Most traders are familiar with eToro, especially if you’re into CFDs. Firstrade is a different case because it is specifically meant for the long-term investor. That being said, there is nothing to stop you from using eToro for long term investment or Firstrade for speculation since the tools are there. So, why not highlight what you need to know about each of these brokers.
Platform ease of use
eToro only provides a web trader that you can access from your computer through a web browser. On mobile, eToro also provides apps for Android and iOS to download and continue trading on a smartphone or tablet. On all these platforms, eToro has made sure that the interface is very user friendly and easy to understand and use. This is especially important for new traders who aren’t very familiar with the trading environment.
Firstrade is also similar in that it too offers only a web trader and not a downloadable app for PC and Mac. In addition, the app can also be installed on mobile devices for remote trading. However, Firstrade also has an Options Wizard that has more complex commands for the professional or seasoned trader. The regular Dashboard is easy to understand as you can see from the image below, but Options Wizard has a lot more tools. It’s still well-designed, though, so that it is easy to understand after a short while.
It’s a tie in platforms because both have only web-based platforms.
Most trading on eToro is charged by spread because most assets are in the form of CFDs. These are only derivative products, but a trader can still choose to trade with the actual assets as long as they give up the use of leverage. For these real assets, trading is free except for conversion and withdrawal fees.
On the other hand, Firstrade does not deal with CFDs at all. All assets are real, and their trade is completely free. Deposit, withdrawal and other transactions are also free of charge. To make its profit, Firstrade relies on the interest generated on its credit balances and margin balances. It is not an uncommon practice nowadays since several other companies are doing the same.
Thusly, Firstrade is a winner by offering completely free trading.
- Bank transfer
- Credit Card (Visa, MasterCard, Diners Club, Maestro),
- ACH Electronic Funds Transfer
- Wire transfer
- Account transfer
The winner is eToro with more deposit methods.
eToro mainly deals in CFDs for Forex pairs, stocks, commodities, indices, ETFs and cryptocurrencies. As mentioned before, real assets can also be made available for stocks, cryptocurrencies and ETFs. The total number of assets is not known, but there are assets from numerous exchanges around the world. Therefore, it’s safe to assume there are a lot of assets.
Firstrade may not deal with CFDs, but that does not mean that opportunities are limited. There are stocks, ETFs, options and mutual funds for trade. These are all highly profitable, but they are most appealing to a different kind of trader.
If you are the kind of trader that likes to deal with options and mutual funds, then Firstrade is for you. Nevertheless, eToro still wins by having more assets.
As far as we can tell, there are no outstanding features or tools offered by Firstrade. It doesn’t mean the service is poor, but simply that it is meant for a very specific kind of trader or investor. But eToro has that social trading thing that everyone gets excited about just hearing about. Basically, it allows everyone to participate in their opinions on the markets and share knowledge or information. This kind of community is very beneficial to many traders and makes eToro a favourite among traders the world over.
Therefore, eToro is a clear winner.