Choosing between eToro vs Trading 212 depends on your specific trading needs and experience level. Both platforms have some advantages over the other.
If you’re interested in social trading and a diverse asset selection, eToro might be the better choice. It offers over 2,000 assets across six categories, along with educational resources and a supportive trading community.
On the other hand, if you prefer commission-free trading and a user-friendly interface, Trading 212 could be more suitable. With a low minimum deposit, it’s particularly appealing if you’re a beginner.
Key highlights:
Regulation and Security: Both eToro and Trading 212 are regulated by multiple reputable financial authorities.
Fee Comparison: Trading 212 offers commission-free trading and no withdrawal fees, while eToro charges withdrawal fees of $5 and a varied structure for other types of fees, e.g. inactivity fees.
Investment Options: eToro provides a diverse range of assets including cryptocurrencies and commodities, while Trading 212 specializes in traditional assets with a broader selection.
User Experience: eToro features social trading and a comprehensive educational academy, while Trading 212 offers a user-friendly interface and straightforward account types.
Customer Satisfaction: Trading 212 has higher customer satisfaction ratings with 4.6/5, compared to eToro’s 4.1/5, with variations in reported response times for support.
About eToro
Established in 2007 by brothers Yoni Assia, Ronen Assia, and David Ring in Tel Aviv, Israel, eToro has evolved into a leading copy trading platform.
They have a wide range of assets available for trading, including stocks, commodities, cryptocurrencies, and ETFs. What eToro is famous for is its unique social trading function - you can follow and copy the trades of successful investors, which fosters interaction and learning within the community.
The fee structure is based on spreads, and there’s a $5 fee for withdrawals, so you should factor these costs into your trading decisions.
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About Trading 212
Trading 212 was established in 2004 by co-founders Ivan Ashminov and Borislav Nedialkov in Sofia, Bulgaria. It has since evolved into a prominent fintech company aiming to democratize financial markets through technology.
It’s designed primarily for beginner investors, featuring an intuitive user interface that simplifies the trading experience.
This makes Trading 212 a great choice for those new to trading, ensuring a supportive environment to learn and grow.
Platform features
At the heart of eToro’s offering is its pioneering social trading functionality. It allows users to follow and replicate the trades of experienced investors. This unique feature, known as CopyTrader, means you can automatically replicate the entire portfolio of top-performing traders. It’s great for providing a hands-on approach to learning investment strategies, but also for users who just want to copy other successful traders without diving into the details themselves.
With eToro, you gain access to a diverse asset range, including stocks, ETFs, currencies, commodities, and over 120 cryptocurrencies. The platform also offers educational resources through its eToro Academy that helps traders improve their strategies. Also, a virtual trading account is available. You can practice trading with virtual funds and explore eToro’s features without financial risk.
Trading 212 is perfect for anyone looking for a straightforward and cost-effective way to start trading, a platform that offers commission-free transactions and a user-friendly interface. You can trade stocks and ETFs without incurring additional costs, and its interface is designed for beginners. Plus, just like eToro, Trading 212 provides a virtual trading option, so you can practice in a risk-free environment, much like the demo trading accounts offered by other platforms.
Minimum deposits and account types
eToro’s minimum deposit requirements can vary considerably depending on your geographic location and the type of account you choose. For most countries, eToro requires a minimum initial deposit of $50. However, for traders from the United States, the minimum amount is $100. For certain countries, it can even be $1000 or more. To get familiar with the platform without risking real money, eToro offers a demo account with virtual funds.
For copy trading, the minimum investment is $200 in each copied trader’s portfolio. Also, know that eToro requires a minimum profit of $30 before allowing withdrawals. This detail is essential for managing your cash flow effectively. In terms of account types, this is what eToro offers:
Retail Account: This is the standard account for individual investors, providing access to all available assets, including stocks, cryptocurrencies, and commodities. It supports features like CopyTrader and Smart Portfolios, with limited leverage.
Professional Account: Designed for experienced traders who meet specific eligibility criteria, this account offers higher leverage options but comes with reduced regulatory protections. Corporate account: Corporate accounts are intended for business purposes and used by legal entities.
Islamic Account: Tailored for traders adhering to Sharia law, this account type is swap-free, ensuring no interest is charged or received on overnight positions.
Starting to trade with minimal investment is made easy by Trading 212, which allows you to begin with a deposit of just £1 for regular stock and ETF investments. For CFD trading, the minimum initial deposit requirement is set at £10. This platform offers a user-friendly interface and provides educational resources, making it accessible for novice investors.
Trading 212’s minimal deposit requirements and straightforward fee structure make it an attractive choice for those looking to start trading with limited funds. There are the account types that Trading 212 offers:
Invest Account: Perfect for buying and holding stocks and ETFs, this account offers zero-commission trading. CFD Account: Geared towards traders interested in Contracts for Difference, this account allows speculation on price movements of various financial instruments without owning the underlying assets. It offers leverage up to 1:30 for retail clients.
ISA Account: A tax-efficient Individual Savings Account (ISA) that enables UK residents to invest in stocks and ETFs without incurring capital gains tax, up to the annual ISA allowance.
Fees and commissions
Here is a quick overview of the fees and commissions of the two platforms:
eToro Trading 212 Withdrawal Fee $5 per transaction None Stock Fees $1 or $2 for opening/closing a position None (Commission-free trading) Cryptocurrency Fee 1% CFDs only; 0.15% foreign currency fee applies Inactivity Fee $10 per month after 12 months of inactivity None Deposit Fees None None Foreign Currency Fees None 0.15% on non-base currency trades Other Charges N/A 0.5% Stamp Duty Reserve Tax (UK-listed shares); £1 PTM Levy for transactions over £10,000 Annual Custody Fee N/A £0 for accounts holding up to £250,000
User experience and interface
Maneuvering the eToro platform may have a bit of a learning curve at first, particularly for users new to social trading. You’ll need to get familiar with its vast range of trading options and features like CopyTrader. eToro’s design focuses on social interaction, so you can engage with and follow other traders directly. Clear navigation can sometimes be overshadowed by the complexity of trading options, but considering there are so many features to go over, it’s not such a bad experience.
Trading 212 has an intuitive and user-friendly interface, specifically designed to simplify the stock market experience for novice traders. You’ll find it easy to navigate, even if you’re new to trading. We appreciate the simplistic color scheme and contrast. It’s just easy to find your way around the platform. For those seeking deeper market analysis, Trading 212 provides advanced charting capabilities. The platform's mobile app also has the same user-friendly design of the web interface.
Research and educational resources
eToro’s extensive educational platform, eToro Academy is one of the more important aspects of the platform. This thorough resource offers a wide range of educational materials, including articles, video tutorials, and webinars.
Through eToro Academy, you can learn about various financial markets and gain practical skills in using trading apps. The platform also provides the unique ability to observe and mimic the strategies of successful investors, so you can learn from experienced traders and develop your own investment strategies.
Interactive Learning: Access thousands of articles, videos, and webinars to enhance your trading knowledge.
Practical Experience: Use the virtual trading function to practice strategies risk-free.
Regular Insights: Keep up on the market conditions and trends through regular analyses and updates.
Trading 212’s Learn Center (or Learn Centre as they spell it) gives you a wealth of educational materials that help you grasp market dynamics and trading strategies.
These resources include articles, video tutorials, and webinars that cover essential topics such as dividend strategies, dollar-cost averaging, financial statements, and diversification.
Educational Resources: Trading 212 provides a range of educational materials, including general educational videos, platform tutorials, and a demo account.
Trading Risks: The platform emphasizes the importance of understanding trading risks at every corner, particularly the volatility of certain assets.
Market Dynamics: The resources cover essential topics, with the aim of giving you a foundation in how financial markets work.
Security and regulation
eToro is regulated across multiple jurisdictions, ensuring compliance with global financial standards. Key regulators include CySEC (Europe), FCA (UK), ASIC (Australia), FinCEN (USA), and the NYDFS (New York). The platform segregates client funds from operational funds and maintains sufficient capital reserves. UK users are further protected by the FSCS, which compensates eligible clients up to £85,000 in case of insolvency. These measures enhance user trust and ensure funds are secure.
Trading 212 operates under licenses from CySEC (Europe), FCA (UK), ASIC (Australia), and the Financial Supervision Commission (Bulgaria). Like eToro, it offers FSCS protection of up to £85,000. Additional safeguards include negative balance protection, ensuring losses don’t exceed account balances, and two-factor authentication (2FA) for enhanced security. Trading 212 also adheres to anti-money laundering (AML) regulations, requiring identity verification for all users.
Key pros and cons of both platforms
eToro pros:
Innovative social trading model with CopyTrader and Smart Portfolios.
Wide range of assets, including over 6,000 stocks, 120+ cryptocurrencies, commodities, indices, and forex.
Extensive educational resources through eToro Academy, including webinars and tutorials.
Offers a virtual trading account for risk-free practice.
Regulated by multiple financial authorities globally, including FCA, CySEC, ASIC, and FinCEN.
eToro cons:
Higher fees, including a $5 withdrawal fee, a 1% cryptocurrency transaction fee, and inactivity fees.
Higher minimum deposit requirements ($50–$10,000 depending on location).
No phone support, customer service is limited to live chat and email.
Complex cost structure with variable spreads.
Cryptocurrency availability is limited in certain regions (e.g. US).
Trading 212 pros:
Commission-free trading on stocks, ETFs, and investment trusts.
Extremely low minimum deposit requirements (£1 for Invest accounts).
User-friendly interface with an intuitive design, ideal for beginners.
Wide range of assets, including over 10,000 stocks and ETFs, fractional shares, and CFDs.
Offers a virtual trading account for practice without financial risk.
Advanced charting capabilities for deeper market analysis.
Regulated by multiple authorities, including FCA, CySEC, and ASIC.
Trading 212 cons:
Cryptocurrency trading available only via CFDs.
No phone support, customer service is limited to live chat and email.
Foreign currency exchange fees (0.15%) apply to non-base currency trades.
Lacks the community-driven features like eToro’s social trading. Tax-efficient ISA accounts available only to UK residents.
eToro vs Trading 212 - which to choose?
The choice between eToro and Trading 212 ultimately depends on your specific trading goals, experience level, and the features you value most in a trading platform. Here’s what we’d suggest.
When to choose eToro:
eToro is great for traders who are keen on social trading and learning from others. Its CopyTrader feature allows you to replicate the trades of successful investors, which is perfect if you’re looking to follow proven strategies. Moreover, eToro’s vast asset variety, including 120+ cryptocurrencies, stocks, ETFs, commodities, and forex, provides ample opportunities for portfolio diversification.
If education is a priority, eToro’s comprehensive educational resources through eToro Academy offer structured courses, webinars, and tutorials that can help traders.
However, keep in mind eToro’s higher fees, such as a $5 withdrawal fee and a 1% cryptocurrency transaction fee. Its higher minimum deposits in some regions could also be a limiting factor for those starting with smaller capital.
When to choose Trading 212:
Trading 212 is best for beginner traders or those seeking a low-cost, hassle-free entry into trading. The platform’s commission-free trading on stocks and ETFs and low minimum deposit of £1 make it accessible to a wide audience. Its fractional share trading feature is also great for investors who want to buy into high-value stocks with limited capital.
The platform’s user-friendly interface is another significant advantage. While it lacks the extensive social trading features of eToro, Trading 212 compensates for it with advanced charting tools.
But note that cryptocurrency trading is limited to CFDs, which might not suit all traders. Also, UK residents benefit from tax-efficient ISA accounts, but that feature is not available to users in other regions.
The bottom line
Both eToro and Trading 212 cater to different types of traders, making the decision largely dependent on your trading priorities and experience level.
If you're drawn to social trading, an extensive asset range, and a community-driven platform, eToro stands out. Its CopyTrader feature and robust educational resources make it particularly appealing for those looking to learn from experienced traders or diversify their portfolios across multiple asset classes. However, be prepared for higher fees and deposit requirements in some regions.
On the other hand, Trading 212 is an excellent choice for beginners and cost-conscious investors, thanks to its commission-free trading, low minimum deposits, and user-friendly interface. It’s ideal for those who want a simple, affordable entry into trading. While it lacks social trading features and offers cryptocurrency only via CFDs, its intuitive design and tax-efficient ISA accounts (for UK residents) make it a practical choice for many.
If you’re keen on exploring advanced trading tools like MetaTrader 5, consider starting with a MetaTrader 5 demo account to practice and gain confidence before trading live.