Best eToro Alternatives in 2023

Having been around since 1978 and surviving multiple financial crises, the Interactive Brokers’ major advantage is its reputation. It is also publicly listed on the NASDAQ exchange (ticker: IBKR), making it a bit more regulated than other platforms.

Other significant advantages of using Interactive Brokers are its wide selection of financial products from over 150 markets, solid trade execution (IB SmartRouting), and support for 24 currencies in its account. There are also 100+ currency pairs available for exchange.

Some downsides of using Interactive Brokers are its complex fee structure, lengthier than average registration and fund deposit processes, and limited commission-free trading (only available for US investors). However, the last point is largely mitigated by using narrower spreads and lower FX fees than some of its competitors. 

Speaking of the fee structure, there are two distinct plans to choose from – Tiered and Fixed, with the former fees depending on the trade volume. The fees also vary across different markets. You can see the full fee structure here.

The Interactive Brokers Trader Workstation (TWS) platform offers many basic and advanced features, such as a demo account, watch lists, alerts and monitoring in real-time, advanced technical analysis tools, and more. One of the downsides of the platform is that the learning curve can be steep for beginners, even with the provided educational materials.

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Founded in 2004, Trading 212 claims the title of the first-ever commission-free broker in both the U.K. and Europe. As of 2023, it has amassed over 2 million users with over €3.5 billion in assets under management. 

It offers two distinct account types: 

• Trading 212 Invest: Commission-free stocks and ETFs;
• Trading 212 CFD: CFD trading only.

The Trading212 Invest account has been rapidly gaining popularity with beginner investors especially, and with good reasons:

• The minimum deposit is just €1;
• Commission-free stocks and ETFs trading is available (along with fractional shares);
• A very simple platform (both registration and trading).

The platform is also available in 100+ countries, but that list does not include the U.S. and Canada. The account opening and fund depositing process is one of the simplest ones out there. Trading is also easy and intuitive on the platform. There are virtually zero fees for the end user when depositing funds by bank transfer and trading stocks or ETFs.

It is important to note that Trading 212 can offer commission-free trading primarily due to its share lending program, which is mandatory for Trading 212 users. You can read more about it here, but in a nutshell:

• Trading 212 holds the right to lend your shares to a third party (borrower);
• This doesn’t affect your ability to trade the shares, receive dividends, etc.
• Trading 212 has to always hold collateral in the form of US Treasury Bonds that is equal to or more than 102% of the value of the shares lent. 

However, that doesn’t mean there are no fees on Trading 212. Some of the fees that Trading 212 charges are;

• 0.7% for deposits by debit/credit card (it’s free up to the first €2,000);
• 0.15% (Trading 212 Invest) or 0.50% (Trading 212 CFD) currency exchange fees;
• Overnight fees on CFDs.

You can see the fee structure in more detail here for Trading 212 Invest and here for Trading 212 CFD.

For those of you who are thinking about joining Trading 212, you can even claim a free share now when you sign up by following this link. After you verify your identity and fund the account, be sure to include promo code “IITW” to claim free shares worth up to €100.

All in all, Trading 212 is a good solution for beginners who want to buy-and-hold US stocks and ETFs. It is actually a white label of Interactive Brokers (Trading 212 uses Interactive Brokers as their custodian).

If you need more info, feel free to check out our more detailed review of Trading 212.

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Founded in 2013 in the Netherlands, DEGIRO became one of the most popular European brokers, with over 2.5 million customers. It is also amongst the largest publicly traded companies in Germany, and it even secured a banking license. 

DEGIRO is perhaps best known for its low fees and wide selection of financial products. There are no deposit or withdrawal fees, as well as inactivity fees. Commission-free trading is also available for selected ETFs found on this list.

One of the cons of using DEGIRO is that bank transfers are the only deposit method available.

DEGIRO’s fee structure is fairly simple and includes: 

• A €/£1.00 commission per trade for US, Canadian and local stocks;
• A €/£1.00 handling fee;
• A €/£2.50 connectivity fee per exchange;
• Fixed currency conversion fee of 0.25%. 

Other fees on different exchanges:

• Irish exchanges: €/£2.00 commission;
• EU, UK., and Turkish exchanges: €/£3.90;
• Australian, Hong Kong, Japanese, and Singapore exchanges: €/£5.00.

Another thing to remember is that leveraged products for U.S. exchange-listed stocks are limited. If you want to trade options and futures, Interactive Brokers or Saxo Bank are probably more suitable choices.

If you need more info, please check out our more detailed review of DEGIRO.

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Founded in 2008, Plus500 is a trading platform best known for its CFD trading wide choice and low fees through its Plus500 CFD account. However, it also offers stocks (physical shares) in its Plus500 Invest account.

The company is also listed on the London Stock Exchange and is available in over 50 countries.

The web platform (WebTrader) offers an intuitive interface with access from multiple devices, including a mobile app. There is also a demo account option to test the features and trade with virtual funds.

Plus500 offers accounts in 16 different currencies (including USD, EUR, and GBP, to name a few). There is also a currency conversion fee (up to 0.7% of the trade’s realized net profit and loss) and a $10 monthly inactivity fee (following three months of not logging in to the platform).

Plus500 CFD fees come mainly from the buy/sell (Bid/Ask) spread, which varies across different instruments. When using Plus500 Invest, each trade has a fee, depending on the exchange you’re using. It is as low as 0.006$ per share for US stocks but can be significantly higher for EU stocks (the minimum is between €2 and €6 per trade). 

Find more details about Plus500 CFD fees here and Plus500 Invest fees here.

If you need more info about this platform in general, feel free to check out our more detailed review of Plus 500.

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Founded in 1992, Saxo Bank has been in business longer than all of the brokers on this list except Interactive Brokers. It is known for its wide variety of financial products (over 60,000), access to a  large number of market exchanges (over 120), and a large number of base currencies (18).

Saxo Bank has, more than anything, been trying to appeal to the professional investor. It has done so by offering advanced tools, such as its integration with the Trading View charting platform. The apps SaxoTraderGO and SaxoTraderPRO have also been tailored to professional users.

Maybe that’s why Saxo Bank has one of the highest initial deposit requirements in the industry. These can vary wildly depending on your residency, starting from £500 for the UK and €2,000 for most European countries. It is important to note that Saxo Bank is not available in some big global markets outside the EU, such as the US, Japan, or Australia, to name a few.

Saxo Bank also offers three account levels: Classic, Platinum ($200,000 minimum), and VIP ($1,000,000 minimum), each with its fee structure.

Speaking of fees, they are one of the biggest cons of using Saxo Bank. Fees on US stocks and ETFs start at only $1, but only for VIP accounts. For Platinum and Classic accounts, those same fees would be much higher, starting at $4 and $5, respectively. 

The fee structure is fairly complex, and there are also some additional fees to be aware of. Just to name a few most common ones:

• Minimum monthly custody fees: €5;
• Inactivity fee (with no login in 6 months): €100; 
• Currency conversion fees: between 0.45% and 0.75%.

It is best to select the desired financial product from their website and see the full fee structure.In a nutshell, Saxo Bank is tailored to the professional investor and is not recommended to the average investor, mostly due to its higher-than-average fees.

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