eToro have been in business for over a decade since their launch in 2007 and they are now one of the world’s most popular online brokers. On the other hand, IQ Option has been around for about 6 years since it was launched in 2013. Therefore, eToro has been active for double the time IQ Option has been, but there is a lot more that goes into making the best broker. Find out which is the better broker for you today.
eToro is currently licensed by 3 different regulators – CySEC, FCA and ASIC. Under CySEC, eToro operates as eToro Europe with the license number 109/10, a license it has held since 2010. The FCA in the UK grants eToro UK the reference number FRN 583263 since 2013. In Australia, ASIC grants eToro Services License 491139 under the subsidiary eToro AUS Capital. Meanwhile, IQ Option is only licensed by CySEC under license number 274/14 since 2014.
The best broker is eToro.
Both eToro and IQ Option have a multitude of deposit methods when you finally want to trade with real money. The common options found in both brokers are:
- credit/debit card (both Visa and MasterCard)
- wire transfer
However, some funding methods are specific to each broker. IQ Option also allows for deposits in ADV cash while eToro also allows for deposits in Yandex, Giropay and China Union Pay.
Winner is eToro.
IQ Option started off as a binary options broker, and they still have this option with both digital and binary options for trade. Other than that, they have 75 currency pairs and CFDs on stocks (192), commodities (5), cryptocurrencies (26) and ETFs (25). eToro has a similar range of financial products to trade including Forex pairs, cryptocurrencies (15), stocks (600), indices (13), commodities (6) and ETFs (145). Besides having these products as CFDs, one can trade actual stocks, ETFs and cryptocurrencies when they do so without a margin.
Winner is eToro because they have more products and provide actual assets and not just CFDs.
On IQ Option, all withdrawals and deposits are free from commissions. However, you will be charged for withdrawals made by wire transfer to the tune of €50 or similar in another currency. There are no commissions either with this broker when making trades, but they only charge spreads and overnight/weekend swaps. The good news is that the spreads are pretty narrow and affordable. Here too eToro has a similar fee structure where trades are charged a spread and no commissions. Trading in real assets without leverage is free too, except for sell orders. When compared to IQ Option, though, their spreads are not as narrow and may not be the best broker for frequent traders.
Winner is IQ Option for providing their services cheaply
Rather than subscribe to MetaTrader or any of the other common trading platforms, both of these brokers have their own proprietary trading platforms. Both brokers’ trading platforms are also available for download on desktop and mobile making it easier to trade on any device.
Therefore, there is no better broker in this category; it’s a tie.
Best broker overall
All things considered, eToro ticks most of the boxes in terms of service provision, but this comes at a cost that may be unbearable to some traders.