eToro vs Trading 212 - the lowdown

Remay Villaester (May)
31.03.21
5 minute read

Meta: Read our handy guide on eToro vs Trading 212, including app features, fees, available investments and much more.

eToro vs Trading 212 - the lowdown

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. We’ll also cover a money-saving way to withdraw profits from stocks, ETFs and CFD in other currencies from either platform, using a Wise multi-currency account.

But first, let’s find out a little background about each platform.

eToro - the basics

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 - the basics

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.

eToro vs Trading 212 - app features compared

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

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:

  • A virtual trading function - where you can ‘practice’ with virtual money to see how your investments and trades would have performed had you made them
  • Commission free investing - with no mark-ups on ETFs and stocks from leading exchanges
  • CopyTrader - the social trading function which lets you replicate the strategies of top-performing traders on the platform
  • An ever-expanding range of 120+ cryptocurrencies³
  • Popular Investor Program, where top-tier investors can earn up to 2% a year¹ on their assets for sharing their knowledge
  • Funds protected by industry-leading security protocols
  • Real-time insights on the latest crypto market news
  • Wide variety of payment options for funding and withdrawal, including debit/credit card, Skrill and PayPal.

Trading 212

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:

  • A virtual trading function, just like eToro
  • Commission free investing
  • Option to invest in a no-fee ISA
  • Negative balance protection
  • Educational resources within the app - to help you learn the fundamentals of investing
  • Stocks listings - with in-depth historical information and market movements
  • Funds protected by industry best practice security processes - kept in a segregated account with up to £85,000 FSCS protection⁴
  • Wide range of tradable assets - including stocks from the world’s most lucrative exchanges. Plus, a good choice of ‘unconventional’ assets for a beginner platform, such as currency and commodities.
  • 24/7 customer service.

How do eToro and Trading 212 compare on fees?

Both eToro and Trading 212 offer zero commission trading, but there are some other fees you need to know about.

FeesTrading 212⁵eToro⁶
Deposit feeNone for bank transfersNone for credit/debit cards up to £2,000 (0.7% thereafter)None
Withdrawal feeNone$5 (approx £3.63) per withdrawal
Currency conversion0.15% - 0.5%From 50 Pips (percentage in point, used to measure the change in price between currencies)
Inactivity feeNone$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.

What about minimum deposit and withdrawal limits?

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.

Which is the best trading platform for beginners?

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.

Want to trade in different currencies? Use Wise

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 hold funds in different currencies for investments in stocks, ETF and CFD, open a multi-currency account with Wise and you can fund and withdraw from trading platforms without always having to covert the money.

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.

Start saving today with Wise


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:

  1. etoro website
  2. Trading 212 Company Overview
  3. etoro - Crypto
  4. Trading 212 website
  5. Trading 212 - Trading Conditions
  6. etoro trading fees
  7. etoro trading fees CFDs
  8. etoro customer service page - Minimum deposit amount

Sources checked on 25-March-2021.


This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.

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