eToro vs Freetrade

With 30M+ traders, eToro ranks among the leading copy-trading brokers globally. Traders get a user-friendly web-based trading platform and mobile app with 3,000+ assets. CopyTraders is the primary copy trading tool at eToro. Smart Portfolios provides custom-tailored investment products featuring thematic long-term buy-and-hold investments managed in-house by eToro for passive investors. eToro also has an expanding cryptocurrency presence.

Freetrade is a UK-based stockbroker specializing in long-term buy-only portfolios among first-time millennial investors who prefer a mobile app over an actual trading or investment platform. Only GBP accounts are available, and access to a web-based trading platform exists for the Plus package, costing £119.88 annually. Freetrade presently only accepts UK-based clients, although it has plans for EU-wide expansion.

We have conducted an in-depth review of eToro and Freetrade to determine which presents the better overall choice and which types of traders will benefit the most at each broker.

Headquarters
IsraelUnited Kingdom
Regulators
ASIC, CySEC, FCA, FSAFCA
Tier 1 Regulator(s)?
Owned by Public Company?
Year Established
20072016
Execution Type(s)
Market MakerN/A
Minimum Deposit
$50 - $10,000£0
Negative Balance Protection
Trading Platform(s)
Proprietary platformN/A
Average Trading Cost EUR/USD
1.0 pipsN/A
Average Trading Cost GBP/USD
2.2 pipsN/A
Average Trading Cost WTI Crude Oil
$0.05 N/A
Average Trading Cost Gold
$0.45 N/A
Retail Loss Rate
74%Undisclosed
Minimum Raw Spreads
0.8 pipsN/A
Minimum Standard Spreads
1.3 pipsN/A
Minimum Commission for Forex
$0.00N/A
Islamic Account
Signals
N/A
US Persons Accepted?
Managed Accounts
Visit WebsiteVisit Website

Features & Platforms

MT4
N/A
MT5
N/A
MT4/MT5 Add-Ons
cTrader
N/A
Proprietary Platform
N/A
Automated Trading
Social/Copy Trading
DOM?
Guaranteed Stop Loss
Scalping
Hedging
One-Click Trading
N/A
OCO Orders
Interest on Margin
Visit WebsiteVisit Website

Noteworthy:

eToro offers its in-house cryptocurrency wallet and a mobile e-money account. Both brokers provide beginners with quality education, but the eToro Academy has a more structured, quality service.

Available Markets

Currency Pairs
Cryptocurrencies
Commodities
Crude Oil
Gold
Metals
Equity Indices
N/A
Stocks
N/A
Stocks (non-CFDs)
Bonds
ETFs
Options
Futures
Synthetics
Visit WebsiteVisit Website

Freetrade maintains 6,000+ trading instruments versus 3,000+ at eToro, but the latter offers a more balanced selection. Freetrade caters to investors seeking equities and ETFs across the UK, the EU, and the US, plus 150 investment trusts. eToro ensures cross-asset diversification, and both brokers support fractional US share dealing.

Typical Spreads & Fees

Average Trading Cost EUR/USD
1.0 pipsN/A
Average Trading Cost GBP/USD
2.2 pipsN/A
Average Trading Cost WTI Crude Oil
$0.05 N/A
Average Trading Cost Gold
$0.45 N/A
Average Trading Cost Bitcoin
$574 N/A
Minimum Raw Spreads
0.8 pipsN/A
Minimum Standard Spreads
1.3 pipsN/A
Minimum Commission for Forex
$0.00N/A
Deposit Fee
Withdrawal Fee
Inactivity Fee
$10 monthly after 12 monthd
Visit WebsiteVisit Website

Forex trading at eToro is commission-free, as are equity and ETF trading for unleveraged buy-only orders. However, CFD traders face a 0.09% commission. While Freetrade states that trading is commission-free, it only offers British Pound accounts, and a currency conversion fee between 0.39% and 0.99% exists. This replaces commissions and can significantly increase investment costs.

Account Types

Account Types
eToro
Freetrade
Commission-free Accounts
Yes
Yes
Commission-based Accounts
No
No
Demo Accounts
Yes
No
Islamic Accounts
Yes
No
Social / Copy Trading
Yes
No
Managed Accounts
Yes
No

All eToro traders get the same free CFD account. Freetrade has three options for its general investment accounts. One account is free, one costs £5.99 monthly or £59.88 annually, and the other costs £11.99 monthly or £119.88 annually. It also offers ISAs and SIPPs with tax advantages for UK traders, a service unavailable at eToro. Demo and swap-free Islamic accounts are available at eToro, which Freetrade does not offer.

Minimum Deposit

Deposit Snapshot
eToro
Freetrade
Minimum Deposit
$200
$0
Deposit Fees
Third-Party
Third-Party
E-wallets
Yes
Yes
Cryptocurrencies
No
No
Localized Methods
Yes
Yes
Total Deposit Methods
14
4
Supported Deposit Currencies
USD, EUR, GBP, AUD, 10+
GBP

Freetrade does not have a minimum deposit requirement but only accepts GBP deposits. Credit cards are unavailable, while Apple Pay and Google Pay are available for deposits but have a lifetime maximum of £250, rendering them useless. The eToro minimum deposit is $200 for most traders but is as low as $10 for US and UK-resident traders versus $50 for EU-based traders.

Minimum Withdrawal

Withdrawal Snapshot
eToro
Freetrade
Minimum Withdrawal
$30
$0
Internal Withdrawal Fees
$5 for each payment processor
No internal withdrawal fees
Internal Processing Times
Up to two business days
Two to five business days

Freetrade has no minimum withdrawal amount, but it only supports bank wires for withdrawals, restricting traders in their movement of capital. The eToro minimum withdrawal amount is a reasonable $30, but a $5 flat fee applies to all withdrawals. Unlike Freetrade, eToro supports numerous payment processors, including e-wallets. The internal withdrawal processing times are slow at both brokers, but eToro is faster and more trader-friendly.

Security & Trust

Country of the Regulator
Australia, Cyprus, Seychelles, United KingdomUnited Kingdom
Name of the Regulator
ASIC, CySEC, FCA, FSAFCA
Regulatory License Number
491139, 109/10, 583263, SD076783189
Regulatory Tier
N/A1
Visit WebsiteVisit Website

Etoro

Country of the Regulator
Name of the Regulator
License Number
Australia
Australian Securities & Investments Commission
491139
Seychelles
Financial Services Authority
SD076
Cyprus
Cyprus Securities and Exchange Commission
109/10
UK
Financial Conduct Authority
583263
Malta
Malta Financial Services Authority
C97952

Freetrade

Country of the Regulator
Name of the Regulator
License Number
UK
Financial Conduct Authority
783189

eToro has more operational experience, but both brokers segregate client deposits from corporate funds. Negative balance protection exists at eToro, as Freetrade does not support leveraged trading. Freetrade is also a member firm of the London Stock Exchange and undergoes annual audits by Deloitte to ensure its financial health meets strict regulatory standards. Traders can trust eToro and Freetrade, as both have clean track records.

Broker versus Broker Verdict

EToro

Pros
Cons
Copy-trading with a community exceeding 30 million traders
Higher minimum deposit requirement but within a reasonable range
User-friendly web-based trading platform and mobile app
Quality educational offering for beginner traders via the eToro Academy
Balanced asset selection with a focus on equity CFDs and ETFs

Freetrade

Pros
Cons
Choice of stocks and ETFs
Only bank wires as a withdrawal method
ISA and SIPP accounts
Access to a web-based trading platform costs £119.88 annually
Reasonable account fees

Freetrade only caters to UK-based traders and focuses on millennial traders who prefer a mobile app. Regrettably, its mobile app is low quality, and the subscription-based model is expensive for small portfolios. eToro delivers a superior overall brokerage with a smaller but more balanced asset selection, an active copy trading community, and excellent education for beginners.

You might also be interested in reviewing the below broker comparisons:

Read full eToro Review

FAQs

Is eToro best for beginners?

eToro is good for beginners as it provides a quality educational service, an active copy trading community, passive investment portfolios, and a user-friendly trading platform.

Does eToro have hidden fees?

eToro clearly states all applicable fees, and there are no hidden fees. Traders should carefully read what costs apply and when to understand all trading fees.

Is Freetrade trusted?

Yes, Freetrade is a trusted broker and a London Stock Exchange member firm.

Is there a better platform than eToro?

While many platforms are better than eToro for those financial sectors it does not serve, eToro ranks among the top choices for copy trading platforms.

Is eToro better than Freetrade?

Yes, eToro is better than Freetrade due to lower costs, better trading tools, and superior educational content for beginners. It also features a significantly better trading platform and mobile app.

Most Visited Forex Broker Reviews