Plus500 vs eToro
Want to jump straight to the answer? For new traders who need a bit of extra assistance or want to copy trade leaders, eToro is the hands-down winner.
Regarding Forex CFD trading, Plus500 and eToro are two options that traders often recommend. While Plus500 presents an overall professional interface, eToro uniquely implements a social aspect to trading with leaderboards and trade copying.
Unfortunately for traders in America, Plus500 is not available to U.S. residents, and eToro limits U.S. traders to just cryptocurrency.
In this Plus500 vs eToro guide, we cover what you should know about each platform to help you make an informed decision on which is best for you. We take a look at:
|Feature||Plus500 (visit site)||eToro (visit site)|
|CySEC, Financial Conduct Authority (FCA), ASIC||CySEC, FCA, ASIC|
Type of Broker:
|Market Maker||Market Maker|
U.S. Clients Allowed:
|EU - 1:30/ASIC - 1:30||1:30|
Commissions / Spreads:
|Variable Spreads||Variable Spreads|
72% of retail CFD accounts lose money
68% of retail CFD accounts lose money
Features and Platforms
As an online CFD platform, Plus500's interface is clean and straightforward. Where other platforms excel in research and advanced analytics, Plus500 shines through its ease-of-use.
Any level of traders will feel comfortable using Plus500’s trading platform. | Source: Plus500
The interface includes everything you would expect on a CFD trading platform. Outside of standard buy and sell orders, you can set Guaranteed and Trailing Stops as well as Close at Profit and Close at Loss orders. Most of the advanced trading options are free of charge except for the Guaranteed Stop, which comes with an additional spread.
Plus500 provides several advanced trading options to limit losses and lock in profits. | Source: Plus500
If you want to “try before you buy,” so to speak, you get unlimited free trades on Plus500’s demo account.
To help give you an edge on other traders, Plus500 has two primary tools - an economic calendar and real-time alerts. The economic calendar lists upcoming market data reports for various countries and what the expected impact is for related markets.
Using Plus500 alerts, you can create specific criteria regarding trader sentiment, price movements, and change percentages. The platform will notify you via SMS, email, or push notifications when the market hits those criteria.
Real-time alerts keep you tuned into the Forex market at all times. | Source: Plus500
eToro’s value comes from its social trading features. You can create a profile on the platform that gives you access to:
- a social feed (similar to Facebook)
- your trading statistics,
- the portfolios of other traders,
- and a chart predicting what a $10,000 investment into your portfolio would net over time.
If you’re new to Forex trading or don’t want to create a strategy, you have the option to copy the moves of another trader. The most popular (highly copied) traders on the platform receive up to two percent of their assets under management (AUM) as a reward.
Discover other traders and copy their trades until you gain some experience. | Source: eToro
Like Plus500, eToro includes an economic calendar with market-influencing events. Regarding education, eToro extends far beyond the offerings of Plus500. The company hosts live webinars, creates online training courses, and presents trading educational videos in its Trading Academy.
Both Plus500 and eToro provide web, iOS, and Android platforms from which you can trade.
|Type of Platform:||Proprietary platform||Web-based, Other|
Guaranteed Stop Loss:
Guaranteed Limit Orders:
Interest on Margin:
|Plus500 has over 70 Forex trading pairs. Other than Forex, Plus500 offers cryptocurrency, commodities, indices, shares, options, and ETFs in CFD form.||The options on eToro are slightly lacking in comparison, with just shy of 50 trading pair options. eToro provides cryptocurrency, stocks, commodities, ETFs, and indices in addition to the platform’s Forex support.|
Typical Spreads and Fees
|Plus500 primarily earns revenue through trading spreads, not fees. The company doesn’t charge additional fees for deposits, withdrawals, trades, or position rolling. There are, however, a couple of expenses of which you should be aware.||Similar to Plus500, eToro doesn’t charge any trading fees, making money from the spread instead. Unlike Plus500, the platform has a $25 withdrawal fee and requires a minimum withdrawal of $50.|
|If you don’t log into your trading account over three months, Plus500 charges you $10 per month until you log in. Additionally, Plus500 requires you to pay an overnight fee when you leave a position open past the cut-off time. The cut-off times vary depending on the market you’re trading, and the fee follows the formula below:||eToro also charges an overnight fee, or gives you an overnight credit, according to the currency you’re trading and whether you hold a buy or sell position.|
|Overnight Fee = Trade Size * Opening Rate * Daily Overnight Funding %|
Both Plus500 and eToro provide competitive spreads, but Plus500 is the winner here. The EUR/USD spreads are 0.00006 and 0.0003 on Plus500 and eToro, respectively. And, Plus500’s GBP/USD spread is 0.00011 in comparison to eToro’s 0.0004.
Security and Trust
|Established in 2008, Plus500 is a platform you can trust. The company adheres to the U.K. Financial Conduct Authority’s rules on client money protection. Doing so means that your funds remain separate from Plus500’s operating funds, the company doesn’t use your funds for its own investing, and it avoids passing your funds through hedging counterparties.||eToro has been around slightly longer than Plus500 with a 2007 launch date. The company is fully regulated in every country in which it operates. It follows the Financial Conduct Authority (FCA) regulations in the United Kingdom, the Cyprus Securities and Exchanges Commission (CySEC) in Cyprus and parts of Europe, as well as the Australian Security and Investments Commission (ASIC).|
|Additionally, Plus500 is listed on the London Stock Exchange’s Main Market and operates trades for millions of users.||eToro holds all client funds in tier 1 European banks.|
Plus500 Vs eToro – Verdict
With lower spreads and a more extensive array of tradable currencies, we recommend Plus500 for serious Forex traders.
For more casual traders or those just starting with Forex trading, eToro is the platform for you. The Trading Academy and social capabilities provide you with the tools you need to learn the ropes and improve your craft.
You may even find it beneficial to start with eToro and switch to Plus500 once you’ve reached your desired skill level.
Does Plus500 or eToro offer lower pricing?
Plus500 maintains a significantly superior cost structure. The EUR/USD carries a spread of 0.6 pips versus an unacceptable 3.0 pips at eToro. Considering additional fees, like a flat withdrawal fee by eToro, and traders are at a considerable disadvantage at eToro.
Is Plus500 or eToro safer for Forex and CFDs trading?
While both brokers feature a safe and secure trading environment, eToro has a slight edge thanks to its clan regulatory track record. The Cyprus Securities and Exchange Commission (CySEC), the UK Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), and FinCEN in the US provide regulatory oversight. Plus500 is regulated by the UK Financial Conduct Authority (FCA), which issued a fine in 2012 for not reporting transactions accurately. In 2017 it also misled shareholders regarding its exposure to client accounts.
Which trading platform is better: Plus500 or eToro?
Neither broker maintains a proper trading platform, as both proprietary solutions are below standard. While essential features are absent at both, eToro offers a better choice due to ongoing additions of features.