eToro vs XM 2026
Both are regulated. The right choice depends on your trading style.
eToro suits traders who value copy trading, real stock ownership, more instruments (3,000 vs 1,400). XM suits traders who prioritise tighter spreads, lower minimum deposit ($5 vs $50), MetaTrader support.
Head to head
| eToro | XM | |
|---|---|---|
| Primary regulator | FCA 583263 | CySEC 120/10 |
| Regulation tier | tier-1 | tier-1 |
| Min deposit | $50 | $5 |
| EUR/USD spread | 1 pips | 0.6 pips |
| Instruments | 3,000+ | 1,400+ |
| MetaTrader | No | Yes (MT4+MT5) |
| Copy trading | Yes | No |
| Real stocks | Yes | No — CFDs only |
| Inactivity fee | $10/mo after 12mo | $15/mo after 3mo |
| Founded | 2007 | 2009 |
| Headquarters | Tel Aviv, Israel | Limassol, Cyprus |
Regulation: eToro vs XM
eToro is regulated by FCA under licence 583263 (eToro (UK) Ltd). The FCA is a tier-1 regulator. Client funds are held in segregated accounts and negative balance protection applies.
XM is regulated by CySEC under licence 120/10 (Trading Point of Financial Instruments Ltd). The CySEC is a tier-1 regulator. Client funds are held in segregated accounts and negative balance protection applies.
Both brokers are regulated by tier-1 authorities. Neither has a significant regulatory advantage over the other.
Spreads and fees
eToro's EUR/USD spread is 1 pips. XM's EUR/USD spread is 0.6 pips. XM offers tighter spreads on this pair.
eToro charges an inactivity fee of $10/month after 12 months without trading. XM charges an inactivity fee of $15/month after 3 months.
Platforms and tools
XM supports MetaTrader. eToro uses a proprietary platform only — traders who need MT4/MT5 for automated strategies should choose XM.
eToro offers copy trading, XM does not.
Minimum deposit
eToro requires a minimum deposit of $50. XM requires $5. XM has the lower barrier to entry.
Note that minimum deposits can vary by account type and by which regulatory entity serves your country. Some offshore entities allow lower deposits than the tier-1 entity.
Which is better for beginners?
eToro is generally better for beginners because it offers copy trading, allowing new traders to replicate experienced traders automatically while learning. XM also has the lower minimum deposit of $5. Both platforms are accessible to new traders, though neither is specifically designed as a beginner-only broker.
Which is better for experienced traders?
XM is better for experienced traders who need MetaTrader. XM's tighter spreads (0.6 pips) make it better for high-frequency and scalping strategies. eToro offers more instruments (3,000) for portfolio diversification.
Verdict: eToro vs XM
Choose eToro if you want copy trading, real stock ownership, more instruments (3,000 vs 1,400). The FCA licence (583263) gives it strong tier-1 regulatory backing.
Choose XM if you want tighter spreads, lower minimum deposit ($5 vs $50), MetaTrader support. The CySEC licence (120/10) means strong tier-1 regulatory protection.
Both brokers are legitimate and regulated. The choice comes down to your specific trading requirements.
Frequently asked questions
eToro vs XM: which is better?
eToro is better for copy trading, real stock ownership, more instruments (3,000 vs 1,400). XM is better for tighter spreads, lower minimum deposit ($5 vs $50), MetaTrader support. If regulation quality is your priority, both have comparable regulation.
Is eToro or XM safer?
Both eToro (FCA 583263) and XM (CySEC 120/10) are regulated by tier-1 authorities. Both segregate client funds.
What is the minimum deposit for eToro and XM?
eToro minimum deposit: $50. XM minimum deposit: $5. Minimums vary by entity and account type.
Do eToro and XM have MetaTrader?
XM supports MT4 and MT5. eToro does not offer MetaTrader.