Both eToro and Plus500 are great online trading brokers with excellent reputations. But you cannot trade with both, so you have to pick one that is best for you. This comes down to a variety of factors, and you can use these 5 critical criteria on broker services to choose between these two companies.
eToro operates under several subsidiaries so that they can provide their services in as many jurisdictions as possible. To operate in the UK, the FCA licenses this broker with the reference number FRN 583263 as eToro UK. For the rest of Europe, eToro got their license from CySEC as eToro Europe with the license number 109/10. Australian law requires brokers get a license from ASIC, which eToro did there too. Thus, eToro is allowed to operate in most countries with Japan and the US as exceptions.
Meanwhile, Plus500 is licensed in these and more jurisdictions. Their headquarters are in the UK where Plus500 UK has had the reference number 509909 since 2010. Here, the broker is even listed on the London Stock Exchange. For the rest of Europe, Plus500 CY is licensed by CySEC with the license number 250/14. This broker is also licensed in Australia by ASIC, Israel by ISA and Singapore by MAS.
Winner here is Plus500
Making deposits on eToro is very easy as they have provided various funding methods. These range from the most common such as credit/debit cards to payment service providers like PayPal, Skrill and Neteller, wire/bank transfers and local electronic wallets like Giropay, China Union Pay, WebMoney and Yandex. Plus500 don’t have as many funding options, allowing for deposits only through bank transfer, PayPal, Skrill and debit/credit card (only Visa and MasterCard).
Winner of best broker services for withdrawal is eToro.
Trading with both of these brokers gives you access to a lot of financial markets including Forex pairs, stocks, indices, commodities, cryptocurrencies and ETFs. However, there are still some differences to distinguish the between their broker services. Plus500 has included options trading in their list of assets and this could be something to consider adding into your portfolio. eToro have chosen to make actual stock, ETF and crypto trading real when you choose not to use leverage on these products. This means you can actually own these assets and not just as CFDs.
Winner depends on the broker services you prefer; a tie.
Charges on Plus500 are very low as there are absolutely no commissions or deposit and withdrawal fees. Only the spreads are incurred, and these are very low, as well as overnight/weekend swaps and inactivity fee if you don’t trade for 90 consecutive days. With eToro, you have to be prepared for a few extra charges when making withdrawals and placing sell orders for actual stock and ETF trades as per the law. Besides, the spreads are much higher.
Winner of best services and low fees is Plus500
eToro has become popular for providing social trading, which they do through their own proprietary software. But neither do Plus500 offer MetaTrader or any of the other popular trading software, choosing to use their own software too.
Best services provided through trading software is a tie because it is a matter of personal preference.