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eToro vs Plus500

Which of the two online brokers should you invest with?

Alfredo de Cristofaro  October 3, 2022

Author of the review
Alfredo de Cristofaro Author
Alfredo de Cristofaro
Co Founder

Graduated in Economics of Financial Intermediaries, after having worked for several years at one of the main financial brokers in Europe, he decided to make available to investors the knowledge gained over the years. On QualeBroker.com he's responsible of reviewing the stockbrokers, making sure that the highest standards of safety and transparency are guaranteed.

Which broker to choose: eToro or Plus500?

We tested eToro and Plus500 in ten different categories. According to our methodology, eToro has scored an aggregate score of 94/100; Plus500 scored 72/100.

In many respects eToro outperforms Plus500. The latter is an easy-to-use broker with a user-friendly platform/app, however, the investing offer is limited to CFDs. eToro, on the other hand, is a more complete broker overall.

eToro allows you to trade not only CFDs but also real shares, ETFs and cryptocurrencies.

With eToro an investor can invest manually on the platform, or take advantage of the innovative copy trading services (where the strategy of a Popular Investor can be copied) or copy portfolio services (in which it is possible to replicate an investment portfolio with a passive strategy).

 

❓ For those starting to invest, is eToro or Plus500 better?

Both brokers offer platforms and tools that are easy-to-use for beginners. Even before investing with real money, you can practice with a virtual account with both eToro (click here to try the eToro virtual account) and with Plus500.

Plus500, however, has the limit of offering only CFD trading, where eToro allows you to trade CFDs, shares, crypto and real ETFs without leverage.

This aspect is very important because CFDs are complex instruments. Only advanced investors should trade CFDs, as a novice investor could lose significant capital with leverage or pay a lot of swap and rollover interest.

 

❓ Is eToro or Plus500 safer?

Both eToro and Plus500 are Israeli brokers. eToro serves UK clients through a branch in the UK while Plus500 serves UK clients through a branch based in Cyprus. This means that European investment regulations (capital protection, segregation of assets, etc.) are applied to both. Thus, we can consider both regulated and supervised brokers. In other words, users are significantly less at risk of scams by operating with either eToro or Plus500.

Plus500 is also listed on the stock exchange. As a result, its balance sheets and financial statements are made public to anyone, thus increasing their transparency.

For the latter reason, Plus500 is slightly more transparent than eToro.

 

❓ Is eToro's platform better than Plus500's platform?

Both eToro and Plus500 offer a platform and an app that are very easy to use.

Although simple, the eToro platform is still more complete than that of Plus500: more analytical tools, more intuitive product research and the ability to copy other traders or passive portfolios.

Overall, eToro's platform and app are better than those of Plus500.

 

❓ Which of the two brokers offers the best cost and commission conditions?

Both eToro and Plus500 offer a trading account with no maintenance costs. There are some inactivity costs but to avoid them you just need to log in at least once per quarter.

eToro allows you to trade real shares, ETFs and crypto with zero commissions. Negotiating these securities means avoiding overnight funding costs. Incurred costs relate to the CFDs offered by Plus500. For medium to long-term investments Plus500 is not particularly suitable.

If instead you want to use CFDs for daily trades, then Plus500 offers tighter spreads than eToro.

In summary, regarding costs, Plus500 beats eToro for daily transactions (open and closed within the same day). For trades longer than one day, eToro beats Plus500.

 

❓ What can you invest in with eToro and with Plus500?

As we have previously explained, eToro allows you to negotiate either CFDs or real shares/ETFs/cryptocurrencies, while Plus500 only offers CFD trading.

If we analyze the tradable assets with the two brokers, we will see that the offer is equivalent.

Both offer trading stocks, indices, Forex, commodities, ETFs and cryptocurrencies. In addition, Plus500 also offers CFD trading on options (which makes little sense to take into account due to overnight financing costs).

As for the total number of tradable products, Plus500 slightly outperforms eToro.

Thanks to the offer of the underlyings to be traded, eToro beats Plus500 in the offer of markets and instruments.

Overall Rating Plus500: 72/100

How do we assign rates?

» Check out our methodology

Safety: 93/100
Fees and Costs: 51/100
Products and markets offering: 77/100
Platform and Research: 71/100
Mobile trading: 94/100
Ease of use: 92/100
Tax regime: 70/100
Customer support: 62/100
Education: 67/100
Banking services: 25/100

Overall Rating eToro: 94/100

How do we assign rates?

» Check out our methodology

Safety: 91/100
Fees and Costs: 94/100
Products and markets offering: 97/100
Platform and Research: 90/100
Mobile trading: 98/100
Ease of use: 100/100
Tax regime: 70/100
Customer support: 65/100
Education: 72/100
Banking services: 25/100

  plus500 etoro2
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OVERALL RATING
SAFETY
COMMISSIONS
PLATFORM
PRODUCTS AND MARKETS
RESEARCH
TAX REGIME
EDUCATION
CUSTOMER SERVICE
GENERAL INFO AND SAFETY    
Type of intermediary Market Maker DMA/Market Maker
Headquarters Israele Israele
Year founded 2008 2006
Parent company Plus500 eToro Group Limited
Listed on the stock exchange
Regulation / Supervision FCA (United Kingdom); Cysec (Cyprus n. 250/14) FCA (United Kingdom); Cysec (Cyprus)
Deposit guarantee Protection European Scheme (€20.000) Protection European Scheme (€20.000)
Extra-European license (no ESMA) (Australia) (Australia)
Negative balance protection
COMMISSIONS    
FOREX    
Average spread EUR/USD (spread-only account)    variable 3 pips
Fees + average spread EUR/USD (fee + spread account)   
Average spread EUR/GBP (spread-only account)    variable 4 pips
Fees + average spread EUR/GBP (fee + spread account)   
COMMODITIES       
Average spread Gold (spread-only account)    variable 97,8 points
Fees + average spread Gold (fee + spread account)   
Average spread Crude Oil (spread-only account)    variable 5 points
Fees + average spread Crude Oil (fee + spread account)   
CRYPTOCURRENCIES    
Average spread Bitcoin (spread-only account)    variable $ 45,43
Fees + average spread 1 Bitcoin (fee + spread account)   
Average spread 10 Ethereum (spread-only account)    variable $ 2,44
Fees + average spread 10 Ethereum (fee + spread account)   
STOCKS    
European stock fees (Adidas - DAX) Spreads starting from € 0,35 Spreads starting from € 0,48
US stock fees Spreads starting from $ 0,08 Spreads starting from $ 0,50
INDICES       
Spread medio LSE (spread-only account)    variable
Commissioni + spread medio FTSE MIB (fee + spread account)   
Spread medio DAX (spread-only account)    {tipThe spread charged by the broker for the CFDs on DAX (spread only)} {/tip} variable 7,20 points
Commissioni + spread medio DAX (fee + spread account)   
OTHER COSTS    
Deposits Free Free
Withdrawals 5/month free $ 5
Overnight swap variable depending on the asset variable depending on the asset
Inactivity costs    (€ 10 per quarter after 3 months) ($10 /month from the thirteenth month of inactivity)
Currency exchange cost    0,7% 0,5%
Account closure FREE FREE
Minimum deposit required € 100 $ 200
PLATFORM    
Two-factor authentication   
Proprietary platform   
Website platform   
Desktop platform   
App mobile   
External software
Demo   
Social trading (copy trading)
Real-time quotes
Financial leverage    Up to 30x Up to 30x
ORDER TYPES    
Limit order
Market order
Stop-loss
Stop-limit order
Trailing stop
Bracket Order
One-Cancels-the-Other Order
PRODUCTS AND MARKETS    
Total global markets available 33 38
EUROPEAN MARKETS
US MARKETS
EXOTIC MARKETS
Total tradable financial assets 7 6
Currency pairs available 72 47
Cryptocurrencies available via CFDs 10 17
Indices (CFDs) 37 13
Stocks (CFDs) 1820 1600
Commodities (CFDs) 22 13
ETF (CFD) 92 145
RESEARCH AND ANALYSIS    
Fundamental analysis tools
Technical analysis tools
Market news
Watchlist
Screener
Trading alerts
EDUCATION    
Video tutorials
Webinars and trainings
Seminars / Live Events
CUSTOMER CARE    
Telephone / email support quality
Speed of responses
Assistance 7/7
Toll free number
Online/live chat service
  » JOIN PLUS500 » JOIN eTORO
72% dei conti al dettaglio di CFD
perdono denaro a causa delle
negoziazioni in CFD con questo fornitore.
Valuti se può permettersi di correre questo
alto rischio di perdere il Suo denaro
.
67% of retail investor accounts
lose money when trading CFDs
with this provider.
You should consider whether
you can afford to take the high risk of losing your money.
.

Risk disclosure: Investing involves risk of loss

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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