Are you looking for eToro alternatives in terms of social and copy trading platforms? Perhaps you’ve had a bad experience with this broker and want to explore whether there are suitable alternatives to eToro? It’s no issue. We’ve compiled a list of the top eToro alternatives for 2022.
The CopyTrading function of eToro, a famous cryptocurrency trading application, is well-known. However, it is not suitable for everyone. Here, you can discover the best eToro alternatives. eToro is among the most well-known brokers in the market.
Still, it isn’t always accessible everywhere (for example, in Canada, where another excellent Canadian forex broker already exists), which is one of the causes you might seek an alternative.
The top eToro alternatives in this list have been chosen based on their similarities to the eToro platform and their key characteristics in terms of Social Trading, Copy Trading, and other components.
However, it is not without flaws. Many crypto trading fans are looking for a cheaper option with faster withdrawals and reduced fees. So, which one is the best eToro alternative? Find the best eToro alternatives for your portfolio and trading preferences in this guide. Also, if you’re still undecided, go over the major disadvantages of eToro.
Why is eToro NOT suitable for you?
While eToro has a lot to offer, especially for novices, some valid reasons to consider other options of eToro alternatives. eToro has several significant flaws:
Fees Are Too High
Non-trading costs are relatively high on eToro, as are inactivity fees. If your account hasn’t been accessed in 12 months, you’ll be charged a $10 monthly inactivity fee. When you purchase or sell cryptocurrency on eToro, you will be charged a 1% fee.
Difficult Withdrawals
It can be tough to transfer your funds to the eToro wallet and your smartphone and vice versa. Furthermore, after you’ve transferred your money off the site, you might not even be able to get them back. Some items aren’t able to be moved at all.
Imagine you don’t want to send your cryptocurrency to a personal wallet and are willing to pay higher fees. Perhaps the CopyTrading option on the eToro trading account excites you the most. In such a situation, eToro might still be a viable option.
However, if the price, the limitations, losing money rapidly, or something else turns you off, plenty of alternative solutions are available.
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Best 12 eToro Alternatives
1. M1 Finance – Best Overall
Self-directed investment, stocks, ETFs, fractional-share trading, banking, and line of credit are the best options.
M1 Finance was created with self-directed investors in mind. You may build your portfolio using stocks and ETFs or choose an expert-designed portfolio. You may utilize M1’s tools to make investment decisions and answer questions about your financial objectives too.
M1’s “Pie” interface, which allows you to readily examine the performance of any stock or ETF, displays the balance of your portfolio. To get started, you’ll need to put down a minimum of $100. After that, you can deposit as little as $10 into your account at a time.
M1 also provides M1 Spend, an FDIC-insured checking account with no monthly charge and minimum balance requirements.
Pros
- Investments that are connected with banking and credit lines
- Low expense ratios
- Dynamic rebalancing
- Fractional-share trading
- Low account minimums
- No account maintenance expenses
Cons
- There is no access to human counselors
- There is no tax-loss harvesting
2. Wealthfront – Best Runner Up
Wealthfront offers a sophisticated forex trading platform like eToro, a digital-only investment experience with an appealing, streamlined design that gives consumers access to complete money management capabilities.
It’s among the best eToro alternatives in terms of Financial advice, account aggregation, goal setting, investment, and banking choices that are user-friendly and easy to use. Self-Driving Money from Wealthfront allows you to further automate your finances by employing a rules-based method to transfer money across accounts while optimizing for your goals, giving you even more control over your financial path.
Regarding features, usefulness, and simplicity of navigation, the mobile applications for Android and iOS platforms are excellent and on the level with the desktop experience. The app was created to reduce the amount of data entry and typing required instead of relying on more user-friendly sliders, drop-down menus, and auto-fill capability.
You’ll still need to enter user IDs and passwords when joining external accounts, but the procedures are typically clear and consistent. Wealthfront’s platform offers a refined, smart user experience with access to far more complete money management tools.
Pros
- Extensive financial management tools
- Smart mobile interface intended to decrease mistakes and improve efficiency
- Self-driving money allows you to manage your finances from your smartphone
Cons
- External account synchronization might be unreliable.
- There are no discounts for greater amounts
- There are no human financial counselors
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3. Robinhood – Best Trading Platform for purchasing US Stocks
If you live in the United States, there’s a good chance you’ve heard of Robinhood. This online trading platform of eToro alternatives, launched in 2013, now has over 10 million users. US investors primarily use Robinhood to acquire stocks straightforwardly and cost-effectively.
In reality, like eToro, Robinhood allows you to buy stocks without paying a fee. In all, the platform provides over 5,000 equities, most of which are listed in the United States. This applies to both the NYSE and the NASDAQ stock markets.
In addition, Robinhood has over 250 non-US equities available. Other trading platforms in the industry, on the other hand, provide a considerably bigger selection of firms if you’re looking for overseas shares. Due to its user-friendly interface, Robinhood is also worth considering whether you want to trade in ETFs or cryptocurrencies or if you’re searching for a penny stock trading platform.
Pros
- Hugely popular trading platform in the United States
- Over 5,000 stocks listed in the United States to choose from
- Does not charge any costs
- Supports ETFs, cryptocurrency, and stock options
- There is no minimum deposit requirement
- It is easy to use and good for beginners
Cons
- Only 250-ish overseas goods are available in the US
- Heavily regulated in the US
- Deposits by debit/credit card or e-wallet are not permitted
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4. Interactive Brokers – Best Trading Platform for Professional Investors
Interactive Brokers is a renowned international trading platform and top eToro alternative. Their trading platform is difficult for newbies, and it takes time to understand and utilize successfully. Consequently, it is best suited for active experienced traders. On the other hand, Interactive Brokers provide a professional-level trading experience, with access to a wide range of markets and assets, as well as commission-free ETF and stock transactions.
In 2019, the business introduced the IBKR Lite service, a user-friendly platform for beginning traders. IBKR Lite allows you to trade stocks and ETFs available on US exchanges without paying any commissions. Canadian residents are unable to access IBKR Lite.
That said, the IBKR Pro platform provides you with sophisticated trading tools if you’re a seasoned day trader in Canada. You may trade a wide range of products, including futures, options, fixed income, mutual funds, and much more, albeit there is no social trading as there is with eToro. You access 135 exchanges in 33 countries with IBKR Pro and Lite.
Pros
- Deposits in Canadian dollars have low exchange rates
- ETFs, stocks, FX, futures, options, and other financial assets are available and have access to US and foreign markets
- Intended for seasoned day traders
Cons
- There are tax ramifications for Canadians, and IBKR Lite is not accessible in Canada
- The user interface of the mobile app is poor
- Expensive monthly costs; almost non-existent Canadian customer service
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5. Acorns – Best for New investors
Acorns streamline the top eToro alternative app, investing by rounding up every transaction made with a linked credit or debit card and putting the difference in one of five investment portfolios. Its excellent user ratings indicate that the app is simple to use.
Acorns also offer investing apps like eToro and a bank account with a debit card and clear and transparent pricing.
Pros
- Easy-to-use software
- Automatic “round-up” investing
- Simple price
- A checking account for members
Cons
- There are no human financial counselors
- There is no tax-loss harvesting
- Fees for modest account balances might be rather significant
See Related: eToro Review: Is It Legit and Worth Using?
6. Wealthsimple Trade – Best Discount Trading Platform
Wealthsimple Trade is among the best eToro alternatives for a discount trading platform that allows you to trade ETFs and equities without paying a fee on the most prominent US and Canadian exchanges.
Canada’s only zero-commission broker allows you to trade ETFs and equities without paying any fees or requiring a minimum account balance.
The user interface is praised for being clean and user-friendly on both desktop and mobile. In many ways, Wealthsimple Trade is more like Robinhood than eToro, particularly in terms of user interface and fee structure. However, it does not have the social trading capabilities of eToro.
Pros
- Commission-free stock and ETF trading
- Up to $1 million in account balances are protected by the CIPF
- Make TFSA and non-registered account investments
Cons
- No margin accounts are currently available
- There are no RESP accounts accessible
- There is no real-time market data
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7. Personal Capital- Best Online broker
A brokerage account or a Robo-advisor is not available with Personal Capital, but the software displays your complete financial life on a single screen!
It provides outstanding retirement planning tools and other analytical capabilities, all of which are available for free. The firm generates money by offering its human, financial advisors services. However, the free side of the company (which includes the app) is wonderful in and of itself.
Pros
- Excellent account management tools
- Free to use
- Excellent, free retirement planning tools
- Easy to check all of your financial accounts at once
Cons
- There is a fee for access to human advisors
- There is no native brokerage
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8. Libertex – low-cost zero-spread CFD trading platform
Libertex is a popular CFD trading platform among UK traders looking for minimal fees and commissions. The platform’s zero-spread offering is at the forefront of the best eToro alternatives.
This implies that no price difference exists between the buy and sell price of any asset you choose to trade, making it the greatest CFD trading account platform available.
As a result, you’ll be able to take advantage of industry-leading quotations. Furthermore, while Libertex charges a fee on both sides of the deal, it is frequently quite little. In reality, commissions on orders are sometimes less than 0.1 percent.
For example, the popular forex traders pair NZD/USD may be traded for a cost of just 0.012 percent. Libertex offers trading CFDs on equities, commodities, and currencies as supported markets. You may use leverage on any transaction you choose as a CFD specialist.
This is following European trading limitations. Therefore you’ll only be able to trade big forex pairs at 1:30 and less on other instruments. Libertex offers the option of a web trading platform long or short on all CFD markets. You may benefit from both rising and declining markets this way. Libetex has two trading platforms from which to select.
Pros
- Tight spread CFD trading eToro alternatives
- Very competitive fees – beginning at 0%
- Good training materials
- Long established broker
- Compatible with MT4
- Large selection of markets
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Cons
- CFDs only
9. VantageFX – a zero-commission global trading platform
VantageFX is among the world’s best eToro alternative CFD brokers with various products, including equities, currencies, commodities, futures, and indices. For major currency pairings, the platform offers leverage of up to 500:1, making it one of the finest trading platforms for large bets. A regular account’s minimum contract size is likewise simply 0.01.
CFD trading at VantageFX is 100% commission-free with a basic account. Spreads begin at 1.4 pips, which is somewhat higher than the industry average. On the other hand, your account has no fees for deposits, withdrawals, or inactivity.
Alternatively, you may use MetaTrader 4 and MetaTrader 5 with this broker. Social trading is also available through ZuluTrade, Myfxbook, and DupliTrade. Copy trading is available on all three platforms.
The UK Financial Conduct Authority and the Australian Securities and Investment Commission regulate VantageFX (ASIC).
Pros
- 100 percent commission-free CFD trading
- No deposit, withdrawal, or inactivity fees
- Offers ECN accounts
- Social trading with three platforms
- Supports MetaTrader 4 and 5
- Regulated in the UK and Australia
Cons
- Slow
10. Plus500 – best online broker for trading forex and CFDs
Plus500 is well worth considering if you’re living in Australia and seeking the best FX trading platform available. This well-known online platform allows you access to a wide range of currency pairings at extremely low costs.
There are dozens of majors, minors, and exotics in this collection. The service employs a dynamic spread mechanism, often quite competitive on key pairings during conventional market hours.
Plus500, for example, provides a best-rate spread of 0.01 percent on currency pairs like EUR/USD. Although this top-rated Australian trading platform excels at forex, it also has many other markets. This includes a large number of cryptocurrency CFDs, commodities such as gold, oil, natural gas, and a large number of stocks.
Australia, South Africa, the United States, the United Kingdom, Germany, France, and other stock CFD markets are supported.
Plus500 is popular with traders who want leverage in addition to minimal fees and a large CFD asset library. Plus500 is a tad poor in technical analysis, despite having real-time pricing charts and a variety of order types.
Pros
- No trading commissions
- Thousands of CFD marketplaces
- Tight spreads
- ASIC requires a license, which is heavily controlled
Cons
- There are no social trading tools.
- Only CFDs
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11. IG – best forex trading platform
While much of the attention has been on traditional assets such as stocks and ETFs, some of you may be seeking the best eToro alternatives FX trading platform. If that’s the case, Instagram is worth a look. This reputable online trading platform has a large forex sector with over 80 currency pairings to choose from.
This, of course, includes all major and minor currency pairings, such as EUR/USD, GBP/USD, and AUD/NZD. On the other hand, IG allows you access to a broader range of exotic currency pairs. This covers currency pairings such as the Russian ruble, Indian rupee, Philippine peso, and Brazilian real.
IG is economically priced and offers a comprehensive range of FX markets. For example, major forex pairings may be traded for as little as 0.8 pips. There are no commissions to be mindful of at IG because all forex trading fees are included within the spread.
When it comes to the trading platform, IG offers two alternatives. If you consider yourself a novice trader, the IG native trading platform may be the perfect option for you. This is available both online and through the Instagram app. Alternatively, if you prefer the third-party platform MT4, it’s compatible with IG.
This implies you’ll have access to a plethora of technical indicators and the opportunity to use a forex trading robot. If you want to trade forex on margin, IG is also a good option. In reality, popular forex pairings on the trading platform only demand a 2% margin, equating to leverage of 50x.
The minimum amount required to begin trading on IG is $250. You can pay with a debit card or a bank transfer. Finally, even though IG is a global brokerage business with its headquarters in the United Kingdom, it is authorized and licensed by all applicable authorities in the United States. As a result, Americans may trade forex with IG in a highly regulated, safe, and secure environment.
Pros
- Best forex trading platform
- Over 80 currency pairs are available
- Spreads start at just 0.8 pips, and there are no fees
- MT4 is supported
Cons
- The minimum deposit is $250
- There are no standard stocks or ETFs available for US traders.
12. Fidelity- Best for long-term investors
Fidelity may be the greatest eToro alternative trading platform on the table if you want to establish a long-term investing strategy from the comfort of your own home. This is because it provides many traditional marketplaces and investing options.
You may, for example, purchase and trade stocks from 25 different nations, allowing you to establish a highly diversified, worldwide equity portfolio. You may also access IPOs listed in the United States using the site.
Fidelity provides thousands of ETFs, mutual funds, and fixed-income bonds, making it an excellent alternative if you’re looking for a solid ETF trading platform if you’re more of a passive investor. Fidelity is a wonderful option if you’re looking to build a retirement fund.
It provides a wide range of products, including annuities, IRAs, life insurance, and retirement plans. Fidelity also appeals to us because of its extensive news and research resources.
Fidelity mutual funds have no trading costs as long as you retain your investment for at least 60 days. You will be charged $49.95 to leave your current position if you do not. If you want to trade on margin, costs start at 4% and go higher. Fidelity has a minimum account balance requirement, regardless of whatever asset class you wish to trade.
Pros
- Large assortment of long-term investment products
- Commission-free access to US-listed stocks, ETFs, and options
- Covers hundreds of markets in 25 countries
- Excellent reputation and strict regulation
- Top-rated research and instructional resources
- Advanced analytical tools accessible to seasoned experts
- No minimum account balance
Cons
- The account opening procedure might take a long time.
- There will be no debit card deposits or withdrawals.
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Things To Consider While Choosing a Copy Trading Platform
Choosing the best copy trading platform is not as simple as it may appear. When choosing a copy trading application, there are several aspects to consider. Here are some crucial things to remember as you go through the copy trading app section:
Regulation and Security
Do top-tier institutions regulate it? Is it a safe place to put your money? Where is it based, and how long has it been in operation? Is it available to the public? What is their client feedback like?
The Quantity and Quality of Traders to be Copied
People are the source of social and copy trade. As a result, the number of users and strategies/traders you may copy/follow is one of the essential criteria. It broadens your options, enhances your odds of finding good traders, and gives you a means to benefit from the knowledge of the community.
Details About Traders
You should learn about, examine, and evaluate their techniques, style, and track record; the more details you have, the better.
Identifying Successful Traders
Most forex social trading systems make it straightforward to see which traders produce the best returns, but choosing who to mimic takes a lot of ingenuity. As we’ve noted in previous evaluations of online trading applications, each investor is unique and has unique demands based on their goals.
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Consider The Following Characteristics When looking For Etoro Alternatives
Prices
Your online brokerage may charge various costs, and the amount and severity of these fees may differ considerably from one broker to the next. Both of these variables might impact your profits and overall experience. Because eToro is one of the most affordable brokers, make sure you choose the eToro alternatives that are equally priced.
Bank Account
To open an account, some brokers need a minimum first-time deposit of €50,000, while others do not. The amount of time it takes to create an account might also vary significantly. This is not an issue at eToro because you may have it available the same day you join.
Deposit/Withdrawal
It’s crucial to have various choices for depositing and withdrawing money from your account. While you may deposit with a credit card at eToro, you might not be able to do so at its competitors.
Trading platforms On the Internet
While online brokers are often available on various platforms, including mobile applications, tablet apps, and desktop software, most users access them using a browser. Trading platforms that are easy to use and provide various tools may considerably improve your trading comfort.
Products and Markets
Many people have certain items in mind that they want to invest in. Knowing whether the supplied eToro alternative offers stocks, currency, mutual funds, and other items are crucial.
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Copy Trading and Its Working
Among the most critical things to remember about copy trading is understanding the real copy trading process.
The following is how it works:
In copy trading, the trader initiates a transaction. The investor (you) then follows in the footsteps of that trader. This normally occurs automatically, without the need for any manual involvement. You might make money or lose money with the trader you’ve imitated. As a result, as their positions advance, so will yours. However, the inverse can also occur.
The main thing to note here is that everything is in proportion. As a result, depending on the broker’s restrictions, you can invest any amount you like.
As a result, you will win or lose correspondingly by employing your copy trader’s service. However, you should keep in mind that when choosing traders to copy, you should be aware of the position sizes that your trader often opens, as this might influence your investment.
Consider the following scenario: Assume you are a trader opening deals on several assets with an average profit ratio of 15% or more. You decide to invest only $100. Finally, the profit/loss rises to +20 percent because of the trader, and you finish off your position. However, you only made a 5% profit since you began copying when the trader already made a 10% profit.
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Purpose Of Copy Trading
Mimic trading allows you to copy the positions of another trader, and it’s been increasingly popular recently. Many traders establish ‘People-Based’ portfolios in which they invest in other investors rather than trading themselves.
Here are some of the causes why copy trading is growing increasingly popular:
Time-Saving
When compared to manual trading, copy-trading saves time. As a result, a trader who is short on time or lacks understanding should choose copy trading.
Education
Copy trading is an awesome way to learn new trading tactics. You may also ask questions and learn why particular trades were implemented using this platform.
Access to International Markets
Because traders have restrictions, being an expert in all international markets is impossible. Any financial market won’t mislead you if you use a copy trading platform. You will also obtain exposure to worldwide markets and a global knowledge base using the copy trading strategy.
Diversification
A well-diversified portfolio may have extremely little risk, and copy trading is one of the most effective methods. This allows you to duplicate the transactions of numerous individuals and generate a consistent monthly income. However, doing so without the correct instrument is difficult, and in today’s financial environment, even a seasoned trader advocates copying.
What is the difference between copy, social, and mirror trading?
Here’s a quick rundown of the three trading platforms, as well as the primary differences between them:
Trading on the social web
Social trading is the simplest way for new or inexperienced traders to learn and invest by communicating with expert traders via social media platforms. When trading binary options socially, you must communicate with your chosen traders or peers, discussing techniques or technical analysis in the hopes of learning and developing an ideal investment approach that meets your objectives.
The most significant disadvantage of this trading strategy is that you must continually monitor the market’s movement and make individual trade decisions. This is an extremely time-consuming procedure.
Copy-trading
Replicate trading is a software tool that allows anyone to automatically copy positions established and maintained by another person in the financial markets. Traders can use this strategy to mimic certain trading techniques. Copy-trading transfers a portion of the funds held by the copying trader to the copied investor’s account.
Trading mirrors
Mirror trading is when a strategy’s trading is replicated. Companies integrate their best traders’ tactics in these trading approaches to provide trustworthy and accurate recommendations for their customers.
Thanks to advancements in big data and artificial intelligence, it is now widely regarded as an optimal strategy. Consequently, mirror trading is quite precise and predictable; it is ideal for investors who want to learn everything about forex trading.
The most significant disadvantage of this trading approach is that you must replicate everything. You can’t pick and choose which signs to follow. The entire procedure, however, is automated.
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FAQs
Is Copy Trading Legal?
Copy trading is allowed in most nations as long as the broker is properly licensed. When you invest in the financial markets through a licensed broker, your account and its traders are legalized. However, all of this is entirely dependent on the country in which you reside.
Is it possible to gain money by mimicking trades?
Like any other trade, copy-trading has the potential to gain or lose money. The objective behind copy trading is to evaluate the profitability of each trader before deciding which signal source to follow.
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