Freetrade vs. eToro: regulation, features, products and trading platform

If you’re keen on low-cost and commission-free investment platforms, you must have heard about Freetrade and eToro brokers. Both brokers are low-cost and customer-centralized with their features, user-friendly trading platforms, and services, but how do they differ?

In this guide, we will provide a detailed comparison between Freetrade and eToro using their regulations, products and services, fee structure, account types, customer support service deposit, and withdrawal policy with user opinions.

Let’s delve in!

Freetrade vs. eToro: What Are They and How Do They Work?

How Does Freetrade Work?

The Freetade Limited is a fintech company founded in 2016 to offer UK investors a Freemium model of share dealing service. Generally, it offers investors commission-free stocks, shares, and funds in the UK, US, and across Europe.

The Freetrade works with its user-friendly mobile app that is compatible with Android and iOS devices and web platform for its top-tiered pricing plan. With the mobile app, you can access the three-tiered investment plan distributed across its pricing plans.

The pricing plan includes the Basic plan, which gives you access to a General Investment Account (GIA); the Standard Plan, where you have access to GIA and the tax wrapper Stock and Shares ISA account; and the Plus plan, where you can trade with the GIA and a full tax-efficient system including Stocks and Shares ISA and the Self-invested Personal Pension (SIPP).

In addition, Freetrade investors can buy shares in fractions and receive dividends of the fraction they own.

Overall, Freetrade is an excellent platform for investors who want to purchase a fraction or whole of stock or trade Funds. The commission-free system and easy-to-use mobile is a game-changer to the UK broker system.

How Does eToro Work?

eToro financial company is an online social investment platform founded in 2007 and headquarters in Tel Aviv, Israel. This platform is registered in the UK, US, Australia, Europe, Cyprus, Gibraltar, Seychelles, and Malta.

The eToro financial institution is famous for its social trading and copy-trading system that creates a community for investors to discuss, like Facebook and Twitter (now known as X app). Copy trading allows investors to replicate the trading strategies of master traders in real-time. That is, as they make changes in their trades, it reflects on your trades. This trading type is more risky and objective.

Generally, eToro allows investors to invest in stock and shares in whole and fractions. Additionally, you can access commodities, currency pairs, cryptocurrencies, and Contracts for Differences (CFDs).

All the products and services eToro offers are packaged in its account types. The account type for trading depends on your needs and the portfolio you want to handle. The account types include Personal, Professional, Corporate, Demo, Stock and Share ISA, and Islamic Account.

eToro operates on both mobile and web platforms. You can trade, invest, and manage your account on all Android, iOS, iPads, desktops, and laptops. The trading platform is user-friendly and has the necessary technical indicators to help you make financial decisions.

Overall, eToro offers investors a wide range of services and financial services with zero commission. It’s great for both beginner and experienced traders.

Freetrade vs. eToro: Main Characteristic

Features	Freetrade	eToro
Regulation	UK’s Financial Conduct Authority (FCA)	UK’s FCA, Cyprus’ CySEC, DNB, France’s FFA, MFSA, ASIC, FSAS, and the US FinCEN and Money Services Business
Financial Assets	Stocks, shares, Exchange-traded Funds (ETFs), Fractional Shares, and Commodities	Stocks, Shares, ETFs, commodities, Cryptocurrencies, Fractional shares and CFDs
Services and Account types	ISA, General Investment Account, and SIPP	ISA, Personal account, Corporate Account, Professional account, Islamic account, Copytrading, Social trading
Minimum Deposit	£0	$10 in the UK
Commission fee	Free	Free
Deposit and Withdrawal fee	Free	Free deposit fee with a $5 withdrawal fee on requests with a $30 minimum amount
Trading Platform	Proprietary in-app platform on mobile device and web service for top-tiered plan	Proprietary in-app platform and web service
Currency Exchange fee	0.45% of the amount	0.5% of the amount

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Freetrade vs. eToro: Regulation and Reliability

Transparency, regulation, and security are the heart of broker business for investors to know how safe their investments are. Let’s dive into the regulation, reliability, and security of these brokers.

Freetrade Regulation

Freetrade is authorized and regulated by the UK financial regulator, the Financial Conduct Authority (FCA), to provide investment services and hold client assets.

As a FCA-authorized financial institution, Freetrade is obligated to conduct business according to all the rules and regulations to protect client’s funds.

Furthermore, to protect investors’ funds, Freeatade segregates client funds and assets so that they are not permitted to use them to pay off any creditors or cover their business expenses.

Also, your stocks are protected in the Freetrade Nominee account, an approved third-party custodian. The Freetrade Nominee Limited is a non-trading account. It can’t run up liabilities, and it’s shielded from any lost Freetrade Limited accrues. With an investment on the platform, Freetrade holds UK-listed stocks and ETFs in CREST, the UK’s central security depository, and US-listed stock in Depository Trust and Clearing Corporation (DTCC).

In addition, Freetrade is part of the Financial Service and Compensation Scheme. This ensures that in the unlikely event of Freetrade failing, Freetrade protects each client asset up to a maximum of £85,000.

All these Freetrade registration and regulation ensures clients’ funds and assets are safe and show clients how safe their investments are.

Is Freetrade Reliable

As an FCA-authorized platform and member of FCSC, Freetarde is a reliable platform for investors to commit their funds.

Also, as an online-based platform, Freetrade uses bank-grade encryption to protect user’s personal and financial data. The mobile app also offers biometric authentication, including fingerprints and facial recognition, to provide additional customer security and prove the platform’s reliability.

eToro Regulation

As a financial institution available worldwide, eToro is regulated and authorized by multiple financial authorities to perform their financial businesses according to the body’s rules and regulations.

In the UK, eToro is regulated by the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) in Cyprus, the Australian Securities and Investment Commission (ASIC) in Australia, Financial Services Authority Seychelles (FSAS) in Seychelles, the Money Services Business (MSB) and Financial Crimes Enforcement Network (FinCEN) in the US.

In addition, eToro’s investors in the UK and across Europe benefit from investor protection schemes such as FSCS in the UK and the Investor Compensation Fund (ICF) in Cyprus in the unlikely event of the platform failing.

All these regulatory bodies worldwide ensure that eToro operates within their guidelines and protects client investments and assets in their jurisdictions.

Is eToro Reliable

With multiple financial body authorizations, experts and financial advisors consider eToro one of the most reliable financial platforms globally, with an excellent client fund security system.

In addition, eToro uses a Secure Socket Layer (SSL) technology to encrypt clients’ data, personal and financial information.

Also, the app and web platform to access your account is equipped with two-factor authentication (2FA) as an extra layer of client security.

Freetrade vs. eToro: Products and Assets

The primary goal of these brokers is to provide financial instruments to investors. Both offer a wide range of assets.

Products and Asset Available with Freetrade

Freetrade offers investors a wide range of investment assets to trade (buy and sell), and they provide adequate information about the current market state of the financial instrument. These Financial instruments include:

• Stocks and Shares – Freetrade provides access to over 6,000 US and UK stocks.
• Fractional shares – With Freetrade, you can buy part of a whole company and enjoy a fraction of your purchase as dividends
• ETFs – Freetrade offers over 400 commission-free Exchange-traded Fund (ETF) investments.
• Investment trusts – Freetrade allows you to choose from over 150 investment trusts to diversify your portfolio.
• Bonds – On Freetrade, you have access to buy both government and Company’s bond ETF on all pricing plans 
• Commodities – As a Freetrade investor, you can trade US and UK commodities such as precious metals, oil, gas, agriculture, and renewable energy.

 Products and Assets Available with eToro

eToro provides several financial assets you can purchase directly to hold or leverage on the current price to long or short. They include

• Stocks – eToro provide clients with over 3,000 commission-free stocks and shares in the UK from 17 exchange market with a minimum trade amount of $10. In addition, you can invest in fractional shares.
• Indices – eToro indices are available as a CFD and can be traded 24/5. The indices are traded with CFDs with the possibility of using leverage and short selling. eToro offers over 20 high-profile indices
• ETFs – eToro ETFs allow you to own a diversified portfolio at a low cost and no management fee. They provide investors with over 300 ETFs.
• Commodities – eToro allows you to own some of the world’s top resources. With eToro, you can trade commodities as CFD and access over 30 of the world’s top resources.
• Forex – This is also known as currencies. On eToro, you can long and short more than 50 currency pairs with up to 1:30 leverage and 1:400 leverage as professional clients.
• Cryptocurrencies – eToro fintech gives investors access to over 70 crypto assets to invest and trade as CFD.

Freetrade vs. eToro: Account Type and The Broker With Better Account Offer

When it comes to account types, Freetrade and eToro are widely different. While Freetrade offers a tax-free and commission-free investment plan on stock, ETFs, and commodities, eToro provides an investment platform outside the tax wrapper and is efficiently working to include these programs.

Let’s proceed to discuss account types:

Freetrade Account Types

1.      Stock and shares ISA

Freetrade Stock and Shares ISA is a tax wrapper investment system that allows you to invest a particular amount in a tax year (e.g., you can invest up to £20,000 in the 2023/2023 tax year). With this investment, you do not pay Capital Gain Tax on any dividend or return you receive.

On Freetrade ISA, you can invest in over 6,000 US and UK stocks and ETFs with zero commission on all trades.

Freetrade Stocks and Shares ISA Charges

Charges	Standard Plan	Plus Plan
Monthly fee	£5.99	£11.99
Share dealings	Free	Free
Overseas share dealings	Exchange rate +0.59%	Exchange rate +0.39%
Transfer in (Deposit)	Free	Free
Transfer out (Withdrawal) – UK stock or cash	Free	Free
Transfer Out – US stock	£17 per holding	£17 per holding

2.      Self-invested Personal Pension (SIPP)

SIPP is a tax-efficient investment program scheduled for life after retirement. With the Freetrade SIPP program, you can take over your pension and grow the pot by investing in any stock, ETF, or commodity. You can only have access to your point from age 55.

With the Freetrade SIPP, you can commit up to £40,000 annually without incurring tax through your employer or by direct deposit from your bank.

Freetrade SIPP Charges  

Charges	Plus plan
Monthly fee	£11.99
Share dealing	Free
Overseas share dealing (Currency Exchange)	Exchange rate +0.39%
Transfer in (Deposit)	Free
Transfer out (Withdrawal)	Free
US stock transfer out	£17 per holding

3.      General Investment Account (GIA)

The GIA is a tax-incurring account for trading and managing Freetrade assets. As a tax-incurring account, you will be charged a Capital Gain Tax on every dividend or profit you obtain from your portfolio.

eToro Account Types

1.      eToro Personal (retail) Account

This is the eToro default account type. With an eToro personal account, you can trade all financial assets eToro and use features eToro offers, including Smart Portfolios, Social and Copy trading. On the downside, eToro offers the highest level of client security on this account, limiting the level of leverage you can trade.

2.      eToro Professional Account

eToro professional account holders have a personal account with the option to use higher leverage while opening trades. To qualify for this account, you need to meet certain criteria, including:

1. You must have carried out transactions of significant size on the relevant market at an average of 10 per quarter over the previous four quarters.
2. The value of your  investment portfolio must be £500,000
3. You must have worked in the financial sector in a professional capacity for at least one year.

3.      eToro Corporate Account

eToro corporate accounts are intended for business purposes and are only available for legal entities. If you’re managing the capital that belongs to a business, this is the best account type you should open on eToro.

4.      eToro Stock and Shares ISA

In March 2023, eToro teamed up with Moneyfarm to provide all eligible UK clients a discretionary managed stock and share ISA. With the account, you can invest up to a particular amount determined by the UK government in a tax year without incurring tax.

For example, in the 2023/2024 tax year, you invest up to £20,000

5.      eToro Islamic Account

This is a special type of account for Muslim clients that operates in accordance with Sharia law. Here, eToro does not charge or credit overnight fees. If you are interested in this account type, register for a real account investing a minimum of $1,000 and provide all identification documents to complete account verification.

6.      eToro Demo Account

All other eToro accounts come with a demo account, an account with a virtual portfolio. The account is a training site for novice or new platform members to learn the market nature and how the platform works.

Freetrade vs. eToro: Pricing Plan and Broker Fee

Freetrade Pricing Plan and Broker Fee

The Freetrade broker has three pricing platforms: the Basic, Standard, and Plus plan. Below are the differences between the plans.

Features	Basic Plan	Standard Plan	Plus Plan
Plan Fee	£0.00 per month	£5.99 per month, £59.88 billed annually	£11.99 per month, £119.88 billed annually
Number of Assets	1,500 stocks, including popular shares and ETFs	Full range of 6,000+ US, UK, and EU stocks and ETFs	Full range of 6,000+ US, UK, and EU stocks and ETFs
Account type	General Investment Account	General Investment Account Stocks and Shares ISA	General Investment Account Stocks and Shares ISA Self-invested Personal Pension
Commission	Commission-free trades	Commission-free trades	Commission-free trades
Range of Stocks	1,500+	6,000+	6,000+
U.S Fractional shares	YES	YES	YES
Automation Order Types	NO	YES	YES
Exchange rate fee	Exchange rate +0.99% FX fee	Exchange rate +0.59% FX fee	Exchange rate +0.39% FX fee
Customer Service	Basic	Basic	Priority
Interest rate	No interest	1% interest on uninvested cash up to £2,000	3% interest on uninvested cash up to £4,000
Advanced stock fundamentals	NO	YES	YES
Trading app	In-app	In-app	In-app Freetrade Web beta

eToro Pricing Plan and Broker Fees

eToro has no tier pricing system, but like Freetade, eToro offers investors commission-free investment on all stocks and ETFs. However, eToro makes most of its profit from spreads and other fees. Below are eToro fes explained simply as possible in the table below:

Feature	Charges
Crypto Fee	1% flat charges for buying and selling crypto assets, 0.2% tax burn mechanism, and 0.1% is added to eToro’s bid and ask price for LUNC
Spread Fee	CFD Currencies – 0.01%+ CFD Commodities – 0.05%+ CFD stock & ETFs – 0.09%
Deposit Fee	Free
Withdrawal Fee	$5 with a $30 minimum withdrawal
Conversion Fee	0.5 % on any deposit or withdrawal that is non-USD
Inactivity Fee	$10 per month
Overnight fee	It’s calculated according to the market conditions and could change daily.

Freetrade vs. eToro: Trading Platform

The broker’s trading platform is where users trade and invest in whatever asset they want. Freetrade and eToro have a proprietary trading platform where clients can trade and manage their investments.

However, all broker apps are not similar. Their features, ease of use, and user-friendliness differ. Let’s discuss the Freetrade and eToro platform.

Freetrade Trading Platform

Depending on the pricing plan you trade, the Freetrade trading platform is both an app and a web-based platform. The Freereade app is a mobile-based platform that operates perfectly on Android and iOS devices.

The app is designed with simplicity, offering an exclusive and intuitive interface to help users navigate the platform. The app allows you to trade any stocks, ETF, and commodity Freetrade offers.

In addition, the web platform trading is available only for customers on the Plus pricing plan. This implies that you can trade laptops and desktops with the online-based web platform if you’re on the Plus plan. It is a limitation of the Freetrade platform.

eToro Trading Platform

eToro offers a Mobile app and a web-based trading platform for all account types and customers.

eToro offers its users a complete, easy-to-use, and efficient web trading platform. The platform allows clients to access various financial instruments and execute trade quickly.

The web platform also features social trading, including the CopyTrader and CopyPortfolios.

The mobile app is available for both Android and iOS devices. It’s designed to provide a seamless trading experience for users, featuring all functionalities and features the web platform contains. You can invest, trade, and manage your portfolio on the mobile app.

Freetrade vs. eToro: Deposit and Withdrawal

Freetrade Trade Deposit and Withdrawal Policy

Freetrade provides a straightforward depositing and withdrawal method

Deposit Options and Charges

• Bank Transfer – You can link a UK-authorized bank account to your Freetrade account. 
• Debit Card Transfer – You can deposit with a debit card
• Apple and Google Pay – You can deposit funds directly to Freetrade with Google or Apple Pay. The deposit is instant, and there is a 250-lifetime limit on this method. The default billing address in the Google or Apple Pay Settings must match the Freetrade address.

Generally, Freetrade does not charge a deposit fee, although they may include other additional fees.

Withdraw Options and Charges

You can only withdraw from Freetrade through bank transfer, and it typically takes 2-3 business days to reach the linked bank account and sometimes up to 5 business days

eToro Deposit and Withdrawal Policy

eToro support is a USD-based account allowing deposits and withdrawals in various payment methods.

eToro Deposit Options

You can deposit to your eToro account through eToro Money, Credit/Debit Cards, Paypal, Neteller, Skrill, Rapid Transfer, iDEAL, Klarna/Sofort Banking, Bank Transfer, przelwy24, and Online Banking – Trustly.

All these deposit available methods are instant except the Bank transfer, which may take 3-7 business days to reflect on your account. You can use any available method in your region.

eToro Withdraw Options

You can withdraw your funds from eToro to your original deposit method. If eToro cannot process funds to the original deposit method, you will be asked to provide an alternative payment method.

In addition, you can also withdraw to your eToro Money from where you can add your payee bank account where you want to send your funds.

Typically, you will receive an email confirming your withdrawal status and payment within two business days of your request. However, your withdrawal may take up to 10 business days to reach its destination.

Freetrade vs. eToro: Customer Care Service

Freetrade Customer Service

Freetrade offers customer-dedicated customer service through the ‘Help’ section on the website and app. There are several alternatives to contacting customer service support:

• Help Hub and Community –  The Help Hub contains answers to questions you may ask. So you don’t have to text customer support and wait for their response. Also, you can visit the Freetrade community of investors to look for solutions, support, and advice.
• Social Media – The Freetrade customer support is active on Twitter, Instagram, LinkedIn, and Facebook. You can use these channels to make complaints through the chatbox and get updates about the broker, latest news, and market updates.
• Email Support – You can email Freetrade customer support through hello@freetrade.io. You should expect a response from the team in less than 24 hours. 
• In-App Chat –  The Freetrade app has a live chat feature that lets you speak with a customer service representative. It’s the quickest and the most convenient way to get help with any issue or question.

eToro Customer Service

• Hell Center – The eToro help center contains various informative articles and answers to common questions and issues clients may encounter while navigating the platform.
• Live Chat – eToro live chat customer service is only available to Club members, a privilege you can attain by having at least $5,000 in equity in your account.
• Email and Ticket System – Clients can submit support tickets through the trading platform and send emails to the customer support team. Response time usually varies, but generally, you will receive a response in 1-3 days.
• Social Media – eToro maintains a presence on social media and users easily send direct messages to present their issues. Also, they provide updates to clients on social media.

Freetrade vs. eToro: User Opinions and Reviews

Let’s look at the Trustpilot Investment community, a reputable website investors use to provide honest ratings and comments. In addition, we will check the Google Play Store and Apple Store to see what app users say about the broker’s mobile apps.

Freetrade User Opinions and Reviews

The Freetrade platform has over 3,000 reviews and ratings on the Trustpilot investment community, rating 3.7 out of 5. The major complaint of investors is the inability to trade CFDs and cryptocurrencies.

Similarly, the Freetrade mobile app seems perfect, rating 4.3 out of 5 on the Google Play Store and 4.3 out of 5 on the Apple App Store.

eToro User Opinions and Reviews

eToro, the social investment platform, has over 20,000 reviews and ratings on Trustpilot, of which it scores 4.4 out of 5-star ratings. According to the reviews written by users, most of them are satisfied with the trading platform, while few people complain of app glitches.

Similarly, the eToro app has over 10 Million downloads on the Google Play Store with 129,000+ reviews and ratings, where it earns 3.9 ratings out of 5 stars.

Conversely, on the Apple App Store, eToro has over 8,000 reviews, where it scores 3.8 out of 5 stars.

Freetrade vs eToro: Our Opinion

Freetrade and eToro are great for investors with the introduction of a commission-free investment plan, which is now the industry standard. They offer awesome trading platforms and swift customer support services.

However, in terms of products and other financial instruments, eToro is a multiple-asset platform that provides stock, shares, funds, and cryptocurrency investment program as well as allow investors to trade as Contract For Difference (CFD). This trading system accommodates different types of investors. On the downside, Freetrade only allows you to buy and sell shares, stocks, funds, and commodities, no cryptocurrencies.

In addition, the sheer inclusion of advanced trading tools, social trading, copy-trading, and a wide range of research tools makes eToro a better broker that accommodates both beginner and experienced investors.

In terms of services, eToro and Freetrade widely differ. Freetrade offers an investment account and other accounts under the tax-free wrapper (SIPP and ISA). Although eToro recently started offering ISA, it’s not proprietary to the platform, it collaborates with MoneyFarm to make it happen amongst other account types it offers.

Overall, the choice of the platform you should choose depends on the type of investment you want, your investment goal, and the level of risk you want to take. Both platforms are some of the best in the services they offer. Weigh your options to make your decision.

Freetrade vs. eToro: FAQs About Freetrade and eToro