eToro Vs Trading 212: Which Is Better?

Learn about eToro and Trading 212 and their pros and cons.

Updated: May 20, 2024
Matt Crabtree

Written By

Matt Crabtree

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You must find the right investment platform to grow your investments and start trading. There are many trading platforms in the UK to choose from. Whether you're interested in stock trading or cryptocurrency, you can diversify your trading portfolio with the right trading platform.

eToro and Trading 212 are two of the leading zero-commission trading platforms you can use. Both have their pros and cons and will help your investment portfolio in different ways.

In this article, you'll learn about eToro and Trading 212, their pros and cons, and we will put them side by side, eToro VS Trading 212, so you can decide which platform is best for trading.

What Is eToro?

eToro is a multi-asset investment platform with easy-to-use advanced tools. There are over 30m users worldwide trading on the eToro platform. You can trade over 50,000 instruments with a trusted broker.

eToro allows investors to diversify their portfolios with access to leading financial markets and various asset classes, including 20 global stock exchanges.

You can earn up to 5.3% annual interest on your eToro money account balance. With competitive interest rates, you can earn more on the idle funds, and the interest earned is added to your balance automatically each month. The funds in your account will remain liquid so that you can withdraw anytime. The minimum deposit for eToro is $50 for the first deposit.

eToro offers the following features:

  • Professional account: eToro has a Pro Account for experienced investors that allows more advanced portfolio management strategies to be employed. There is a criteria you'll need to meet to be eligible.
eToro logo

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. {etoroCFDrisk}% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

  • Demo account: You can practise investing with eToro's $100K virtual eToro account. You can hone your trading skills, explore the platform and try trading strategies without risking losing your investments.
  • Trading platform: With eToro's platform, eToro offers trading of over 4600 stocks, 532 exchange-traded funds (EFTs), 30+ commodities, 55 currencies and 21 indices. eToro offers commission-free trading. The platform provides TradingView chats, real-time execution, risk management tools, short with or without leverage, zero-balance protection, price alerts, one-click trading and more.
  • Contract for Differences (CFD) trading: You can leverage, go short, and trade multiple assets with CFDs on the eToro platform. Benefit from advanced research that helps with research, analysis and risk management.
  • Cryptocurrency trading: You can trade cryptocurrency with eToro, join a crypto community and learn from and copy other investors with a brand that's trusted worldwide. The platform has a user-friendly interface with no hidden costs. You can invest in over 70+ vetted cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
  • eToro Money: eToro customers can access an eToro Money account alongside your eToro investment account, making it easy to make free and instant deposits with no conversion fees. You can make instant withdrawals, and the account is free with no subscriptions or hidden costs.

Pros and Cons of Using eToro

We've compiled a list of the pros and cons of using eToro to help give you a further idea of what they offer.

Pros

✔️ Copy trading: eToro offers full copy trading services. eToro users can replace successful traders' strategies and implement them.

✔️ Advanced trading tools: Features for novice and experienced traders include social trading, virtual portfolio, one-click trading, stop loss and take profit, trailing stop loss, pro charts and offline trading.

✔️ Limited fees: There are no trading or platform fees. The platform is commission-free, and with both eToro accounts, cash deposits are free.

✔️ More asset classes: eToro offers trading of over 4600 stocks, 532 exchange-traded funds (EFTs), 30+ commodities, 55 currencies and 21 indices. You can invest in over 70+ vetted cryptocurrencies, including most major currency pairs.

Cons

❌️ Withdrawal fees: Although there are no trading or platform fees, there are withdrawal and inactivity fees. The withdrawal fee is $5, and the minimum withdrawal amount is $30. The inactivity fee is $10 per month.

❌️ Currency conversion fees: All eToro accounts are USD, so there is a currency conversion fee if you convert your funds to your local currency.

What Is Trading 212?

Trading 212 offers commission-free trading for all of its users. Expand your portfolio with over 12,000 shares on the platform to trade across significant stock exchanges. Share trading is made easy with Trading 212, which allows you to buy stocks instantly. You can earn 5% on your balance, which is paid daily and can be withdrawn anytime. You can start investing with as little as £1 with Fractional shares.

A great feature that Trading 212 offers is Pies & AutoInvest, a tool that helps you diversify your portfolio and customise a pie chart to your unique financial goals. You can choose from thousands of stocks and ETFs, and they'll make up the slices of your pie. You can create a fully automated investment plan that matches your goals and budget.

You can deposit funds and invest and reinvest dividends into your pie automatically. With the flexibility of the feature, you can control every aspect of the pie, adjust proportions and rebalance with a tap.

Trading 212 offers the following features:

  • Share trading: Own part of the most expensive stocks with Fractional shares; you can start investing with as little as £1. Share trading allows you to invest in your favourite companies.
  • ISA investing: You can invest tax-free with a Stocks and Shares ISA. UK residents can invest up to £20,000 per year without paying capital gains tax on investment returns. You can Diversify your ISA with the Pies & AutoInvest feature.
  • CFD trading: Forex traders and other investors can trade long and short with leverage on stocks, forex, indices and more. Gain access to all major markets with zero commission, no hidden fees, tight spreads and negative balance protection.
  • Multi-currency: You can deposit and invest across multiple currencies without foreign exchange fees. There are 13 globally supported currencies available.
  • Share lending: Investing 212 lends shares from your portfolio to borrows, and you'll receive interest. Share lending is automated, and you'll still get paid dividends in full.
  • Investing 101 blogs: Trading 212 offers insightful articles covering the basics of investing. So, if you're new to investing and looking to expand your knowledge, the blog is an excellent place to start.

Pros and Cons of Using Trading 212

At a glance, you can see the pros and cons of using Trading 212 below.

Pros

✔️ Good community: Trading 212 has a Community Forum that allows you to connect with other investors; there are a variety of forums you can participate in and learn from.

✔️ Offers ISA: You can invest securely in ISAs with Trading 212.

✔️ Low foreign exchange fee: Trading 212 converts funds at the live interbank rate, charging only 0.15% of the FX fee on currency conversion.

✔️ Broad investment options: There are 12,000 shares available for you to invest in and access global share markets.

✔️ Fees: There are no platform or trading fees with Trading 212.

Cons

❌️ Limited trading assets: You can only trade CFDs, shares and ISAs. You can't trade cryptocurrency on the platform.

❌️ Limited knowledge base: The knowledge base is limited and is centred solely on novice investors.

❌️ Not a lot of features: Unlike other trading platforms, there aren't a lot of features for investors to use or explore.

Key Differences Between eToro and Trading 212

Knowing how the two platforms differ may help you decide which fits you best.

Sure, there are many similarities between eToro and Trading 212, but key differences make them both great platforms.

Features and functions that both eToro and Trading 212 differ:

  • Other fees: eToro doesn't charge a fee for depositing funds, whereas Trading 212 charges a fee of 0.7% for deposits via methods that are not bank transfers after more than £2,000 has been transferred. eToro has an inactivity fee of $10 monthly after 12 months of no log-in activity. Trading 212 doesn't charge inactivity fees.
  • Cryptocurrency trading: Only eToro offers access to cryptocurrency trading with over 70 currencies available.
  • Copy trading: The social trading function allows you to replicate the strategies of top-performing traders on the platform. eToro offers copy trading, whereas Trading 212 doesn't.
  • Base currency: eToro's base currency is USD, so UK customers, amongst other eToro customers worldwide, may include currency conversion fees. Trading 212 accounts can be helpful in Sterling, so you'll only need to pay a foreign exchange fee on non-UK shares.
  • Knowledge base: Trading 212 offers a blog with articles to help novice investors learn more about investing. Meanwhile, eToro takes a more hands-on approach with a free demo account so traders can put their strategies and knowledge to the test. eToro also offers an Academy with comprehensive information on different asset classes with market commentary included.

Key Similarities Between eToro and Trading 212

Although eToro and Trading 212 are trading platforms, they have different things to offer their users.

However, there are some common similarities between the two platforms and providers. If you find yourself looking for a particular feature or asset, knowing both platforms you have covered can help you explore other factors you may be considering.

Features and functions that both eToro and Trading 212 have in common:

  • Platform fee: Neither trading platform has a platform fee. Usually, platforms will have a fee or an exchange commission paid to them for hosting the triad. Both platforms are commission-free.
  • CFD trading options: Both platforms offer trading CFDs, such as shares, indices, commodities, and currencies, on their platform. CFD traders will benefit from either platform.
  • Choice of shares and ETFs: Both platforms offer a selection of shares and ETF trades. eToro has over 3,400 commodities you can share, and Trading 212 has over 12,000.
  • Trading methods: Both platforms allow you to trade on a desktop and an app.
  • Customer support: Both platforms have a highly regarded support team you can access via a support ticket system.
  • Support fractional shares: Both platforms offer the opportunity to invest in fractional shares.
  • Regulated platforms: Regulated platforms indicate that they're safe to use. eToro USA Securities Inc. is authorised worldwide by authorities such as the Australian Securities and Investments Commission. Trading 212 is also authorised in countries worldwide, including the Financial Conduct Authority and the Bulgarian Financial Supervision.

eToro Vs Trading 212: The Verdict

eToro has more to offer than Trading 212, with the ability to trade cryptocurrency, trial running investments with their demo account, copy trading to help learn from other traders and more.

However, because eToro is feature-rich, it doesn't necessarily mean it's the best platform. Trading 212 offers ISA investments, and you can open an account in your country's base currency, so there are no initial currency conversion fees. Plus, they've got the handy Pies & AutoInvest tool to help you achieve your investment goal.

The verdict is that both trading platforms are promising. You have to be the one to choose which platform suits your investment style and gives you the financial options you need.

Related Guides:

FAQs

Is eToro Better Than Trading 212?

What Is the Downside to eToro?

Is Trading 212 Safe to Use?

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