eToro vs. Plus500

etoro vs plus500
eToro and Plus500 are both highly sought-after by brokers for different kinds of online trading.

The competition between high-end brokers is extremely tight, which is why traders sometimes have a difficult time choosing one broker over another.

So here, we shall see eToro and Plus500 go head to head and help you decide which you would rather sign up with.

What you are ultimately looking for as a trader is which broker better facilitates your trading strategy.

eToro vs. Plus500

The truth is that both of these brokers are awesome. They’ve been around for some time. The both have millions of active traders.

Let’s get right into it and compare eToro to Plus500:

1. eToro

Accounts

When signing up with eToro, you will be presented with just two types of accounts, the demo account, and the live account.

OPEN ACCOUNT
eToro Disclaimer: 71% of retail investor accounts lose money when trading CFDs with this provider. eToro USA LLC does not offer CFDs, only real Crypto assets available for US traders.
The demo can be activated absolutely free but the live account requires a minimum first deposit that can vary from 200AUD to 1000AUD depending which part of the globe you are trading from.

The leverage afforded by the live account maxes out at 1:30 and spreads are 3 pips, fixed, a bit too high for some traders. eToro also has a swap-free account available for Muslim traders.

eToro Cons

  • The initial deposit is $200 with eToro. That can be a bit pricey for many traders.
  • The withdrawal process with eToro does take a rather long time, scalping is not allowed, and the brokers services are entirely off limits to US-based traders.

Trading platform

eToro’s trading platform is one of the most comprehensive in the world. It is an all-inclusive platform that is also highly intuitive and easy to use. It is stacked full of important information such as data charts, technical analysis and more. The platform has different versions to suit your desktop, web browser, and mobile devices.

Financial security

eToro is licensed and regulated by at least three of the world’s leading financial authorities, including the ASIC, FCA, and CySEC. Thus, you can be assured it’s not a scam. It also offers fair trading conditions to all traders.

eToro only offers real trading in Cryptocurrencies and Crypto-Portfolio for US clients. Most CFD traders lose money (see disclaimer above). Don’t invest more than you can afford losing.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading
CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to
leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should
consider whether you understand how CFDs work, and whether you can afford to take the high risk of
losing your money.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore
are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and
therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the
accuracy or completeness of the content of this publication, which has been prepared by our partner
utilizing publicly available non-entity specific information about eToro.

2. Plus500

Accounts

Like eToro, Plus500 also offers its users CFD trading.

OPEN ACCOUNT
 

Plus500 Disclaimer: 76.4% of retail CFD accounts lose money.
The minimum initial deposit is only $100, a more appealing investment compared to eToro. We’ve written an article on how to trade bitcoin on plus500.

Plus500 Cons

  • It does not offer the MT4 platform or an automated trading platform, and its spreads are variable.
  • You cannot withdraw any cryptocurrency. You have to convert it back to USD, EUR etc.

Trading platform

Another similarity with eToro is that Plus500 also offers just a single trading platform to trade on. It is available in over 30 languages and has versions which are compatible with desktops, the web, and mobile devices. However, users will not be able to access the favored MT4 platform.

Financial security

The reputation of Plus500 rests heavily on its regulation under different global financial agencies including CySEC, ASIC, FCA, ISA, MAS, and FSB. Any broker would have to offer highly efficient and transparent services to be approved by this many authorities.

Conclusion

As you can see, the two brokers are quite evenly matched. What you can do is to compare how well their operations comply with your favored trading strategies. Each broker may tick most of the general criteria boxes. But when it comes specific trading requirements, you are likely to pick out a clear winner.

Daniel Major

B.S. Degree in Economics and Finance. Professional day trader. Live and work in Manhattan, NY, NY.

Page Updated: August 6, 2021

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