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Invest · Broker comparison
Interactive Brokers vs eToro
IBKR vs eToro compared — FX cost, real stocks vs CFDs, social trading, and which platform is actually better for long-term investors.
IBKR beats eToro on every cost metric — $10 FX cost per $10,000 vs eToro's $150. More critically, most eToro 'investments' outside the US are CFDs (contracts for difference), not actual stock ownership. IBKR always gives you the real asset.
Interactive Brokers
5
metrics won
$10
FX cost per $10k
✓ Winnervs
2 ties
eToro
1
metrics won
$150
FX cost per $10k
Interactive Brokers vs eToro: Full comparison
| Metric | Interactive Brokers | eToro | Better |
|---|---|---|---|
FX cost per $10,000 | $10 | $150 | Interactive Brokers |
FX spread | 0.08–0.2 bps | 1.5% | Interactive Brokers |
Trading commission | $0–$1 min | $0 | Tie |
Asset type (non-US) eToro US users get real shares; UK/EU get CFDs for most assets | Real shares | CFDs (for UK/EU) | Interactive Brokers |
Social trading | No | CopyTrader | eToro |
Withdrawal fee | $0 | $5 per withdrawal | Interactive Brokers |
Available markets | 150+ exchanges | Limited real markets | Interactive Brokers |
Regulated | SEC, FCA, many more | FCA, CySEC, ASIC | Tie |
Our verdict
eToro's social trading features are genuinely useful for discovering ideas, and it's simpler to use. But eToro charges a 1.5% currency conversion fee — 15x more than IBKR — and UK/EU users mostly trade CFDs rather than owning actual stocks. For any serious long-term investing, IBKR's real share ownership and 15x lower FX cost make it the right choice. eToro works for small amounts and social following.
When to choose each
Choose Interactive Brokers if…
- Long-term investors who want to own real shares
- Anyone making large or regular investments where FX cost compounds
- Investors in Asia, Africa, or other markets needing real stock access
Choose eToro if…
- Casual investors who want to copy successful traders
- Social and community-driven investing
- Small-amount, experimental investing
Frequently asked questions
Is eToro a real broker or CFD broker?
eToro is both. For US users, all purchases are real shares. For UK and EU users, most assets are CFDs (not real share ownership) unless you specifically buy under the 'Invest' tab. CFDs have overnight holding costs and don't give you actual share ownership or voting rights.
How much does eToro's FX fee actually cost?
eToro charges 1.5% for currency conversion (e.g., GBP to USD to buy US stocks). On a £10,000 monthly investment, that's £150/month, or £1,800/year. IBKR charges about £10 for the same amount. Over a 20-year investment horizon, this difference is enormous.
Compare all brokers by FX cost
Full rankings by FX cost per $10,000 invested