eToro vs Trading 212 Comparison – 2024

Top Reasons to Choose eToro vs Trading 212

After completing my thorough research of eToro, I found it to be the better option for social trading. The broker has built a global community of more than 20 million traders, enabling them to interact, share experiences, and exchange knowledge. eToro does not charge any extra fees for copy trading, which is facilitated through its top-tier proprietary platform.

In contrast, Trading 212 is an excellent choice for those focused on share CFD trading. The broker offers access to over 7,000 shares and ETFs, allowing stock traders to capitalize on a wide range of opportunities and diversify their portfolios. Trading 212 caters to both speculative traders and long-term investors interested in portfolio creation.

eToro: Snapshot

eToro is one of the largest and most recognizable brands in the trading industry, known for its focus on copy trading. The broker was founded in 2007 and is headquartered in Israel. eToro provides a very intuitive platform, charges below-average trading fees, and offers quite a lot of supporting tools.

eToro: Who is it For?

eToro primarily caters to the needs of traders interested in copy and social trading. The broker has built a robust environment where strategy providers and followers can interact easily, exchange trading ideas and experiences, and collaborate to meet their goals.

What Makes eToro Stand Out?

Unlike most other brokers that offer copy and social trading, eToro does not charge a commission for this service. This makes it a cost-effective option for strategy providers to promote their systems and for followers to benefit from their success without incurring additional fees.

Trading 212: Snapshot

Trading 212 is an industry veteran, founded over two decades ago, in 2003. Headquartered in the United Kingdom and regulated by several Tier-1 authorities, the broker offers an impressive selection of over 7,000 instruments across multiple markets, all at competitive prices. The broker has also made significant investments in its proprietary platform, known for its intuitive design and smooth charting experience.

Trading 212: Who is it For?

Trading 212 is an excellent choice for stock traders. The broker offers over 7000 share CFDs and ETFs across global markets at very competitive prices. Its spreads generally fall below the industry average, and share assets can also be traded commission-free. The broker’s platform is also well-suited for sophisticated technical analysis.

What Makes Trading 212 Stand Out?

Trading 212 was the first derivatives broker in Europe to introduce commission-free trading, contributing to the popularization of share CFDs trading. The broker offers a broad and diverse range of share CFDs, including instruments from European, Asian, and US markets, enabling traders to capitalize on various global opportunities.

Trust

eToro vs Trading 212 Trust and Regulation Comparison

eToro holds four Tier-1 regulatory licenses (CySEC in Cyprus, FCA in the UK, ASIC in Australia, and FINRA in the US), along with one offshore license (FSA in the Seychelles). The broker adheres to the strictest safety requirements and provides essential safety mechanisms, such as the segregation of client funds and negative balance protection.

Trading 212 is regulated by three Tier-1 authorities under ESMA (CySEC in Cyprus, FCA in the UK, and the FSC of Bulgaria). The broker also adheres to stringent safety protocols, offering negative balance protection and segregating client funds. Additionally, Trading 212 provides extra layers of security through private indemnity insurance.

If you want to learn more about brokers’ regulations, be sure to check out our article on the top regulated forex brokers.

Fees

eToro vs Trading 212 Spreads, Fees, and Commissions Comparison

eToro’s retail account offers commission-free trading with floating spreads starting from 1.0 pips. This combination generally meets the industry average. Most notably, eToro does not charge any extra commissions for copy trading. However, its swap rates are higher than average, meaning that the broker is better suited for short-term trading.

Trading 212’s CFD trading account also provides commission-free trading, with floating spreads starting from 0.4 pips. Its spreads vary by asset class but tend to be lower than the industry average. With respect to share CFDs, the spreads I recorded were quite low. However, Trading 212 also charges relatively high swap fees and a 0.5% FX conversion fee.

Platforms and Tools

eToro vs Trading 212 Trading Platforms Comparison

eToro’s proprietary platform is designed specifically for social trading, connecting strategy providers with followers. It is powered by the seamless Trading View, making its charts extremely fluid and detailed. The platform supports over 150 analytical tools (technical indicators and drawing tools) and other chart configurations, enabling the execution of sophisticated technical analysis.

Trading 212 has also developed its own platforms with an intuitive design and professional-grade charting capabilities. The wide, informative charts allow for a detailed examination of price action from multiple perspectives. With over 80 analytical tools available, the platform provides solid support for technical analysis, though it does not support copy or automated trading.

In case you’re looking for brokers that offer third-party platforms, check out our guides on the best MT4, MT5, and cTrader forex brokers.

Tradable Instruments

eToro vs Trading 212 Instruments Selection Comparison

eToro provides access to over 5,800 tradable instruments across various asset classes, including FX pairs, commodities, indices, share CFDs, ETFs, and cryptocurrencies, all available exclusively as CFDs. The broker offers a balanced mix of higher-risk assets and lower-risk securities, enabling traders to manage their market exposure effectively. Additionally, according to our assessment, eToro offers one of the largest selections of commodities and crypto assets in the industry.

Trading 212 shines in the instruments category by providing more than 7,000 tradable instruments, the vast majority of which are share CFDs and ETFs. Share CFDs offer higher yield and risk, while ETFs cater to those seeking lower-risk options. Trading 212 also allows clients to invest in real stocks, adding flexibility for investors.

Customer Support

eToro vs Trading 212 Customer Support Comparison

eToro offers multilingual support over email. Live chat and phone calls are only available to registered clients with at least a $5000 account balance. Traders can submit their queries through the ticketing system on eToro’s website by submitting a form. The answers are usually well-researched and insightful, but they may take up to several business days.

Trading 212 offers 24/7 customer support exclusively through email, without live chat or phone options. Response times typically range from a few hours to several business days, but they are usually highly informative. Trading 212 has also developed a strong community section on its website, where traders can ask questions and usually receive answers from other community members fairly quickly.

Research

eToro vs Trading 212 Research Tools Comparison

eToro offers excellent in-house research content with detailed market analyses and breakdowns. These insights provide traders with a comprehensive understanding of unfolding trading opportunities and the factors driving them.

The scope of Trading 212’s research content is more limited. The broker no longer publishes technical or fundamental analyses nor includes third-party research tools. However, it does feature an intuitive economic calendar and a market sentiment tool.

Deposits & Withdrawals

eToro vs Trading 212 Deposit and Withdrawal Methods Comparison

eToro offers deposits and withdrawals through bank wire, credit/debit cards, PayPal, Neteller, Skrill, Rapid Transfer, iDeal, Klarna, Trustly, Przelewy24, and the eToro Money Wallet. All payment transactions are instant, except for bank transfers, which may take 4 to 7 business days. While deposits are free of charge (conversion fees may apply), withdrawals incur a $5 fee.

Trading 212 allows for fee-free deposits and withdrawals, with processing times that generally align with industry standards. The broker supports about a dozen payment methods, including wire transfers, credit or debit cards, and various e-wallets.

Account Types and Terms

eToro vs Trading 212 Account Types Comparison

eToro provides a single retail account type with a $50 minimum deposit and multiple account tiers. Higher account balances unlock improved conditions, such as discounts on exchange rate fees, interest on the balance, and additional benefits. The broker also offers Islamic accounts, which allow for swap-free trading.

Trading 212 features one Investing account and one CFD Trading account, the latter being more suitable for high-frequency trading. The minimum deposit requirement with Trading 212 is 10 units of the account’s base currency. However, the broker does not offer Islamic accounts for swap-free trading.

Education

eToro vs Trading 212 Educational Content Comparison

eToro excels in educational offerings, with an impressive selection of 21 courses, guides, and step-by-step tutorials. These materials cover a range of topics, including technical analysis, fundamental analysis, and trading psychology.

Trading 212 has published over 160 educational videos on its YouTube channel, with a primary focus on trading psychology. Topics include ‘how to apply tight risk management,’ ‘how not to let your emotions affect trading decisions,’ and more. I believe these insights are essential for consistent trading. Trading 212 has also published written articles covering key investing topics.

Our Methodology

Since 2011, FX Empire has developed a detailed methodology for evaluating CFD brokers, involving over 250 variables across nine crucial categories. Our team of experts, with deep industry knowledge, conducts live testing and research by interacting with the brokers directly. We check regulations, open accounts, test spreads, account costs, platform functionality, instrument variety, customer support reliability, and the quality of research and educational content. This granular analysis helps us identify each broker’s strengths and weaknesses, keeping our comparisons current with market trends and ensuring our guides meet traders’ needs.

We strive to evaluate each broker objectively, considering how their offerings align with the diverse trading goals and preferences of our readers. Our focus is on providing a balanced overview of each broker’s strengths and weaknesses. This method ensures that our readers receive clear, insightful comparisons to aid in making well-informed trading decisions.

We employ a comprehensive rating system across nine key categories:

• Trust
• Fees
• Platforms and Tools
• Tradable Instruments
• Customer Support
• Research
• Deposits and Withdrawals
• Account Types and Terms
• Education

In each category, we conduct an in-depth analysis for both brokers, outlining features, advantages, and disadvantages and determining their suitability for different trader profiles. By blending insights from our extensive reviews with first-hand experiences and observations, we ensure each comparison is balanced, informative, and tailored to the trader’s unique needs. You can read more about our review process here.

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