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eToro and Trading 212 are two of the leading names in the universe of zero-commission trading platforms. They’re also at the forefront of social trading, with eToro offering copy-trading and Trading 212 hosting a community forum for investors.
However, both eToro and Trading 212 come with advantages and disadvantages for investors in search of a trading platform. Here’s a breakdown of how the two platforms compare.
Stock market investing involves risk and is not suitable for everyone. The value of investments can fall as well as rise, and your capital is at risk.
eToro v Trading 212: key similarities
The key similarity between eToro and Trading 212 is that both offer zero-commission trading with no platform fee. However, investors may still be charged other fees, such as foreign exchange and inactivity fees, as explained in more detail below.
This is a side-by-side comparison of the similarities between eToro and Trading 212.
Choice of shares and ETFs
Both eToro and Trading 212 offer trading in individual company shares and exchange traded funds (ETFs).
eToro offers the choice of over 3,000 shares from the London, European, US, Hong Kong, Saudi Arabia and Sydney stock exchanges. It also offers trading in over 300 ETFs.
Trading 212 offers the choice of over 12,000 shares from the London, European and US stock exchanges. It offers trading in almost 30 ETFs.
Contracts for difference (CFD)
eToro offers CFD – contracts for difference – trading in more than 70 cryptocurrencies, 50 currencies, 20 indices and 25 commodities, as well as shares.
Trading 212 offers CFD trading in more than 20 currencies, 20 indices and 25 commodities, as well as shares. It does not offer CFDs in cryptocurrencies.
Both platforms offer leverage (trading using borrowed money) when trading in CFDs. For example, they both offer leverage of up to five times on shares and ETFs and 30 times on major currency pairs.
CFDs are riskier than conventional share trading. According to the Financial Conduct Authority, around 80% of customers lose money when investing in CFDs.
Fractional shares
Both eToro and Trading 212 offer the option of buying fractional shares. These are a proportion of one share, for example, 0.2 of a share.
Investors might want to buy fractional shares if a company’s share price is very high and they want to invest an amount that’s less than the price of one share.
Trading and platform fees
Neither platform charges platform fees or trading fees when buying or selling shares. However, both charge a foreign exchange fee on trades in certain currencies.
eToro accounts are held in US dollars as the base currency and UK clients are charged a 0.5% currency conversion fee when funds are deposited. However, this fee is not charged if customers also open an eToro Money account and convert their funds to dollars before transferring it to their investment account. There are no further foreign exchange fees charged when buying non-US shares.
Trading 212 charges a foreign exchange fee of 0.15% of the value of the trade when buying or selling non-UK shares.
Both platforms charge a buy-sell spread on assets, as well as overnight fees on open CFD positions.
Ways of trading
Both eToro and Trading 212 allow trading by app or online.
Customer service
Both platforms provide a ticket option for customers to raise queries with the customer support team.
Community forum
Both platforms offer a community forum, where investors can share news and investment ideas, and seek help with their account.
eToro v Trading 212: key differences
There are some differences between eToro and Trading 212, as set out below.
Other fees
eToro does not charge a fee for depositing funds, but there is a fee of $5 for withdrawing money from its standard account. It also charges an inactivity fee of $10 per month (after 12 months with no log-in activity).
Trading 212 doesn’t charge a fee for depositing funds by bank transfer but charges a fee of 0.7% for deposits via other methods after more than £2,000 has been transferred. It does not charge an inactivity fee.
Trading in cryptocurrency
Only eToro offers trading in cryptocurrency, with over 70 currencies including Bitcoin, Ethereum, NEO, Cardano, Dogecoin and Shiba.
Base currency
eToro only offers accounts in US dollars, meaning that UK customers may incur conversion fees when withdrawing and depositing funds. However, it may work well for investors wanting to trade mainly in US shares.
Trading 212 accounts can be held in sterling, meaning that a foreign exchange fee is only charged on non-UK shares.
Copy trading
While both platforms support social trading, only eToro offers ‘copy trading’. This allows less experienced investors to automatically replicate the trades of other traders on the platform.
Education and support
eToro provides extensive educational material, including written and video guides and courses provided under the eToro Academy umbrella. It also produces comprehensive market commentary on different asset classes.
Trading 212 provides limited educational resources, with a range of guides on investing but no market commentary.
ISA options
Only Trading 212 currently offers an Individual Savings Account (ISA) which allows investors to shield their portfolios from income and capital gains tax.
Who should pick eToro?
eToro could be worth considering for investors looking for a zero-commission platform offering a wide choice of different assets, with the option of full copy trading.
It offers a wide selection of assets, including cryptocurrency, commodities and indices. Its standard trading platform is both user-friendly for beginners yet also offers advanced trading capabilities and plenty of investment research.
Overall, eToro may appeal to investors looking to trade in US dollar-denominated assets as this is the base currency of the account. This may result in UK investors incurring foreign exchange conversion fees when converting funds from sterling to dollars.
Pros of eToro
- Full copy trading offered
- No trading or platform fees
- Can trade in cryptocurrency
- Advanced trading tools
Cons of eToro
- High foreign exchange fee of 0.5% (without eToro Money account)
- Withdrawal and inactivity fee
- More limited selection of shares
- No ISA
Who should pick Trading 212?
Trading 212 could be worth considering for investors looking for a zero-commission platform with an extensive selection of investments, offering over 12,000 shares across the major stock exchanges.
Its app is user-friendly for beginners yet also offers advanced trading capabilities. For example, the ‘Pies and Autoinvest’ option allows customers to automatically rebalance their portfolios.
Overall, Trading 212 is a good all-rounder, offering zero-commission trading, a wide range of different assets and the option to hold an ISA account.
Pros of Trading 212
- Good community forum offering
- No trading or platform fees
- Wide choice of investments
- Offers an ISA
- Low foreign exchange fee
Cons of Trading 212
- Does not offer copy trading
- No trading in cryptocurrency
- Limited research offering
