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Etoro vs Degiro
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eToro vs Degiro: Which Trading App Is Better

Choosing your broker is fundamental. Several factors contribute to a safe and all-around pleasant investing experience, including fees, reliability, security, among a few others. Before deciding between eToro or Degiro, make sure you keep reading to find out which is the best platform for you.

Online brokers have become the talk of the town in the last few years. After the 2020 crash, everyone started taking an interest in investing and how to take advantage of online platforms to make money, both long term and in the immediate future.

It started with the surge of cryptocurrencies. The quick rise of Bitcoin, Ethereum, and every other digital currency, made everyone think becoming rich quickly was a real possibility.

With the help of online platforms like Degiro and eToro, everyone can now trade stocks. For many, this has become a more profitable alternative to keeping all your money in the bank, where interest doesn’t even cover the inflation rise.

About eToro

eToro was founded in 2007 in Israel. Today, it is one of the most popular brokers globally, operating in more than 140 countries. It boasts more than 20 million users worldwide, and, as of 2021, it is worth over $10 billion.

eToro advertises their service as “low-fee”, which, like the name implies, means that their commissions are close to zero on most regular operations. Another key feature is “social trading”, which essentially means that the broker also works as a form of social media where you can follow and copy the trades done by successful traders. This feature allows beginners to start out by copying reputable investors and thus learning the art of investing with a safety net.

About Degiro

Degiro is a broker from Europe, more specifically from The Netherlands. It currently has more than 2 million users, and it is the biggest European execution-only broker with a banking license.

Like eToro, this platform is also known for its low commission policy and easy-to-use interface that suits beginner and more advanced investors alike.

eToro vs Degiro: Fees

Both platforms are notoriously cheap and known for their low fees. However, there are a few differences between the two. It is crucial to know how much you will be paying for deposits and withdrawals and how big your broker’s cut is when investing long-term.

If you’re interested in stocks and ETFs, you will be happy to know that eToro offers zero fees investing in these types of orders. The platform guarantees that every cent you invest into ETFs and stocks will stay in your account, which is a significant advantage when compared to other brokers that take a cut.

On the other hand, Degiro also has a zero-fee policy, but it only applies to certain instruments like a select few ETFs. For the remaining stocks and ETFs, the fee can vary, but it will still be well below the market average.

While neither platform charges a deposit fee, you should know that eToro only supports USD deposits. That means that eToro will apply its conversion rate to the sum you inject into your account. To avoid this extra expense, you can use a multi-currency bank account to make your deposit. If you have, for instance, a Revolut account, you can make your deposit in USD and avoid the conversion fee.

Withdrawals are free with Degiro but cost $5 with eToro. If you’re making a low-amount withdrawal, be mindful of this fee.

While Degiro doesn’t charge an inactivity fee, eToro has a $10 flat monthly fee if your account shows no activity for 12 months. To avoid paying this hefty amount all you have to do is log in to your account at least once per year.

Finally, you should note that Degiro also charges what’s called an exchange connectivity fee. The platform will charge you €2.50 per year for each exchange you trade in.

eToro vs Degiro: What You Can Trade

Both of the brokers give you access to a wide variety of instruments, including the most popular ones: stocks, bonds, and ETFs. eToro goes the extra mile and offers CFDs and even cryptocurrencies.

Security

eToro and Degiro take safety seriously. When it comes to securing your money and investments, both platforms do a great job.

eToro is regulated by top-tier authorities like the FCA, CySEC, and ASIC. All of its financial information is publicly available for added transparency.

Degiro is also regulated by reputable authorities. This European broker is primarily regulated by the FCA in the UK and the Dutch Central Bank in its home country. Contrary to eToro, Degiro also operates under a banking license. Degiro’s banking activity is under the supervision of the European Central Bank.

Ease Of Use

In the ease of use category, there isn’t much to be said. Degiro vs eToro is a close race. Both of the platforms were designed with beginners in mind. Every instrument is easy to access and comprehend.

The two brokers are easy to use, and the interface is quick to understand. The platforms even offer mini-videos with explanations of all the features.

Other Features

One feature that we briefly mentioned is the CopyTrader option.

eToro offers what can also be called social trading. With this feature, you will be able to copy the actions of famous and more advanced traders. With CopyTrader you can assess the past performance of a trader and simply copy their future moves.

Smart Portfolio is another eToro tool that allows users to freely group assets (crypto, stocks, bonds, etc.). ‘Star traders’ frequently publicize their Smart Portfolio for you to invest in. Simply check the past performance and decide if you want to invest in that specific group of assets.

Conclusion

Both eToro and DEGIRO are excellent choices, but finding the best trading app ultimately depends on your needs.

To find the best one, simply use our comparison tool. All you have to do is answer a few simple questions, and our algorithm will point out the best trading app for you.

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