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If it comes to the top names in the online brokerage platform there are a couple of brokers that you will probably be familiar with if you are interested in the financial markets. Also if you try to search the internet for the most famous names you will probably come up with the two key players – Plus500 and eToro. These platforms are pretty aggressive in their marketing campaigns and are trying to gain as much market share as possible given the competitive force between the two.
| Features | eToro | Plus500 |
|---|---|---|
| 💰 Account Minimum | $50 | $100 |
| 💸 Commission Fees | eToro allows you to invest in stocks and ETFs commission-free with no management, rollover, ticket, or additional broker fees. Withdrawals are charged a $5 fee, and FX fees apply on non-USD deposits and withdrawals. The fee for buying or selling crypto is a single, simple, and transparent 1% fee, which is included in the market price shown when you open or close a position. eToroX charges a conversion fee of 0.1% for crypto-to-crypto conversions, and blockchain fees apply for sending and receiving transactions. Spread is the difference between the Buy and Sell prices of a certain asset, and CFD trading incurs spreads and overnight fees. Finally, eToro charges a low fixed fee for withdrawals, with a minimum withdrawal amount of $30. | Plus500 provides free services and earns revenue from narrow Bid/Ask spreads. Users may face extra fees for overnight funding, guaranteed stop orders, and inactivity. No fees are imposed for deposits and withdrawals, but external charges may be incurred. |
| 💼 Investment Options | Stocks, ETFs, Cryptocurrencies, CFDs, Forex, Commodities, Indices | Stocks, ETFs, Cryptocurrencies, CFDs, Forex, Commodities, Options, Indices |
| 🤖 Robo-Advisor | eToro’s CopyTrader allows users to automatically copy the trades of successful traders | None |
| 📊 Research and Analysis | Daily market analysis and news, trading signals, basic charting | Advanced charting, economic calendar, news |
| 📱 Mobile App | Yes, available for iOS and Android | Yes, available for iOS and Android |
| 🏦 Retirement Accounts | None | None |
| 🎓 IRA Accounts | None | None |
| 📈 Trading Platform | Web-based platform, mobile app, and desktop app | Web-based platform, mobile app, and desktop app |
| 📞 Customer Service | 24/5 customer support via live chat, email, and phone | 24/7 customer support via live chat, WhatsApp and email |
| 📚 Educational Resources | Video tutorials, e-courses, and trading guides | Video tutorials, webinars, and trading guides |
| 🌕 Fractional Shares | Yes | No |
| 🌱 Socially Responsible | No | No |
| 🌎 International Investing | Yes | Yes |
| 💳 Cash Management | eToro offers a debit card and a virtual portfolio | None |
| 🔍 Margin Trading | Yes | Yes |
| ⚙️ Options Trading | No | Yes |
| ₿ Cryptocurrency Trading | Yes, a wide range of cryptocurrencies available for trading and investment | Yes, a range of cryptocurrencies available for trading (availability subject to regulation) |
| 🛡️ Account Security | Two-factor authentication, SSL encryption. | Two-factor authentication, SSL encryption. |
| 💹 Leverage | Varies by asset, up to 1:30 for retail clients and up to 1:400 for professional clients | Varies by asset, up to 1:30 for retail clients and up to 1:300 for professional clients |
| ⚖ Regulation | Regulated by FCA, ASIC, and CySEC | Regulated by FCA and ASIC |
Contents
eToro vs Plus500: A Comprehensive Broker Comparison
Welcome to our comprehensive comparison of eToro and Plus500, two leading brokerage platforms in the world of investing. In this comparison, we will provide you with a detailed overview of each broker, their pros and cons, and a conclusion to help you decide which platform is the best fit for your investment needs.
eToro
eToro is a social trading and multi-asset brokerage platform that offers a range of investment products, including stocks, ETFs, cryptocurrencies, and more. Founded in 2007, eToro has become known for its user-friendly trading platform and innovative copy trading features, which enable users to follow and copy the trading strategies of other successful traders.
- User-friendly platform
- Copy trading features
- Diverse investment options
- Low fees
- Limited research tools
- High spreads
eToro is a great choice for investors seeking a user-friendly platform with innovative copy trading features and competitive pricing. However, those who require more comprehensive research tools or low spreads may find better options elsewhere.
Plus500
Plus500 is a leading online trading platform that offers a range of investment products, including stocks, ETFs, commodities, and more. Founded in 2008, Plus500 has become known for its advanced trading platform, competitive pricing, and intuitive mobile app.
- Advanced trading platform
- Competitive pricing
- Intuitive mobile app
- Diverse investment options
- Limited educational resources
- Limited research tools
Plus500 is a great choice for investors seeking an advanced trading platform with competitive pricing and a wide range of investment options. However, those who require more comprehensive educational and research resources may find better options elsewhere.
Trading Fees and Other Costs
Plus500
When it comes to the trading fees specifically Plus500 has a slightly higher fee structure charged with spreads or through overnight fees. Some of the costs that you might incur are bid-ask spreads, fees associated with transactions that are held overnight, currency conversion fees, and in some cases inactivity fees. However, there are no deposit or withdrawal fees.
- Buy/Sell Spreads: When opening a position on Plus500, the Buy/Sell spread is factored into the quoted rates, and no additional fees or commissions are charged on top of these rates.
- Overnight Funding: If you hold a position past a specified time, known as the “Overnight Funding Time,” an overnight funding amount will be either added or deducted from your account. Further details about overnight funding can be found on the Plus500 website.
- Currency Conversion Fee: When trading instruments denominated in a currency other than your account’s currency, Plus500 applies a Currency Conversion Fee. This fee affects the unrealized profit and loss of an open position and is updated in real-time.
- Guaranteed Stop Order: This specialized order type is designed to help manage risk by ensuring the stop loss level. Using this feature may result in a wider spread due to the guaranteed closure of the position at a specific rate.
- Inactivity Fee: If you don’t log in to your trading account for a period of at least three months, Plus500 will charge an inactivity fee of up to $10 per month. This fee will continue to be applied monthly until you log in to the account.
eToro
eToro the company commits that there are no fees or spreads if it comes to opening a direct position in stocks and ETFs as well as no forex conversion fees. Although there are some fees in case of withdrawals, as well as deposits or withdrawals in currencies other than USD. There are also fees applicable if you trade other asset classes such as crypto – where you pay 1% of the transaction value, or if you trade CFDs there are also some minor fees applicable even in the case of stocks and ETFs. There are also inactivity costs on your account in case you don’t trade for more than a year.
Customer Support
Plus500
- Live Chat & WhatsApp – Open 24/7.
- Email – Reply within 24 hours.
- Social Media – Direct messaging service on Twitter and Facebook.
- Online Help Center – Comprehensive guide to all Plus500 products and services.
- FAQs – Answers to common queries.
eToro
- Live Chat: Live chat is a fast and convenient way to get help from eToro support agents.
- Phone Support: eToro provides phone support in multiple countries, including the US, UK, Australia, and countries in Europe and the Middle East.
- Email: Customers can contact eToro support personnel via email at any time.
- Social Media Platforms: Customers can reach out to eToro support agents via their social media profiles, including Facebook and Twitter.
- Online Forums: eToro provides an online forum where customers can ask general questions and get help from other users.
Comparison of Benefits and Drawbacks
In terms of the regulatory environment, both Plus500 and eToro seem to be in a similar situation as they are regulated almost in all major economies worldwide thanks to their global presence.
In terms of usability, eToro platform appears to be more user-friendly and easy to navigate through compared to Plus500. eToro also comes with additional educational materials which might be useful for investors who are new to the market, while PLus500 has fewer available resources on that front.
One of the key differentials of eToro is the fact that it is a social trading platform which means the traders can see what other community members are thinking or how they are strategically positioning their portfolios for various market events. At the same time, eToro enables its clients to copy some of the leading traders or investors and replicate their portfolios automatically without any requirement to constantly monitor what other investors are doing. Plus500 doesn’t have such capabilities since it is a solely multi-asset trading platform without any focus on the social aspect.
Another major difference is the fact that Plus500 provides only CFDs as the asset classes while eToro provides you with the opportunity to trade both CFDs as well as gain direct ownership in the case of some stocks and ETFs.
For those instruments with direct ownership, eToro charges no commissions and spreads, while Plus500 is charging bid-ask spreads in most of the CFDs. On the other side, while eToro charges fund withdrawal fees there are no deposit or withdrawal charges in the case of Plus500.
It is difficult to definitively say which broker has better customer support between eToro and Plus500. Both brokers essentially offer the same customer service and have been in business for a long time. eToro boasts 24/7 live chat support and has become a top global broker with millions of users worldwide. Plus500 also offers rapid response times and 24/7 customer support. Ultimately, the choice between these two brokers depends on what the individual customer needs and values from a customer support team.
Conclusion
When deciding between eToro and Plus500, consider your specific investment goals, experience level, and trading preferences. eToro is an excellent choice for those seeking a user-friendly platform with innovative copy trading features and competitive pricing. On the other hand, Plus500 offers an advanced trading platform with customizable tools, competitive pricing, and a wide range of investment options.
Investors seeking comprehensive educational resources and research tools may find better options elsewhere. However, both brokers provide a range of investment products and offer competitive pricing, making them suitable choices for investors of different levels and interests. It is important to consider your specific needs and preferences when choosing between eToro and Plus500, and to take advantage of the resources and tools provided by each platform to make informed investment decisions.
In conclusion, both eToro and Plus500 are reputable brokerage platforms that cater to different types of investors. Consider your specific needs and investment goals when choosing a platform, and take advantage of the resources and tools provided by each broker to make informed investment decisions.
FAQs
Both platforms offer access to various financial instruments, but eToro focuses on social trading and provides both CFDs and direct access to some stocks and ETFs. Plus500, on the other hand, focuses solely on CFD trading. The platforms also differ in terms of fee structures, customer support, and available educational materials.
eToro charges minimal fees for direct investments in stocks and ETFs but has fees for withdrawals. Plus500 charges fees through bid-ask spreads and may have inactivity fees but does not charge for deposits or withdrawals. It is essential to compare the fee structures of both platforms to determine which best suits your trading strategy.
Yes, both Plus500 and eToro are regulated by major financial regulatory authorities, such as the Financial Conduct Authority (FCA) in the United Kingdom, the Australian Securities and Exchange Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC).
Consider factors such as regulation, fee structure, platform interface, accessibility, educational materials, and customer support. Compare multiple platforms, research the risks involved in trading, and develop a solid trading plan and risk management strategy. Diversifying your investments across multiple online brokers can also minimize the risk of losing your entire capital.
Social trading is a feature that allows traders to see what other community members are doing in terms of portfolio structuring and rebalancing. On eToro, traders can also copy the trades of successful investors and replicate their portfolios automatically, without the need for constant monitoring. This feature is not available on Plus500, which focuses only on multi-asset trading.
StockHax strives to provide unbiased and reliable information on cryptocurrency, finance, trading, and stocks. However, we cannot provide financial advice and urge users to do their own research and due diligence.
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