eToro vs Trading 212: what’s the difference?

Summary 

• Trading 212 offers many services including fractional trading from £1.

• eToro’s social trading platform has over 30 million users globally, while eToro Academy provides educational tools to beginner investors.

• Talking to a qualified financial adviser is worth considering before investing to ensure a diversified portfolio and to limit risk.

What is the difference between eToro and Trading 212?

Trading 212 boasts commission-free trading and lower fees than eToro. Trading 212 reviews praise its cost-effectiveness but note occasional customer service issues.

eToro, on the other hand, is a social trading platform where you can copy successful traders. 

However, their fees can be higher, particularly with spreads and withdrawal costs. Reviews highlight eToro's user-friendly interface but note that customer service can be slow.

Trading 212 vs eToro: what services do they provide?

Trading 212 and eToro offer distinct services tailored to their traders:

Trading 212 services

Trading 212 focuses on commission-free trading with a user-friendly platform for trading, including:

• Stocks: Anyone can purchase part-ownership in a company via stocks.

• Exchange-traded funds (ETFs): These are an assortment of securities designed to match or outperform an index.

• Forex: Traders can get involved in forex, which is trading currencies to profit from the transaction.

• Commodities: You can also get involved in the trade of primary or unmanufactured goods such as gold or crude oil.

• Cryptocurrency: You can trade in cryptocurrency by buying and selling cryptocurrency, such as Bitcoin and Ethereum, on an exchange, but this is very high risk and not for inexperienced investors. 

The Trading 212 platform is regulated in the UK by the Financial Conduct Authority (FCA). It is also backed by the Financial Services Compensation Scheme (FSCS).

Trading 212 aims to help its traders know the risks of trading, which is vital, especially with highly volatile and highly risky investments such as cryptocurrency.

It's crucial to get financial advice beforehand to understand investment risks, fully navigate the complexities of trading, and create a diversified portfolio.

eToro services

eToro is also regulated by the FCA and covered by the FSCS. 

The platform specialises in social trading, allowing you to copy successful traders' strategies.

Similar to Trading 212, eToro offers access to a wide range of investment strategies, including:

• Stocks

• Forex

• Cryptocurrencies

• ETFs

eToro also allows you to invest in investment trusts, which pool money from many investors to invest in a diversified portfolio and contract for difference (CFD) trading, allowing you to speculate price movements without owning the underlying asset.

Trading 212 vs eToro: how do the fees compare?

Trading 212 and eToro have different fee structures.

Here's a quick comparison:

Trading 212 Fees

Trading 212 fees are generally low, with commission-free trading on stocks and ETFs, but it charges for forex and commodities spreads.

There are no deposit fees; their minimum investment amount is £1.

eToro Fees

eToro fees are higher, and they charge fees for spreads, withdrawals, and inactive accounts.

The minimum investment amount for stocks is £10. Similarly to Trading 212, eToro also does not charge commission on stock and ETFs.

Given the risk associated with cryptocurrency and CFDs, eToro charges a 1% fee for buying and selling.

Trading 212 vs eToro: who has better customer service?

We explore how Trading 212 and eToro compare when it comes to customer service.

eToro customer service

eToro offers various customer service options, including:

• Live chat (only available for club members).

• WhatsApp (only available for club members).

• Ticket system for support requests.

• Email.

However, eToro reviews often mention slow response times. As they don't provide phone support, urgent queries usually need to be made via live chat and online ticketing systems.

Trading 212 customer service

Trading 212 provides customer support through live chat, email and their app. However, there is no phone support, which can be an issue for urgent queries.

Trading 212 reviews highlight faster response times compared to eToro, making it a more reliable choice for quick assistance.

Trading 212 vs eToro: which has better reviews?

With so many online platforms, you must research to determine which is best suited to your needs. 

Comparing these reviews can help you determine whether Trading 212 or eToro aligns better with your expectations. 

Trading 212 reviews

Trading 212 reviews are generally positive, with users praising the platform's commission-free trading and user-friendly interface.

On Trustpilot, Trading 212 scores 4.6/5 (based on around 30,000 reviews). Clients appreciate the low fees and ease of use but note occasional customer service delays.

eToro reviews

eToro reviews are generally positive, with many users appreciating the platform's ease of use and wide range of assets.

However, some criticise the higher fees and slower customer support, though the brokers typically get good reviews. eToro's score on Trustpilot is 4.2/5 based on around 24,000 reviews.

Can you open accounts with Trading 212 and eToro?

Yes, you can open an account with each of these platforms.

Opening an account on Trading 212 is straightforward as you sign up online and provide personal identification before verifying your address.

The minimum investment amount is £1. Trading 212 provides an annual summary of your transactions, which helps calculate capital gains tax (CGT).

You should ensure you track your profits to avoid overlooking any tax liabilities.

You can also open an account with eToro easily. The process involves online registration, ID verification, and proving your address..

The minimum amount for stocks is £10, while other fees pertain to CFDs; these fees may vary.

Similar to Trading 212, eToro offers transaction summaries to help you manage CGT. Keep detailed records of your trades to ensure you accurately report any gains.

What are the advantages and disadvantages of Trading 212?

The pros and cons of Trading 212 include:

Trading 212 advantages

• You benefit from commission-free trading on stocks and ETFs.

• They have a user-friendly interface.

• There is a low minimum investment.

• You can access a diverse range of assets.

• Trading 212 is regulated and protected by the FCA and FSCS respectively.

Trading 212 disadvantages

• It offers no phone support.

• There are occasional service delays.

• There are limited research tools.

• Slightly higher fees apply for forex and commodities trading.

• There are some geographic restrictions, as some services are not available in all countries.

What are the advantages and disadvantages of eToro?

Here are the pros and cons of eToro:

eToro advantages

• They offer useful social trading features.

• You can access a wide range of assets.

• It has a user-friendly and innovative platform, ideal for beginners and advanced traders.

• Comprehensive education resources are available.

• eToro is regulated and protected by FCA and FSCS, respectively.

eToro disadvantages

• There are higher fees for spreads, withdrawals, and inactivity.

• It has slower customer support than Trading 212.

• There are higher minimum investment amounts than Trading 212.

• The complex fee structure can be confusing for new users.

• There is no phone support, so you must rely on live chat and tickets.

Trading 212 vs eToro: which is better for you?

Trading 212 is ideal if you're looking for commission-free trading and a user-friendly platform. It's suitable for beginners with a low minimum investment amount of £1 and a straightforward interface. 

If you want to trade stocks and ETFs with minimal costs, Trading 212 is the better of the two options.

eToro suits those interested in social trading, where you can copy the strategies of successful investors. It's beneficial if you want access to a wide range of assets, including cryptocurrencies. 

eToro is also suitable for traders who value educational resources and are willing to pay higher fees for advanced features.

Effectively, your choice between eToro and Trading 212 depends on what you value more.

Get expert financial advice

Investing can be complex and involves some risk, which means you could end up losing money. However, there are ways to reduce investment risk, such as a diversified portfolio.

Unbiased can match you with a qualified financial adviser who can provide expert financial advice to ensure you have an investment strategy that works for you.