eToro vs Interactive Brokers - Which Is Better in 2025 (UK)?
Quick Answer: eToro vs Interactive Brokers, Which Broker Is Right for You in 2025?
For most UK beginners and casual investors, eToro is the better choice thanks to its simple platform, FCA regulation, and social trading. For professionals and high-volume traders, Interactive Brokers offers lower fees, advanced tools, and deep market access, making it ideal for experienced investors.
Authors Comments
Having tested both extensively, eToro wins for everyday UK investors seeking simplicity, commission-free stocks, and social trading. Interactive Brokers remains unbeatable for professionals handling large portfolios or advanced strategies. The best choice depends on whether you value ease of use or deep market access. – Thomas Drury
Verdict Summary
| Category | eToro | IBKR |
|---|---|---|
| Ease of Use | 4.7/5 | 3.9/5 |
| Fees | 4.4/5 | 4.8/5 |
| Features | 4.5/5 | 4.9/5 |
| Safety | 4.8/5 | 4.9/5 |
| Overall | 4.6/5 | 4.5/5 |
How Do eToro and IBKR Compare at a Glance?
| Feature | eToro | Interactive Brokers (IBKR) | Best For |
|---|---|---|---|
| Regulation | FCA-regulated in the UK | FCA-regulated in the UK | Both safe |
| Fees | Commission-free stocks; wider spreads | Very low commissions; tiered pricing | IBKR cheaper for active traders |
| Assets | 3,000+ (stocks, ETFs, crypto, CFDs) | 9,000+ (stocks, ETFs, futures, options) | IBKR broader choice |
| Platforms | Web + mobile, social/copy trading focus | Advanced desktop TWS + mobile + APIs | eToro easier, IBKR more advanced |
| Best For | Beginners, casual traders, social investors | Professionals, active traders, institutions | Split: casuals → eToro, pros → IBKR |
Who Is Each Broker Best Suited For?
Who Should Choose eToro?
eToro is best for UK beginners and casual investors seeking a simple, FCA-regulated platform with commission-free stocks, ETFs, and crypto. Its social and copy trading features make it ideal for those learning from others or preferring an easy, community-driven trading experience.
Who Should Choose Interactive Brokers ?
Interactive Brokers is suited to professionals, institutions, and experienced traders needing advanced tools, APIs, and broad global access. With ultra-low fees, deep market coverage, and powerful platforms, it’s the better choice for high-volume traders and those handling complex strategies or niche assets.
Which Broker Is Safer and More Regulated?
| Safety Factor | eToro | Interactive Brokers (IBKR) |
|---|---|---|
| FCA Regulation (UK) | Yes – fully FCA-regulated | Yes – fully FCA-regulated |
| Other Licenses | CySEC, ASIC, FinCEN, more | SEC, FINRA, CFTC, FCA, global coverage |
| Client Fund Protection | Segregated client funds | Segregated funds + SIPC insurance (up to $500k) |
| Proof of Reserves | No independent PoR, but audited regularly | No PoR, but transparent reporting + insurance |
| Track Record | Founded 2007, strong retail focus | Founded 1978, long-standing institutional trust |
Which Broker Has Lower Fees in 2025?
| Fee Type | eToro | Interactive Brokers (IBKR) | Winner |
|---|---|---|---|
| Stock & ETF Commissions | 0% commission (wider spreads) | From $0.005 per share, very low commissions | IBKR for high volume; eToro for simplicity |
| Options Per Contract | £0.00 | £0.65 | eToro |
| Options Exercise Fee | £0.00 | £0.00 | Tie |
| Options Assignment Fee | £0.00 | £0.00 | Tie |
| CFDs / Forex Spreads | Spread-based (not the tightest) | Tight spreads + low commission | IBKR |
| Futures Trading (Per Contract) | Not offered | £0.85 | IBKR only option |
| Mutual Fund Trade Fee | Not offered | £14.95 | N/A |
| Account Minimum | £10 | £0 (higher for margin accounts) | IBKR |
| Inactivity Fee | None | £12/month if under £10k balance and inactive | eToro |
| Withdrawal Fee | £3.85 flat fee | Varies (usually higher for bank transfers) | eToro typically lower |
| Account Transfer Out (Partial ACAT) | Not listed | £0.00 | IBKR |
| Account Transfer Out (Full ACAT) | £75.00 | £0.00 | IBKR |
| IRA Annual Fee | Not offered | £0.00 | IBKR (offers IRAs) |
| IRA Closure Fee | Not offered | £0.00 | IBKR (offers IRAs) |
| Margin Rate (Under £25k) | Not offered | 6.83% | IBKR only option |
| Margin Rate (£25k - £49.9k) | Not offered | 6.83% | IBKR only option |
| Margin Rate (£50k - £99.9k) | Not offered | 6.83% | IBKR only option |
| Margin Rate (£100k+) | Not offered | 6.83% | IBKR only option |
| Broker-Assisted Trade Fee | £0 | Varies | eToro |
Fee comparison depends on your trading style and volume. eToro is more cost-effective for casual UK investors with commission-free stocks, no inactivity fees, and free options contracts. Interactive Brokers becomes cheaper for high-volume traders and professionals thanks to ultra-low per-share commissions (from £0.005), zero account transfer fees, and tight forex spreads. IBKR’s £12 monthly inactivity fee (on balances under £10k) can be a drawback for buy-and-hold investors, while eToro’s wider spreads add up for frequent traders.
For options traders, eToro’s £0 per contract beats IBKR’s £0.65. Margin traders must choose IBKR as eToro doesn’t offer margin accounts.
Overall, eToro suits low-frequency retail investors; IBKR suits active traders and professionals managing larger portfolios.
What Order Types Do eToro and Interactive Brokers Support?
Order type availability can significantly impact your trading strategy. Interactive Brokers offers a comprehensive suite of advanced order types, while eToro focuses on simplicity with basic order functionality. For traders requiring precision execution and complex strategies, Interactive Brokers provides substantially more control.
| Fee Type | eToro | Interactive Brokers (IBKR) |
|---|---|---|
| Stock & ETF Fees | 0% commission, wider spreads | From $0.005 per share, very low commissions |
| CFDs / Forex Fees | Spread-based, not the tightest | Tight spreads + low commission |
| Account Minimum | $10 (UK) | £0 for UK retail, but higher for margin accounts |
| Inactivity Fee | None | £12/month if under $10k balance and inactive |
| Withdrawal Fees | £3.85 (flat fee) | Varies, usually higher for bank transfers |
Interactive Brokers supports all major order types including advanced options like OCO, OTO, limit orders, and after-hours trading. eToro is limited to basic market, stop, and trailing stop orders, which suits casual investors but restricts professional traders requiring precise execution strategies.
eToro vs Interactive Brokers: Research Tools and Market Analysis
Research capabilities differ substantially between these brokers. Interactive Brokers provides institutional-level research with screeners across multiple asset classes, downloadable PDF reports, and comprehensive fundamental data. eToro offers basic research focused on social sentiment and community insights, suitable for casual investors but lacking depth for fundamental analysis.
| Research Feature | eToro | Interactive Brokers (IBKR) |
|---|---|---|
| Stock Research Available | Yes | Yes |
| Stock Screener | No | Yes |
| Downloadable Stock PDF Reports | 0 | 17 providers |
| ETF Research Available | Yes | Yes |
| ETF Screener | No | Yes |
| Mutual Fund Research | No | Yes |
| Mutual Fund Screener | No | Yes |
| Fixed Income/Bond Research | No | Yes |
| Bond Screener | No | Yes |
| Pink Sheet/OTC Research | No | Yes |
| ESG Research | Yes | Yes |
| Social Sentiment Data | Yes | Yes |
| Portfolio Asset Allocation View | No | Yes |
Interactive Brokers dominates in research capabilities with screeners for stocks, ETFs, mutual funds, and bonds, plus 17 different PDF research report providers. eToro’s strength lies in social sentiment and community-driven insights, making it better for investors who prioritize crowd wisdom over traditional fundamental research. Professional investors conducting deep fundamental analysis will find eToro’s research tools insufficient.
How Do eToro and Interactive Brokers Compare in Practical Use?
eToro delivers simplicity and accessibility with its web-based platform, social trading, and low entry point — ideal for beginners. Interactive Brokers, by contrast, offers advanced tools, deep market access, and professional-grade analytics. eToro suits everyday investors, while IBKR caters to serious, data-driven traders and institutions.
| Category | eToro | Interactive Brokers (IBKR) |
|---|---|---|
| Account Types | Invest, CFD, Crypto | Individual, Joint, ISA, SIPP, Professional |
| Minimum Deposit | £10 | £0 (higher for margin accounts) |
| Mobile App Rating (iOS/Android) | 4.2 / 4.1 | 3.8 / 3.7 |
| Desktop Platform | Web-based (simple & social) | Trader Workstation (advanced) |
| Customer Support | Live chat + Help centre | 24/7 multilingual support |
| Platform Reliability | Good (occasional slow response) | Excellent (institutional-grade uptime) |
| Trustpilot Score | 4.2/5 (Excellent) | 3.7/5 (Good) |
| Best For | Beginners & casual traders | Professionals & high-volume investors |
What Account Types and Minimum Deposits Do They Offer?
eToro keeps things simple with Invest, CFD, and Crypto accounts, all accessible with just a £40 minimum deposit. Interactive Brokers caters to serious traders, offering individual, joint, ISA, and SIPP accounts. Its structure suits professionals, though initial setup and funding can be more demanding.
Which Platform Is Better on Mobile and Desktop?
How Do Customer Support and Platform Reliability Compare?
eToro provides live chat and ticket-based support but can be slower during peak times. Interactive Brokers offers 24/7 multilingual support and strong system uptime, built for professionals. Overall, IBKR edges ahead for reliability and responsiveness, while eToro focuses more on accessibility and user guidance.
Which Broker Offers the Best Trading Experience?
eToro focuses on accessibility with social trading, copy portfolios, and a clean mobile-first design, making it beginner-friendly. Interactive Brokers offers unmatched depth with Trader Workstation, advanced research, and customisation. Beginners benefit more from eToro, while professionals gain far greater control with IBKR.
Which Platform Is Easier for Beginners?
| Ease-of-Use Factor | eToro | Interactive Brokers (IBKR) |
|---|---|---|
| Navigation | Simple, intuitive menus | Complex layout, many advanced options |
| Mobile App Rating | 4.2 (iOS/Android) – beginner friendly | 3.7 (iOS/Android) – feature-rich but harder |
| Desktop Experience | Web-based, easy-to-learn interface | Trader Workstation – powerful but steep learning |
| Learning Curve | Quick to grasp, social features aid beginners | Longer to master, suited to pros |
| Learning Resources | Strong tutorials, copy trading community | Advanced research, less beginner-focused |
Summary: eToro is easier for beginners with its simple navigation and social learning tools. Interactive Brokers provides unmatched depth but requires significant time to master.
Final Verdict – Should You Choose eToro or Interactive Brokers?
Both brokers are excellent for UK investors, but they serve different audiences. Beginners and casual investors should choose eToro for its simplicity, FCA regulation, and social features. Professionals and institutions benefit more from Interactive Brokers’ low fees, advanced tools, and global market access.
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FAQs
Does eToro or Interactive Brokers have better tax reporting for UK investors?
Interactive Brokers offers more detailed tax reports, suitable for complex portfolios. eToro provides standard statements but less advanced reporting. UK investors managing multiple assets may prefer IBKR for precision, while casual investors will find eToro’s simpler reporting adequate.
Do eToro or Interactive Brokers offer demo accounts?
Yes. Both brokers offer demo accounts with virtual funds. eToro’s demo is beginner-friendly, mirroring its live platform. Interactive Brokers’ demo, Paper Trading, is more advanced and suits those testing complex strategies. Both are valuable before committing real money.
Which broker has better research tools?
Interactive Brokers leads with institutional-grade research, analytics, and data feeds. eToro focuses more on community insights and sentiment via social trading. Professionals benefit from IBKR’s in-depth research, while beginners find eToro’s crowd-driven data easier to digest.
Can I trade UK shares on eToro and Interactive Brokers?
Yes. Both brokers allow trading in UK-listed stocks. eToro offers commission-free access but via CFDs for some assets, while Interactive Brokers provides direct market access. IBKR is preferable for precise order execution, while eToro appeals to low-cost retail investors.
How do deposits and withdrawals compare between eToro and Interactive Brokers?
eToro allows GBP deposits with cards, bank transfers, and e-wallets, making it faster for UK users. Interactive Brokers supports bank transfers but fewer instant methods. Withdrawals are generally cheaper with IBKR, while eToro is quicker and more convenient for casual traders.
