Complete Guide to Automated Expense Reporting
Discover how to automate expense reporting with our complete guide that covers step-by-step process, tools and best practices.
Looking for a new trading platform? There are plenty to choose from, including app-based platforms such as eToro and Trading 212.
Trading 212 has been around for longer, as it was first founded in 2006, and it’s now one of the UK’s most popular forex trading apps. eToro’s mobile app was launched in 2012, and it’s since gone on to specialise in cryptocurrencies and ‘social trading’.
So, which is the platform for you? In this guide, we’ll run through the essentials you need to know about eToro vs. Trading 212 - including features, benefits and fees.
let’s find out a little background about each platform.
After initially starting out in foreign currency exchange. The Israeli-based company also offers trading in stocks, commodities, forex, indices and other assets.
One of the most unique things about eToro is its ‘social trading’ function. In short, this allows you to use the platform to locate and copy the portfolio spreads of highly-rated, high performing eToro traders.
eToro is regulated by the Financial Conduct Authority (FCA)¹.
Trading 212 is a London-based company, on a mission to “democratise the financial markets with free, smart and easy to use apps”. Its popular, user-friendly app is designed especially for beginners, with an aim to demystify the stock market for a wider range of users..
There’s a large range of asset classes to choose from at Trading 212. You can trade stocks, CFD, forex, cryptocurrency, gold, bonds, ETFs and many more. There’s even an ISA.
Like eToro, Trading 212 is authorised and regulated by the Financial Conduct Authority (FCA)².
To help you decide which trading platform is the best choice for you, let’s compare both Trading 212 and eToro based on their app features.
eToro offers a decent app interface, although it may take you a little time to get up and running.
If you’re looking specifically for a crypto trading specialist, this is probably the app for you. But bear in mind that these are notoriously complex to trade and crypto asset investing is unregulated in the UK, so make sure you understand the risk before using the platform.
eToro also offers:
Trading 212 is a particularly good choice for brand new traders, as its intuitive, user-friendly app is targeted to beginners. The platform also offers:
Both eToro and Trading 212 offer zero commission trading, but there are some other fees you need to know about.
Fees | Trading 212⁵ | eToro⁶ |
---|---|---|
Deposit fee | None for bank transfersNone for credit/debit cards up to £2,000 (0.7% thereafter) | None |
Withdrawal fee | None | $5 (approx £3.63) per withdrawal |
Currency conversion | 0.15% - 0.5% | From 50 Pips (percentage in point, used to measure the change in price between currencies) |
Inactivity fee | None | $10 (approx £7.26) a month after 12 months with no login activity |
eToro also charges what is known as a ‘spread fee’ on its cryptocurrency and stocks CFD trades. This starts from 0.75% for cryptocurrencies and 0.09% on stocks CFDs⁷. There are also ‘overnight fees’⁷, for CFD positions that stay open overnight.
At eToro, you can only start trading once you’ve made your first deposit of at least $200 (around £145). After that, the minimum deposit drops to $50 (£36)⁸.
At Trading 212, you can start trading from as little as £1⁴.
As for withdrawal limits, it’s between £1 and £10 at Trading 212⁵ depending on what service you’re using. At eToro, you’ll need to make profits of at least $30⁶ (£21.77) before you can make a withdrawal.
Trading 212 has the most user-friendly interface, and the most straightforward terms when it comes to fees in particular. eToro mainly deals in crypto trading, which can be very complicated for beginners (and even seasoned investors) to get to grips with.
Remember, all trading comes with some degree of risk. It’s always worth being extra cautious as a beginner, taking advantage of virtual trading functions to start out with.
Both Trading 212 and eToro have currency conversion fees for withdrawing trading profits in other currencies. At eToro in particular, all withdrawals and deposits are in USD⁶. If you want to fund your account and receive a payout in GBP, you’ll have to cough up the currency conversion fee each time you make a transaction.
If you want to withdraw and hold funds in different currencies for investments in stocks, open a multi-currency account with Wise and you can easily manage your withdrawals from trading platforms without having to covert them everytime.
Here’s how - when you sign up online with Wise, you get access to local bank details in GBP, USD, AUD and up to 10 other currencies. You can use these local details to deposit in your Trading 212 and eToro accounts, and to get paid in the local currency. With no currency conversion needed, there’s no unnecessary fee to pay.
Once the profits land in your Wise account, it’s up to you what you do next. You can convert to GBP for a tiny fee, at the real, mid-market exchange rate. Hold onto the money for future deposits, or spend your earnings in one of 200+ countries using your Wise debit Mastercard.
So, there you go - the lowdown on eToro vs. Trading 212. We’ve covered app features, fees, deposit and withdrawal limits and much more.
It’s up to you which trading platform you go for. Just remember to do your homework first, making sure you understand and are comfortable with the risks of trading.
Sources used for this article:
Sources checked on 25-March-2021.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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