Comparison of eToro and Plus500
Feature | eToro | Plus500 |
Regulations | Regulated by SEC, FINRA, and other regulators | Regulated by SEC and CFTC |
Trading instruments | Stocks, ETFs, cryptocurrencies | Stocks, ETFs, cryptocurrencies, commodities, forex, options |
Minimum deposit | AU$50 | AU$100 |
Trading fees | Spread markups | No commission fees, only spread markups |
Account types | Demo account, individual and joint accounts, Islamic account | Demo account, individual and corporate accounts |
Social trading | Yes, allows copying trades of successful traders | No |
Research tools | Newsfeed, market analysis, charts, sentiment analysis | Newsfeed, economic calendar, charts, technical analysis |
Mobile app | Yes, for iOS and Android | Yes, for iOS and Android |
Customer support | 24/5 customer support via live chat, email, and phone | 24/7 customer support via live chat and email |
It’s important to note that while there are differences between eToro and Plus500 in terms of their features and tools, the best platform for you will depend on your individual trading needs and preferences. Some traders may prefer the social trading and lower minimum deposit of eToro, while others may prioritise options trading and 24/7 customer support offered by Plus500. Ultimately, it’s important to carefully consider what each platform offers and choose the one that aligns with your goals and trading strategy.
Assets Offered
When it comes to trading, the variety of assets available is a crucial factor in determining which platform to choose. In this section, we will compare the types of assets offered by the two online trading platforms.
eToro offers a wide range of assets for traders to choose from, including stocks, and cryptocurrencies such as bitcoin and ethereum.
On the other hand, Plus500 also provides an extensive list of tradable instruments with over 2000 CFDs on various asset classes such as forex currency pairs including majors, minors, and exotics; commodities including metals like gold, silver, oil, and natural gas; Indices covering major global stock exchanges; and shares from leading companies across different sectors and regions along with ETFs (Exchange-Traded Funds).
While both platforms offer similar asset categories such as forex pairs and stocks, mutual funds, and bonds, some differences between them may affect your decision-making process when choosing one over the other.
Another point worth mentioning is that if you prefer investing in individual company stocks rather than mutual funds or ETFs then you might find more opportunities on eToro due to its social and copy-trading feature allowing users access to thousands of top-performing investors’ portfolios who share their trades publicly on the platform, whereas Plus500 does not offer this feature.
Overall, both eToro and Plus500 have a diverse range of assets available for trading. However, the specific asset class you’re interested in might influence your decision when choosing between them. It’s recommended to do thorough research and compare all aspects before making any investment decisions on either platform.
Fees and Commissions
When it comes to choosing a trading platform, fees and commissions are some of the most important factors to consider. In this section, we will compare eToro and Plus500 in terms of their fees and commissions.
- Spread:
The spread is the difference between the buy (ask) price and sell (bid) price offered by a broker or exchange. It represents their profit margin on your trades. Both eToro and Plus500 offer variable spreads that change according to market conditions.
- Overnight Financing Charges:
Another factor that affects your overall trading costs are overnight financing charges also known as swap rates or rollover fees. These are applied when you hold positions open overnight or over weekends.
Both platforms offer different rates depending on whether you’re buying or selling an asset along with its underlying interest rate differential between two currencies involved in currency pairs traded at spot prices etc.
In general, these charges tend to be slightly higher on eToro compared with Plus 500 due mainly because they allow leveraged trades up-to 1:30 while Pplus 500 allows up-to 1:300 leverage which means there’s less risk exposure hence lesser financing charge etc.
- Other Fees:
Apart from the spread and overnight financing charges, there are other fees to consider as well. For example, eToro charges a AU$5 withdrawal fee while Plus500 does not charge for withdrawals. Also, if you don’t use your account for more than 12 months on eToro, they will charge an inactivity fee of AU$10 per month.
In conclusion, both platforms have their own unique fee structures that cater to different types of traders. If you’re looking for a platform with no commission charges and willing to pay slightly higher spreads then eToro is the better option but if you prefer lower spreads and can handle fixed commissions charged by Plus500 then it’s worth considering them too.
Regulation and Security
When it comes to choosing a trading platform, regulatory status and security measures are two critical factors that should never be overlooked. In this section, we will compare the regulatory status and security measures of the two trading platforms.
- Regulatory Status:
Both eToro and Plus500 are regulated by top-tier financial authorities in multiple jurisdictions. eToro is regulated by the Australia Securities and Investment Commission (ASIC) and holds an Australian Financial Services License (AFSL), it is also regulated by the Financial Conduct Authority (FCA) in the UK, Cyprus Securities Exchange Commission (CySEC)among others. Plus500 is also regulated by FCA, CySEC as well as ASIC.
The regulation ensures that these platforms adhere to strict rules aimed at protecting traders’ interests such as segregating clients’ funds from company’s operating funds, ensuring adequate capitaliszation levels among others. It also provides an avenue for resolving disputes between traders on one hand while providing oversight over brokers on the another.
- Security Measures:
In terms of security measures both companies have taken significant steps towards securing their users’ data against cyber threats.
eToro uses advanced SSL encryption technology coupled with multi-factor authentication methods like Google Authenticator or SMS verification codes which adds an extra layer of protection when logging into your account or making transactions.
Plus500 has similar security protocols including SSL encryption technology but they do not offer multi-factor authentication methods yet.
Both eToro and Plus500 are highly reputable online brokerages with strong regulatory standings across various jurisdictions around the world. They take cybersecurity seriously with robust measures put in place to protect user data through encrypted communication channels.
While both platforms provide traders with access to thousands of assets including forex pairs, stocks, indices, commodities, cryptocurrencies etc., traders should consider their specific needs and preferences before choosing between the two.
Customer Support
When it comes to online trading platforms, the quality of customer support can make or break a trader’s experience. In this section, we’ll take a closer look at how eToro and Plus500 stack up in terms of customer support.
Availability is an essential factor when it comes to customer support for online trading platforms. Both eToro and Plus500 offer 24/7 availability through email and live chat options on their websites. However, when it comes to phone support, only Plus500 provides direct phone access.
Response time is another crucial aspect of good customer service in any industry. While both platforms claim they respond quickly, our research found that Plus500 has faster response times than eToro overall.
In terms of quality, both platforms provide helpful responses to traders’ queries within reasonable time frames. However, some users have reported dissatisfaction with the level of detail provided by eToro’s representatives compared to those from Plus500.
Another significant factor that sets these two online trading platforms apart is their language capabilities for international customers seeking assistance in different languages other than English. eToro supports more than 20 languages while Plus500 supports over 30 languages which makes them more accessible globally.
Overall though there isn’t much difference between the two regarding the quality of their services as both are highly rated by traders worldwide.
Conclusion
Both eToro and Plus500 offer unique features that can be beneficial to traders depending on their needs. While eToro’s social trading feature is a standout for those who value community interaction, Plus500’s user-friendly interface makes it an excellent choice for beginners. Ultimately, it comes down to what you’re looking for in a trading platform and your personal preferences.
Disclaimer: eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.