Trading 212 vs eToro: compare fees, features, and trading platforms

In the following article, we present a comparative analysis between Trading 212 and eToro. We will focus on the key aspects of each platform, such as their regulation, the range of financial instruments they offer, and more. Ultimately, by comparing various features, we aim to help you determine which broker, Trading 212 or eToro, is ideal for you.

History of Trading 212 vs eToro

History of Trading 212

Trading 212 is an online broker that was founded in 2004 in Sofia, Bulgaria. The company has a mobile trading application and a web-based platform. Over the past decade, the company has received multiple awards, including several titles as the best trading platform and best mobile trading platform.

Is Trading 212 the best broker?

Is Trading 212 the best broker?

Trading 212 enables its customers to trade a diverse range of financial instruments, including real stocks and ETFs and CFDs. It also offers a demo account where you can trade with virtual money. As of 2022, this Bulgarian broker boasts over 1.5 million customers and holds over €3.5 billion in financial assets.

History of eToro

eToro is a platform for investing in financial assets founded in 2007 by brothers Yoni and Ronen Assia, along with David Ring. The company is headquartered in Tel Aviv, Israel, and maintains offices in Cyprus, the United Kingdom, and the United States.

Is eToro the best broker?

Is eToro the best broker?

Much of its global success stems from the social trading feature, which enables users to trade a wide range of assets, including stocks, commodities, currencies, and cryptocurrencies, by replicating the trades of master traders. Nonetheless, eToro boasts over 20 million registered users from more than 140 countries and has garnered numerous awards.

Regulation and protection fund: Trading 212 vs eToro

Regulation: Trading 212

Trading 212 is regulated by the Financial Conduct Authority (FCA) in the United Kingdom, the Cyprus Securities and Exchange Commission (CySEC) for the EU, and the Financial Supervision Commission of Bulgaria (FSC) for other countries where it offers its services.

Moreover, Trading 212 is covered by the FSCS, which safeguards customer funds up to £85,000 in the event of the broker declaring insolvency.

Customer CountryProtection AmountRegulator
United Kingdom£85,000Financial Conduct Authority (FCA)
EEE90% of your funds, maximum €20,000Cyprus Securities and Exchange Commission (CySEC)
All other countries90% of your funds, maximum €20,000Financial Supervision Commission of Bulgaria (FSC)

Regulation: eToro

eToro is a regulated broker authorised to offer services across the EU and other countries by the Cyprus Securities and Exchange Commission (CySEC). In the United Kingdom, eToro UK is authorised and regulated by the Financial Conduct Authority (FCA), and in Australia, eToro AUS Capital Pty Ltd is authorized by the Australian Securities and Investments Commission (ASIC).

eToro also provides negative balance protection for CFD trading.

Trading 212 vs eToro: products and markets

Trading 212 financial assets

Trading 212 is an online broker that offers two types of financial assets to its customers:

  • Real stocks and ETFs: Where you can buy thousands of real stocks and ETFs with access to these markets:
    • Nyse (USA)
    • Nasdaq (USA)
    • Madrid Stock Exchange (Spain)
    • SIX Swiss (Switzerland)
    • London Stock Exchange (UK)
    • US NON-ISA OTC Markets (USA)
    • Xetra (Germany)
    • LSE AIM (United Kingdom)
    • Euronext Netherlands (Netherlands)
    • Borsa Italiana (Italy)
    • Euronext Brussels (Belgium)
  • CFDs: on a wide range of assets:
    • Thousands of stocks to buy long and short, including fractional shares from only £1
    • Indices
    • Commodities
    • Forex

Financial assets of eToro*

eToro is mainly a forex and CFD broker. However, you can also trade with real stocks, ETFs and various cryptocurrencies (only real cryptocurrencies are available in the UK, which means long, unleveraged positions). Also, its most valued features are social trading (copy trading) and Smart Portfolios.

eToro offers stocks from all the major exchanges in the world, including the UK, the US, and many European countries. You can also buy real shares in ETFs or buy real cryptocurrency.

Regarding CFDs, these can be traded on any asset apart from cryptocurrency (FCA regulations), including stocks, ETFs, forex, indices, and commodities. CFDs allow you to short-sell or use leverage.

However, the main feature of eToro is to have developed a social investment platform that allows users to learn from, follow, and copy successful master traders, through the exclusive CopyTraderTM function.

Account types: Trading 212 vs eToro

Trading 212 account types

Trading 212 offers its customers the possibility to choose between three types of accounts:

  • Invest Account: Designed for passive investors, this account allows you to trade more than 3,000 stocks and ETFs for only £1 and zero commissions.
  • CFDs Account: Wide array of tradable assets with a minimum deposit of only £10 and zero commissions.
  • Demo Account: It is available to anyone and does not require a deposit. It provides access to the Trading 212 trading platform and allows customers to test their strategies with virtual money before opening a real account.

To find out more about accounts and fees, check out this in-depth Trading 212 review.

eToro account types

eToro offers two types of accounts:

  • Demo account: you can try all of eToro's features and benefits while using virtual funds.
  • Standard: You can now begin making your investments or conducting trading operations through CFDs or by purchasing real assets. It is within this account that you can activate the social trading option.
With eToro you can open a Virtual or a Real account

Commissions and fees: Trading 212 vs eToro

Commissions and fees: Trading 212

Trading 212 provides commission-free trading for stocks and ETFs, and there are no fees for deposits, withdrawals, or inactivity. However, different fees may apply depending on your chosen assets and markets. For example, there is a foreign exchange conversion fee of 0.15% and an overnight fee (swap) for CFDs.

However, what does exist is a currency conversion fee of 0.15%, if your trade is not in the same currency as the currency of your account.

 Costs
Withdrawal Fee£0
Deposit Fee£0
Inactivity Fee£0
Account Fee£0

Commissions and fees: eToro

There is a 0% commission when trading with eToro. However, spreads apply – these can be quite high, depending on your chosen assets. There is also a $5 withdrawal fee. If you want to buy or sell cryptocurrency, you need to cover a 1% charge.

Non-Commercial RatesCommissions
Account FeeNo
Inactivity Fee$10
Deposit Fee$0
Withdrawal Fee$5

Trading 212 vs eToro: trading platform

Trading 212 platform

The Trading 212 platform is user-friendly and grants customers access to real-time market data. The company also offers a mobile app, enabling customers to trade on the go, albeit with some loss of tools and functionality in their charts. Alongside its online trading services, Trading 212 provides educational resources to assist its customers in understanding the markets and making well-informed trading decisions.

Trading 212 adapts its platform for mobile and web

On the other hand, the platform provides robust charting tools that aid in identifying trends and facilitating informed trading decisions. It is available in over 20 languages and supports multiple payment methods, ensuring accessibility for traders worldwide.

Trading 212 also offers a demo account with $10,000 in virtual funds, enabling you to test the platform before investing real cash.

eToro platform

The eToro platform is accessible in over 140 countries and supports more than 20 languages. It comprises two versions: the web platform and the mobile app.

In terms of the web version, the trading platform features a clean and intuitive design, with menus and buttons placed conveniently. However, customisation options are limited due to the configuration of fixed panels, except for the watchlist, which is easy to personalise.

Trading 212 adapts its platform for mobile and web

eToro offers its own trading platform, which encompasses a wide range of features. These include a news feed, charts and analysis tools, and a social network for traders.

As for the mobile version, it is compatible with both Android and iOS devices and is available in the same 20 languages. In general, it offers the same functionality as the web version, along with additional features such as automatic notifications.

Deposit and withdrawal of funds: Trading 212 vs eToro

Deposit and withdrawals: Trading 212

Trading 212 supports several base account currencies, including GBP, EUR, RON, PLN, CHF, NOK, SEK, and CZK. However, the availability of these currencies may vary by country, so only 2-3 currencies are available in one given country.

The minimum deposit for a CFD account is £10, while the investing account has a minimum of £1.

Deposit/Withdrawal OptionsDeposit FeesWithdrawal Fees
Bank transferFreeFree
Credit/debit cards0.70%*Free
Google Pay0.70%*Free
Paypal0.70%*Free
SkrillApple PayFree
Puntopay0.70%*Free
Giropay0.70%*Free
Blue Card0.70%*Free
Direct Electronic Banking0.70%*Free
Ideal0.70%*Free

Deposit and withdrawals: eToro

eToro has a straightforward and user-friendly funding policy. eToro offers a wide range of deposit methods, providing you with numerous options to fund your account. Apart from bank transfers (min. amount is $500), you can also opt for other payment methods, including cards and e-payment methods (min. amount is $50).

eToro has only one base currency, USD, which means that you need to cover the conversion fee if you deposit GBP or another currency. However, there is no deposit fee.

In order to withdraw cash from eToro, a minimum amount of $30 per cash withdrawal is required, on which a commission of $5 is charged.

Again, since the account is always in dollars, in case of needing a change to another currency, the corresponding USD exchange rate would be charged to the user.

eToro withdrawals can be made using the same methods as deposits.

Trade 212 vs eToro: customer service

Trading 212 customer service

Trading 212 offers its customers complimentary access to educational resources, including market analysis, video tutorials, and e-books. However, what stands out the most is that this Bulgarian broker provides 24/7 customer service.

Users also have access to a live chat where they can ask any questions they may have.. Other means of contact include email or telephone.

eToro customer service

The customer service of eToro is available in all 21 languages offered by the web and mobile trading platforms. Additionally, traders can access the comprehensive help centre through the trading platform, which features a substantial educational section.

However, contacting eToro's customer service can be a time-consuming process as it involves signing up for a web-based ticketing system. Typically, a response is received within 48 hours. However, it is worth noting that there are instances where users have reported waiting up to 14 days for a response in complex cases.

A live chat is also available if you have any urgent queries.

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Summary | Which broker is better: Trading 212 or eToro?

Although both brokers have similarities, there are some differences that may make one more preferable based on individual preferences.

Firstly, both are properly regulated by the FCA in the UK. Both brokers offer prompt customer support for any doubts or issues.

One notable feature of eToro is its social trading functionality, which allows users to copy the portfolios of master traders on the platform and potentially increase profits without much effort. On the other hand, in Trading 212, building a profitable and diversified portfolio requires more time and effort on the individual's part. In terms of technological development, eToro's platform is highly advanced.

While both brokers specialise in low costs, Trading 212 has slightly lower trading and non-trading fees. eToro charges withdrawal commissions, and the currency exchange rate can be somewhat higher. In contrast, Trading 212's account offers GBP as a base currency, while eToro does not (only USD).

However, if access to a wide range of products and financial markets is a priority, eToro has a broader offering. It provides the ability to buy stocks, ETFs, currencies, and real cryptocurrencies (in addition to CFDs), whereas Trading 212 only offers stocks and ETFs from a smaller number of markets.

In conclusion, both Trading 212 and eToro are neo-brokers developed with fintech technology, targeting users who are comfortable with new technologies. Ultimately, the choice between Trading 212 and eToro depends on individual stock trading needs. If you have any further insights or thoughts to share, we look forward to hearing from you in the comments.

Summary of the comparative analysis: Trading 212 vs eToro

FeaturesTrading 212eToro
Regulation:FCAFCA
Minimum deposit:£1/£10$50
Commissions£0£0
Financial InstrumentsStocks
ETFs
Indices
Commodities
Forex
Stocks
ETFs
Indices
Forex
Commodities
Cryptocurrencies
PlatformOwn platform
Web and mobile
Own platform
Web and mobile
Strengths✅ Very low costs.
✅ Well regulated.
✅ Very good customer service.
✅Social trading (copy trading)
✅Very low costs
✅Access to many markets and products
Weaknesses❌Platform quite simple
❌No real cryptocurrency.
❌Only USD accounts
❌Lack of technical analysis tools.
❌Minimum transfer via bank of 500$

FAQ

Are eToro and Trading 212 regulated brokers?

Yes, both eToro and Trading 212 are regulated brokers. In the UK, the Financial Conduct Authority (FCA) oversees their operations.

What financial instruments can I trade on eToro and Trading 212?

Both eToro and Trading 212 offer a range of financial instruments for trading. eToro provides access to stocks, ETFs, currencies, commodities, and cryptocurrencies, allowing users to replicate the trades of successful investors through its social trading feature. On the other hand, Trading 212 allows trading of stocks and ETFs, as well as offering the option to trade CFDs on multiple assets.

What are the commission and fee structures on eToro and Trading 212?

Trading 212 offers commission-free trading for stocks and ETFs, and there are no fees for deposits, withdrawals, or inactivity. On the other hand, eToro operates on a spread-based pricing model, which means that the cost is built into the spread. While eToro does not charge commissions on trades, there may be other fees such as withdrawal fees or currency exchange fees when using non-USD currencies.

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