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etoro vs nordnet
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eToro vs Nordnet: See Which Platform is Better For You

Investing can be a rewarding endeavor. As with every venture, the process is cumbersome, especially for beginners. With many brokers now available online, one of the first challenges that new investors must pass is selecting a broker. eToro and Nordnet and two of the best online brokers with many similarities and important differences. But, do you know which solution would suit you best? Read our eToro vs Nordnet review to know the distinct features of each company and which is best for your investment needs.

About eToro 

eToro is a leading social investment network that aims to enhance investors' financial education and improve how people invest. The multi-asset investment platform is built on social collaboration – a community where users can connect, share, and learn. Established in 2006, the Israeli company offers securities trading to customers in major parts of the world. 

About Nordnet 

Nordnet is a Swedish company established in 1996 to allow customers in Finland, Denmark, Sweden, and Norway access to trading financial instruments. With headquarters in Stockholm, the company has business areas in savings and investments, pensions, and loans. Nordnet has a digital platform for investment and savings that customers can use to save and invest in stocks, mutual funds, and other securities at reasonable prices. 

eToro Vs Nordnet: Fees 

eToro 

  • eToro's fee structure applies to deposits, trades, and withdrawals. The platform does not charge any commission on stocks or management fees, including when you copy other traders and incest in portfolios. In other words, there is no markup, stamp duty, or ticketing fees. The only price you need to worry about is the bid and ask market spreads. 
  • Stocks and ETF: You can invest in stocks without paying a commission. You can also buy just a fraction or in bulk for as little as $10. So, no management, rollover, ticket, and additional broker fees. 
  • Crypto: eToro charges a single fee of 1% for selling and buying crypto. The fee is calculated on the platform and is included in the price that is displayed when you close or open a position. 
  • CFDs: The platform charges spread ranging from 1 pip to 3 pips for currencies and from 2 pips for commodities. You will pay 0.09% on stocks and ETFs and from 0.75 points on indices. 
  • General fees: The deposit fee is free, while the withdrawal fee is $5. Also, the conversion fee starts from 50 pips, and the inactivity fee is $10 per month after 12 months of inactivity. 

Nordnet 

Nordnet customers don't need to pay opening or storage fees on their portfolios. In other words, the price of a customer's subscription is € 0. The platform has 4 price levels and as a new customer, you can trade for at least the first two full months at the level one price list. 

  • Level 1: The trading fee on the Helsinki Stock Exchange is 0.06%, with a minimum fee of € 3 for customers who have made more than 50 trades in the previous calendar month.
  • Level 2: The trading fee on the Helsinki Stock Exchange is 0.10%, with a minimum fee of € 5 for customers who have made 11-50 trades in the previous calendar month.
  • Level 3: The trading fee on the Helsinki Stock Exchange is 0.15%, with a minimum fee of € 7 for customers who have made 1-10 trades in the previous calendar month.
  • Level 4: The trading fee on the Helsinki Stock Exchange is 0.20%, with a minimum fee of € 9 for customers who have made 0 trades in the previous calendar month. 
  • There is a special price list for new customers, active traders, private banking, and various markets. 

eToro vs Nordnet: What Can You Trade

eToro 

eToro offers the following assets: 

  • 2736 stocks 
  • 64 cryptocurrencies 
  • 32 commodities 
  • 13 indices 
  • 49 currencies 
  • 264 ETFs

Nordnet 

Nordnet offers the following assets: 

  • ETF/ETN 
  • Options 
  • Stock 
  • Fund 
  • Warrants 

Security

eToro and Nordnet are at the same level as far as licensing is concerned. Both companies are licensed by the Norwegian Financial Supervisory Authority to carry out cross-border activities. eToro Europe is regulated by the Cyprus Securities and Exchange Commission. It is also regulated by the Financial Conduct Authority in the UK. On the other hand, Nordnet is supervised by Finansinspektionen in Sweden. 

The following are subordinate services both companies are licensed to offer: 

eToro

  • Investment services, cf. the Securities Trading Act § 2-1 (1): This covers receipt and transmission of orders, self-trading, execution or order, and portfolio management. 
  • Related services, cf. the Securities Trading Act § 2-6 (1): covers lending, storage, and management of financial instruments, dissemination and preparation of investment recommendations, and services related to foreign exchange activities connected with the provision of investment services. 

Nordnet 

The Financial Undertakings Act § 3-2, cf. § 2-7: This covers lending activities, receipts of deposits and other funds to be repaid, money market instruments, guarantees and collateral, and currency. It also includes financial forward contracts and options, negotiable securities, currency and interest rate instruments, depot business, portfolio management, and participation in share issues. 

Ease of Use 

User Interface and Design 

Both eToro and Nordnet have a good user interface and design. eToro offers an overview of CFDs and stocks you follow, and there is a menu on the side that grants quick access to your portfolio, market news, deposit, settings, and withdrawal. Nordnet also has a menu at the top of the screen that shows your pages, market and stock exchange, and customer services. Plus, the platform offers an overview of all sub-indices and the main index. 

eToro provides statistics on how customers traded, and Nordnet allows you to scroll to see a list of traders and the shares they traded the most. So, both platforms are equal as far as user interface and design are concerned. 

Analysis 

Nordnet 

You can buy an additional program on Nordnet for technical analysis. You can also add moving averages, RSI, MACD, Bollinger Bands, and a few other indicators. However, you can't draw support and resistance, trends, and formations. However, they do not offer fundamental analysis. 

eToro 

You can open share prices in charts on eToro, and the technical analysis program is free. You can also choose different chat layouts and settings, and draw technical formations, trend lines, and support and resistance. Also, it offers RSI, floating moving averages, MAC, and a few other indicators. Unlike Nordnet, eToro offers free fundamental analysis for some shares. 

Customer Service 

  • eToro offers a ticket system, live chat, 24/7 support, and a FAQ section. 
  • Nordnet offers a FAQ section, Ticket system and is open Monday to Friday, 8:30 am to 5 pm. You can also call 23 33 30 23 for inquiries. 

As you can see, both platforms offer the same customer service with a few variations of 24/7 chat and an accessible phone number. So, bear in mind that Nordnet's customer service is not available on weekends and that eToro does not offer telephone support. Again, a draw. 

Brokerage and Costs 

eToro does not charge brokerage fees, but Nordnet does. In other words, when you trade on eToro, you won't pay a commission to sell shares, CFDs, and listed funds. The only price you will pay is the spread. 

On the other hand, Nordnet charges a commission for their different brokerage classes. It ranges from € 3 to € 9. If you add spread to this figure, you will discover that Nordnet is more expensive to use than eToro. 

Investment Options 

eToro offers more investment options than Nordnet. Although both platforms offer access to ETF/ETN and stocks, you can trade stocks on eToro from any part of the world. This includes American and European stocks, Norwegian stocks, and Chinese stocks. In contrast, Nordnet only offers access to trading American, European, and Norwegian shares. 

If you want to trade options, warrants, and funds, choose Nordnet. But if you wish to trade cryptocurrencies and CFDs on currencies, cryptocurrencies, commodities, indices, and access shares from any part of the world, choose eToro. 

Conclusion 

If our Nordnet vs eToro has revealed anything, it is that they are both great investment platforms. Both companies are licensed and secured to guarantee the safety of your funds. However, eToro is more user-friendly, charges less fee, and offers better customer support and technical analysis tools. 

If you're not sure any of these 2 is a good match for you, use our brokerage comparison tool to find the best investment platform for your needs. Try it now!

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