eToro vs. Trading 212- Choose the Best Broker 2022?

eToro and Trading 212 are two prominent brokers of 2021. There are several brokers available online. These brokers provide easy access to the commercial world for individual investors and newcomers. Offerings and features offered vary by platform. We have decided to review and compare eToro and Trading 212 broker for our readers. This guide covers the full comparison of these two brokers.

We will take a closer look at the details of each of these online brokers, especially their features, security systems, and customer service. We will also learn about the financial products they offer and the different rates that apply.

Brief

In our opinion, Trading 212 is about a regulated and reliable online broker. It complies with current security standards and offers a wide range of financial products. However, I prefer eToro broker that offers a more comprehensive trading solution. In particular, you can trade more instruments on eToro than Trading 212, it allows you to diversify your portfolio even more. It also provides a CopyTrading tool that makes investing easy for beginners.

eToro vs trading 212

eToro vs. Trading 212: Who are they in a nutshell?

Who is eToro and Trading 212? Let’s start with a brief introduction to the two platforms that will be the subject of this comparison.

eToro

eToro

eToro was founded in 2006 and is an online broker based in Limassol, Cyprus. It currently operates in more than 140 countries worldwide. eToro caters to all levels of investors. The trading platform of this online broker is easy to use and efficient. Also, beginners are especially privileged thanks to the social trading features and demo accounts. So you can track the trades of the best traders or train in virtual mode before spending your money. Finally, educational articles are provided for those who want to develop their skills.

eToro vs trading 212 - Trading platform

eToro Trading Interface

eToro’s user interface is intuitive. Even if you’re new to it, it’s easy to find the option or feature you’re interested in. It is also available in more than 15 languages, including French, English, Italian, and Portuguese, for ease of use by customers in all countries.

eToro app

Compatible with Android and iOS systems with an intuitive and smooth user interface, the eToro trading app is a free download. Manage your assets anytime, anywhere, and track their evolution. The functions and financial products provided by the web version are available in the application.

Trading 212

Trading 212

Bulgaria Trade 212 Trading Platform was established in 2006 and is based in London, UK. The service is available in several countries.

Like its competitor eToro, Trading 212 is suitable for both renowned investors and beginners. Their trading platform is easy to use and efficient. This online broker also offers educational content in the form of articles and videos. Webinars are also organized regularly. Users can also refer to the economic calendar to better identify events that may affect asset development.

Technical analysis results are also published periodically. Trading 212, on the other hand, does not offer social trading features. However, there is a demo account available for those who want to practice before getting started.

eToro vs Trading 212 - Trading Platform

Trading 212 Trading Interface

Trading 212 broker offers a simple yet intuitive user interface. Even if you take the first step, you won’t have any problems accessing the features. It is also possible to change the language if necessary. You can choose from 11 options including French, English, German or Polish.

Trading 212 App

Trading 212 develops a mobile application compatible with iOS and Android, allowing users to manage their asset portfolio anytime, anywhere. You can download it for free from the App Store or Google Play Store. The interface is as intuitive and easy to use as the web version.

Trading 212 app

eToro vs. Trading 212: A Global Summary

eToro and Trading 212 are peer-to-peer online brokers for all levels of investors. However, we favor beginners by providing training, informative articles and videos, and demo accounts.

eToro vs Trading 212
CriteriaTrading 212eToro
Creation20062006
SecurityRegulated broker in Europe SSL EncryptedRegulated broker in Europe SSL Encrypted
AssetsShares, Commodity, Indices, Cryptocurrency, ForexShares, Commodity, Indices, Cryptocurrency, Forex, Obligations
CostsDeposit- freeWithdrawal- freeSpread on assetsDeposit- freeWithdrawal- freeSpread on assets0% commission
Minimum deposit$1-$10$200
Copy TradingNoYes
Beginners friendlyYesYes
Customer serviceEmail supportPhone supportOnly EnglishEmail supportPhone supportChat support16 languages

eToro vs. Trading 212- Financial Instruments offered

See the table below for a list of assets that can be traded on eToro and Trading 212.

 
Direct InvestmentSharesETFCryptocurrenciesSharesETF
CFD TradingSharesETFCryptocurrenciesIndicesForexCommoditiesSharesETFIndicesForexCommodities

Financial instruments offered by eToro

The online broker eToro offers its clients over 1,000 financial assets. Let’s take a closer look now.

Financial Instruments for Direct Investment

If you choose to invest yourself, the online broker eToro will purchase the selected asset on your behalf. In other words, you are the owner.

Products available for direct investment include:

  • Shares- Google, Apple, Aurora Cannabis Inc., Netflix.
  • ETFs- The broker offers more than 200 ETFs, including ETFs from Vanguard and iShares. This includes the iShares MSCI World ETF, the SPY S&P 500 ETF, the Oil ETF, or the Gold ETF.

Financial Instruments for CFD Trading

With CFD trading, you speculate on the development of an asset and open a buy or sell position accordingly. In other words, it’s not yours. The prize or authorized loss that must be pocketed is equal to the difference between the final price and the initial price of the prize.

CFD trading also allows you to trade with eToro with leverage of up to x30 depending on your investment. The advantage of this system is that your income is doubled. However, if your guess is wrong, you may double your losses.

Financial Instruments offered by Trading 212

The online broker Trading 212 offers its clients over 2,500 financial assets. Let’s take a closer look now.

Financial Instruments for direct investment

The online broker Trading 212 allows you to directly invest in:

  • Shares: For example, you can buy Tesla Share, Facebook(meta) Shares, Vodafone Group, or Deutsche Bank AG.
  • ETFs:  WisdomTree 10Y Gilts Daily Short 1x, 2x Apple ETP Leveraged Stock, or ETP Leveraged Stock 2x Facebook.

Thanks to Trading 212, you can buy about 40 financial instruments in total. However, unlike eToro, this broker does not offer the option to buy cryptocurrencies.

Financial instruments for CFD trading

On Trading 212 you can trade the following assets:

  • Forex: Online Broker offers over 100 currency pairs including AUD/CHF BNG/AUD, CAD/HKD, NOK/DKK or TRY/RON.
  • ETFs: Trading 212 offers over 30 stock indices trading and ETFs. Among them are the Amundi ETF, NASDAQ 100, SPX 500, or Lyxor Stoxx Europe 600 Healthcare ETF.
  • Commodities: You can trade corn, copper, gold, cheese, and gasoline.
  • Shares: The broker offers various promotions such as Amazon, Apple, Nintendo, BMW AG, Oracle Corporation, or Google.

Shares

With an eToro stockbroker, you can trade over a thousand stocks, from the most popular to the least known. To facilitate your research, you can view a list of products by listed exchanges or by field of activity.  For example, look for companies Coca-Cola, Pernod Ricard, and LVMH in the “Consumer Goods” category. Those more interested in the service sector can buy shares in Airbnb, Alibaba, or even Google. On the other hand, Trading 212 offers various promotions such as Amazon, Apple, Nintendo, BMW AG, Oracle Corporation, or Google.

Trading 212 vs. eToro - stock trading

ETFs

An ETF or tracker is a basket of assets that aims to track the performance of an index benchmark. This type of instrument is suitable for beginners due to its stability. At eToro, you can choose from over 250 ETFs, including MicroSectors US Big Oil Index 3X Leveraged ETN, Invesco QQQ, or United States Gasoline Fund.

Trading 212 vs. eToro - ETF Trading on eToro

Stock indices

Stock indices are also baskets of assets. It is commonly used to group several companies in the same sector and primarily to evaluate the development of this sector. Like ETFs, these types of instruments offer a low risk of loss, making them suitable for beginners. The online broker eToro offers CFD trading on more than 10 indices including NYSE, FTSE 100, CAC 40, or NSDQ100. Trading 212 offer 30 stock indices.

Commodities

The commodity is naturally active and rather stable. Its characteristic is that development is highly dependent on real-world events, such as natural disasters that cause reduced production or overstock. You can trade commodities like copper, palladium, cocoa, cotton, and over 20 other items on eToro.

Forex

Currency trading is used to guess the change in exchange rates between two real currencies, such as the euro, dollar, or Swiss franc. These instruments are highly volatile, making them more suitable for experienced investors. You can trade currencies in more than 45 pairs on eToro, including for example EUR/USD, USD/JPY, GBP/AUD, ZAR/JPY, or GBP/CAD. Trading 212 offers 100 currency pairs.

eToro vs. Trading 212 - Regulation, Trading Fees on Trading 212

Cryptocurrencies

The online broker eToro offers more than 15 cryptocurrencies. You can choose from several virtual currencies including the famous Bitcoin, Ethereum, or Ripple. You are trading CFDs without actually buying them. This will give you access to leverage. You can then transfer your digital currency directly to your crypto wallet after purchase. Trading 212 broker offers corn, copper, gold, cheese, and gasoline.

eToro vs. Trading 212- Fee Comparison

Price is an important consideration when choosing an online broker. Please note the fees charged by eToro and Trading 212.

 eToroTrading 212
Deposit fee$0$0 for bank transfer 0.7% above $2,000
Withdrawal fee$5 (fixed)$0
Currency conversion feeBetween 50 and 25,000 pips0.15% for invest account 0.5% for CFD account
Management fee$0$0
Inactivity fee$10 per month after one year of inactivity$0

Fees on each transaction

eToroTrading 212
CFDs on stock0.09%Around 0.00020
CFDs on stock indices4-1,200 pipsFrom 0.1
CFDs on forex1-50 pipsFrom 0.0001
CFDs on commodities2-20,000 pipsFrom 0.0001
CFDs on cryptocurrencies0.75-4.5% 
Direct investmentfreefree

Deposit and Withdrawal and Currency Exchange Fees

eToro maintains no deposit fees regardless of how much you deposit into your account. However, you will have to pay $5 (fixed) for each withdrawal. Conversion costs range between 50 and 25,000 pips, depending on the product and payment method selected.

On Trading 212 broker the deposit is tax-free if you choose to use a bank transfer. However, the online broker charges a fee of 0.7% for deposits of €2000 or more if you choose another payment method with your Invest account. Also, payments on Trading 212 are not charged. Finally, the currency conversion fee is 0.5% for CFD accounts and 0.15% for investment accounts.

Fee on direct investment

Direct investment in eToro is commission-free, regardless of the purchase price. The online broker also does not withhold any sales or ticket fees. However, other fees may apply depending on the circumstances. In all cases, the site applies a transparency policy.

Direct investment in stocks or ETFs is free of charge on Trading 212. However, please be advised that additional fees may apply, especially currency conversion fees.

eToro vs trading 212 - CFD trading

Fee on CFD investment

eToro is rewarded for trading CFDs thanks to its spreads. Find out more.

  • Stocks and ETFs: 0.09%
  • Stock Index: 4 to 1200 pips
  • Prizes: 2 to 20,000 pips
  • Currency pairs: 1 to 50 pips
  • Cryptocurrency: 0.75-4.5%

CFD trading is free even on Trading 212. Online brokers are paid with spreads that depend on the value of their investment.

  • Stock: about 0.00020
  • Currency pairs: from 0.0001
  • Raw materials: from 0.0001, can go up to 0.10 and above. To Walk
  • Stock index: from 0.1
  • ETF: Approx. 0.00020

eToro vs. Trading 212- Security

Now we will compare the security systems of these two online brokers.

security

All funds you deposit or invest in eToro are stored in trusted banks. This optimizes the safety of your funds and greatly limits the risk of capital loss. As an online broker, eToro is required to request confidential information such as personal and bank details. The broker guarantees the security and confidentiality of your data thanks to SSL encryption. This protocol protects the information you enter on the way to and from the server. eToro lets you secure access to your account with two-factor authentication. The principle is simple.

On the other hand, the security system of the online broker Trading 212 does not appear to be optimized compared to eToro. Let’s register. Trading 212 keeps all the funds deposited by its users in accounts with various trusted banks. These funds are subject to the FSCS or the Financial Services Compensation Scheme.  This online broker ensures that all data you provide will be treated confidentially.

 Security Metrics authenticators perform regular scans and penetration testing of websites to discover vulnerabilities or other risks. The security center in charge of traffic control and analysis is also open at all times. Trading 212, on the other hand, does not provide a protocol to secure access to your account.

eToro vs. Trading 212- Regulations

Regulations also refer to guarantees of safety. We recommend choosing only regulated platforms such as eToro and Trading 212.

eToro has several subsidiaries that may operate internationally. These are sent to the local tax authorities. This is one of the reasons why the features and assets offered may vary from country to country. We give you the details:

  • eToro (UK) Ltd – FCA Regulated
  • eToro (Europe) Ltd: Cyprus Securities and Exchange Commission (CySEC) Regulated

As Trading 212 online broker is based in London, it is regulated and licensed by the Financial Conduct Authority (FCA). Trading 212 is also registered in Wales and England.

eToro vs. Trading 212- Customer Service

You can contact eToro Customer Service by phone or email. The agent is professional and courteous according to the user. They are also reactive in most cases. However, for email contacts, response times can be several days. The site also has a well-stocked FAQ section where you can find almost all solutions to the most common questions and problems.

On the other hand, customer support for Trading 212 online broker is always available. Agents appreciate their responsiveness and professionalism in all situations. This somewhat compensates for the lack of a FAQ section on the website.

Trading 212 vs. eToro – Trading platform

Key features of eToro compared to Trading 212 are:

  • Social Commerce Features
  • Product offer

Social Trading with eToro

The social trading feature is aimed at beginners who want to optimize their returns and/or investors who do not have time to regularly follow market developments and adjust positions. Both can automatically copy trades from experienced traders.

eToro vs. trading 212 - Social Trading Network on eToro

Auto Invest Options with Trading 212

This is a new feature in Trading 212. Provides the ability to create asset portfolios and automatically reinvest dividends. All you need to do is select the products you are interested in (stocks and ETFs) and create an investment plan that fits your budget and goals.

eToro and Trading 212 trade

eToro vs. Trading 212- Payment methods

Unlike eToro, Trading 212 offers a variety of payment methods such as credit/debit card, bank transfer, PayPal, Skrill, Google Pay, Apple Pay, DotPay, iDeal, Sofort, and GiroPay.

eToro vs. Trading 212- Beginner-friendly

In general, these platforms are suitable for beginners. We’ve seen it provide training and educational content that beginners can expand their financial knowledge at their own pace. There is also a demo account so you can familiarize yourself with how the market works and gain experience before switching to the real mode.

eToro vs trading 212

Nevertheless, the aforementioned extra features make eToro a better option for beginners. Social commerce is a practically indispensable option for accessing finance without losing a lot of money. Also, depending on your profile, trading level, and experience, this brokerage service provider can prevent you from accessing risky assets.

eToro vs. Trading 212: Final Highlights

We found that eToro offers a wider variety of products even though Trading 212 has more real-world assets. EToro clients can trade cryptocurrencies. The online broker is also open to any product offer. Please contact customer service.

Additional features, including eToro’s social trading, will be more interesting for beginners. However, Trading 212 is characterized by providing various payment methods such as Pay, Google Pay, and Apple Pay. When it comes to pricing, each of these platforms has its characteristics. However, the total cost of investing and trading on eToro may be less.

eToro also offers even better protection with SSL encryption and two-factor authentication. However, Trading 212 is still a safe and secure online brokerage. Finally, when it comes to customer service, Trading 212 support takes precedence. The agents are responsive and competent and available 24 hours a day. eToro, on the other hand, supplements this with a very extensive FAQ section.

Conclusion

eToro and Trading 212 was founded in 2006 and is a popular and regulated online broker. They have a lot in common, especially in terms of ease of use.

The broker also offers a demo account and a variety of educational content to help new investors develop quickly financially. Each has its trading platform, known for its efficiency and ease of use. In addition, the Android and iOS compatible applications eToro and Trading 212 are available for free download from their respective stores.

In short, these two online brokers are reliable and efficient. However, we believe eToro is much more practical and exciting to take the first steps in trading. We would also like to point out that this broker is suitable for experienced traders as well. It also rewards investors with the most copies.

Frequently Asked Questions

What is spread?

A spread is a difference between the purchase price and the sale price of a financial instrument.

At what age can I start trading on eToro?

Anyone can create an account with eToro, but you must be of legal age (18+) to access all features and shares.

What is the minimum deposit for eToro?

The minimum deposit on eToro is $200 or the equivalent in any other available currency.

What currencies can I use on eToro?

The currencies available on eToro are EUR, USD, AUD, and GBP.

What payment methods are accepted on eToro?

The payment methods offered by eToro are debit/credit card, bank transfer, PayPal, and Skrill.