eToro vs CMC Markets: Which Broker Is Better For Aussies?

CMC Markets has long held a solid reputation among brokers, frequently topping “best of” lists and consistently delivering on fees and features. At first glance, it might seem the obvious choice for Aussies serious about trading or investing.

But is that the case?

Enter eToro — a relative newcomer with a unique social approach to trading.

I’m sure you’ve seen its logo emblazoned on the uniforms of soccer teams, as the brokerage seeks to become a household name among Aussie traders. CMC Markets, meanwhile, is doing the same by plastering its brand across train stations and freeway overhead passes.

But which is the better brokerage based on merit, not fancy marketing?

(Related: 10 Best Share Trading Platforms In Australia).

eToro vs CMC Markets: My Quick & Dirty Verdict.

If you’re financially savvy and have plenty of trading experience, eToro and CMC Markets are an even match – but for different reasons.

But what if you’re relatively new to investing — or, let’s be honest, just too busy to dive deep into market research? In that case, eToro might be the broker you didn’t know you were looking for.

Just keep in mind that these perks come with a price tag — a slightly higher cost overall — but one that could easily pay for itself over time if used effectively.

Selection Of Assets.

CMC Markets offers a broader range of assets, making it the better choice if you plan to execute advanced trading strategies and build complex portfolios (e.g., portfolios with both long and short positions across 7-10 asset classes).

However, if this is your main criterion, a broker like Interactive Brokers is arguably better.

Where eToro has the edge is with cryptocurrency trading.

Not only do you have access to more than 10 times the number of coins, but eToro also makes cryptocurrency trading accessible to retail investors without requiring professional status, which could be a significant draw for some investors.

What is a ‘professional investor’? Not perhaps what you might think.

Above: To qualify as a professional investor, you must pass an asset or trading volume test (relatively easy for any Australian who owns a house and/or is employed in a senior corporate leadership role).

While I could qualify as a “professional investor”, I resist this temptation at all costs.

Note for both CMC Markets and eToro, the fees for trading cryptocurrencies are relatively higher than what you’d get with a dedicated crypto exchange (e.g., BTC Markets), at around 1%.

More on that in the fees section below.

(Related: 15 Best Stock Trading Apps In Australia Compared).

Trading Tools And Features.

This section is where the two platforms take two different paths.

CMC Markets comes equipped with Next Generation and MetaTrader 4 (with a slight reduction in tradable securities), offering professional-grade tools for experienced traders.

This will likely not matter to a trader looking to implement such an advanced strategy, while other investors will be better on the more user-friendly NextGen platform out of the two options.

That said, both these platforms are more suited to advanced strategies but might be redundant for (or overwhelm) a casual buy-and-hold investor.

eToro, by contrast, leans into simplicity and accessibility.

The platform will feel familiar to investors who have grown up on social media.

While more advanced features are available, these are not front and centre when you log in, making eToro more friendly to investors just starting out.

I think of these features as a shortcut. I don’t have the time to check Morningstar stock picks every morning, so I use eToro’s social trading features to buy back my most important asset – time.

So, the user type seems obvious, right? Experienced traders turn left to CMC Markets?

Well, maybe not.

Expert traders can also find value in eToro’s model. Investors are paid a percentage of their Assets Under Copy (AUC).

This is similar to how traditional fund managers are paid and, while the commission is modest at 1.5%, it can offer a nice boost to returns over time.

There is a requirement for you to post monthly on the newsfeed and have an investment management qualification, but these are things that you would likely have and be doing as a ‘popular investor’.

Full details are as follows:

User Experience.

There is not much separating these two platforms in terms of user experience. Both can be accessed via their website, and Android/iOS apps (which contain almost all the same features as the full web platform).

eToro will feel much more like an easy-to-use social networking platform, whereas CMC Markets has a more adult feel.  

Ultimately, this won’t be the deciding factor — it comes down to your investment goals and preferred trading style.

Fees And Commissions (How They Make Their Money.)

CMC Markets has slightly more cost-effective brokerage fees, particularly for domestic equities, with one free trade (up to $1,000) per day for equity investors.

eToro, meanwhile, charges US$2 per side on shares and ETFs.

But I suspect CMC’s free tier is a ploy designed to increase user engagement.

For example, I invest about $5,000 at the end of each month. Do I want to avoid brokerage fees? Yes.

(Related: Ultimate Guide To Brokerage Fees In Australia).

Do I want to buy this position in 5 X $1,000 increments, on 5 separate days, to avoid the $11 brokerage? No – because it’s a waste of my time – but I can see many people falling into the trap.

I view features like CopyTrading and Smart Portfolios as time-saving tools, and I’m happy to pay for them.

Why? Because I’m not under any illusion that I can pick the right stocks.

Even professional traders with access to $25,000/year Bloomberg terminals rarely beat the market in a meaningful way.

This is why I spend all my time on increasing my earning capacity – not micromanaging my portfolio.

Security Measures.

Both platforms are registered with the major financial regulators, so you’re covered on the compliance front.

CMC Markets takes it a step further, being publicly traded on the London Stock Exchange — a nice touch for transparency.

It also offers CHESS-sponsorship, meaning any shares you buy are held in your name rather than by a custodian. By comparison, eToro doesn’t offer this.

But for most investors, the difference is unlikely to have any real-world impact. Thanks to tighter financial regulations, the days of brokers vanishing with client funds are all but behind us.

For larger accounts? Well, it would be worrying if they made decisions based on this article!

Customer Support.

When it comes to customer support, neither company scores particularly highly, although this is pretty standard across the industry, with unhappy customers tending to shout louder.

CMC Markets lets itself down with glacially slow opening times for new accounts, while eToro has more limited customer support once an account is set up.

For example, there is no live chat option for basic users and, for more complicated issues, you’re stuck raising an email ticket and waiting for a response, which can be slow.

Neither of these should be viewed as a dealbreaker.

Most investors will likely not encounter these issues, but they are worth being aware of.

For more complicated issues, eToro insists that you raise an email ticket and wait for a response, which can take 24-48 hours. CMC, meanwhile, offers speedy and competent live chat with a real human.

Exploring The Negative Reviews.

Three main themes appear when looking into the reviews:

Let’s tackle the first issue: complaints from users who’ve had positions closed out and lost money, often blaming a failed stop-loss.

Yes, seeing your position closed at a bigger loss than expected can feel gut-wrenching, only to watch the security bounce back into the green afterwards.

The frustration is real, but the broker isn’t being unfair here — it’s simply trying to execute your order, which isn’t always possible at your requested price.

Next up, KYC (Know Your Client) regulations.

If you’ve been asked for an overwhelming amount of personal information, don’t take it personally — it’s just the platform ticking regulatory boxes.

These rules, designed to combat money laundering, are getting stricter, so expect more requests for data over time. Refusing to comply could cause your account to be frozen, so it’s best to stay on top of these requirements.

Finally, for long-term, buy-and-hold investors, the third concern — delays in deposits or withdrawals — is unlikely to matter.

If you’re holding Tesla for years, whether it’s trading at $800 today or $803 two days from now isn’t going to make a dent. But for intra-day traders or those needing quick cash flow, it’s a good idea to build some contingency into your strategy.

These platforms aren’t banks, so don’t expect them to behave like one. Keeping a bit of liquidity on hand— both inside and outside your trading account — can save you some stress.

Tom