IQ Option vs eToro: which one is better?
Are you looking for a broker but can’t decide between IQ Option vs eToro? Then you’re in the right place with our comparison guide, which can help you decide.
Both eToro and IQ Options are regulated online brokers that have many customers worldwide. However, they have a few differences between them, that’s why in this comparison we have compared the following points:
Withdrawal & minimum deposit amounts
Financial instruments available
The platform usability
Any awards given to the broker
|Licensed in UK (FCA)|
|Licensed in Europe (Cysec)|
|Licensed in Australia (ASIC)|
|Licensed in USA (CFTC)|
|Authorised in Asia|
|Licensed in South Africa (FBS)|
|Demo Account||$ 10.000||$ 100.000|
|Max Leverage in EU||1:30 *||1:30 *|
|Max Leverage outside EU||1:500||1:400|
|Withdrawal Time||1 - 3 days||3 - 5 days|
|TRADE NOW||TRADE NOW|
|*Your capital is at risk|| *75% of retail CFD |
accounts lose money
Regulation is the most important thing when looking for a broker, which is why we only feature regulated companies on tradingonlineguide.com. Regulation means that the broker is fully licenced to run and holds operation licences.
This helps protect you against fraudulent activity that sadly happens with unregulated platforms. So you can be reassured that both IQ Option and eToro are fully secure to trade with. We will look at their individual licences a bit later in this guide.
IQ Option vs eToro: Company Background & Regulation
In 2014, IQ Option was launched by Dmitry Zaretsky in Russia. However, the broker has now moved its company headquarters from Russia to Cyprus.
Originally the broker started as a binary option provider, but since then they have moved away from binary options to become a leading CFD’s platform instead.
Actually since the ESMA ban on binary options in 2018, the only customer’s who can still trade binary options on the platform are Professional account clients who reside outside Europe.
Regarding the CFD’s available though, IQ Option has a great selection of instruments and assets available to trade with, currently there’s over 300 assets for you to choose from.
The main attraction for a lot of people to IQ Option though is that they offer an incredibly low minimum deposit. You can start trading with them for just $10! This is one of the lowest deposit prices on the market, so they’ve attracted a lot of traders who may have restricted trading budgets.
When it comes to regulation, IQ Option is a fully regulated broker, and they hold an operational licence from CySEC (licence no. 247/14). CySEC is an important authority which regulates many leading brokers including eToro.
You’re likely to have heard of eToro already because it’s one of the giants amongst the brokers. Since its launch in 2006, the broker has millions of clients who actively trade on the platform.
eToro was founded by a team in Israel who wanted to introduce trading to anyone in any place, without having to rely on a traditional stockbroker. Instead they wanted to create platform where people could learn from each other, that’s why today eToro is famous for being the leading social broker.
With eToro you can learn how to trade from other successful members with the platform’s social newsfeed and the famous CopyTrader feature. The CopyTrader feature lets you automatically copy the trades of other users so you can learn how they set up trades and invest themselves.
That’s why eToro is ideal for beginners because it really lets you learn from others so you can gain trading knowledge.
eToro is currently available to many countries worldwide including the USA and Australia. It’s also a fully regulated broker and holds many regulation licences from CySEC, ASIC and the Financial Conduct Authority which is based in the UK.
For any customers based in the United States, eToro USA is regulated and registered with FinCEN.
IQ Option vs eToro: Minimum Deposit
When starting to trade with a broker, you’ll need to transfer a set amount of funds to your account first. Each broker has various minimum deposit policies in places. Let’s compare IQ Option vs eToro now:
IQ Option offers and incredibly low minimum deposit which rivals other brokers. The IQ Option minimum deposit is just $10!
They also accept Euros and British Pounds so you can also pay the deposit with €10 or £10. However, if the deposit is funded with another currency, then a small conversion payment fee may be charged,
With such a low minimum deposit anyone can start trading, especially if they don’t want to deposit a large amount when opening an account. It’s also a good option for any traders that have more limited trading budgets.
There are also NO additional deposit fees when making the deposit, which is always good. Generally we found the deposit process to be pretty easy to do and the instructions were clear.
The time it takes for the money to be showing in your account depends on the payment method used, but for deposits made with debit/credit card or with electronic wallets the funds should be showing in your trading account straight away. For bank/wire transfer it might be a bit longer.
The following payment methods can be used to fund your account:
Debit or Credit Card (Visa/MasterCard)
Electronic Wallets: WebMoney, Skrill, Neteller
Wire/ Bank Transfer
The minimum deposit with eToro varies based on a user’s country of residence. For most people the eToro minimum deposit is $200. However, if you’re a resident of Australia or the USA the minimum deposit is just $50.
Even though the minimum deposit is higher than IQ Option, it’s worth remembering that with a higher deposit you’ll have a higher trading margin. Often a higher minimum deposit means that traders think more carefully about each placed trade, so will have a better risk strategy in place.
It’s good to know that once the first deposit has been made, any future deposits made after that start from $50, no matter which country you reside in.
eToro also doesn’t charge any extra deposit fees beyond the minimum deposit, so you can be reassured there will be no hidden charges.
Again the deposit process is quite simple and you’ll need to use a payment method that has your name on it for security and verification reasons. eToro has a large range of payment methods available which you can use to make the minimum deposit with:
Debit / Credit Card (Visa/ Diner’s Club / MasterCard)
E- Wallets: PayPal / WebMoney / Neteller / Skrill
Wire/ Bank Transfer
IQ Option vs eToro: Demo Account
Demo accounts are a great way to try out and test a broker’s platform. As well as seeing if you like the platform setup, a demo account also lets you practice trading strategies without risking real funds.
Both IQ Option and eToro offer free demo accounts to their customers. The best thing is that you don’t need to use a ‘real’ trading account at all to access the demo versions, you can just sign up to use the practice accounts if you wish. This is relevant for both brokers.
IQ Option offers a free and unlimited demo account that comes with $10,000 of virtual money to practice with and spend. Once the funds have been used up, they’ll be topped up automatically by the system. The demo account has all the same features as the real IQ Option trade account including charts and analysis tools.
eToro has a demo account that is completely free to use whether you’re a new user or existing member. It comes with an impressive $100,000 of virtual funds to practice trading with on many CFD’s.
Both the eToro and IQ Option practice accounts are connected to the real accounts, so it’s possible to switch between the two accounts when needed. This is good if you want to try out a strategy first with virtual funds and then set it up as a real trade in the actual account.
IQ Option vs eToro assets
The two brokers have a good asset selection of CFD’s and financial instruments for you to trade with, yet eToro has the social trading features for CFD’s that IQ Option doesn’t have.
However, IQ Option also offers Options as a financial instrument which eToro currently doesn’t offer. So both brokers have a small but slight variation on their offering, it depends on whether you’re interested in Options or not.
Here is a full list of each individual brokers financial instruments that they offer to clients:
eToro Financial Instruments
Stocks and Shares
For cryptocurrencies, eToro has a bigger selection than IQ Option. They have some of the most important ones on the market listed including Bitcoin, Ripple Ethereum, Bitcoin Cash, Stellar, EOS, Dash, NEO and many more.
We were also impressed with eToro’s list of stock exchanges that they have access to for ETFs and Share trading. This includes the stock exchange markets of Hong Kong, Frankfurt, New York, London, Zurich and Paris – plus a few other major European ones.
One key feature of CFD trading with eToro though is that you can use the brokers CopyTrader and CopyPortfolio features. These are social trading features that IQ Option doesn’t have, and the CopyTrader tool allows you to copy the CFD trades of other eToro members.
With the Copy Portfolio feature you can invest in a combined CFD portfolio of another eToro trader or topic. By topic, we mean that you can invest in a set portfolio of cryptocurrencies or major banks. For example, a major bank portfolio would include CFDs of the most important banks such as HSBC, Santander and Citi Bank.
IQ Option Financial Instruments
Shares and Stocks
IQ Option has a larger financial instrument range than eToro as they also offer Options which eToro doesn’t. This is a good bonus if you want a greater range of CFD instruments to trade with as you have a better selection.
Regarding the actual assets though, IQ Option has a strong range of stocks and shares listed. Including some topical and new companies like Beyond Meat and Aurora Cannabis.
This shows that the broker is aware of global trends and quickly introduces the relevant companies as stock options. A smart move as traders want to invest in key topics that are affecting the market.
They also have many important stock assets listed from major companies including Amazon, Snapchat, Boeing, Nike and BP So a good mix of both relevant and key stock listings.
IQ Option also has an impressive range of cryptocurrency CFD’s. This includes a mix of the most popular ones such as Ripple, Ethereum, Bitcoin and Litecoin. However, they also have some of the rarer one listed such as Qtum and ZCash and OmiseGo. A good offering for anyone wishing to invest in crypto.
IQ Option vs eToro: Trading Platform
One similarity between the two brokers is that they both have self-developed platforms available for their users to trade with. However, are there any differences between the IQ Option vs eToro platforms?
eToro has two versions of their platform available, either as the online version or as their mobile App which can be downloaded from the Google Play or Apple stores. The mobile App can be used on both iOS or Android devices.
The broker used to have a desktop version of the platform available for download, but this got cancelled a few years ago. So if you’re looking for a desktop platform, IQ Option might be the better option.
However, both the eToro mobile App and online platform function well and the layout is designed well. We found the platform design to be user-friendly and a pleasure to use.
The mobile App has the same great performance as the online version, it just includes more touch interaction so you can swipe between your trade windows and portfolio.
For the social trading features though, the eToro platform really excels. They have a clear newsfeed and with a simple search you can find other traders to follow should you wish to use the CopyTrader tool. If you’re looking for social trading eToro really is a great platform to use.
IQ Option has a self-developed platform that is available to download for desktop use, it’s also available as an online version too. Like eToro, the broker has also created a mobile trading App for use on Android and iOS devices.
Although IQ Option may not offer social trading, their mobile trading App has been positively reviewed and has been awarded by industry figures. For example, the mobile App won the 2017 ‘Award of Excellence’ when judged in the Communicator Awards.
It won for because IQ Option has created one of the highest quality financial trading apps. When awards are won, this is always a good sign because it shows that the platform has been tested out by a judging panel who know what to look for in a good App.
The platform is simple to use and the design is well-thought-out. No matter which platform version you use, all the same features can be found on each. This includes good technical analysis and charting tools such as indicator tools and price alerts.
All very useful tools to have when analysing the market to make trades. Currently the broker has 13 indicator options available including volume indicators and Bollinger bands.
IQ Option vs eToro: Fees and Withdrawals
When it comes to withdrawing your money it’s good to know how a broker’s withdrawal process works and if there are any additional fees charged that you should be aware of. Let’s examine how it works for IQ Option vs eToro now:
If you wish to withdraw money from eToro, it’s worth being aware that they charge a $25 withdrawal fee each time you request a withdrawal. There is also a minimum withdrawal limit in place of $50.
That’s why it’s always worth withdrawing larger amount occasionally to save money on the withdrawal fee and to meet the withdrawal limit.
eToro currently only allows $ / USD as the account currency. So if you wish to convert money from USD to EUR for instance, during the withdrawal/deposit process, a small conversion fee will be applied.
It’s possible to withdraw your funds to a range of payment methods, (the same ones that are listed for the deposit e.g. credit card /wire transfer.) However, eToro prefers to return the money to the original payment method that was used to fund the trading account.
The most important thing though is that the payment method has the user’s name on it, or the customer service team may stop the withdrawal process for security reasons.
It’s also important that each individual trading account has been verified by the customer support team before requesting the withdrawal. As this must be done by the broker to protect accounts against and is legally required.
Generally though, we found the customer service team friendly and the withdrawal process fairly fast. The payment method used for the withdrawal also affects the speed that you’ll receive the money back, for example an electronic wallet such as Skrill should have the funds showing within 1-2 days and a credit card from 3-8 days.
IQ Option has an easy and clear withdrawal process. Unlike eToro, they do not charge any fees for you to withdraw your funds, unles you proceed with a wire transfer, where the fees are $31 at certain conditions.
However, there is a minimum withdrawal limit in place which is from $2, if the withdrawal is below $2 the customer support team should be contacted for assistance.
With IQ Option, it’s important to know that the withdrawal is based on which payment type was used to deposit the money originally to an account. For instance, if an account is deposited using a credit card, then the withdrawn funds will be returned to the same credit card. This happens because the withdrawal transaction is processed as a refund.
Any remaining funds that go over the original deposit amount must be withdrawn to another payment method such as an e-wallet like Skrill or as a bank transfer.
So let’s say you deposited $50 to your IQ Option account with a credit card. You’ve done well with your trading and now you wish to withdraw $100. IQ Option will ‘refund’ and send $50 back to your credit card and the other $50 will be sent to your electronic wallet / bank account.
IQ Option has made it possible for a range of electronic wallets to be used for both withdrawals and deposits. This includes WebMoney, Neteller and Skrill which are used worldwide.
The good thing about using an e-wallet is that it’s very quick to receive money back during a withdrawal, usually it takes the broker 1-2 days, whereas a bank/wire transfer can take a few days longer.
Also if a withdrawal is made via bank/wire transfer, the broker may charge a $31 fee. For credit/debit card and electronic wallets, this does not apply.
After this comparison it’s clear that both brokers have various strengths that will definitely appeal to different traders.
In our opinion, eToro is a great option if you’re looking to learn from other traders and want to engage in social trading. The broker’s unique CopyTrader and CopyPortfolio tools are a great way to invest if you don’t have much experience and want to learn from others.
The fact that they have millions of users worldwide and a platform that is supported in many languages, means that there is a great pool of eToro members to learn from.
However, even though we were impressed with the eToro App plus the online platforms design, the fact that there is not a desktop version available may not suit people who only wish to use a desktop based platform.
Regarding IQ Option though, we were impressed that their platform comes as a desktop version, (as well as a mobile App and online platform).
The main strength of IQ Option is the fact that they have such a low minimum deposit means that the broker is a great option for people with limited trading budgets. It really opens up the world of trading to anyone, even if you’re a beginner who wants to start trading with smaller amounts.
We were also impressed with the CFD instrument and asset range available on IQ Option, especially their cryptocurrency offering which offered many rarer crypto companies as well as the main ones like Bitcoin.
The only slight weakness is that there are no social trading tools available at all. However, the fact that they have a good range of analysis tools and indicators means that any trader can easily analyse the market and gain trading knowledge themselves.
So whether you choose eToro or IQ Option, remember to always go with the broker that suits your needs best.
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