Are you confused about whether to choose eToro vs Firstrade as a broker for your investing needs?
In this side-by-side comparison, we analyse eToro vs Firstrade to help you understand how these apps compare on some of the most common features and make a better-informed decision about the best broker for you.
Below, you’ll find the pros and cons of each broker, as well as a comparison table that features the different fees charged, the financial instruments supported, the regulation, and more. Keep reading!
eToro vs Firstrade: In a Nutshell
Social trading and commission-free stock trading
eToro is a well-known worldwide fintech startup and the leader in the social trading field (following other people’s trades), with over 30 million users worldwide.
You can also invest in other products through their platform, which is intuitive and simple to use, making it a good choice for beginners. Plus, eToro offers commission-free stock trading.
Opening an account and depositing is easy, and you can even try it out with virtual money (a demo account). On the downside, spreads can be high for some products.
US investors looking for US options only
Firstrade is a traditional company founded in 1985 that recently changed its strategy to become a commission-free online trading platform for stocks, ETFs and options.
The broker is considered safe, with a long track record that survived a few crises and top-tier regulators’ supervision.
The main drawbacks are its limited products offering (no European ETFs, stocks,…) and the fact that it only offers fractional shares on reinvested dividends.
Pros and Cons
eToro
Pros
- Commission-free stock trading
- Social Trading and other innovative products
- Wide variety of financial products
- Slick, modern, and easy for anyone to use
- Top tier regulators
Cons
- Limited disclosed financial information
- Withdraw and inactivity fees
- Spread, overnight, inactivity, and currency conversion fees higher than average
- Only one currency account (USD) - a currency conversion fee is applied if you deposit in a different currency
- Doesn’t offer bonds, futures, or options
Firstrade
Pros
- Commission-free stock, ETF, mutual fund and options trading
- Good research and educational content
- No inactivity fees
- No minimum deposit
Cons
- You can trade only on US markets
- No 24/7 customer support
- No demo account
- No fractional shares
eToro vs Firstrade: Side-by-side Comparison
- General Information
- Founded in
- Demo Account
- Account Minimum
- Products
- Stocks
- ETFs
- Bonds
- Funds
- Options
- Futures
- CFDs
- Leverage Products
- Forex
- Cryptocurrencies
- Commodities
- Fees
- US stocks
- EU stocks
- ETFs
- Cryptocurrencies
- Custody Fee
- Inactivity Fee
- Withdrawal Fee
- Connectivity Fee
- Currency Conversion Fee
- Security
- Regulators
- Investor Compensation Scheme(per person, per institution)
Franklin is a CFA Level III Candidate with 3 years of experience in Wealth Management as a Fund Research Analyst and the Host of the "Edge Over Hedge" YouTube Channel.
