If you want to start trading online, the first step is to use a broker that best suits your needs. Today we will compare point by point two of the best known in the sector, so let’s go on to analyze the benefits that IQ Option and eToro bring us.
The popularity of both platforms is undeniable, which has allowed them to have millions of clients around the world. eToro, meanwhile, has become popular for its CopyTrading option, while IQ Option is popular for its minimum deposits of $ 10 and the ability to trade assets from $ 1.
|Year of foundation||2013||2007|
|Regulation||FSA||ASIC, FCA, CySEC, CNMV|
|Type of broker||NDD||NDD, STP|
|Trading instruments||Currency pairs, CFD’s, Binary optiоns, Cryptocurrencies||CFD’s, Cryptocurrencies, Stock Exchange|
|Quality||5 stars||5 stars|
Main comparison between IQ Option and eToro
eToro was founded 6 years before IQ Option, being eToro from 2007 and IQ Option from 2013.
IQ Option has approximately 300 assets on its platform. eToro as of today exceeds 2000.
The cryptocurrencies that eToro handles are a total of 16, while IQ Option handles 12.
Regarding CFD shares, eToro also has an advantage, since it allows trading in approximately 1800 shares, while IQ option handles approximately 169.
EToro’s minimum deposit is $ 200 to start and $ 50 after that. The IQ Option minimum deposit is $ 10.
The minimum trade on eToro depends on the asset being handled. The IQ Option allows you to make investments from 1 dollar.
IQ Option has better user support options than eToro. What’s more, IQ Option has a training video to familiarize yourself with the platform.
The table above highlights that eToro has been in the market for more years, which has allowed it to handle a greater number of CFDs, Cryptocurrencies and stocks. IQ Option turns out to be a better option for newbies, as it does not ask for a large investment and has video tutorials.
|[email protected]||[email protected]|
|Phone number||UK (+44 20 8068 0760)||+44 20 3805 4822|
Use of platforms
You can access eToro through 2 modalities:
- Mobile App
The web version is visually very pleasant and intuitive, which will allow us to become familiar with it in a short time.
For the more advanced there are sections such as “People” (to copy the more specialized traders), which takes a little more time to handle effectively. Even so, it is not to worry, since the platform provides us with filters to better understand the traders that may be more appropriate to copy according to my needs.
But CopyTrading is not the only thing you can do on eToro. It is important to highlight the facilities offered by the platform for Social Trading, that is, the possibility of chatting with other people and thus asking for advice.
This also allows you to post and comment on other people’s posts. Thanks to these two tools it can be easier to copy, follow and contact experienced traders for first-hand advice.
IQ Option platform
You can access IQ Option through 3 modalities:
- Downloadable platform
- Mobile app
Both the web and the platform are practically the same, unlike the platform which must be downloaded and installed, but at the same time it provides greater speed and stability of operation.
The mobile app is available for both iOS and Android. This app was awarded the “Award of Excellence” in 2017, a highly regarded recognition within the industry.
In any of its versions you can chat with other users, at the same time it allows you to enter chat rooms, among which we find one in Spanish, English and e.t.c.
The platform allows free access to video tutorials to operate the platform and start investing. To this is added an economic calendar and market analysis that includes financial trends at a global level.
Thus, the platform is pleasant and intuitive, with the exception of its FX options section (Forex options), which requires a certain degree of knowledge.
Regulatory measures of IQ Option and eToro
From a legislative point of view, eToro is regulated by the CySEC under the license number 109/10. This financial supervisory authority is part of the European Union and manages its measures from its headquarters in Cyprus.
The eToro company is registered in the UK with registration number 7973792. In addition to this, the company is authorized and regulated by the FCA (Financial Conduct Authority).
This company was founded in 2007, more precisely in Tel Aviv by the union between Yoni Assia, Ronen Assia and David Ring. Its main difference in this area is that the company, in addition to being regulated by European entities, also has authorization and regulation in the United States.
This broker is regulated in Europe and in Spain, both regulated by CySEC where it has a license with identification n.247 / 14.
The company of which it is part, in turn, is registered with the Spanish National Securities Market Commission (CNMV).
Although it was founded recently, in 2013, the growth that the company has had is very noticeable. Its founder, Dmitry Zaretsky, has gained more than 20 million clients around the world in record time.
Minimum deposit eToro
This platform allows that, if the user wants to start investing real money, he can do it with a relatively low minimum deposit. This initial minimum deposit is $ 200, but the following can be made from $ 50.
This $ 200 is not a casual figure, as this is the amount needed to copy as many traders as you like.
However, if you want to make a traditional investment, the minimum to invest will be proposed by the asset you want to start managing.
Minimum deposit IQ Option
As we have anticipated, the minimum deposit of IQ Option is only 10 dollars.
In turn, it allows you to start trading stocks from $ 1, which is ideal for people who are just starting out and do not want to put large amounts of money at risk.
These two characteristics are what has allowed them to obtain a large number of clients in a short time.
Commissions and withdrawals
At the time of withdrawing the money, the platform requires us that the minimum amount is 50 dollars. It is important to add to this that eToro charges a commission of $ 25 for this transaction.
We must also bear in mind that long or long positions of cryptocurrencies without leverage, as well as stocks and ETFs, are not executed as CFDs, which does not represent any commission charge.
eToro allows you to make withdrawals with VISA, Diners, Mastercard, Visa Electron and Maestro credit cards. It also allows debit cards, electronic wallets (Paypal, Neteller, etc.), Rapid Transfer and Bank Transfer.
IQ Option allows you to withdraw money through credit cards such as VISA or Mastercard, debit cards, electronic wallets such as Paypal, Neteller or Skrill, bank transfer, Web Money and Sofort.
The minimum withdrawal is $ 2 and the process is very similar to that of the deposit.
EToro tradable assets
Within eToro we can trade the following CFDs:
- Forex: 47 crosses
- Shares: more than 1800
- Cryptocurrency: 16
- Raw materials: 13
- ETF: 145
- Indices: 13
Regarding Forex currency pairs, all the main and most attractive ones are included.
Although the actions are not as many as in other platforms, they are enough to start using the sector and location filters.
The sectors include consumer goods, industrials, finance, conglomerates, basic materials, services, utilities, healthcare, and technology.
Among the locations are Saudi Arabia, Amsterdam, Copenhagen, Brussels, Frankfurt, Hong Kong, Helsinki, Lisbon, Madrid, London, New York, New York Tech (Nasdaq), Milan, Oslo, Stockholm, Paris and Zurich.
As for raw materials we can find gold, silver, copper, oil, platinum, palladium, natural gas, cotton, sugar, wheat, cocoa, aluminum and nickel.
Within the cryptocurrencies we find Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Dash, Binance Coin, NEO, TRON, Litecoin, Cardano, IOTA, ZCASH, Tezos, GRAM, EOS, Stellar and Ripple XRP.
Tradable assets on IQ Option
Within IQ Option we can trade CFDs on:
- Forex: 49 pairs.
- Shares: 169
- Cryptocurrencies: 12,
- Raw materials: 5.
- Funds: 25
- FX options: 8 currency pairs
Within the cryptocurrencies are Bitcoin, Bitcoin Cash, OmiseGo, Dash, Ripple, Litecoin, Tron, Ethereum Classic, Qtum, Ethereum, Zcash and EOS.
The raw materials used are WTI crude oil, gold, Brent oil, platinum and silver.
Spread and Overnight
Spread IQ Option and eToro
The difference at this point is very marked. While IQ Option has very competitive spreads, eToro finds itself with slightly wide spreads, which puts it in the lower-middle category.
Thus, we can find differences such as:
- The variation of Euros EUR to Dollars USD is 1.8-2.1 pips on IQ Option versus 3 pips on eToro.
- The variation of USD Dollars to JPY Yen is 1 – 1.1 pips on IQ Option vs. 2 pips on eToro
- The change from GBP to USD is 2.5 – 3 pips on IQ Option versus 4 pips on eToro.
- The change from Euro EUR to British Pound GBP is 2.4 – 2.6 pips on IQ Option versus 4 pips on eToro.
- The change from Euro EUR to Yen JPY is 2-2.2 pips on IQ Option versus 4 pips on eToro.
- IQ Option’s spread is medium and eToro’s is medium-low.
Overnight IQ Option and eToro
When we talk about Overnight we refer to the commission applied by the broker to maintain the position overnight. This represents a cost of a small percentage of what is applied daily.
As an example, let’s see how each platform applies the Overnight commissions if we use EURUSD:
- Regarding buy positions, eToro has -0.0001%, while IQ Option is between -0.006% and -0.019%
- Regarding short positions, eToro has +0.000034% while IQ Option has – 0.008% to -0.025%
- In short, in this example eToro is making money instead of losing it, allowing it to recoup losses on spreads. If we add to this that the buy position is very low, we can say that keeping Overnight on eToro is much cheaper than on IQ Option.
Conclusions: is eToro or IQ Option better?
First of all, let’s collect the advantages of each one:
eToro has tools such as Copy Trading, which allows you to start investing without having much knowledge.
IQ Option allows you to invest from very small sums, which is ideal for those who are starting in this field and do not want to risk a lot.
eToro is intended for both beginners and experts. For newbies it allows generating copies of the movements of the connoisseurs and a chat where they can ask for specialized help.
Those who already know about the subject, will have the possibility to benefit from those who copy their movements, since the platform allows this to be an extra profit.
IQ Option, for its part, has a more novice audience. However, it offers advanced tools like FX options that may be the way for more experienced users.
Frequently asked questions
What if I am poor and want to start trading, which is better for me?
You should try firstly the services of IQ company, because you can start to work here with only 10 dollars.
If I want to work in the crypto field, then which company is more powerful?
You can try them both, but the main thing is that you are not able to do so much on eToro as on the IQ site, since crypto world is their second name and they have a lot of different activities for that.