Hello, investor! Are you trying to decide between eToro and Trading 212 for your investment needs? This article will guide you through a detailed, side-by-side comparison to help you make the best choice.
We use both brokers, and we understand how hard it can be to choose which one to use!
In this analysis, we’ll explore how eToro and Trading 212 stack up against each other in key areas like features, fees, supported financial instruments, and regulation. By the end, you’ll have a clear understanding of which broker aligns better with your investment strategy.
Below, you’ll find a comparison table and a breakdown of the pros and cons of each platform, highlighting the key differences. Let’s dive in!
eToro vs Trading 212
- eToro: Best for crypto, social trading, and low commissions for stock trading.
- Trading 212: Best for interest and commission-free stocks and ETF trading.
All in all, we would feel confident investing with both companies!
Trading 212 is a fantastic choice for low-cost investing, especially if you’re interested in earning interested on your cash. It’s simple, straightforward, and cheap for most retail investors. Plus, new users get a free share with our Trading 212 promo code – IITW.
eToro, on the other hand, is good if you want a platform that’s beginner-friendly, allows you to invest in cryptos, and with the ability to copy the strategies of experienced investors through social trading.
Comparison
| Category | eToro | Trading 212 |
| Demo account | Yes | Yes |
| Account minimum | $50 (varies between countries) | €/£10 |
| Interest on uninvested cash (annually) | USD: up to 4.8% | EUR: 4.00%; USD: 4.60%; GBP: 5.10% (as of October 2024) |
| US Stock fees | $1 | €/£0 |
| EU Stock fees | $1 | €/£0 |
| ETFs | $0Not all ETFs are offered with 0% commissions. | €/£0 |
| Currency conversion fee | Starts from 0.50% | 0.15% |
| Regulators | FCA, CySEC, and ASIC | FCA, CySEC, and FSC |
Want to see a more in-depth comparison? Check the full comparison of Trading 212 vs eToro in our broker comparison tool.
About eToro
eToro is a globally recognized fintech company and a leader in social trading, with over 30 million users worldwide. The platform allows users to trade a variety of assets, including stocks, ETFs, cryptocurrencies, and CFDs, with an intuitive interface that’s particularly well-suited for beginners.
Additionally, eToro provides access to over 3,000 financial instruments, including ready-made investment portfolios (Smart Portfolios), and advanced options like one-click trading and a stop-loss feature. The eToro Research Tab, powered by TipRanks, offers valuable insights for informed decision-making.
While eToro offers a demo account and is user-friendly, it’s important to note that the platform’s spreads can be relatively high for some products, and there is a $5 withdrawal fee. Despite these drawbacks, eToro remains a strong contender for those seeking a versatile and accessible trading platform.
eToro also offers CFDs, so if you’re a long-term investor, make sure that you’re buying the real asset and not a CFD. Real assets are “mixed” with CFDs on eToro, so you need to invest without leverage, and make sure you’re buying the real product:
CFD is financial jargon to tell you, among other things, that you do not actually own the asset. You have an instrument that reflects what a share does in the market.
Interested in learning more about eToro? Read our eToro review.
eToro pros and cons
Pros
- Low stock trading fees (from $0 per trade)
- Commission-free ETFs (other fees apply)
- Social trading and other innovative products
- Wide variety of financial products
- Slick, modern, and easy for anyone to use
- European users have access to three account currencies: EUR, USD and GBP
- Top tier regulators
Cons
- Limited disclosed financial information
- Withdraw and inactivity fees
- Spread, overnight, inactivity, and currency conversion fees higher than average
- Doesn’t offer bonds, futures, or options
About Trading 212
Trading 212 is a fintech company based in London that aims to democratize the entire investment process through a simple web and mobile application.
The company supports more than 15 million users to invest in over 10,000 stocks and ETFs, Forex, commodities, CFDs, and cryptocurrencies. An interesting fact is that your shares are held in a pooled account at Interactive Brokers, commonly known as an omnibus account. For more information, you can visit the Trading 212 website.
Additionally, it offers an attractive interest rate on uninvested cash. For more details, you can explore how the Trading 212 interest on uninvested cash works.
You will find commission-free stocks and ETFs trading, fractional shares, and even an automatic investment system through Trading 212 AutoInvest. New users can also receive a free fractional share worth up to £/€100 by signing up with the Trading 212 promo code: IITW.
On the downside, it shows limitations regarding available products.
For more detailed information about Trading 212, check out our Trading 212 Review where our specialists have conducted a full review of the broker.
Trading 212 pros and cons
Pros
- Commission-free Real Stocks and ETFs trading (other fees may apply. See terms and fees)
- AutoInvest & Pies feature
- Fast and easy account opening process
- Demo account
- Top Tier Regulators
- One free share worth up to €100 using the promo code "IITW"
- High interest on uninvested cash
Cons
- Limited product portfolio (no Options, Bonds, Mutual Funds or Futures)
- No relevant Fundamental tools
- 0.15% of Foreign exchange fees
Fees & commissions
| Fee type | eToro | Trading 212 |
| Stocks (US, EU, and UK) | $1 per trade$2 for people from Australia and New Zealand. | €/£0 |
| ETFs | Commission-free (other fees apply) | €/£0 |
| Crypto | 1% | 1.5% fee (CFDs only) |
| Currency conversion fee | 0.75% | 0.15% |
| Spreads | From 1.0 pips (Forex) | From 0.7 pips (Forex) |
| Social trading | No extra fees | No extra fees |
| Withdrawal fees | $5 per withdrawal | Free |
| Inactivity Fee | €/$/£10 after 12 months inactivity | €/£0 |
eToro has a simple fee structure with fixed costs for stocks and ETFs, making it user-friendly for beginners. However, it does charge for withdrawals and has higher spreads, which can add up over time. Trading 212, on the other hand, offers a more competitive commission-free model, especially appealing for casual investors who prioritize cost savings, as it doesn’t charge for stock trades or withdrawals.
Investment products
| Investment products | eToro | Trading 212 |
| Stocks | ✔ 4,500+ global stocks (real and CFDs) | ✔ 7,000+ stocks (real and CFDs) |
| ETFs | ✔ 650+ ETFs (real and CFDs) | ✔ 1,500+ ETFs (real and CFDs) |
| Cryptocurrencies | ✔ 95+ crypto assets (Direct and CFDs) | ✔ 20+ cryptocurrencies (CFDs) |
| Forex | ✔ 55 currency pairs | ✔ 180+ currency pairs (CFDs) |
| Indices | ✔ 18 indices (CFDs) | ✔ 35 indices (CFDs) |
| Commodities | ✔ 30+ commodities (CFDs) | ✔ 45+ commodities (CFDs) |
eToro excels in offering a broad range of CFDs, making it ideal for leveraged trading, and also allows the purchase of real cryptocurrencies in some regions. In contrast, Trading 212 is focused on commission-free trading for stocks and ETFs and offers competitive interest rates on uninvested cash, making it perfect for traditional asset-focused investors who value low-cost trading.
Safety
| Aspect | eToro | Trading 212 |
| Regulatory Authorities | FCA, CySEC, ASIC | FCA, CySEC |
| Investor protection | Up to €20,000 (EU clients) Up to £85,000 (UK clients) | Up to €20,000 (EU clients) Up to £85,000 (UK clients) |
| Private insurance | Yes, covers losses of up to 1 million euros/AUD | Yes, additional insurance of up to €1 million (EU clients) |
| Asset segregation | ✔ | ✔ |
| Negative balance protection | ✔ | ✔ |
| Licenses | Multiple jurisdictions | Multiple jurisdictions |
| Listed on exchange | ✘ | ✘ |
| Transparency | Average | Average |
Both eToro and Trading 212 are regulated by reputable authorities, ensuring a solid level of client fund protection. However, neither platform is listed on a stock exchange, which means it does not undergo the additional public scrutiny that comes with being publicly traded. As a result, both platforms offer average transparency compared to publicly listed brokers.
Trading platforms
eToro
eToro offers both mobile and web-based trading platforms. Both platforms are designed to be user-friendly and accessible, particularly for those who are new to investing.
Trading 212
Trading 212 has both a mobile and a web trading platform presenting two account types (Trading 212 Invest and CFDs).
Customer support
eToro
eToro provides multiple customer support options, including a 24/7 AI-powered chatbot for quick responses to common inquiries and Live Chat support available 24/5 for real-time assistance. Users can also submit tickets via the Customer Service Center, with responses typically within 48 business hours. eToro Club members enjoy the added benefit of direct communication with an Account Manager via WhatsApp.
Trading 212
Trading 212 offers customer support through email, live chat, and an extensive FAQ section. The support is available in multiple languages, ensuring accessibility for a broad user base.
How to invest in the S&P 500 on eToro and Trading 212
Want to learn how to invest in the S&P 500 in both platforms?
Check our step-by-step videos, where we show you how to place your trade using both apps. It might be useful to get a feel of both companies before deciding which one to use!
eToro
Trading 212
eToro vs Trading 212: Final verdict
eToro
Best for beginners, social trading and cryptoTrading 212
Best for commission-free stocks & ETFs and interest on uninvested cash
Choosing between eToro and Trading 212 can be challenging. Here’s a breakdown to help you decide:
Do you want a platform that’s beginner-friendly, allows you to invest in cryptos, and with the ability to copy the strategies of experienced investors through social trading? If so, eToro is the perfect choice. It’s ideal for those who value a wide variety of assets, including stocks, ETFs, cryptocurrencies, and CFDs, all within an intuitive interface. Just be aware of the higher spreads and withdrawal fees.
Or, are you looking for commission-free trading on stocks and ETFs, along with competitive interest rates on your uninvested cash? In that case, Trading 212 is likely your best bet. It’s designed for those who prefer a straightforward and efficient platform for managing their investments.
And remember, by signing up with the Trading 212 promo code IITW, you can receive a free fractional share worth up to £/€100.
Want to learn more about other brokers? Check out our in-depth broker reviews, comparison table, and BrokerMatch tool to find the best option for you!
