Etoro vs Trading 212

We dive in to see if brokers are truly what they are presenting to be. Also, discover what are the best parts of their offer and if they fit your trading style. Both Trading212 and eToro feature some unique trading options. This review will compare them and give you a recommendation based on our deep research.

How good is Trading212 compared to eToro? Find out in our free, comprehensive review.

Intro

You are on the right track if you are reading this review, you put effort into research, a sign of a great trader. Finding the best broker takes a lot of trial and error, and reading. However, it is one of the most important steps. First of all, you want your money secured and fair trading conditions. Unfortunately, the brokerage industry has been a target of many scams.

Brokers make the bridge between you and trading or investing. Like internet providers but for capital markets. However, they vary greatly in how they do business and what they offer.

Usually, brokers are classified as NDD (Non-Dealing Desk, ECN) and DD (Dealing Desk). To put it simply, the difference is how they handle your trading orders. NDD will charge you a commission and put through your order directly into the capital liquidity pool. DDs have an internal protocol (desk) for your trades and can create liquidity using their clients’ positions. They commonly charge spreads only. Now, also called Market Makers, DDs are not well-revied among the trading community. Conflict of interest between them and traders is just one reason. However, Market Maker brokers are usually well-regulated and invest heavily in security.

Etoro vs Trading212

You will notice similarities when you take first looks at the two brokers’ homepages. Etoro and Trading212 rely on modern, simple web designs like they share the same template. However, it is immediately evident how they differentiate. Etoro highlights social trading while Trading212 is proud of its “no commission investing”.

Let’s dive deeper into who are these brokers beyond their fancy websites.

How eToro and Trading212 Evolved

Trading212 is a rebranded market maker broker formerly known as Avus Capital Ltd. That name did not have a great reputation according to our sources. Since 2014 Trading212 has opened a UK, FCA-regulated branch, a move that helped attain fresh clients. Trading212 main clients come from Italy, Poland, Germany, and UK. Rebranding and expansion beyond Bulgaria where they held a sizable market share with good “no commission” direct sales marketing proved to be a success story. However, Trading212 had to abandon the German branch in 2021 and never had a BaFin license to operate in the country. All of the german clients had to migrate to other Trading212 entities. Now, this broker relies on a proprietary platform and keeps the same “no-commission” trading mantra (not available for all countries). To understand the actual costs of trading with this broker, read the Costs comparison.

Since 2007 eToro had a great marketing mix, keeping to the same core values to this day. However, the year 2010 marked probably one of the best moves in brokerage development. That was the year when eToro launched social trading. Mixing the global trends among the young with simplicity and a fun trading experience was well executed. eToro did the same thing in 2017 using the crypto hype and becoming one of the first crypto brokers. Marketing campaigns were extensive in the last decade and even today you will certainly notice the eToro brand on TV and at major sports events. Similarly to Trading212, no commission trading has been introduced in 2019. Today, eToro has managed to establish itself in the high-barrier US market, where many brokers have a hard time obtaining a license.

Broker type

Trading212 is a proprietary platform-only broker offering CFDs, crypto, stocks and other assets. The broker is regulated and has an internal dealing desk (Market Maker). Trading212 features investing with no commission, however, other fees can offset this advantage.

EToro is also a proprietary platform-only broker specialized in beginner-friendly social trading, copy trading, and other simplified investing options. It is a market maker broker offering CFDs, crypto, and many other assets. Etoro is a regulated broker holding multiple licenses.

Accounts and Services

Trading212 has implemented CFD trading, ISA, (savings account that is tax-free for UK residents), and real Stock investing into their proprietary trading platform. Some countries only have certain accounts available (i.e France has only Investing account). Fractional shares investing is available. This broker does not accept clients for the US and Canada, unlike eToro. Smilar, but not the same, Trading212 “pie” portfolio management is analog to eToro’s ready-made portfolios.

Etoro is known for copy trading, but there are other services few brokers offer in the industry. Aside from classic CFD trading on many markets, eToro has a staking service, ready-made portfolio investing, no commission stocks trading and allows clients to earn income based on their popularity (measured by the number of followers). Lately, eToro launched an e-money app that acts like a bank app allowing SEPA transfers, reduced broker fees, etc. Additionally, some clients might be interested in the “Delta” app by eToro for NFTs and Web3 wallets service.

Platforms

Each broker has only one platform offer developed and adapted to their services. eToro has integrated almost all services they offer into its app available from App Store or Google Play. The platform also runs from a web browser. Trading is simplified, although advanced traders can open “ProCharts” that has overall better tools and abilities than the Trading212 platform has. The Etoro platform calculates the fees associated with each trade and allows you to post comments about your action, make polls, etc, like a social platform. The eToro platform is full of information, a very intuitive solution that enhances eToro-specific services.

Trading212 platform fees like TradingView although simplified and without the combined abilities of eToro. Still, it is focused on trading. Advanced traders would need more than what Trading212 platform has to offer though. For example, having automated trading solutions or custom indicators. The right side Info panel shows stats such as price movements, sentiment, price change on various timeframes, enough information about the trading conditions, and the trading hours chart. However, the spread info is missing and has to be manually calculated using the bid/ask prices.

Trading212 platform

Pros

• Solid platform for trading on intermediate level
• Provides a good overview and integrates with the broker account
• Well-organized and designed for mobiles and web
• “Pie” like portfolio management and presentation

Cons

• Only one platform is available
• Average number of indicators
• No automated trading
• The web version is not very responsive

eToro platform

Pros

• Feature-rich platform
• Well-designed, beginner-friendly layout
• Social feeds
• Has more tools and options such as Renko charts, indicators.
• Transparent fees calculation for each trade
• Covers many broker features without being too complex.

Cons

• No automated trading
• Some features are disabled until you deposit
• Trading with leverage and shorting requires Stop Loss and Take profit placement

Instruments Range

eToro has developed an impressive asset range in many market categories. You will find thousands of companies across the globe, 49 currency pairs, 19 indices, 26 commodities and precious metals, 300 ETFs, 79 crypto coins with different pairings such as BTC/GOLD for example. NFTs are offered through the Delta app.

Trading212 instrument range is not as developed as eToro’s. However, if you are not into crypto, Trading212 has enough on the table for an average trader. There are more than a thousand instruments all combined. Forex traders will like Trading212’s offer of more than 150 currency pairs, which is noticeably better than eToro in this category. Unfortunately, Trading212 does not offer cryptocurrencies anymore. ETFs, Indices, and stocks range is great and above average in the industry. Compared to eToro, Trading212 is focused on Forex trading and excels in this category, but no crypto trading is a significant disadvantage. Ready-made portfolios could be considered special products, but technically it is just a collection of assets already available.

Trading Costs

According to our general assessment, both brokers have higher than usual trading costs, even with the no-commission as promoted. Trading212 charges a 0.5% currency conversion fee for CFD accounts on top of their spread for that currency pair. Spreads are floating type and Trading212 presents the average value for each asset. The spreads are not very attractive but not too wide compared to ECN brokers. Apparently, the absence of commission is compensated by the conversion fee, spreads, and negative swaps for overnight positions. There are no withdrawal or deposit fees, unlike eToro which is overall an even more “expensive” broker.

eToro has fees on many actions, and even on deposits if your currency is not USD, which is rare in the industry. eToro has a fixed $5 withdrawal fee, $10 inactivity fee for 1 year, and the spread on top of this conversion. The spreads are higher than average in the industry. The crypto trading fee is 1% after the spread. However, eToro aims to be more transparent than Trading212 and always presents total fees for a trade. Pay attention to higher-than-usual swap charges if you plan to hold positions for more than 1 day.

Customer Support

eToro has a well-made, comprehensive help page with additional external link explanations. The ticket system is the primary way of handling queries, however, there is also a chat service with a bot and live agents. Live agents are not available 24/7, while Trading212 always had available agents. According to some client reviews, eToro support is not always responding promptly and shows instances of sales pitching.

Trading212 support is also using a chatbot but their agents respond quickly and are available 24/7. Additionally, they are active in responding to issues on external review portals. Our general questions were answered and agents understood the next steps and provided info for that too. However, we found out they are not up to date with the registration steps, for example, when we want to change the account base currency.

Education

Both brokers feature well-made educational sections as their target customers are mostly beginners. However, eToro has invested and developed much more content than Trading212, and it aligns with their core business. Beginners will enjoy quality-made videos, courses, analysis, news, and more. Advanced traders and investors can also use eToro content as it is deep enough and extensive featuring many expert talks. Keep in mind some parts are not available without becoming a real client. eToro has one of the most developed side content in the industry.

Trading212 education is not as extensive, but special attention is given to the investing part and related topics such as dividends, key metrics, ratios, charts, etc. The content is of above-average quality with good coverage of their special ISA account offer.

Conclusion and Summary

eToro made a huge impact on the brokerage industry through copy and social trading. It is a go-to broker for young people that enjoy social networking, has an easygoing attitude about trading or investing, and do not care much about trading costs. Copy trading and ready-made portfolios are easy ways to get involved. Interestingly, the eToro shine is not real judging by the client reviews. According to Forex Peace Army, eToro has a low score average .

The main drawback of Trading212 compared to eToro is the lack of crypto trading. This broker is not into social or copy trading but tries to differentiate with the ISA account and no commission stocks, even though this promoted advantage is shadowed by the trading costs. Tradin212 does not enjoy high review ratings, traders mostly report platform freezes, stop loss hunting, and abnormal trading conditions.