eToro and Trading 212 are 2 reliable online brokers, but which is the best online broker? To help you with your choice, we do not just give our opinion individually by a broker, but we put them side by side and compare their offers so that you can see more clearly. Our eToro vs Trading 212 comparison showed that the two brokers have several things in common, including buying shares at 0% commission and an ergonomic and easy-to-use trading platform. eToro defines itself as an actual fintech company, while Trading 212 stands out for its innovative and diverse products offered to savers.
eToro vs. Trading 212: Summary
eToro and Trading 212 have similarities, but their offers are diverse and are not necessarily aimed at the same trader profiles. Before discovering in detail what these two leading brokers in their fields offer you, we would like to remind you that training or investing with these two platforms presents a risk of capital loss. That’s why it’s essential to have a proper money management plan before you start trading.
79% of retail investor accounts lose money when trading CFDs with this provider. You need to ask yourself if you can afford to take the high risk of losing your money.
The main strength of eToro is social trading. This is the broker who popularized this style of trading. eToro is the largest social trading network in the world, with over 23 million users. The broker also owes its success to its user-friendly platform. At the time of its launch, while trading platforms were quite advanced with many technical analysis tools, eToro opted for a straightforward platform to the detriment of essential analysis tools for professional traders.
The online broker does not rest on its laurels regarding social trading; it regularly adds new features to improve its platform. The CopyTrader is a tool dedicated to copy trading itself. It has several search functions and filters to help investors find the best traders to follow and copy their performance. Another product called CopyPortfolios works like ETFs and helps reduce risk by having exposure to multiple financial instruments simultaneously.
eToro will probably be right for you if you plan to do copy trading in addition to your trading. Visit his site to find out more.
This review will help you in trading and getting high bonus.
Commission-free trading is becoming increasingly popular, shaking up the online brokerage industry. Trading 212 is one of the players who are changing the way we trade. This fintech broker is based in the UK and Bulgaria. Like eToro, it diversifies its offers to attract the most significant number of traders and investors. The broker mainly offers 2 types of accounts: CFD and Invest. You will have understood that the first is dedicated to active traders and the second to investors. It is through the Invest account that Trading 212 offers the purchase of shares and ETFs without commission.
Trading 212 also has the advantage of trading fractions of shares, thus allowing small investors to have all the securities listed on the stock exchange within their reach and to manage a portfolio properly despite their small capital.
Trading 212 is an online broker that will suit you if you want to take advantage of a simple and flexible trading environment.
Trading 212 vs. eToro: Commissions and Fees
eToro vs Trading 212: Both brokers offer commission-free stock and ETF trading. However, eToro is overall more competitive.
eToro: commissions and fees
To start trading, opening an account and depositing with eToro is free. However, the broker only offers the dollar account as the base currency. Therefore conversion fees apply if you use money other than the dollar for the deposit. Withdrawals are not accessible if you do not reside in the United States; there is a $5 fee. These fees are drastically reduced, as withdrawals were charged $25 for a long time.
eToro is one of the brokers that offer commission-free stock and ETF trading. We like that this applies to all instruments in these 2 asset classes. This offer is only valid if you buy without leverage. When you sell a device or use force, its CFD is automatically allocated to you. CFD trading at eToro comes with fees. They vary according to the financial tools, and you will find all the prices on the dedicated page on its site. Shares on the Paris Stock Exchange have a CFD fee of 0.09%.
The trading of crypto-currencies is also charged at once and expressed as a percentage. They cover the opening and closing of the position. Cryptocurrency fees range from 1% to 5% for less popular altcoins. Buying Bitcoin comes with a 1% fee. If you plan to purchase tokens and transfer them to other wallets outside of eToro, the transfer fee is 0.5%, with a minimum of $1 and a maximum of $50.
If you remain inactive on your account after 12 months, eToro will charge a $10 per month inactivity fee. This is debited from your remaining balance.
Overall, eToro’s CFD fees are pretty high, but there are no fees to use the CopyTrader and CopyPortfolios services.
Trading 212: commissions and fees
Trading 212 offers good spreads for CFD trading, although admittedly, they are not the best in the industry. Other brokers provide more competitive pricing. Some assets have better spaces than others.
Trading 212 can be counted among the brokers that offer free trading on stocks and ETFs. Trading conditions at this broker are changing. Stock and ETF trading used to be completely free, but the broker now charges for currency conversion. If you have a euro account and buy a stock listed in dollars, you pay a conversion fee of 0.15%. There are no inactivity fees or overnight fees for maintaining your positions.
For CFDs, there is a currency conversion fee of 0.5%. Forex currency pairs have a variable spread that is quite wide, up to 2 pips for EUR/USD. We regret that the broker does not give many details about these fees. The instrument specification table on the site fails to specify the costs for the various instruments offered.
If you were wondering what cryptocurrency fees are at Trading 212, know that the broker has stopped offering virtual currencies.