Search
CloseOpen
eToro vs Trading212
Back to blog categories

eToro vs Trading212: Which Trading App Is Better

The online trading platforms have seen a significant increase in popularity over the past few years in trading forex, stocks, and commodities. Two of the most popular platforms are eToro and Trading 212. Etoro, a social trading network, has over 30 million users and a wide variety of features that make it unique in the industry. While Trading 212 is a more traditional mobile trading platform popular in the UK and Germany. This article will compare and contrast the two platforms, highlighting their similarities and differences.

About eToro

eToro was founded in 2006 by three entrepreneurs: brothers Yoni Assia and Ronen Assia and David Ring. The company is headquartered in Israel but has offices worldwide, including London, New York, Cyprus, and Tel Aviv. 

The platform allows users to trade forex, stocks, commodities, and indices through a web-based interface or mobile app. It also offers social features that enable traders to follow other traders' portfolios and copy their trades automatically.

About Trading 212

Founded in 2004 as an online share dealing service for UK investors, Trading 212 expanded into foreign exchange (forex) trading in 2007. In 2013 it rebranded as Trading 212 with a new mobile-friendly website aimed at international markets.

The company is now headquartered in Dublin, Ireland, with additional offices in London and Sofia, Bulgaria.

In addition to forex trading, Trading 212 offers contracts for difference (CFDs) on shares of some of the biggest companies in the world, including Apple, Facebook, Amazon, and Google.

CFDs are products that allow traders to speculate on the rise and fall of share prices without owning the underlying shares.

eToro vs Trading 212: Fees

Both eToro and Trading 212 are very competitive regarding their fees. eToro charges a flat $5 fee for all withdrawals regardless of the amount withdrawn. 

There is no commission charged on trades, but spreads vary from asset to asset. For example, EUR/USD has a spread of 2 pips (0.0002), while GBP/JPY has a spread of 5 pips (0.0005).

The minimum deposit required to open an account with eToro is $200, while the minimum deposit for Trading 212 is €100 (or £85 in the UK).

Trading 212 does not charge any commissions on trades, but there is an overnight funding charge which varies depending on the currency pair traded and the size of the transaction. The average overnight funding charge is 0.09%. 

eToro also offers a unique feature called "social trading," which provides a platform for traders to follow other traders' portfolios and copy their trades automatically. This service is free for up to three followers per trader, after which eToro charges a monthly subscription fee of $30 per month.

eToro vs Trading 212: What Can You Trade

eToro offers a wide range of features with a total of more than 2,000 assets. These assets include 37 forex pairs, stocks, 13 commodities, 145 ETFs, and more than ten indices worldwide.

Trading 212 offers a more superior range of assets than eToro, with over 3,000 to choose from. Forex traders can access 185 currency pairs, with spreads starting from just 0.2 pips. There is a wide range of stocks to choose from and commodities and ETF CFDs.

Security

The Cyprus Securities and Exchange Commission (CySEC) is the regulatory body responsible for overseeing eToro.

It is registered with the Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC), which provides additional regulations. Funds are protected by the Investor Compensation Fund (ICF), which guarantees up to €20,000 per person in the event of broker bankruptcy.

Trading 212 is regulated by the Financial Conduct Authority (FCA) in the UK and the Bulgarian Financial Supervision Commission. Funds are held in segregated accounts with top-tier European banks for added security.

Clients' funds are protected by The Financial Services Compensation Scheme (FSCS), which guarantees up to £50,000 per person in the event of bankruptcy.

Both eToro and Trading 212 are highly regulated and trusted platforms with safe and secure trading histories.

Ease Of Use

Trading 212 has the most beginner-friendly interface, making it easy for new traders to get started. In addition, the platform is web-based, so there is no need to download any software, and you can access it from any device with an internet connection.

Several instructional videos and tutorials are available on the website to help traders get started.

Similarly, eToro has a user-friendly social trading platform that involves a lot of copying and following. eToro's web and mobile interface are very clean and easy to navigate. Additionally, the platform offers various useful educational materials, such as articles, videos, and webinars.

Other Features

One feature that sets eToro apart is "social trading." This allows traders to follow other traders' portfolios and copy their trades automatically.

Additionally, eToro offers a unique "copy trader" feature that enables you to see the live performance of other traders, including how much profit they have made and how many losses they have incurred.

Another great feature from eToro is Procharts, a tool that allows traders to see a detailed analysis of past price movements. This can be very useful when identifying patterns and trends in the market.

Trading 212, on the other hand, offers "fractional share trading," which allows traders to buy a fraction of the shares in a company rather than the whole share. This can be useful for smaller investors who want to get involved in stock trading but don't have enough money to buy a full share.

In addition to Trading 212's already excellent features is ProQuant, a tool that uses artificial intelligence to analyze market data and help traders make more informed trading decisions.

Conclusion

While eToro presents itself as a social trading platform, Trading 212 is a more traditional trading platform that offers a broader range of features and tools. Both platforms are highly regulated and provide a significant level of security for funds.

However, if you are a beginner and new to trading, it's best to do more research before choosing which platform to use.

You can also check out our comprehensive comparison tool for financial services platforms. You only have to answer a few simple questions, and it will show you which is the best trading app for your needs. 

Back to blog categories