eToro vs Interactive Brokers - Which Is Better in 2025 (UK)?
Quick Answer: 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.
How Do eToro and Interactive Brokers 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) |
|---|---|---|
| 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 |
Summary: eToro is cheaper for casual investors thanks to commission-free stocks and no inactivity fees, while Interactive Brokers is cost-effective for professionals trading large volumes due to ultra-low commissions.
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.
