Both eToro and FBS were founded at about the same time, although the former can claim a longer existence. eToro was founded in 2007 while FBS was launched in 2009, right around the time when the retail Forex market was booming. Today, you are likely to encounter these two companies as you search for a Forex broker to work with, and it is critical to make the right choice.
This content is not intended for US users. eToro USA LLC does not offer CFDs, only real Crypto assets available.
To make your first deposit on eToro, the broker requires that you have at least $200 or equivalent in other currencies such as EUR or GBP. Deposits made through wire transfer have an even higher minimum deposit of $500. On your subsequent deposits, the minimum is reduced to $50. Fortunately, deposits by US and Australian residents are lowered to $50, even on first time deposits. Although deposits are always free, withdrawals are charged $5 regardless of the method used.
eToro charges a fixed withdrawal fee of $5 USD, Additionally, a conversion fee may be applied as withdrawals and deposits are conducted in USD. Any other currency will have to be converted .
FBS is a lot more flexible on its deposits depending on the account type involved. On a cent account, you can deposit as little as $1, all the way up to $500 for zero-spread and unlimited accounts. This allows traders to deposit as much as they have available for trading with no charges at all on deposits, but there are some on withdrawals. Withdrawal fees vary by the method used, with mobile wallets having the least commissions.
This category is a tie because high net worth traders may enjoy cheaper deposits on eToro compared to FBS that charges a commission.
In terms of security, clients enjoy the security of 3 reputable regulators when working with eToro. These include ASIC, CySEC and even the FCA, all of whom license and regulate the broker under different subsidiaries. eToro Europe is licensed by license number 109/10 to operate in Europe and Asia. Meanwhile, eToro UK is licensed by the FCA with reference number 583263 and eToro AUS is registered by ASIC with CAN 612791803 and services license 491139. On the other hand, FBS is only licensed by the International Financial Services Commission (IFSC) in Belize with license IFSC/60/230/TS/18.
Although the IFSC is not an inherently bad regulator, it does not provide as much scrutiny as the FCA, NFA and ASIC. This makes client funds less secure and thus handing the win to eToro.
Trading on eToro is available on a web browser and on proprietary mobile apps available for iOS and Android devices. This is usually enough until you consider that FBS offers both MetaTrader 4 and 5. These two are available for download on PC/Mac and iOS/Android. Considering that MT4 and MT5 are very popular among traders and developers, these platforms are a lot more effective and offer plenty of features.
Winner has to be FBS.
eToro offers a lot of assets for trade ranging from currency pairs to stocks, commodities, indices, ETFs and cryptocurrencies. These assets are primarily offered in the form of CDFs, but real assets are also available when one opts out of leverage use. FBS is also not short of asses as it has CFDs for Forex, metals and stocks. However, the number of assets and variety is not as wide as that you get from eToro, leaving the latter more plentiful.
Winner is eToro.
After the above categories are considered, eToro emerges the overall winner for having generally better services.