Choosing the right trading platform is crucial for your investing success, especially in today’s fast-paced financial world. Two popular contenders, Trading 212 and eToro, have been vying for investors’ attention, each with its unique features and strengths. In this blog post, we’ll dive deep into the key differences between these platforms, examining their investment options, fee structures, research tools, account types, and more. Buckle up, and let’s find out which one comes out on top in this Trading 212 vs eToro showdown!
If you’d like to know more about Trading 212, we have reviewed the provider here.
Comparing Trading 212 and eToro in 2023? Trading 212 offers commission-free trading, low minimum deposits, great customer service & a higher Trustpilot rating.
eToro stands out with its social & copy trading features plus comprehensive market analysis & insights.
Both platforms offer diverse asset classes for investors to choose from and are highly regulated & secure.
Overall, Trading 212 takes the lead as an overall better platform.
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We consider Trading 212 to be one of the best overall trading platforms for CFDs and the best for ISAs and general investing that offers commission-free trading on a wide range of financial instruments, including stocks, ETFs, currencies, and cryptocurrencies.
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2 Million Lifetime Funded Accounts
4.6 Trust Pilot Score – Over 21k Reviews
Negative balance protection
Multiple Deposit & Withdrawal Methods inc PayPal
Minimum desposit: $0
Easy Sign Up
Regulated by the FCA
Funds Protected Up To £85k By FSCS (UK)
79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Trading Platform Showdown: Trading 212 vs eToro
A seamless and user-friendly experience is a must for any trading platform. Trading 212 is known for its intuitive interface and low-cost trading options, making it especially popular among UK investors. On the other hand, eToro stands out with its unique social trading platform, allowing users to connect with other investors and even copy their trades. Both platforms cater to a wide range of traders, from complete beginners to experienced pros.
While eToro provides access to a variety of investments such as:
Trading 212 offers a broader range of investment options and commission-free trading. However, Trading 212’s limitations in terms of tools, research, and investments might deter forex traders and others who seek more advanced features. On the flip side, eToro’s limited research area and narrower range of investments might not appeal to some users.
Social Trading and Copy Trading
One of the most significant differences between Trading 212 and eToro lies in eToro’s social trading and copy trading features. Social trading is an online trading method that allows traders to connect, share insights, and follow the strategies of more experienced traders. This feature is particularly beneficial for beginners who might need some guidance and inspiration from successful investors.
Copy trading, on the other hand, enables users to find an experienced investor, track their results, and then replicate their moves with their own money. This can be an excellent way for novice traders to learn and grow their portfolios while minimizing the risk associated with making uninformed decisions.
eToro’s social and copy trading features set it apart from other platforms and make it an attractive choice for those who want to leverage the wisdom of the crowd.
User Interface and Experience
A platform’s user interface and experience can significantly impact a trader’s success and overall satisfaction. Trading 212 is known for its intuitive and user-friendly design, making it a popular choice for both beginners and experienced traders alike. The platform’s web trading and mobile app offer a seamless trading experience.
eToro also boasts a modern and intuitive user interface, complete with various features to help traders make informed decisions. eToro offers traders access to its web trading platform and mobile app, ensuring a smooth eToro trading experience for eToro customers on the go, all under the umbrella of eToro USA LLC.
While both Trading 212 and eToro offer user-friendly interfaces, the debate of eToro vs Trading 212 often leans towards Trading 212’s design being considered more intuitive, making it the preferred choice for many traders.
Investment Choices: Diverse Asset Classes
A key aspect of choosing a trading platform lies in the range of investment options it offers. Trading 212 boasts a diverse selection of assets, including:
This variety caters to a wide range of investors and allows for greater flexibility in building a well-rounded portfolio.
On the other hand, eToro focuses on providing a multi-asset investment platform, with a particular emphasis on cryptocurrency trading. While it may not offer the same breadth of investment options as Trading 212, eToro’s cryptocurrency offerings can be an attractive option for those looking to diversify their portfolios and tap into a growing and volatile market.
Stocks & Shares ISA
For UK investors, Trading 212 offers the added advantage of a Stocks & Shares ISA, which allows for tax-efficient investing. By investing through a Stocks & Shares ISA, investors can avoid paying UK income tax or capital gains tax on their returns, making it an appealing option for those looking to maximize their profits.
This tax-efficient retail investor accounts provide access to a range of products and is another reason why Trading 212 is highly favored by UK investors.
Although eToro lacks a Stocks & Shares ISA, its diverse asset classes and unique features still appeal to investors worldwide.
While Trading 212 offers a broader range of assets, eToro shines in the realm of cryptocurrency trading. With access to popular cryptocurrencies like Bitcoin, Ethereum, and Cardano, eToro enables users to tap into the dynamic and unpredictable world of digital assets.
Cryptocurrency trading involves the buying and selling of different digital currencies on an exchange, with traders attempting to profit from price movements. With the growing popularity of cryptocurrencies, eToro’s support for this market is a unique advantage for investors looking to diversify their portfolios and capitalize on this emerging asset class.
Fee Structures and Costs
Fees and costs play a crucial role when evaluating a trading platform. Both Trading 212 and eToro offer commission-free trading, making them attractive options for cost-conscious investors.
However, they differ somewhat when it comes to currency conversion fees. With Trading 212, currency conversion fees are applied when buying an investment. In contrast, eToro requires users to convert their funds before they can start trading, with some users finding these fees to be higher than expected.
Despite these differences, both platforms remain popular choices for their low-cost trading options.
Trading 212 is well-known for its commission-free approach to trading, making it a cost-effective choice for traders. Users can trade stocks, ETFs, and engage in CFD trading without worrying about paying any fees or commissions, which can significantly impact their overall returns when trading cfds.
This zero commission trading model is particularly appealing to users looking to keep trading costs low while still accessing a diverse range of investment options. In contrast, eToro charges a commission on certain trades, making Trading 212 a more cost-effective choice for those seeking commission-free trading.
Currency Conversion Fees
Currency conversion fees are another important factor to consider when choosing a trading platform. While both Trading 212 and eToro charge currency conversion fees, eToro’s fees have garnered mixed reviews.
Trading 212 applies currency conversion fees when buying an investment, which some users may find more convenient than eToro’s requirement to convert funds before trading. It’s essential to consider these fees when comparing the two platforms, as they can impact overall trading costs and profitability.
Research Tools and Educational Resources
Access to research tools and educational resources is indispensable for making informed trading decisions. Both Trading 212 and eToro provide a range of trading tools for users, but they differ in the depth and quality of the materials available.
Trading 212 offers charting tools and fundamental data for research but lacks a news feed and trading ideas. Conversely, eToro provides more in-depth market analysis, including analyst predictions, top investing publication articles, and sentiment trends.
Market Analysis and Insights
eToro shines when it comes to market analysis and insights, giving users the tools they need to make informed trading decisions. The platform offers a range of market analysis tools, such as technical analysis, charting tools, and market news.
Additionally, eToro provides its own proprietary market analysis tools, giving users even more in-depth insights into the markets. This comprehensive market analysis offering sets eToro apart from Trading 212 and other platforms, ensuring users have the information they need to make well-informed trades.
Both Trading 212 and eToro offer learning materials to help users improve their trading skills and knowledge. However, Trading 212’s resources are more comprehensive and beginner-friendly than eToro’s.
Trading 212 provides platform tutorial videos, general educational videos, and quality educational articles, all accessible through their Learn section on their website. While eToro also offers educational resources, such as client webinars and share trading education, Trading 212’s more extensive and beginner-friendly materials make it a better choice for users seeking a solid educational foundation.
Account Types and Opening Process
The types of accounts available and the account opening process hold significant weight when comparing trading platforms. Both Trading 212 and eToro offer various account types, such as CFD accounts, Invest accounts, and ISA accounts for Trading 212. The account opening process for both platforms is straightforward and user-friendly.
When it comes to security, both Trading 212 and eToro are regulated and secure, ensuring user funds are protected. The minimum deposit requirements for these platforms are also relatively low, with Trading 212 requiring as little as £1 for an Invest account and eToro requiring a minimum deposit of £50.
Minimum Deposit Requirements
Low minimum deposit requirements are an attractive feature for traders looking for an accessible platform. Both Trading 212 and eToro cater to a wide range of investors with their low minimum deposit requirements.
Trading 212 Invest requires a minimum deposit of just £1, making it an accessible option for those starting with a smaller investment. eToro, on the other hand, requires a minimum deposit of £10, still a relatively low amount compared to many other platforms.
These low minimum deposit requirements make both platforms appealing to investors of all levels.
Security and Regulation
When selecting a trading platform, security and regulation shouldn’t be overlooked. Both Trading 212 and eToro are highly regulated and secure, ensuring that users can trade with confidence, knowing their funds are protected.
Trading 212 and eToro are both reputable trading platforms with strong security measures in place. Here are some key features of each platform:
Trading 212 is authorized and regulated by the FCA.
eToro is regulated by both the FCA and CySEC.
Both platforms use advanced encryption technology to protect user data and funds.
Both platforms have two-factor authentication systems in place to ensure account security.
Traders can trust that their investments and personal information are safe with both Trading 212 and eToro.
Customer Support and User Reviews
Valuable insights into the quality of a trading platform’s services can be gleaned from customer support and user reviews. Trading 212 receives higher Trustpilot ratings than eToro, suggesting greater overall user satisfaction. Additionally, Trading 212 offers more responsive customer service compared to eToro.
Examining user reviews and customer support responsiveness can help potential users make an informed decision when choosing between Trading 212 and eToro. These factors can also provide insights into the platform’s commitment to user satisfaction and ongoing support.
Customer Service Channels
Customer service is a crucial aspect of any trading platform, as users may require assistance or encounter issues while trading. Trading 212 offers email and telephone support, ensuring users can receive timely help when needed.
eToro also provides multiple customer service channels, including email, telephone, and live chat support. Although both platforms offer various support options, Trading 212’s more responsive customer service sets it apart, ensuring users can focus on trading without worrying about potential issues.
Trustpilot ratings offer an additional perspective on user satisfaction and experiences with trading platforms. Trading 212 boasts a higher Trustpilot rating of 4.6 out of 5, indicating greater user satisfaction compared to eToro’s rating of 4.3 out of 5.
These ratings provide valuable insights into the experiences of real users, helping potential traders make an informed decision when comparing Trading 212 and eToro. A higher Trustpilot rating suggests that Trading 212 may be the better choice for those seeking a platform with a proven track record of user satisfaction.
In conclusion, both Trading 212 and eToro offer unique features and strengths that cater to a wide range of investors. Trading 212’s intuitive interface, commission-free trading, and broader investment options make it a popular choice, particularly among UK investors. On the other hand, eToro’s social trading platform and support for cryptocurrency trading set it apart as a versatile and innovative option. Ultimately, the choice between Trading 212 and eToro will depend on your individual trading needs and preferences, but this in-depth comparison should provide a solid foundation for making an informed decision.
Frequently Asked Questions
Is Trading 212 better than eToro?
eToro is generally seen as a better broker than Trading 212, with an overall Trust Score of 90/99 compared to Trading 212’s 77/99.
What are the disadvantages of Trading 212?
Trading 212 is a great choice for beginner investors but has some downsides – limited product portfolio, no options or bonds, high Forex fees and costly US stock trading due to the lack of USD as an account currency.
How does trading 212 make money?
Trading 212 makes money from the spread between the highest ‘offer’ price to buy and lowest ‘bid’ price to sell an asset such as a share. Investors are able to buy at the higher price and sell closer to the lower price.
What are the main differences between Trading 212 and eToro?
Trading 212 offers commission-free trading and a variety of investments, while eToro focuses on social and cryptocurrency trading.
Which platform has a better user interface and experience?
Trading 212 has a better user interface and experience, thanks to its intuitive and user-friendly design.