eToro vs Trading 212 Comparison: Which Broker is Right For You?

eToro and Trading 212 are two competitive trading platforms offering great benefits for traders and investors. They both have their advantages and disadvantages, which are important to consider if you're contemplating using either.

Both are known for their social trading features, with Trading 212 boasting a highly active community forum for investors and eToro featuring copy-trading as well.

Here, we’ll provide an extensive comparison of these two platforms. We’ll include details of their fee structure, trading options, customer experience, and everything else you need to know about them to make an informed decision.

Read on to find out more!

The eToro content provided here does not apply to US customers

76% of retail investor accounts lose money when trading CFDs with eToro. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two mins to learn more.

What Are eToro and Trading 212?

Founded in 2007 in Israel, eToro is a popular trading website known for social trading and varied financial services. The initial goal of the three Tel Aviv-based entrepreneurs behind eToro was to make trading and investing more accessible to everyone and reduce dependency on centralised financial institutions.

Adding web trading and mobile apps to the repertoire allows the company to trade commodities, stocks, crypto and other currencies and other assets.

Launched by businessmen Ivan Ashminov and Borislav Nedialkov in Bulgaria in 2004, Trading 212 quickly became known as the first commission-free trading service in Europe. On this platform, you can buy stocks and ETFs with zero commission and trade short and long with leverage.

The company only caters to retail users as (unlike in many other trading companies) businesses can not have a Trading 212 account.

eToro vs Trading 212: The Costs

To start with one of the main interests of traders, the cost of trading on both eToro and Trading 212 is very favourable.

Both exchanges have a zero-commission policy on ETF and stock trading. Their stock index CFD fees are relatively low as well. Here is a comparison of the eToro vs Trading 212 fees:

eToro

Cost of signing up: Opening an account at eToro costs £50.
Cost of depositing money / withdrawing money: There is a $5 withdrawal fee but no deposit fee.<br> **Cost of making a trade:** Free for US stocks. However, you'll be charged a conversion fee when trading non-US-based stocks. CFD trading fees are low and vary depending on the asset.<br> **Other EToro fees:** There is an inactivity fee of$10/month following one year of inactivity.

Trading 212

Cost of signing up: A £1 minimum deposit is required when signing up.
Cost of depositing money / withdrawing money: The company doesn't charge withdrawal or inactivity fees.
Cost of making a trade: Free stock and ETF trading allowed. However, for trading forex for trades in a different currency as the account holder, there is a 0.15% fee/ per trade.
Other Trading 212 fees: There is also a $10 minimum deposit for trading forex, a 0.5% currency conversion fee for CFD trading, and a fee of 0.7% for deposits via non-bank transfer deposits of over £2,000.

Trading 212 vs eToro: Trading Options

Here is a comparison of the different trading options available on each platform.

Trading 212

On Trading 212, you can trade shares, exchange-traded funds (ETFs), contracts for difference, stock, gold, CFDs, and an ISA. However, there is no Self-invested Personal Pensions (SIPPs) account.

The platform provides access to 3,000 markets all over the world. This doesn't include crypto and social trading, which is a massive limitation of this exchange.

Trading 212 allows CFD trading in 20+ currencies, 20 indices, 25 commodities and shares, but not in cryptocurrencies. You can leverage (trade with borrowed money) when trading in CFDs.

You have access to 12,000 shares from the London, European and US stock exchanges and almost 30 ETFs.

Unlike eToro, this platform allows you to hold your account in sterling, in which case you will only be charged a foreign exchange fee on non-UK shares.

eToro

On eToro, you can trade stocks, indices, ETFs, currencies, commodities, and crypto assets (including Bitcoin, Ethereum, NEO, Cardano, Dogecoin and Shiba). CDFs are available in 70 cryptocurrencies, 50 currencies, 20 indices and 25 commodities and shares.

The broker doesn't provide a service for ISA trading or Self-invested personal pensions (SIPPs). You can, however, view your ISA account through Moneyfarm. While you have numerous assets to choose from, order types are tied to basic market orders, and there are opportunities for complex trading.

On eToro, you can trade on one of the top-traded financial markets for stocks, cryptocurrencies, commodities, currencies, indices, and ETFs.

You can choose from 3,000 shares from the London, European, US, Hong Kong, Saudi Arabia and Sydney stock exchanges and over 300 ETFs. Another restriction you'll find is that eToro offers only copy trading, while social trading isn't available.

If you want to buy fractional shares of a company whose share price is very high and invest an amount lower than the price of one share, you'll be able to do it on both platforms. On both Trading 212 and eToro, you can get proportions of shares (like 0.2 % of a share, for example).

eToro or Trading 212 for Easy of Use & Customer Service?

This section covers what it is like to open an account, use the platform and talk to customer service in both eToro and Trading 212.

Opening up an Account

Opening up an account on eToro is pretty straightforward. While fully opening up an account on Trading 212 is equally a quick process, you will, however, have to go through a few more steps than with eToro.

While both platforms require a minimum deposit, you can pay this small amount in a few easy steps after your account has been verified. It's also a good option for traders starting out with a smaller capital.

On Trading 212, you can make your deposit through bank transfer, credit/debit cards, OnlineBankingPL, Giropay, Carte Bleue, Blik, Direct eBanking, Apple or Google Pay, PayPal, and iDEAL.

On eToro, this option is available through eToro Money, credit or debit card, PayPal, NETELLER, and bank transfer.

When it comes to account safety, keep in mind that Trading 212 isn’t supported by a financial institution, nor is it registered on the stock exchange.

It is, however, regulated by both the European Union via MiFID and the Financial Conduct Authority (FCA). eToro is regulated by FCA, CySEC and ASIC and is a fully licensed broker.

Using the Platform

With both platforms being user-friendly, intuitive, and extremely well-designed, Trading 212 has a few more functions, including search options and accessibility features. In order to comply with the industry standard, eToro's web trading platform has the same quality as Trading 212's.

Neither eToro nor Trading 212 offers a desktop trading platform, which makes them unsuitable for traditional and professional traders. They have, however, a mobile app (available for Android and iOS).

Beginners particularly praise the Trading 212 app, although it also offers advanced trading options you can switch to later on. For example, the Pies and Autoinvest option on the app enables clients to rebalance their portfolios at any time automatically.

The eToro app provides access to a much larger number of assets, including cryptocurrency, commodities and indices, not to mention tools for investment research. The app is praised by investors trading in US dollars, the platform's base currency.

Besides their excellent trading tools, both platforms provide educational material, although eToro has more. In the eToro Academy umbrella, you'll find written and video guides and courses covering everything you need to know about trading and using the platform. There is also a demo account and access to an exhaustive selection of market commentary on different assets.

While the educational resources on Trading 212 (there are only tools for Share Trading) are a little more limited, there is a demo account and a broad range of guides on investing. You won't have access to market commentary on this platform or education tools on Funds and Retirement, although the latter two aren't available on eToro either.

Customer Service

On Trading 212, customer service is available 24/7 through email and live chat, where helpful customer service representatives are quick to offer answers to questions related to trading, the use of the platform, etc.

Here is a review that confirms this:

“I've been using 212 for a few years now . . . it’s easy to use, and if you need help, they have a good chat support service which is fast to respond to your enquiry. As a novice trader, you'll find it simple to understand.”

eToro, on the other hand, has a somewhat old-fashioned ticketing system, where you have to wait your turn to be serviced. This means you'll have to arm yourself with patience and can't expect prompt answers on urgent inquiries.

However, as the following customer review indicates, once you reach them, the eToro's customer service is adequate:

“The account managers have been very helpful, helping me to understand how to use eToro and many detailed things for investing. I can also reach them easily to inquire about anything. Thank you to Etoro and the team.”

The Pros and Cons of eToro

Trading 212 Pros and Cons

How to Choose Between Trading 212 or eToro?

Still unsure how to make the choice between eToro or Trading 212? Below are a few tips that can help to make your decision easier on whether you should go with Trading 212 or eToro.

Decide How You Want to Invest

Your trading styles determine which platform will suit you best. Think about what matters to you the most when trading/investing. Do you want to trade using research reports, articles, and analyst ratings?

If yes, eToro is a better option. Do you want to trade stock on the go? Trade 212 mobile app could be just the solution you're looking for.

Determine What Type of Investments You Want to Make

Before signing up for any trading platform, one of the most crucial questions to ask yourself is what products you are looking to invest in. For example, Trading 212 has no option for crypto trading, so if you want to invest in digital currencies, you should opt for eToro.

Make sure to think about future trading options and possible benefits as well. For instance, if you don't plan to trade regularly, Trading 212 will be a better option, as eToro charges an inactivity fee.

Which Platform Do You Find Easier to Use?

Both eToro and Trading 212 have a demo account, so make sure to look at how they work to determine which you find easier to use. See if either is intuitive or demanding. Check out pictures and user reviews, too, to see if others found challenges on either platform and whether they think either is particularly user-friendly.

The above tips notwithstanding, there aren’t too many differences between these platforms, so the choice depends on individual preferences. For example, Trading 212 is worth considering if you're looking for a zero-commission platform with access to more than 12,000 shares across the most renowned stock exchanges and an extensive choice of investments.

Whereas eToro is more suitable for those searching for a commission-free broker, providing access to a broad range of assets they can add to their portfolio and the option of full copy trading.

Trading 212 vs eToro UK – Frequently Asked Questions

Final Thoughts

When it comes to eToro vs Trading 212 UK, both are great options. With its extensive selection of trading assets, eToro is one of the most recommended options for traders looking to diversify their portfolios. Being primarily a CFD broker, Trading 212 has a limited product portfolio with no bonds or options trading.

The two platforms also have slightly different fee structures, which is another crucial factor to consider before signing up. Before making your choice, remember that both platforms have a demo account. This is always a good place to start learning how an exchange works.

WikiJob does not provide tax, investment or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.

76% of retail investor accounts lose money when trading CFDs with eToro. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two mins to learn more.

76% of eToro retail CFD accounts lose money. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two mins to learn more.