000+

100+

Crypto Assets

Demo Account

$10,000

$100,000

Minimum Deposit

$10

$200

Minimum Trade

$10

$1

Platform MT4

🚫

🚫

Max Leverage in EU

1:30*

1:30*

Max Leverage outside EU

1:500

1:400

Withdrawal Time

1-3 Days

3-5 Days



*62% of retail CFD accounts lose money

*Capital at risk

To start things off, what do these two brokers have in common?  

Both IQ Option and eToro are regulated brokers. This is important because you probably shouldn't invest your money with a broker that isn't regulated. When a broker is regulated, it means that broker has received a license to operate as a broker by some regulation authority. Since both eToro and IQ Option are regulated, you can know that your money is secure and insured (details below).

IQ Option vs. eToro – Regulation And History 

IQ Option – Regulation 

Launched initially in Russia back in 2014, IQ Option quickly moved its headquarters to Cyprus. IQ Option used to focus on binary options but is now a leader in the CFD market. The only accounts that can still trade options at IQ Option are non-European Professional accounts. 

IQ-option-overview

Since IQ Option focuses on CFDs now, they offer over 300 CFD instruments you can choose from.  

IQ Option's primary strength is the low minimum deposit of only $10. Very few brokers allow for a minimum deposit this low, and thousands of traders have taken advantage of it.  

CySEC, a top tier regulator, regulates IQ Option (license 247/14). CySEC also regulates eToro. 

Click here to open your first (or next) IQ Option account. 

*Your deposit may be at risk 

eToro – Regulation 

Many people have heard of eToro because it is a significant player in online traders. Launched in 2006, eToro has millions of active clients. Founded in Israel, eToro's mission is wrapped around removing traditional brokers as the middlemen of trading. 

eToro-overview

To do that, eToro pioneered what is called "social trading" or "copy trading," where traders can learn from other traders by seeing the trades they have made. With just a few clicks, you can copy the trades of other traders. This helps you learn to trade as you can see how they set up trades and invest for themselves. 

For beginners, this is ideal. 

As far as regulation, eToro is available in almost every developed nation, including the United States and Australia. eToro is regulated by the FCA (Financial Conduct Authority), the ASIC, and the CySEC. 

In the USA, eToro is regulated by FINCEN as eToro USA. 

Click here to open your first (or next) eToro Account. 

*More than 60% of all traders lose their money 

IQ Option vs. eToro – Minimum Deposit 

The first step in any kind of trading is to fund an account with your broker. This can be done in a variety of ways (discussed below), but the amount of each minimum deposit can vary from $0 to over $1M. Let's see what the minimum deposits are for eToro and IQ Option. 

IQ Option Minimum Deposit 

IQ Option offers some of the lowest minimum deposits in the industry – only $10! You can make your deposit in either British Pounds (£10) or Euros (€10), but if you use a different currency, you'll have to pay a conversion fee. 

IQ-option-minimum-deposit

At just $10, anyone can start trading CFDs with IQ Option. 

Even better, IQ Option charges no additional deposit fees of any kind. That means hidden fees won't delay you. 

Making your minimum deposit is also quick and easy. However, the exact time it takes for your money to show up in your trading account can vary based on the method you use to make the deposit. Generally, deposit times can be broken down like this: 

  • Debit/Credit Card (Visa/MasterCard) – 30 minutes or less 
  • Electronic Wallets (Skrill, NetellerWebMoney) – 30 minutes or less 
  • Bank/wire transfer – 3-8 days 
  • Click here to open your first (or next) IQ Option Account. 

*Your investment might be at risk 

eToro Minimum Deposit 

eToro's minimum deposit policy is higher than that of IQ Option. Plus, it varies according to the trader's country. For most new account holders, the minimum deposit is $200, but Australian and American clients are only $50. 

eToro-minimum-deposit

Higher minimum deposits are not all bad, in any case. Having a higher minimum deposit means you have access to a higher margin and have the potential for more significant gains faster than if you were trading with just $10. There are no other deposit fees at eToro (same as IQ Option). 

As a side note, for those who pay a $200 initial deposit, future deposits have a lower minimum of only $50.  

  • Debit/Credit Card (Visa/MasterCard/Diner's Club) – 30 minutes or less 
  • Electronic Wallets (Skrill, PaypalNetellerWebMoney) – 30 minutes or less 
  • Online Banking – 2-4 days 
  • Bank/wire transfer – 3-8 days 

Click here to open your first (or next) eToro Account. 

*More than 60% of all traders lose their money 

eToro vs. IQ Option – Demo Account 

Demo accounts are excellent for testing a broker's platform and for testing trading strategies. Both eToro and IQ Option offer free demo accounts with virtual balances you can use to "test the waters" before trading with real money." 

IQ Option Demo Account 

IQ-option-trading-overview

The IQ Option demo account comes with $10,000 in virtual money, while the eToro demo account comes with $100,000 of virtual money.  

The best part is that you can't really "run out" of virtual money. If you lose all your virtual money in a bad bet ( a great learning opportunity), the account will automatically refill.  

Click here to open your first (or next) IQ Option Account. 

*Your investment might be at risk 

eToro Demo Account 

The demo account at eToro is very similar to the demo account at IQ Option with the difference of a higher balance ($100,000).  

Both demo accounts are also connected to real accounts, which makes it possible to switch seamlessly between accounts as necessary.  

Click here to open your first (or next) eToro Account. 

*More than 60% of all traders lose their money 

eToro vs. IQ Option – Assets 

Both brokers have a robust array of instruments for CFD trading. Still, eToro offers social trading, which IQ Option does not.  

In contrast, IQ Option offers Options as trading instruments, whereas eToro does not. 

Both are great brokers, so the real question is, which is more important to you – options or social trading. 

eToro Instruments 

eToro-trading-assets

The instruments that eToro offers are: 

  • Indicies 
  • Forex 
  • Commodities 
  • ETFs 
  • Stocks 
  • Cryptocurrencies 

eToro has a more extensive selection of cryptocurrencies than IQ Option: 

  • Neo 
  • Bitcoin 
  • Ethereum 
  • Bitcoin Cash 
  • Stellar 
  • EOS 
  • Dash 
  • Much more... 

eToro also offers a massive array of ETFs the can access their Share trading feature across multiple stock exchanges, including Frankfurt, Hong Kong, Zurich, London, Paris, and New York. 

As far as CFDs, both have access to the CopyPortfolio and CopyTrader features that eToro pioneered. IQ Option does not have these social trading features. 

You are free to trade in whatever way you see fit at eToro, but the social trading feature is powerful, easy to use, and highly recommended. 

Click here to open your first (or next) eToro Account. 

*More than 60% of all traders lose their money 

IQ Option Instruments 

IQ-option-financial-instruments
  • Stocks 
  • Commodities 
  • Indicies 
  • ETFs 
  • Forex 
  • Options 
  • Cryptocurrencies 

IQ Option doesn't offer social trading, but it does offer Options. It also has a broader range of instruments than eToro. IQ Option focuses on stocks and following global trends by including relevant and new companies among their options. All major international companies are available through IQ Option. 

IQ Option also has a variety of Crypto CFDs for Bitcoin, Ripple, Ethereum, and Litecoin. A nice touch though, is the addition of some less common cryptos, including ZCashOmiseGo, and Qtum. 

Click here to open your first (or next) IQ Option Account. 

*More than 60% of all traders lose their money 

IQ Option vs. eToro – Trading Platform 

Both IQ Option and eToro have proprietary trading platforms that are relatively different. 

eToro Trading Platform 

eToro-financial.instruments

eToro offers two trading platforms: a mobile app and a web interface. Both are well designed and user friendly. Interestingly, eToro does not offer a downloadable desktop trading app, only the web version. If your trading style depends on a desktop app, you might need to sign up for IQ Option. 

In contrast, if social trading is essential to your strategy, eToro is your only option between the two. The CopyTrader function is fast and easy to use, and your newsfeed is customizable to your preferences. 

Click here to open your first (or next) eToro Account. 

*More than 60% of all traders lose their money 

IQ Option Trading Platform 

iq-option-trading-platform

Like eToro, IQ Option offers a mobile and web version of its trading app. However, they also have a desktop app for traders who need it.  

While IQ Option does not offer copy trading, its app has won quite a few awards for quality and excellence. In other words, an independent panel of judges rated the IQ Option apps as high quality, user friendly, and stable.  

Both platforms have quality indicators, Bollinger bands, and price alerts. 

Click here to open your first (or next) IQ Option Account. 

*More than 60% of all traders lose their money 

IQ Option vs. eToro – Fees and Withdrawals 

While neither eToro nor IQ Option charge hidden deposit fees, some brokers charge fees in other areas such as withdrawals. Let's look at eToro and IQ Option to see what additional fees they charge. 

eToro Withdrawal 

eToro charges a $25 fee for each withdrawal. You are also required to withdraw a minimum of $50 at a time. At $25 a pop, it's worthwhile saving up your gains so that you can make a single more substantial withdrawal fee. 

eToro allows only one account base currency, which is USD. If your bank account is in USD, then you won't incur and extra costs, but if your accounts are in any other currency, you will be charged a conversion fee.  

Importantly, the account you withdraw to MUST have your name on it. eToro will not allow for funds to be withdrawn to an account that doesn't have your name on it.  

The destination account affects the speed of withdrawal as well. Online banking and electronic wallets usually complete withdrawals within three business days. Withdrawals to credit cards can take up to 9 business days. 

Click here to open your first (or next) eToro Account. 

*More than 60% of all traders lose their money 

IQ Option Withdrawal 

The withdrawal process at IQ Option is more straightforward than at eToro. There is no withdrawal fee unless you use wire transfer. The fee for withdrawing with wire transfer at IQ Option is $31.  

Like eToro, IQ Option does have a minimum withdrawal limit, but it is much smaller at only $2.  

An essential variable with IQ Option is that you can only withdraw funds to the same type of account the funds were deposited from.  

For example, if the funds were deposited from a debit card, then the withdrawn funds will be returned to the same debit card. 

Profits are different. If you profit from your trading, you can only withdraw those profits to some other payment method like a bank transfer or Skrill. 

Let's look at an example. 

If you deposit $100 to your IQ Option account using a debit card. You trade for a while and have gains of another $100 (totaling $200 in your account). When you withdraw your funds, IQ Option will refund the original $100 to your debit card. After that, the other $100 will be sent to either a bank account, credit/debit card, or some kind of electronic wallet.  

While this requirement may seem strange, please remember that IQ Option has many available withdrawal options, including Netteller, Skrill, and WebMoney. 

A side benefit of avoiding a bank or wire transfer is that e-wallets have a much faster transfer time than bank transfers. 

Click here to open your first (or next) IQ Option Account. 

*More than 60% of all traders lose their money 

Conclusion 

Both eToro and IQ Option have strengths that draw thousands of traders every year, though different kinds of traders. 

eToro is the best option if you want to benefit from social trading. The CopyPortfolio and CopyTrader functions are unique to eToro and can help you learn to trade CFDs much faster than doing it on your own. IQ Option does not offer social trading. 

If options are part of your trading strategy, then IQ Option is your best choice. eToro does not offer options trading.  

A negative of eToro is that they do not offer a desktop app. While this may not be a major concern for many, for some traders, this is a deal-breaker. IQ Option has a highly-rated desktop application. 

IQ Option's main strength is its low minimum deposit of only $10. For beginning traders or traders with a limited budget, such a small minimum deposit opens up the world of CFD trading to many that would otherwise never participate. 

Which broker suits your needs more? 

Let us know in the comments!

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