Etoro vs Trading 212: Which one is the best platform?

On this article we will compare eToro with Trading 212. Both are regulated forex and stocks trading platforms.

On this comparison we have analysed the licences and regulations, the minimum deposit, how to withdraw the demo account and what stocks and accounts are available on both platforms.

Etoro vs Trading 212: which company is better for CFDs trading and which one for stock trading? Let’s see it in this article.

 

Trading 212 vs eToro: Regulations and Backgrounds

The broker Trading 212 was founded in 2004 in London, where it currently has its headquarters. It offers CFDs and stocks trading, plus ISA accounts.

The broker is regulated in the UK with the Licence number 8590005.

Trading 212 is also regulated to operate in Great Britain and Europe:

• Trading 212 UK LTD is regulated by the Financial Conduct Authority (FCA) with the licence number 609146
• Trading 212 LTD is licensed by the Financial Supervision Commission (FSC)

The company offers also an account protection up to £85.000. This means that if the company goes bankrupt, they will refund all traders with all they have invested on their account up to £85.000.

This means that Trading 212 is totally safe and secure to trade with.

Etoro is also a safe and regulated broker. The company is available to residents across the UK, Europe, U.S.A., Asia, Africa and Australia.

The company has different regulations which allows it to provide its services in those areas. For instance, eToro has the following regulations:

• ASIC regulation: number 491139
• CySEC regulation:number 109/10
• FCA regulation:for eToro UK number FRN 583263

This shows how the broker can be trusted. What made eToro one of leaders in the market, are its social trading and copy trading tools, plus the opportunity to trade CFDs and Stocks together on the same account.

 

Etoro vs Trading 212: Minimum Deposit

Trading 212 has the lowest minimum deposit among all brokers, with only $1 required. This is the minimum deposit required in all types of accounts:

• Invest Account
• CFDs Account
• ISA Account

To open an account on Trading 212 you need first to sign up on the platform with your personal details, email address and password.

Once that’s done, on the “deposit funds” section of your account, you can proceed with your deposit. There you can select the account in which you want to deposit , the amount of money and the payment method you want to use.

On Trading 212, it’s possible to deposit in different ways:

• Credit or debit card
• Bank wire transfer
• Skrill or Neteller
• Local Payment Methods
• Giropay
• Gpay
• Paypal

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*Your capital might be at risk

Also, if you want to deposit into an Invest account or an ISA account, you can use any of the above mentioned method and you can also schedule future deposits if you want to deposit regularly.

On eToro, the minimum deposit is $200. It is possible to open an account in Dollars, Euro or Pounds. This allows traders to deposit with the local currency without having to pay any exchange rate.

You need to first register with Etoro by clicking on one of the buttons on this page and then by clicking on “deposit funds” on your account, you can proceed with the first deposit.

Also on eToro there are different deposits methods available:

• Credit card Visa or Mastercard
• Bank Wire Transfer
• Skrill
• Neteller
• Bitcoin
• Local Deposit methods

Etoro also gives the opportunity to save your current payment method in order to withdraw your money in there just with one click.

Open a Free eToro Account

*68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

 

Trading 212 vs eToro: Demo Account

On Trading 212 it is possible to have a free demo account in order to see if trading is for you. A unique feature that this broker offers is the possibility to use a demo account  without registration.

In fact, Trading 212 allows people to enter into the website and use a demo account in guest mode. This means that no registration is required to do it.

The demo account is of $50.000. On a demo account there are all the assets that you would find in a real account available.

There are currency pairs, stocks, indexes and commodities. In total there are more than 100 assets to trade, some of the most common are EURUSD, Amazon, Vodafone, GBPUSD, FTSE, etc.

It is very important to mention that the money in a demo account is virtual money, available to learn how to trade and test the platform. For this reason this money can’t be withdrawn. It is not real money.

If you register for a demo account and after some days you want to open a real account, you are totally free to do it. You just need to enter into your private account, switch into a real account and proceed with a deposit.

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*Your capital might be at risk

Etoro also offers a demo account with $100.000 in it. In order to have a demo account, you need to complete a registration first.

On an eToro demo account you have all the same assets available that you would have in a real account. The leverage for each trade is also the same, the only difference is the minimum trade. On a real account there are more options available. This is because eToro offers the demo with the goal to show how the platform is made and the structure instead of giving the full transparent experience to the trader.

The  good thing about this demo is the amount of money available. There isn’t any other broker in the market offering $100.000. This helps traders to test the platform for longer and have a better understanding of all the markets and trades.

Open a Free eToro Account

*68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

 

EToro vs Trading 212: Trading Platform

What makes Trading 212 unique, it’s that it offers 3 main trading accounts:

• CFDs account
• ISA account
• Invest Account

The CFDs account is the trading account where you can trade Contracts for Difference. The assets available are currency pairs such as GBPUSD, indexes, commodities and stocks.

The point of CFDs is that a trader invests in a market through the broker. This means that the asset which has been bought doesn’t belong to the trader. He only speculates on the movement of the prices, deciding if it goes up or down.

The ISA account is a tax-free account where traders can open an investing portfolio or invest in stocks.

Investing portfolios, also known as Investing Pies, are portfolios with different stocks in it, different percentages of each stock and different values.

Every trader can create as many portfolios as he wants in Trading 212. Each of them is managed separately and can be used for different trading strategies.

What make an ISA account unique is the fact that it is tax free. Usually, investing profits are taxed by the local authorities. This type of account is tax free up to $20.000.

Finally, the invest account is the account where you can invest in stocks. This isn’t a tax free account like the ISA one, and this is an account created mainly for stock trading rather than other assets or investing portfolios.

For all accounts the minimum deposit is $1. It is important to remember that each of these accounts is independent from the others and everything is managed separately into the same profile on Trading 212.

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*Your capital might be at risk

eToro is a CFDs platform which offers also stock trading. In terms of account there is the CFDs account where you can trade general assets such as currency pairs, indexes, commodities and also stocks.

This means that stocks will be traded through CFDs and with a leverage.

Something that eToro offers vs Trading 212 is the copy trading and social trading.

Copy trading is the opportunity to copy other traders directly on the platform. On eToro some traders can decide to show publicly their performance and their traders. Other less expert traders can analyse these performances and decide to copy them to have the same results.

The social trading is a feature on the eToro platform where traders can communicate and share their ideas or strategies. It works exactly like Facebook, only for trading and in a trading environment.

Open a Free eToro Account

*68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

 

Trading 212 vs eToro: Assets Available

On Trading 212 there are more than 1000 available assets. For the CFDs account there are:

• Currencies pair (i.e. GBPUSD)
• Commodities (i.e. Gold, Oil, Copper, etc.)
• Index (FTSE, S&P, etc.)
• Shares (Amazon, Google, etc.)

You can find all the assets available in your trading account, sorted by type. The same assets are in the real account, demo account and the App.

For the Invest and the ISA accounts there are only stocks available. The broker offers more than 200 different assets to invest in.

eToro also offers the same assets among its CFDs platform with more than 1000 to choose from. Here you can trade in fact:

• Currency pairs
• Indexes
• Commodities
• Stocks

The broker has recently removed cryptocurrencies from its assets in UK and Europe due to new regulations.

All assets are available when opening the trading interface. They can be found on the top menu already sorted by category.

The same assets are available for the real and the demo account and also on the App.

 

eToro vs Trading 212: Commissions and Fees

Trading 212 has different commissions depending on the account you open.

In the ISA and Invest accounts, all investments are commission free. This is a unique condition that the broker offers to all its traders.

For the CFDs account, the broker is again commission free, but it applies a spread. This is generally average for the major currency pairs, but very low for indexes and stocks, when compared with eToro:

• EURUSD has a spread of 2.2 pips
• GBPUSD 1.1 pips
• EURGBP 2.1 pips
• S&P 500 Index has $2 fees
• EU50 Index has $4,6 fee
• Apple CFDS has $5,6 fee
• Vodafone CFDs has $7,6 fee

Finally, Trading 212 doesn’t charge any commission for deposits, withdrawals and doesn’t have any inactivity fee.

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*Your capital might be at risk

Etoro, also applies a spread on its assets, which compared to Trading 212 are slightly higher.

For the major currencies there are the following spreads:

• EURUSD has a spread of 2.8 pips
• USDJPY 2 pip
• GBPUSD has 1.8 pips
• EURGBP has 1.5 pips
• GOLD has 0.85 points
• OIL 0.14 point

The broker changes only a small swap fee for overnight trades and for withdrawals.

The withdrawal fees are $5 for each withdrawal made of a minimum of $25. On the other end, there aren’t any commissions for deposits and inactivity.

Open a Free eToro Account

*68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

 

Trading 212 vs eToro: Withdrawals

To withdraw money from Trading 212 you need to click on the “withdraw funds” section of your account.

In there you can proceed with the withdrawal by selecting where you want the money to be accredited, the amount of money and from which account you want to withdraw.

The minimum withdraw is $1 and the broker doesn’t charge any withdrawal fee.

Depending on the selected method, the following withdraw times are:

• Bank account from 3 – 5 working days
• Credit Cards from 2 – 3 working days
• Skrill/Neteller maximum 24 hours
• Gpay immediate

For ISA and Invest accounts, you can also schedule a recurrent withdraw for the future. You can select the amount of money you want to withdraw and the account to accredit. By doing this the system then will keep on investing following the same structure selected previously, just changing the money to invest.

Etoro also allows to withdraw in any account belonging to you. The minimum withdraw for the broker is $25 and for each withdraw there is a $5 fee to pay.

It is possible to withdraw on:

• Bank account
• Credit Card
• Skrill or Neteller

Depending on the method, the withdrawal time varies from 1 to 5 working days.

It is important to say that both brokers are regulated and for both of them, before proceeding with a withdraw, you need to have verified your account. To do that you need to upload a document proving your identity and a proof of residence.

This is a standard process required by every regulated company.

 

Etoro vs Trading 212: Support

The Trading 212 support is available 24/7. The support can be contacted by:

• Live chat
• Email

For the live chat the waiting time goes from 5 to 10 minutes.

Emails usually receive an answer within 24 hours. For each email there is a ticket number, so it can be tracked and follow in the future in case of no answer.

The broker can be contacted also on the weekend and during the night.

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*Your capital might be at risk

eToro is also available on live chat and emails. In case of emergency or special questions you can also acquire a phone call from an account manager ready to help.

The support is not available on the weekends but only during the week, so from Monday to Friday.

Both brokers offer their support in different languages, such as:

• English
• German
• Portuguese
• French
• Spanish
• Swedish
• Dutch

Open a Free eToro Account

*68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

 

eToro vs Trading 212: Which one is better?

Trading 212 vs eToro, which one is the better option for a trader?

At the end of our article we can say that the 2 brokers have different values and characteristics.

For CFDs traders, eToro is the better option because the broker has born as a CFDs broker and the whole platform is structure around CFDs trading. It offers a good leverage and a good range of products and assets to trade in.

For stock investors, Trading 212 is the broker to choose. The company has managed to make stock investing easier to understand and available to everybody.

The layout of its platform is very user-friendly and the low minimum deposit allow everybody to start investing.

What makes eToro better than Trading 212 is the social trading and the copy trading. Especially the copy trading tool is unique and can help people without experience to copy from experts and have some good results.

On the other end, the low minimum deposit offered by Trading 212, allows everyone to invest in CFDs and also in stocks. Plus the ISA account is also a unique offer and people do not have to worry about taxes after withdrawing their profits, until a certain limit.

Don’t you like these two platforms? Read our comparison of all the best forex brokers in the market.

 

Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% 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.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

Cryptoasset investing is unregulated in some EU countries. No consumer protection. Your capital is at risk.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.