50% of retail investor accounts lose money when trading CFDs with this provider.
74-89% of retail investor accounts lose money when trading CFDs with this provider.
Comparison Summary
eToro and Interactive Brokers are both ASIC-regulated and available to Australian traders, but they serve very different types of investors. eToro is built for beginners and social traders, while Interactive Brokers is the go-to platform for experienced, cost-conscious investors seeking professional-grade tools and global market access.
What They Have in Common
Both brokers hold an Australian Financial Services Licence (AFSL) and are regulated by ASIC. Both offer stocks, ETFs, forex, and cryptocurrencies, and both provide unlimited demo accounts. They each use their own proprietary platforms.
Key Differences
eToro stands out with its CopyTrader feature - the ability to automatically replicate the trades of successful investors - making it uniquely accessible for beginners. It supports a wide range of payment methods including credit cards and e-wallets, has a low $50 USD minimum deposit, and offers 100+ cryptocurrencies. However, it charges a 0.5-1.5% currency conversion fee on AUD deposits, a $5 withdrawal fee, and a $10/month inactivity fee.
Interactive Brokers wins on raw cost efficiency: its FX conversion fee is just 0.002% (vs eToro's 0.5-1.5%), there are no inactivity fees, and access to 10,000+ ETFs across 160+ exchanges makes it unmatched for global investing. The professional Trader Workstation (TWS) platform is industry-leading, but has a steep learning curve for newcomers.
For Australian traders just starting out or interested in copy trading, eToro is the better choice. For experienced investors prioritising low costs, advanced tools, and global reach, Interactive Brokers is hard to beat.
Risk Warning: CFDs are complex instruments. 50% of eToro retail investor accounts lose money when trading CFDs. Both brokers carry investment risk. Always consider your financial objectives and risk tolerance before trading.
Key Metrics Score
|
eToro
|
Interactive Brokers
|
|
|---|---|---|
| Overall score | 4.6/5 | 4.6/5 |
| Trust score | 4.5/5 | 4.9/5 |
| Fees score Overall assessment of the broker's fee structure compared to industry standards | 3.8/5 | 4.7/5 |
| Platforms score | 4.2/5 | 4.6/5 |
| Tradable assets | 4.0/5 | 4.9/5 |
| Customer support | 3.5/5 | 4.2/5 |
| Education | 4.5/5 | 4.6/5 |
Pros & Cons
Advantages eToro
- CopyTrader - automatically replicate successful investors' trades.
- User-friendly platform ideal for beginners.
- ASIC regulated (AFSL 491139) for strong local investor protection.
- 0% commission on all ETF trades.
- 100+ cryptocurrencies available.
- Multiple deposit methods - cards, PayPal, Skrill, Neteller.
- $50 USD minimum deposit - very accessible entry point.
- Unlimited $100,000 virtual demo account.
Advantages Interactive Brokers
- Industry-leading low FX conversion fee (0.002%) - critical for AUD investors.
- No inactivity fee - ideal for buy-and-hold Australian investors.
- Access to 160+ global exchanges, 10,000+ ETFs and stocks.
- No minimum deposit for cash accounts.
- Professional desktop platforms: TWS and IBKR Desktop.
- ASIC regulated (AFSL 453554) plus SIPC + $30M excess protection.
- BPAY deposits accepted - convenient for Australian users.
- Extensive IBKR Campus education with live weekly webinars.
Disadvantages eToro
- 0.5%-1.5% AUD-to-USD conversion fee on deposits.
- $5 withdrawal fee on all withdrawals from USD account.
- $10/month inactivity fee after 12 months of no login.
- No desktop app - web-only on desktop.
- No phone support for standard Australian accounts.
- Limited advanced tools for professional or algorithmic traders.
Disadvantages Interactive Brokers
- Steep learning curve - TWS platform is complex for beginners.
- No credit card or e-wallet deposits (bank wire / BPAY only).
- Only ~12 cryptocurrencies available.
- No social or copy trading features.
- $2 USD minimum commission per stock order can hurt small trades.
- Complex tiered fee structure - difficult to estimate costs upfront.
Fees
|
eToro
|
Interactive Brokers
|
|
|---|---|---|
| Fees score Overall assessment of the broker's fee structure compared to industry standards | 3.8/5 | 4.7/5 |
| EUR/USD spread The typical spread for the EUR/USD currency pair | 1.0 pip | ~0.2 pips + commission |
| US stock fees Commission charged per US stock transaction | $1.00 per trade | $0.005/share (min $1) |
| ASX stock fees Commission for Australian Stock Exchange trades | $2.00 per trade | 0.08% (min ~AUD 6) |
| ETF fees | 0% commission | Same as stocks (150+ NTF ETFs) |
| Withdrawal fee Fee charged when withdrawing funds from your account | $5 USD per withdrawal | Free (1x/month) |
| Deposit fee Fee charged when depositing funds | $0 | $0 |
| Payment cards | $0 | Not accepted |
| Wire transfer | $0 | $0 |
| BPAY | Not available | $0 |
| Currency exchange fee Fee charged when converting AUD to USD or other currencies | 0.5% - 1.5% | 0.002% (min $2 USD) |
| Inactivity fee Fee charged if you don't trade or log in for an extended period | $10/month after 12 months | $0 - no inactivity fee |
| Minimum deposit (AU) | $50 USD | None (cash account) |
Key takeaway for Australian traders: Interactive Brokers' FX conversion fee of 0.002% is dramatically lower than eToro's 0.5%-1.5%. On a $10,000 AUD deposit, eToro could cost $50-$150 in conversion fees vs just $2 at Interactive Brokers.
Trading Platforms
|
eToro
|
Interactive Brokers
|
|
|---|---|---|
| Platforms score | 4.2/5 | 4.6/5 |
| Web Platform | eToro WebTrader | IBKR Client Portal |
| Mobile App | Beginner-friendly | Full-featured |
| Google Play score |
3.8/5
7,700+ reviews
|
4.6/5
64,000+ reviews
|
| App Store score |
4.1/5
15,000+ reviews
|
4.5/5
10,500+ reviews
|
| Desktop Platform | Not available | TWS + IBKR Desktop |
| Copy / Social Trading | CopyTrader™ | Not available |
| Algorithmic Trading | No | Yes (API) |
Trading Assets
|
eToro
|
Interactive Brokers
|
|
|---|---|---|
| Tradable assets score | 4.0/5 | 4.9/5 |
| Number of Stocks | 3,000+ | 10,000+ (160+ exchanges) |
| ETFs | 670+ | 10,000+ |
| Forex Pairs | 56 | 100+ |
| Cryptocurrencies | 100+ coins | ~12 coins |
| Options | US Options | Global Options |
| Futures | No | Yes |
| Bonds | No | Yes |
Demo Account
| Demo Feature |
eToro
|
Interactive Brokers
|
|---|---|---|
| Virtual Money | $100,000 USD | $1,000,000 USD |
| Duration | Unlimited | Unlimited |
| Name | Virtual Portfolio | Paper Trading Account |
| Access | Requires registration | Created alongside live account |
Education
|
eToro
|
Interactive Brokers
|
|
|---|---|---|
| Education score | 4.5/5 | 4.6/5 |
| Platform Name | eToro Academy | IBKR Campus |
| Video Tutorials | Yes | Yes |
| Trading Guides | Beginner-Intermediate | All levels |
| Webinars | Yes | Weekly live |
| Structured Courses | Yes (free) | Yes (incl. Coursera) |
| Best suited for | Beginners, Intermediate | Intermediate, Advanced |
Safety & Regulation
|
eToro
|
Interactive Brokers
|
|
|---|---|---|
| Trust score | 4.5/5 | 4.9/5 |
| ASIC AFSL | 491139 | 453554 |
| Regulation | ASIC, FCA, CySEC, SEC/FINRA | ASIC, FCA, SEC, FINRA, CFTC + 10 more |
| Fund protection (AU) | Segregated + AUD 1M private insurance | Segregated + SIPC $500k + $30M excess |
| Two-factor auth | Yes | Mandatory |
| Publicly listed | NASDAQ: ETOR | NASDAQ: IBKR |
| Number of clients | 35M+ registered | 4.5M+ accounts |
Deposit and Withdrawal
|
eToro
|
Interactive Brokers
|
|
|---|---|---|
| Minimum deposit The lowest amount required to open and fund a trading account | $50 USD | None (cash account) |
| Wire transfer | Available (min $500) | Available |
| Payment cards | Visa, Mastercard | Not accepted |
| BPAY | Not available | Available |
| E-Wallets Digital payment methods like PayPal, Skrill, Neteller | PayPal, Skrill, Neteller | Not available |
Customer Support
| Support Feature |
eToro
|
Interactive Brokers
|
|---|---|---|
| Customer Support Score Overall rating of support quality, response time, and helpfulness | 3.5/5 | 4.2/5 |
| Availability | Mon-Fri, 24h | Mon-Fri, business hours |
| Live Chat | Club members only | Yes (all clients) |
| Phone | No | Yes (AU local number) |
| Email / Ticket | Yes | Yes |
Support Quality Assessment
eToro Customer Support
eToro's support is a known weak point for Australian users. Standard accounts rely entirely on a ticket/email system with response times of 1-3 business days. The "live chat" on the website is an AI chatbot that typically redirects to FAQ articles. Phone support is not available. Live chat with a human agent is only accessible to eToro Club members (requiring a $10,000+ balance). The experience significantly improves at higher Club tiers, where a dedicated WhatsApp account manager is assigned.
Interactive Brokers Customer Support
Interactive Brokers provides more accessible support for all clients, including live chat via the Client Portal and a local Australian phone number. Response quality is generally strong, particularly for account and funding queries. The platform also has a large self-help section - IBKR Guides, IBKR Campus, and IBot (AI assistant). The main drawback is that support hours are limited to business hours and the complexity of the platform often means queries require more detailed back-and-forth.
Overall Assessment
Interactive Brokers has the edge in support for standard Australian users - live chat and phone are available to all clients, not just premium tiers. eToro's support model is built around self-service and AI, which can be frustrating for traders needing urgent help during volatile market conditions.