eToro vs Fineco – Full Review6 min read
eToro vs Fineco are both brokers in the European market, but they try to differentiate themselves from each other. eToro has been around since 2006, while Fineco was founded in 2010. On the surface, they seem similar as they offer Forex and CFD trading on stocks and commodities. However, there are significant differences between the two brokers that we’ll cover below.
eToro vs Fineco – Which broker is better?
eToro and Fineco are both brokers with their advantages. If you’re looking for a broker that has a wide selection of CFDs and forex pairs, then eToro is the way to go. On the other hand, if you want to trade on leveraged instruments while getting access to a mobile app, then Fineco might be your best option.
Both brokers offer an easy-to-use interface and good customer support services so it’s hard to decide which one is better since they have the same features. However, there are some differences in their deposit methods so it’s important for traders who want to open an account on both platforms to know about them beforehand so that they won’t get confused later on when making transactions or withdrawing money from an account
1.1 ⚖️ Regulation and safety of funds
Regulation and safety of funds
Both eToro and Fineco are regulated by financial authorities. This means they meet strict requirements of financial conduct, security, and transparency. As a result, your money will be safe when trading with these brokers. Many traders choose to use brokers who are regulated as it gives them more confidence in the financial services being offered.
However, there is one major difference between the two: eToro is regulated by three different regulators (CySEC, FCA, ASIC) whereas Fineco is only regulated by CONSOB which is an Italian regulator. While this does not mean that either broker is safer than the other (both have been around for over 10 years), it does show that some countries have stricter regulations than others when it comes to forex trading platforms offering CFDs or spread betting products on their platform such as stocks/futures contracts etcetera while some other countries may not regulate these types of investments at all so make sure you do your research before signing up!
1.2 💵 Forex & CFD Trading Accounts at eToro
eToro is a great broker for those who want to trade forex, CFDs, and cryptocurrencies. eToro offers a wide range of trading instruments and a variety of trading platforms. You can trade on your desktop or mobile phone with no additional fees.
eToro offers cryptocurrency trading on many exchanges: BitMEX, Binance, Bitfinex, Kraken, Coinbase Pro (GDAX) and CEX.IO
The maximum leverage available for bitcoin is 1:200 which is not as high as other brokers but is still decent enough for most traders looking to make small profits in the short term.
eToro also offer CFD contracts on over 1/3rd of all financial markets worldwide including indices like S&P500® Index (SPX), Dow Jones Industrial Average®, Euro Stoxx 50® index (STOXX50E), FTSE 100® Index(FTSE_100) etc…
1.3 📊📉️ Proprietary trading platform at eToro
The eToro platform is proprietary and web-based, meaning you can access it from any device that has an internet connection. It’s available in multiple languages, which is useful if you’re looking to learn how to trade in your language or want to understand what the platform’s doing so that you can make more informed decisions when trading.
The eToro trading platform has many features that make it easy for newbie traders to get started with CFDs, including:
- A simple and clean design that makes it easy to navigate around the site and use the tools available on their accounts
- A variety of chart types, including candlestick charts, line charts, bar graphs (with a moving average), and even candle stick graphs for those who like visual representations of their investments’ progress over time
1.4 👥️ Business Model at eToro
eToro is a social trading platform, exchange, and brokerage house. It was founded in 2007 by Yoni Assia and Ronen Assia in Tel Aviv, Israel. The company is regulated by CySEC (Cyprus Securities and Exchange Commission) and FCA (Financial Conduct Authority).
The eToro business model is unique as it combines the advantages of traditional stock exchanges like NYSE with the advantages of social media platforms like Facebook or Twitter. This hybrid approach allows them to compete directly with established forex brokers such as FXCM or Interactive Brokers while maintaining their low-cost structure that other social investment networks lack.
1.5 🤑 Fees And Commissions at eToro
- 5 Fees And Commissions at eToro
There are many different types of fees that you may be charged by an online broker, and it’s important to understand them all so as not to be surprised by any unexpected charges. We’ll go through each one in detail below:
- 5.1 Commission Fees
Commissions are the costs that you pay for your trades and can vary based on the type of account (i.e., standard vs professional), the number of transactions made per month, etc. With eToro, commission fees are calculated as a percentage of your trade’s value and applied as follows:
- The first two months after opening your account will be free from all trading costs; thereafter, there is a flat fee of 1 EUR per side per trade up until 100 lots are traded in one month (i.e., if you make three trades during this period then each has its commission). Any trades above 100 lots per month will incur an additional 5% charge (this includes both buying and selling currencies). For example; if you buy a 500 USD/EUR currency pair for 0.7500 with leverage 4:1 then 0.375 would be charged as commission because this is under 100 lots quantity per calendar month multiplied by 2 sides (buy-sell) = 2 x 0 = 0 + 1 EUR/side = 1 EUR in total cost including margin requirements which brings total position cost to 0 + 1 USD / EUR = USD 1090 / EUR 880 which exactly matches our calculations earlier when we saw how much money was needed on balance sheet prior placing order which was 1000 USD / EUR or equivalent amount based on current market prices.
1.6 ⚔️ eToro vs Fineco Australia | Compare Spreads, Leverage, Minimum Deposit, etc
You can compare the spreads, leverage, and other fees of eToro vs Fineco in the table below:
- eToro spreads are very competitive. You can trade forex and CFDs with a minimum spread of 1 pip on all asset classes except for binary options which have a maximum spread of 60 pips
- Fineco spreads are very competitive. You can trade forex and CFDs with a minimum spread of 1 pip on all asset classes except for binary options which have a maximum spread of 50pips, for more information Pepperstone leverage
Summary of key pointsFineco or eToro?
The Fineco vs eToro comparison ended with Forex brokers offering similar spreads of 1.6 pips on EUR/USD and USD/CHF, with a 0 pip spread on GBP/USD. Both Fineco and eToro charge no registration or deposit fees for traders in European Union countries. Charges for withdrawals are applied at different rates depending on the account type opened by clients:
- Standard accounts (no leverage) – $50 minimum withdrawal fee, with a maximum of $4,000 per month
- ECN accounts – no minimum or maximum amounts allowed for withdrawal
Fineco or eToro?
As you can see, there are several important factors to consider when deciding between these two brokers. However, the main differences between them have to do with their fees, trading platforms, and the types of accounts they offer.
If you’re looking for a broker that offers low fees and lots of account types then eToro is going to be your best bet. Their platform is also a great choice if you want something that provides an easy-to-use interface for beginners or those who aren’t very technical traders. For more information about another broker FBS review
You can choose eToro or Fineco based on your needs. If you are new to Forex trading, we recommend that you first open an account with eToro because it’s easy to use and provides free educational materials for beginners. On the other hand, if you already have some experience in Forex trading then go for Fineco because it has more advanced tools than eToro does.