eToro vs Trading 212: Which One Should You Use? 

In the fast-paced world of online trading, choosing the right platform can make all the difference in your success. However, you can choose from countless platforms available for trading.

Two popular options that often come up as the most popular and well-known options are eToro and Trading 212. 

Both platforms offer a user-friendly interface, a wide range of assets to trade, and innovative features that attract novice and experienced traders.

We know deciding between the two is not going to be easy. So, we have prepared a comprehensive comparison to help you make an informed decision.

Let’s dive right in!

Overview of eToro

eToro was founded in 2007 as a social trading platform, allowing users to follow and copy the trades of successful traders. Due to its unique concept, it quickly gained popularity and has now expanded its services to include traditional trading.

The platform is known for its focus on community-based learning, making it an ideal choice for beginners looking to learn from experienced traders.

One of the main draws of eToro is its user-friendly interface, which makes it easy for even non-technical individuals to navigate. The platform offers many assets, including stocks, cryptocurrencies, commodities, forex, and more.

It also offers various innovative features, such as CopyTraderTM, allowing users to replicate top-performing traders’ trades automatically.

Overview of Trading 212

Founded in 2004 in Bulgaria, Trading 212 is a multi-asset platform offering access to over 2,000 instruments, including stocks, ETFs, forex pairs, cryptocurrencies, and more.

The platform aims to make trading accessible by offering commission-free trades on stock investments with no hidden fees or charges.

Trading 212’s simple yet comprehensive design seamlessly enhances the user experience. It boasts advanced charting tools with real-time data updates, allowing users to make informed decisions while placing trades.

Additionally, the platform offers an Invest account for users who do not wish to trade but want long-term investment opportunities.

eToro vs Trading 212: Similarities and Differences

Regarding online trading platforms, eToro and Trading 212 are two of the most popular options on the market. Both offer users a wide range of financial instruments to trade, along with unique features and tools.

Both eToro and Trading 212 have many similar and unique features that appeal to different types of traders. It is essential to consider the similarities and differences between these two platforms to help you decide which is right.

Key Similarities Between eToro and Trading 212

1. User-Friendly Interface

Both eToro and Trading 212 have user-friendly interfaces that make it easy for beginners to navigate and understand. They also offer a variety of educational resources to help users learn about trading and improve their skills.

2. Commission-Free Trading

One major similarity between eToro and Trading 212 is that they offer commission-free trading. This means users do not have to pay fees or commissions on their trades, making them more cost-effective than traditional brokers.

3. Multiple Financial Instruments

Both platforms allow users to trade diverse financial instruments, including stocks, forex, commodities, indices, cryptocurrencies, etc. This allows traders to diversify their portfolios and exploit different market opportunities.

Key Differences Between eToro and Trading 212

1. Account Types

While both platforms offer demo accounts for practice purposes, there are significant differences in their live account types. eToro has two account types – retail (for individual traders) and professional (for experienced traders).

On the other hand, Trading 212 offers three account options – CFD (Contract For Difference), Invest (for long-term investing), and ISA (tax-efficient account).

2. Investment Minimums

The minimum investment amount required on each platform also differs significantly; while eToro requires a minimum of $50, Trading 212’s minimum is only $1. This makes Trading 212 more accessible to traders with smaller budgets.

3. Deposit and Withdrawal Options 

eToro offers many deposit and withdrawal options, including credit/debit cards, bank transfers, and e-wallets like PayPal. On the other hand, Trading 212 only accepts deposits via bank transfer or debit/credit card.

4. Cryptocurrency Offerings

While both platforms support cryptocurrency trading, their offerings differ. eToro has a broader selection of cryptocurrencies (18) than Trading 212 (5).

Additionally, eToro allows users to purchase actual coins instead of trading CFDs.

eToro vs Trading 212: Features

Both eToro and Trading offer unique features and tools that cater to different trading styles and preferences.

While eToro is more suitable for beginners due to its user-friendly interface and copy trading feature, Trading 212 may be preferred by experienced traders who require advanced charting tools.

Ultimately, it is important to consider your personal trading needs before deciding which platform to use.

1. User-Friendly Interface

eToro boasts a user-friendly interface that is easy to navigate, even for beginners. Its intuitive design allows users to access all the essential features and tools without hassle quickly.

On the other hand, Trading 212 also offers a simple and clean interface, but it may take some time for new users to get accustomed to its layout.

2. Variety of Assets

Both eToro and Trading 212 offer a wide range of trading assets, including stocks, cryptocurrencies, forex, commodities, indices, and more. However, eToro stands out with its unique feature, “CopyPortfolios,” which allows users to invest in portfolios created by expert traders.

This makes it easier for new traders who do not have enough knowledge or time to pick individual assets.

3. Copy Trading

One of eToro’s standout features is its social trading feature, “CopyTrader.” This feature enables users to copy trades from top-performing traders on the platform automatically.

This can benefit inexperienced traders, as they can learn from experts’ strategies while still earning profits. 

However, If you prefer self-directed trading, where you analyze the markets yourself and make your own investment decisions, then Trading 212 might be the better choice as it offers in-depth charting tools.

4. Real-Time Market Data

Trading 212 provides real-time market data through its “Pro Charts” feature, which includes advanced charting tools such as technical indicators and drawing tools useful for conducting technical analysis.

Similarly, eToro also offers live market data but lacks advanced charting tools.

5. Mobile App Accessibility

Both platforms offer mobile apps for iOS and Android devices, allowing users to trade on the go. The eToro app has user-friendly navigation and provides all the necessary features.

Trading 212’s app has a slightly steeper learning curve but offers advanced charting tools unavailable on the eToro platform.

6. Customer Support

eToro offers 24/7 customer support through email, live chat, and phone calls, whereas Trading 212 provides support only during business hours.

eToro also has an active social media presence and a community forum where users can seek help or engage with other traders.

eToro vs Trading 212: Fees and Commissions

One of the most crucial factors to consider when choosing a trading platform is their fees and commissions.

These costs can significantly impact your profitability and should not be overlooked when deciding between eToro and traditional trading.

1. Fees

Both eToro and Trading 212 offer zero-commission trading, meaning you do not have to pay any fees for opening or closing positions. This is a major advantage for traders as it eliminates one of the biggest costs of traditional trading.

While eToro does not charge a management fee, it does have a minimal withdrawal fee, which is free on Trading 212. 

2. Spreads

Another crucial aspect to consider is spreads, which refers to the difference between an asset’s buying and selling price. eToro charges a spread fee, which typically ranges from 0.75% for major currency pairs to as high as 5% for cryptocurrencies.

While this may seem like a high fee compared to others, it includes all transaction costs, so there are no additional fees when opening or closing a trade.

Instead of charging a spread fee, Trading 212 makes money through small markups on bid-ask prices—the price at which you buy or sell an asset.

These markups vary depending on market conditions and can range from as low as 0.008% for major currency pairs to around 2% for exotic assets like cryptocurrencies.

3. Overnight Fees

In both Trading 212 and eToro, there are minimal overnight swap fees when you trade with leverage. Small interest charges apply only to leveraged positions held overnight on weekdays.

When you keep a CFD position open overnight, you will incur overnight financing costs, depending on the type of position (long or short) and the overnight interest rate of the instrument. 

4. Inactivity Fee

Some trading platforms also charge inactivity fees if you do not trade for a certain period of time. With eToro, you may incur $10 USD monthly inactivity if you do not log into your account for over one year.

However, there’s no inactivity fee on Trading 212, making it a more flexible and cost-effective option.

One key difference between eToro and Trading 212 is their minimum deposit requirement.

eToro has a minimum deposit requirement of $50 while Trading 212 does not require any minimum deposit amount to open an account. Trading 212’s commission-free model may suit you if you want to trade frequently with smaller amounts.

However, if you prefer copying the trades of experienced traders and are willing to pay a higher spread fee, then eToro may be a better fit.

eToro vs Trading 212: Availability

eToro is available in over 140 countries worldwide, making it one of the most widely accessible trading platforms.

This includes major markets such as the United States, Canada, Europe, Australia, and many Asian countries. With such a vast presence, users from various regions can easily access eToro’s services and features.

On the other hand, Trading 212 has a slightly smaller reach and availability in around 100 countries. While this still covers many major markets, some regions like Africa and South America may not have access to this platform.

However, trading continuously expands its reach and adds new countries to its availability list.

EToro and Trading have a wide reach and global availability, but there are differences in their presence and regulatory coverage in different countries. Certain features may be restricted or limited depending on your location due to local laws or regulations.

Therefore, it’s essential to check the availability of specific features in your country before choosing a platform.

eToro is licensed by multiple regulatory bodies across different regions, including the Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC).

This means that users from these areas can trade on eToro with confidence, knowing that their funds are protected by strict regulations.

On the other hand, Trading operates under one license from Cyprus’ financial regulator, CySEC. This means that users outside of Europe may not have the same level of protection as those within European borders.

However, they do plan to obtain licenses in other jurisdictions to expand their regulatory coverage.

eToro vs Trading 212: Pros and Cons

While both platforms have their own unique features and benefits, they also have their respective drawbacks.

Let’s look into the pros and cons of using eToro or Trading 212 to help you decide which is better suited for your investment needs.

✅ Pros of eToro:

1. Social Trading

eToro offers a unique feature called “CopyTrader,” which allows users to copy the trades of successful investors on the platform.

This makes it easier for inexperienced traders to learn from experts and potentially make profitable trades.

3. Wide Range of Assets

eToro users can access various financial assets, including stocks, ETFs, cryptocurrencies, commodities, indices, etc.

This allows investors to create a well-diversified portfolio.

3. Regulation

eToro is regulated by top financial authorities such as FCA (UK), CySEC (Cyprus), and ASIC (Australia).

This provides users with an added layer of security, knowing that their funds are protected.

❌ Cons of eToro:

1. Limited Charting Tools

Unlike other trading platforms offering advanced charting tools for technical analysis, eToro’s charts are quite basic.

This may be a disadvantage for experienced traders who rely heavily on technical indicators.

2. High Fees

Compared to other trading platforms in the market, eToro charges relatively high fees for certain services, such as withdrawal and overnight fees for leveraged positions.

✅ Pros of Trading 212:

1. Commission-Free Trading

One of the major advantages of using Trading 212 is its commission-free trading.

This means users can buy and sell assets without incurring additional fees, making it a cost-effective option for investors.

2. Advanced Charting Tools

Trading 212 offers many advanced charting tools, making it ideal for technical analysis enthusiasts.

Users can access various indicators, drawing tools, and time frames to analyze market trends.

❌ Cons of Trading 212:

1. Limited Asset Selection

Unlike eToro, which offers a wide variety of assets to trade, Trading 212 has a more limited selection that lacks mutual or open-ended funds. This may disadvantage investors who want to diversify their portfolios across different asset classes.

2. No Social Trading Feature

Unlike eToro’s CopyTrader feature, Trading 212  does not offer a social trading feature.

This means that beginners may not be able to learn from more experienced traders on the platform.

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