Trading 212 is a London-based broker well known in the United Kingdom and Germany. It specialises in forex and CFD trading. eToro, for its part, is a world-famous name in social trading. In this Trading 212 vs eToro comparison, find out which of the two is better.
eToro vs Trading 212 – Key Information
We’ll start this Trading 212 vs eToro match-up by comparing the basic information about each:
- Trading 212 was founded in 2006 under the name Avus Capital. In 2013, the broker moved to London and later became Trading 212. Today, the group is made up of two subsidiaries: Trading 212 UK Ltd and Trading 212 Ltd, regulated respectively by the FCA in the United Kingdom and the Financial Supervision Commission in Bulgaria. The broker aims to democratise the financial markets by making them accessible. It offers easy-to-use and, above all, free apps so that all traders can trade currencies, stocks, indices and commodities. The company currently claims more than 14,000,000 downloads of its mobile app.
- eToro is a Cyprus-based broker launched in 2007. Its services are available in more than 140 countries, and its ambition is to revolutionise and disrupt the trading industry. Several authorities supervise its subsidiaries, including the FCA, CySEC, the FSAS and ASIC. More than 1,000 employees work to keep its business running smoothly. It currently claims more than 20,000,000 users worldwide and offers more than 2,000 financial instruments.
- In this Trading 212 vs eToro comparison, we noted that both brokers have a presence in the UK and are authorised to offer their services in France.
To go further, also read our guides “AvaTrade vs eToro Comparison” and “XTB vs eToro”.
Awards
Awards and prizes of all kinds from magazines and other industry players are among the proof of a broker’s quality and reliability. In this Trading 212 vs eToro match-up, we compared the awards received by both brokers:
- Unfortunately, we found none for the London-based broker,
- eToro has stayed fairly quiet on the subject, but we did find that it has received several, notably for the quality of its trading platform.
eToro vs Trading 212 – Security Measures Review
Choosing a broker also depends on the measures it has put in place to secure its users’ funds and accounts. In this Trading 212 vs eToro comparison, we noted that both have adopted the same measures:
- Both brokers are fully and legally authorised to operate and hold the necessary licences. Both are supervised by several well-known financial authorities: the FCA in the United Kingdom and the Financial Supervision Commission in Bulgaria regulate Trading 212, while the FCA in the United Kingdom, CySEC in Cyprus, ASIC in Australia and the FSAS in the Seychelles oversee its competitor.
- In line with the regulations in force, both firms keep client deposits separate from their own in distinct bank accounts.
- Their clients’ deposits are covered if the broker becomes insolvent,
- European traders benefit from negative balance protection.
- Each broker has put in place measures to protect its clients’ data.
Available Assets
Being able to diversify your portfolio is an essential criterion when choosing a broker. In this Trading 212 vs eToro match-up, we compare the assets offered by both brokers:
- On its Trading 212 CFD platform, the London fintech gives access to more than 2,500 instruments, including currency pairs, stocks, indices and commodities. On its Trading 212 Invest platform, it offers more than 6,500 ETFs and international stocks.
- eToro’s trading platform lets users trade more than 2,000 financial instruments, including 49 currency pairs, 6 commodities, 2,000 stocks, 249 ETF trackers and 13 stock indices. Unlike Trading 212, eToro also offers around fifteen cryptocurrencies.
eToro vs Trading 212 – Trading
Each broker develops its own trading model. In this Trading 212 vs eToro match-up, we compared what the two brokers offer:
- Both are leveraged brokers: traders can use leverage to multiply their investment. In line with European regulations, both offer a maximum ratio of 1:30 for retail traders. The difference lies in the maximum leverage available to professional traders: 1:500 at Trading 212 and 1:400 at eToro.
- Trading 212 specialises in automated investing. Its users have access to a feature called AutoInvest to build their “pie” and create and customise a diversified portfolio.
- eToro has focused on social trading and is the leader in copy trading networks. The broker lets users automatically copy the trades of real traders.
eToro or Trading 212 – Deposits and Withdrawals
How easy and fast deposits and withdrawals are is one of the things to check before trading with a broker. We compared the options offered by both firms in this Trading 212 vs eToro comparison:
- Both brokers offer several payment methods, giving traders more choice,
- Trading 212’s minimum deposit depends on the account chosen: $1 for the Invest account and $10 for the CFD account. It is slightly higher for bank transfers. However, it remains far lower than the Cypriot broker’s, which is set at $50.
- At eToro, account currency is limited: the broker only allows USD. Its competitor offers traders more choice.
eToro vs Trading 212 – Fees
In this Trading 212 vs eToro fees match-up, we noted that each broker has its own fee structure, with several things in common but also notable differences:
- Both brokers earn their money mainly through spreads, which we compared in this Trading 212 vs eToro comparison. With both, spreads vary by product. The UK broker’s spreads are competitive, while its competitor’s are somewhat higher than average.
- Neither charges commissions. Even on its Invest account, which lets you invest in international stocks and ETFs, Trading 212 charges no brokerage fees. The same goes for eToro, where a stock investment account can be opened for free and is commission-free.
- While the Cypriot broker charges no deposit fees, its competitor charges 0.7% on deposits above €2,000.
- Conversely, Trading 212 charges no withdrawal fees, unlike its competitor.
- Both brokers charge conversion fees,
- At eToro, an inactive account incurs monthly fees.
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In this Trading 212 vs eToro comparison, we compared the accounts available at both brokers:
- Trading 212 welcomes retail and professional traders alike. It offers two types of live account: the Invest account and the CFD (contracts for difference) account. UK residents also have exclusive access to an ISA account. New users and those who want to fine-tune their strategies also have access to a Trading 212 demo account.
- Like its competitor, eToro offers a Standard account for retail traders and a professional account. A free demo account is also available. The broker has a real advantage over its competitor in welcoming Muslim traders with a swap-free Islamic account.
Trading Platforms
Trading platforms differ from one broker to another. Several points emerged from this Trading 212 vs eToro match-up:
- Neither broker offers the MetaTrader platforms,
- Each has developed its own trading platform.
- The London broker relies on two free platforms: Trading 212 Invest and Trading 212 CFD. A mobile app also lets clients trade anywhere, any time.
- eToro has also launched its own in-house social trading platform, along with an app that lets users trade freely. Several features that have made the broker famous are built in, including CopyTrader and CopyPortfolios.
Trading Tools
Trading tools serve different purposes; some are essential, others less so. We compared what both brokers offer in this Trading 212 vs eToro comparison:
- With Trading 212, traders have several tools for technical analysis, as well as an economic calendar, news and daily analysis. Those who want automated investing can also build a “pie” with AutoInvest.
- eToro offers more trading tools than its competitor. Traders have access to market analysis, a trading calculator, a currency converter and a research tab, among others. The Cypriot broker also provides useful innovative features such as CopyTrader and CopyPortfolios for social trading.
Education
Some brokers make their education section a strength. The two brokers we’re comparing in this Trading 212 vs eToro match-up take different approaches:
- Trading 212 invests mainly in its YouTube channel, with hundreds of educational videos helping beginner, intermediate and experienced traders learn or deepen their trading knowledge. Users also have access to a glossary, online courses and a comprehensive FAQ, although the FAQ isn’t available in French. An online forum also lets the Trading 212 community exchange ideas, chat and support each other.
- eToro has set up a comprehensive programme. As well as the demo account, traders have access to guides, webinars, courses, ebooks and video tutorials. Despite the wide range of learning materials, the educational content is mainly aimed at beginners.
Customer Support
Whether you’re a beginner, intermediate or experienced trader, help and support from advisers is always welcome, and its quality and availability are among the signs of a reliable broker. In this Trading 212 vs eToro comparison, we compared their customer support:
- Trading 212 provides multilingual support. Traders can contact advisers by email or by filling in an online contact form, and can also use live chat in the mobile app. Unfortunately, the broker can’t be reached by phone. However, its customer service is available at all times, 24/7.
- At the Cypriot broker eToro, advisers can be reached by phone, chat and email, but only 5 days a week. Its customer support is also available in several languages, and like its competitor’s, its website has been translated into several languages, including French.
Trading 212 vs eToro: Pros and Cons
Despite some similarities, the two brokers have adopted different models. In this Trading 212 vs eToro match-up, we identified some of their respective strengths and weaknesses:
- Trading 212 has several strengths: its spreads are competitive, it charges no commission and traders don’t have to make a large deposit. However, a few points count against it, including its FAQ, which isn’t available in French, and its limited trading tools and educational content.
- eToro is internationally renowned, and its subsidiaries are supervised by top-tier regulators. Over the years, it has built a reputation in social trading. Traders also have access to a wide choice of financial assets, including stocks, allowing them to diversify their portfolio. However, its fees are fairly high, traders have no choice of base account currency and its education is mainly aimed at beginners.
Our Verdict
At the end of this Trading 212 vs eToro comparison, here is our view:
- With its offering split in two, the London broker appeals both to CFD enthusiasts and to those who prefer trading stocks. No commission and tight spreads are among its strengths, and its 24/7 customer support shows the effort it makes to support clients. Its platform and app also offer a pleasant experience. All in all, it is a serious and reliable broker.
- The Cypriot broker suits those who want to get into cryptocurrency trading. The range of instruments on its platform is also attractive, letting clients diversify their portfolios. Of the two brokers, it is the only one offering social trading, and it is one of the leaders in this field. Its offering is mainly suited to beginners, but more advanced traders will also find what they need. Its only drawback is that some of its fees are a bit high.
To help you choose, you can also compare user reviews on Trading 212 vs eToro by reading our article on whether eToro is a scam.
We also recommend comparing these two brokers with other providers:
- Trading 212 vs eToro vs Free Trade,
- Trading 212 vs eToro vs DEGIRO,
- Trading 212 vs eToro vs Plus500,
- Trading 212 vs eToro vs Revolut.
Have you used Trading 212 or eToro and want to share your experience? Leave us a comment!