For traders, the problem is no longer a lack of investment avenues as it was before but rather an overwhelming number of options. Two popular options that really stand out are eToro and Trading 212, both of which offer real assets as well as CFDs trading to their clients. If you’re stuck deciding which of these two is the better option for you, then this post is meant for you.
Platform ease of use
Both eToro and Trading 212 have one thing in common – neither of them has a downloadable app for either PC or Mac. Most brokers opt to include an app that can be downloaded, but these two haven’t. That being said, the web-based apps are pretty good. Below is a screenshot of the Trading 212 app showing a chart of gold prices. As you can see, the company’s trading platform has a very clean interface that is easy to understand and use. The platform also has all essential market analysis tools one would ever need. In addition, the company provides mobile apps for both Android and iOS for those who need to trade while on the go. The mobile apps are great too and have excellent ratings on each app store, proving that clients are indeed happy with the experience.
In the case of eToro, it too has a very capable trading platform, albeit only being available on a web browser. The screenshot below shows its chart of gold prices for you to compare. You can also see that the chart is pretty much what you would expect from any downloadable app and it isn’t too much of a downside. Mobile apps are available here too so you aren’t stuck to your computer screen.
Since none of the brokers have downloadable apps, this section is a draw.
How much you pay in fees comes down to whether you want to trade real assets or CFDs, since both brokers offer the two options. With eToro, CFDs are charged according to a spread that varies based on volatility in the markets and type of asset. Major Forex pairs have the lowest spread, but even then the spreads are usually quite high. Real assets, on the other hand, are not charged anything except conversion and withdrawal fees. PS: Withdrawal fees at eToro are $5 for each withdrawal.
Meanwhile, Trading 212 is very proud of offering absolutely free stock trading when investing in real assets. That means you won’t even be charged for withdrawals like eToro does. Like eToro, though, CFDs also incur a spread, but the spread here is very low.
Trading 212 has overall lower fees and wins in this round.
- Bank transfer
- Credit Card (Visa, MasterCard, Diners Club, Maestro),
- Bank transfers
- Credit/Debit cards
- Carte Bleue
- Mister Cash
- Direct eBanking
Trading 212 has more deposit methods and takes this round.
eToro started as a Forex CFDs provider, and it still offers this asset. With time, the company has also included CFDs for stocks, indices, commodities, ETFs and even cryptocurrencies. Real assets are only offered for stocks, ETFs and cryptocurrencies, but the number of total assets is very impressive.
Trading 212 is also a major broker that provides a similar array of assets with the exception of cryptocurrencies. In total, Trading 212 has over 3,000 assets in stocks and ETFs from different exchanges around the world.
With more assets, Trading 212 is to be preferred.
eToro’s defining feature is that it offers social trading. With millions of clients around the world, you can be able to connect with thousands of traders, learn from their insights and perhaps even copy their trades. Whether you’re new to trading or just looking for that extra edge, this can be a real advantage.
On the other hand, Trading 212 guarantees that your funds are safe by participating in the Financial Services Compensation Scheme (FSCS). This means that up to GBP 85,000 of your money can be refunded in case of any problem with the company. It’s a really good deal considering how many traders lose all their money every day.
We again have a tie as both have interesting special features.