Last updated: 23rd Jan 2025
Interactive Brokers. For anyone debating which broker to pick for their investing strategy, that name has probably popped up more than once. And with good reason. The longest track record, competitive fees, and a menu of assets so vast it makes Netflix’s catalogue look modest.
It sounds like the case is closed; move on, right?
Except – not so fast.
The investing world has been shaken up in recent years.
Platforms like eToro have emerged onto the scene, armed with modern interfaces, clever features and enough innovation to make even the most grizzled investors raise an eyebrow.
You’ve probably seen eToro’s name plastered across an A-league jersey or two, as the brokerage seeks to become a household name among Aussie traders.
Let’s explore if there’s any substance behind the marketing and whether they might be a worthy contender to an industry stalwart, such as Interactive Brokers.
(Related: 10 Best Share Trading Platforms In Australia).
| Key Takeaways. |
|---|
| eToro is a multi-asset platform with a unique social trading network designed to appeal to less-experienced or time-poor investors. |
| Interactive Brokers caters to a more traditional, experienced user base with advanced tools and a broader range of assets. |
| While eToro’s fees are higher. But for the right investor? Its features could be worth every cent. |
eToro vs Interactive Brokers: My Quick & Dirty Verdict.
Are you the kind of investor who needs maximum control and flexibility? Are you willing to endure the quirks of a platform trying hard to shed its legacy pain points?
Interactive Brokers might be your pick.
While it’s still catching up to the new wave of tech-first competitors, it’s clear that IB is putting in the effort to modernise.
IB remains a heavyweight contender. It’s a sprawling, feature-rich platform for traders who demand it all – but are willing to acknowledge its progress alongside its quirks.
But if you’re short on time, have no patience for clunky tech, and want investing to feel as smooth as scrolling your Instagram feed?
eToro could be right up your street.
Important!
eToro is a polished, user-friendly alternative for people who don’t want to spend hours bogged in fundamental and technical analysis.
In addition, its social features – CopyTrade, Smart Portfolios – are absolute gold for beginners or anyone who wants to outsource stock research to people with a proven track record.
Yes, it costs more. But if used correctly, eToro’s ease of use and premium features could pay for itself faster than you think.
| eToro Is Best For: | IB Is Best For: |
|---|---|
| Beginner investors. | High-volume / Day traders. |
| Investors interested in social trading. | Breadth of investable securities. |
| Time-poor investors. | Investors looking to trade CFDs. |
Selection Of Assets.
| eToro: | 8/10 |
| Interactive Brokers: | 10/10 |
Interactive Brokers’ asset selection is, quite frankly, absurd.
It’s the kind of range that would make a professional trader drool. Want to short some obscure stock listed on a Bulgarian micro-exchange?
They’ve probably got you covered.
| Equities | ETFs | Currencies | Indicies | Crypto | Options | Futures | Bonds | |
|---|---|---|---|---|---|---|---|---|
| Interactive Brokers | 46,937 | 16,420 | 100+ | 26 | 22 | Yes | Yes | Yes |
| eToro | 5,510 | 704 | 55 | 18 | 101 | Yes | Yes | No |
But here’s the thing: most people don’t need that much choice.
90% of investors trade the top 100 stocks on the ASX, NYSE and NASDAQ, making eToro’s selection of over 6,000 securities more than enough.
Important!
Beyond a certain point, extra options become distractions.
In absolute terms, Interactive Brokers is the clear winner of this section. But if this matters to you, you probably already know this.
Trading Tools & Features.
| eToro: | 8/10 |
| Interactive Brokers: | 8/10 |
This is where the eToro and IB take different paths.
Until recently, Interactive Brokers’ user experience was about as modern as Windows 98.
Its response has been to throw the kitchen sink at you: seven proprietary trading platforms, APIs, and a suite of tools that they hope will cover everyone from beginners to Wall Street pros.
| Broker | Platforms Available |
|---|---|
| Interactive Brokers | IBKR GlobalTrader, Client Portal, IBKR Desktop, IBKR Mobile Trader Workstation, IBKR APIs, IMPACT |
| eToro | eToro Proprietary Platform |
Impressive, sure.
But potentially overwhelming for anyone who isn’t a spreadsheet-toting savant – and a huge source of complaints for current users.
Here’s a quick breakdown of IB’s key platforms:
- IBKR GlobalTrader is its answer to the mobile apps offered by the new wave of online brokers. While it’s a big step forward for existing investors, it still lags behind the competition from a user experience perspective.
- IMPACT is another attempt to target younger investors. Provides a socially conscious (ESG) investment product for investors who want more than just financial returns.
- IBKR Desktop, meanwhile, is its latest offering designed to be the do-it-all solution for investors who are putting in the hours to their craft.
These offerings are a step in the right direction.
Are they market-leading in terms of user experience? No.
This is the trade-off for offering that Bulgarian micro-cap stock alongside the other 3 million+ securities.
If that level of depth is important to you, then you’ll be more than happy to spend more time learning the platforms.
One platform.
Clean interface.
Social features like CopyTrade make it easy to follow and mimic the moves of successful investors, while SmartPortfolios offer targeted investment portfolios (without management fees) to themes such as ‘Big Tech’.
Think of it as a shortcut for time-poor investors or beginners unsure where to start.
And, should you want to strike out on your own into the world of analysis, eToro will support you with professional tools, such as TradingView and an economic calendar.
And if you’re a pro?
It is a bit like fund manager fees, but for retail traders, with a 1.5% commission structure offering a not-to-be-sniffed passive income for professional investors.
For example, if you have $500,000 in AUC and at least 10 people copying your strategy, you’d pocket $5,500 annually in commission.
Both platforms offer margin lending services – and are among the most competitive on the market at just 6.993% for Interactive Brokers and 6.45% + the relevant benchmark for eToro.
Important!
As a comparison, NABTrade is 9.00% and Webull is a whopping 10.350%.
User Experience.
| eToro: | 9/10 |
| Interactive Brokers: | 7/10 |
User experience is definitely an area to take note of.
eToro benefits from being a newcomer to the industry. Its platform is slick. Mobile, desktop – it all just works.
Interactive Brokers?
It’s not great, but the broker could be in the running for the most improved player.
At best, it’s functional for now.
Their latest releases, such as IBKR GlobalTrader, Desktop and IMPACT, give me hope.
And, to be fair to its development team, producing a platform with advanced functionality and super smooth UX is tough – particularly without passing on these costs to the end-user.
Whether the UX is a dealbreaker will largely depend on how much you value what Interactive Brokers provides over and above its competitors.
Fees & Commissions (How They Make Their Money).
| eToro: | 7/10 |
| Interactive Brokers: | 9/10 |
No sugarcoating it: eToro is the more expensive platform. But you’re paying for a premium product.
Features like CopyTrading and Smart Portfolios save time and effort, which can be a trade-off worth making if your focus is on your primary income, not micromanaging your portfolio.
This illustrates the client eToro is most likely targeting, which is reflected in its eToro Club.
The more money you invest with eToro, the more you’ll get back.
Currency exchange fees are discounted by 50% at the Platinum ($25,000) Level.
Diamond ($250,000) Level investors will have conversion fees waived, be ‘wined & dined’ at sporting events and receive a Priority Pass for airport lounges.
Expert Tip.
I’ve received the Priority Pass through other rewards programs – and it’s terrible. The lounges are worse than cafes at most airports. eToro’s “wining and dining” program, however, is excellent. Think whisky tastings and invitations to corporate boxes at A-League games.
None of this is essential to investing, although the currency exchange fee discounts remove the biggest frustration with eToro.
That said, if you have a larger portfolio, why not receive some perks?
On the other hand, if you are trading in high volume and/or are fee-conscious (think more experienced investors, particularly day traders), Interactive Brokers may be the most cost-effective option, mainly if the premium perks aren’t a selling point.
Domestic Equities.
| Interactive Brokers | eToro | MooMoo | |
|---|---|---|---|
| FX Conversion Fee | N/A | 1.5% | N/A |
| $1,000 | 0.08% (min $6) | $2 | $3 / 0.03% (whichever is greater) |
| Total charge to deposit, buy, sell and withdraw | $12 | $39 / $9* | $6 |
| $10,000 | 0.08$ | $2 | $3 / 0.03% (whichever is greater |
| Total charge to deposit, buy, sell and withdraw | $16 | $121.5 / $9 | $6 |
International Equities.
| Interactive Brokers | eToro | MooMoo | |
|---|---|---|---|
| FX Conversion Fee | $0.03% | 1.5% | 0.55% |
| Brokerage Fee | $0.55 | N/A | N/A |
| $1,000 | $2.05 | $2 | $0.99 |
| Total charge to deposit, buy, sell and withdraw | $4.10 | $39 | $6.49 |
| $10,000 | $4.10 | $2 | $0.99 |
| Total charge to deposit, buy, sell and withdraw | $8.20 | $121.5 | $55.99 |
Security Measures.
| eToro: | 8/10 |
| Interactive Brokers: | 7/10 |
Both companies are registered with most of the major financial regulators.
Interactive Brokers is registered with a few more and is publicly traded on the NASDAQ, increasing the transparency around this company.
While this should result in a slightly more secure company, it’s worth noting that Interactive Brokers has had several issues related to its risk management, resulting in $48 million in losses.
Moreover, its third-party ID verification provider left login credentials exposed online for over a year.
There is no suggestion that your money or data is materially less safe with Interactive Brokers.
Still, these issues point to an overall theme of Interactive Brokers patching its software, which can lead to a sub-optimal experience.
Customer Support.
| eToro: | 7/10 |
| Interactive Brokers: | 5/10 |
Ah, customer support.
The Achilles’ heel of almost every broker.
Interactive Brokers? Account setup is a notorious slog.
Beyond that, its customer service is typically painful and slow.
It offers live chat, phone support and a ticket system associated with the better offerings, but none will be a pleasant experience.
Important!
The live chat option mainly provides copy+paste responses, while you will need to set aside a large proportion of the day should you wish to get through on the phone.
Your best option is the ticket system, where you are likely to receive bespoke responses but do not expect a fast turnaround.
eToro is better – but not by much.
While the set-up is generally less painful, it 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.
Important!
eToro’s responsiveness to tickets can be slow, although the support team is based in Sydney.
Customer service is an area all brokers could improve on.
Diving Into Negative Feedback.
Negative reviews tend to focus on three recurring themes:
- Money losses.
- Requests for personal information.
- Problems with deposits and withdrawals.
Let’s address the first concern: losing money. Many users report their positions being closed out, often blaming stop-loss failures.
Key Insight.
Stop-losses aren’t a guaranteed safety net, especially in fast-moving markets.
It’s painful to see a position closed at a greater loss than anticipated, only to watch the market recover afterward.
However, brokers aren’t at fault here – they’re simply executing orders based on prevailing market conditions.
The lesson? Stop-losses are a helpful tool but not without limitations. Use them wisely.
Now, Let’s Talk About KYC Requirements.
Being asked for extensive personal information may feel intrusive, but it’s part of the platform’s compliance process.
U.S. brokers, in particular, face strict anti-money laundering laws, so don’t be surprised by these requests.
With regulations tightening, expect more data demands over time. Non-compliance could lead to account freezes, so it’s better to stay ahead of these requirements.
Annoying? Definitely. Avoidable? No.
Lastly, Issues With Fund Transfers.
For long-term investors, delays in deposits or withdrawals are less of a concern.
If you’re holding onto Tesla shares for years, a small difference in today’s price won’t make much impact. For short-term traders, however, timing is crucial.
Since trading platforms aren’t designed to function as banks, having a backup plan and maintaining some liquidity can help reduce stress
Steven
Nelson says:
I attempted to use the “hack” to dodge conversion fees, but sadly after converting AUD to USD on a Wise account, there doesn’t seem to be a way to deposit that money into eToro; i.e. eToro recently disabled Wire transfers and Wise doesn’t support SWIFT transfers for sending USD to a bank in the US?
John Keys says:
CMC Invest are an abysmal in turning around new accounts.
Over 1 month to setup up an account with an investment trust, and still waiting. I was promised 5 business days.
Reg Watson says:
Given that China’s economy is going down the toilet how the heck do we expect an appreciation of the Aussie in 2024 ? We are tied to China.
Regular citizen says:
Unless you can see into the future or time travel, try to refrain from predicting a stronger AUD. It’s now Dec 2025 and contrary to all you top earning ‘economists ‘, the AUD ain’t shit.