This article compares eToro vs Plus500, both contract for differences (CFD) trading platforms, but each has unique options.
At a Glance
When comparing eToro vs Plus500, each platform has different features. In addition, each platform has something unique that the other one does not offer. eToro is ideal for beginners because they offer features beneficial for those with little experience, such as practice accounts for trading. eToro has tools such as a CopyTrading system. This platform allows multi-asset investment in stocks, trades, and CFD. eToro uses percentages to determine the fees.
Plus500, on the other hand, is geared more towards an advanced trader interested in an easy-to-use trading platform. Plus500 is a globally trusted brand with average trading fees. In addition, it has a better user experience, is compatible with more languages, and is available for Windows.
How the Best Choice Was Determined
When reviewing the two platforms to determine which is the better option, we looked at and compared many of the features. It was critical to us that we ensured the information was valid before comparing the two platforms. In addition to that, we made sure we understood the various other pieces to the platforms. These include feedback from users, pricing, and service features. We firmly believe in the value of user feedback and its importance in making decisions; it is also valuable to ensure that no claims are false. As a result, it was critical for us to dig deeply into the features to gain an understanding of the options each platform provides to traders.
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We have outlined here that eToro is the overall winner and the best for a beginner, while Plus500 is great for the experienced investor.
eToro Overview
eToro was founded in 2007 and is a company that is based in the United Kingdom. It is well-known as being one of the leading forces for social trading investing. On the eToro platform, traders network and interact with other traders to learn strategies and techniques used successfully by other traders. eToro is geared toward the beginning trader, as it is easy to use and has an intuitive interface. In addition, eToro provides a large number of financial tools and trading features to assist traders.
eToro is also a brokerage platform that includes the stock exchange, cryptocurrency, forex, and commodities trading, along with many others. eToro has a reach of over 100 countries with more than 17 million users. eToro is licensed to operate in Europe, the UK, and the US and maintains a custodial approach to assets on the platform.
Pros:
- Provides support for the leading trading options
- Regulated for security
- The interface is easy to use
Cons:
- There is no option for self custody
- Fees for crypto trades can be high
- Limited opportunities for US traders
Next: Read our complete eToro review
Plus500 Overview
Plus500 was founded in 2008 in Israel. It is a publicly traded company listed on the London Stock Exchange as of June 2018. It is internationally regulated by UK’s Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC). This platform is intended for a more experienced trader looking for an easy-to-use interface.
Plus500 does have a mobile platform that is well designed and easy to use. It is fast and straightforward to open an account with Plus500. There are no withdrawal fees, but there are inactivity fees if you do not log into the application. The product portfolio contains only CFD products. It offers research tools but does not include recommendations.
Pros:
- Easy to use interface
- Guaranteed stop loss orders
- Easy to create an account and begin trading
Cons:
- Limited products, only CFDs
- Average fee schedule
- Limited research tools
Next: The best eToro alternatives
Comparison of Features
Security
When you are using a trading platform at any level, you should expect a high standard for security. You want to feel confident that all your information is safe from hackers and will not be used by the platform in harmful ways. In addition, you want to be able to have faith in the platform you are utilizing.
eToro is well regulated by the UK’s Financial Conduct Authority (FCA) and the Australian Securities and Exchange Commission (ASIC). eToro protects users with SSL encryption. SSL is the standard for online encryption. eToro also uses 2-factor authentication. Plus500 is also regulated by the FCA and is highly regarded globally for strictly regulating fair market practices for individuals and businesses.
They both provide similar levels of security; however, eToro secures its funds in tier 1 banks to provide additional security.
Fees
Fees charged by a platform are critical because they impact what matters most to you, which is your money. Fees are taken directly from your cash. For that reason, we all want them as low as possible.
eToro states they have a zero commission trade policy, but there are some details you need to know. eToro uses a percentage spread that is changeable based upon the conditions of the market. This spread increases the profit margin for them between buying and selling. The spread ranges. It starts at 0.75 percent but may go up to 2.9 percent. This variance is significant and directly impacts the bottom line. Therefore, it is critical that you understand this fee structure. You want to understand the difference between the buying percentage and the selling percentage. eToro requires a minimum of $50 for trading. In addition, they require a minimum deposit amount of $200.
Plus500 does not charge a withdrawal fee; however, you are limited to five withdrawals each month. If you go over that, you are charged $10 for each withdrawal. You have to withdraw at least $50 with PayPal/Skrill or $100 for bank transfers and credit/debit cards. Plus500 wins in the fee category.
User Interface
The ability to use the interface easily is essential for traders, especially those new to the world of trading. Both platforms have an easy-to-use and intuitive interface. In addition, both platforms offer a mobile app that is available for iOS and Android. Plus500 is also available for Windows.
eToro has a fast process for creating an account. It takes no time at all to gain access to the platform once creating one. eToro offers a dashboard that is similar to most social media platforms. It allows you to see what other traders are saying about investment options. eToro provides access to tools for advanced trading so their users can grow and learn to become master traders. They also offer a sentiment calculator. However, not every trader enjoys the social aspect of eToro. There are traders with the sole intent of making money, and they do not want to get hung up interacting with others. Plus500 allows you to sign up quickly if you are an experienced trader. It offers a secure two-step sign in. Plus500 interface is clearly designed and easy to use. However, you cannot customize the platform.
eToro wins here for the interface mimicking a social platform. eToro provides a more social environment where traders can interact with each other. As a result, they market themselves as a social platform.
eToro vs Plus500: The Winner
Best Overall
When looking for the best trading platform overall, eToro and Plus500 are well matched. They both offer accessible platforms to use with various features. The ease of use for beginners and trading options sets the two platforms apart. eToro has more trading options and additional features like the CopyTrading system, making it the best overall platform.
Best for a New Trader
eToro is best for the inexperienced trader because of its educational features. The trading accounts for beginners allows practice traders cannot find elsewhere, such as the CopyTrading system. This tool allows new traders to follow other traders. it is even possible to copy their exact trades.
Best for a Skilled Trader
Plus500 is best for the skilled trader. It has a mobile app for trading on the go. It does not offer much in the way of trading assistance. Plus500 is ideal for professional portfolio managers.
Now that you know all about Plus500 and eToro, now is the time to get started. Getting started on eToro as your trading platform is easy.
Go to the eToro sign and click on the signup button. You are directed to create an account. Provide all the required information or sign in with Google or Facebook. eToro does require you to review the Terms & Conditions and the Privacy Policy. Once you submit, there is another questionnaire you must before you can access the platform and trading. This additional information ensures that eToro is in compliance with the standards and regulations set forth by the governing bodies. If you do not provide this information, you cannot gain access to trade on the platform.
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