eToro vs Plus500 – Which is the best trading platform?

Table of Contents

eToro vs Plus500: Expert Summary

By Alex King, Chartered Accountant and Founder of Generation Money

eToro is our winner. It has more investment options, more innovative features (e.g. CopyTrader) and is cheaper for most instruments. eToro also allows you to invest in cryptocurrencies.

Plus500 is a purely CFD trading platform and it’s still one of the better ones – just not quite as good as eToro.

eToro is a multi-asset investment platform. The value of your investments may go up or down. Capital at risk if you invest. FCA regulated and FSCS protected.

In this investment platform comparison we’ll be looking at eToro vs Plus500. 

Both eToro and Plus500 are best-known as innovative trading platforms offering thousands of stocks, commodities and other instruments to invest in.

eToro vs Plus500

We’ll be comparing eToro and Plus500 against a number of metrics to see which comes out on top. This includes investment options, features, their respective apps, products and, of course, fees.

Whether you’re a trader or investing for the long term, expensive fees can eat into your returns over time. As experienced investors and finance pros, we know how important it is to balance costs against returns!

Read on for our full eToro vs Plus500 comparison, or use the table of contents to jump straight to a particular section.

Table of Contents

eToro vs Plus500: At A Glance

Here’s our overview of Plus500 vs eToro in case you don’t want to read the whole comparison.

The table below looks at the key features compared against each other.

eToroPlus500
Fees / Platform ChargesNo subscriptions / platform / management fees or dealing commission. Instead, following fees apply:

Market spread on all trades (difference between bid and ask price), varies by asset being traded

Daily financing fees on all CFD trades kept open overnight (inc. weekends), exact fee depends on asset being traded (we show you examples below)

FX conversion fee on all non-US dollar withdrawals & deposits. This fee is in pips and depends on the method of transaction, e.g. bank transfer is 50 pips mark up on the spot FX rate

Withdrawal fee of $5 on all withdrawals (deposits are free)Inactivity fee of $10 per month if no login after 12 months
No subscription / platform / management fees, or dealing commision. Instead, following fees apply:

Market spread on all trades (difference between bid and ask price), varies by asset being traded

Daily financing fees on all CFD trades kept open overnight (inc. weekends), exact fee depends on asset being traded (we show you examples below)

Up to 0.7% FX conversion fee on the realised profit or loss of all orders placed in a currency other than the currency of your account

No deposit or withdrawal fees

Guaranteed Stop Orders are subject to a wider spread

Inactivity fee of $10 per month if no login after 3 months
Minimum InvestmentMinimum first time deposit of $100
Minimum deposit after this is $10
Minimum investment of $500 for Smart Portfolios
Debit/credit card: £100
Paypal/Skrill: £100
Bank transfer: £500
Products / AccountsTrading Account
Pro Account
eToro Money Account
Demo Account
Trading Account (CFD trading only)
Premium Service
Professional Trading Account
Demo Account
Ready-Made Portfolios65+ Smart Portfolios based on different themesNone
Ready-Made Portfolio FeesNo additional fees for Smart Portfolios. Above fees apply when investing to create your Smart portfolio, e.g. spreadN/A
Ethical Portfolios/FundsESG-Leaders fund ESG and Impact Index CFDs
Fractional SharesYesNo
Interest On Uninvested CashNoNo
Other FeaturesCopyTrader
Social Trading Community
Trading Insights
DIY PortfolioYesYes
Investment OptionsOver 5,000 instruments, including:
Shares
ETFs
Cryptocurrencies
Commodities
FX
CFDs on all of the above
Over 2,800 (CFD only) instruments, including:
Shares
ETFs
Commodities
FX
Options
FCA RegulatedYesYes
FSCS ProtectionYesYes
Trustpilot reviews4.34.1

eToro is our overall winner. Read on for all the details on why it’s our pick.

eToro

eToro is our top-rated investment app, it’s easy to use, has lots of innovative features and allows you to trade commission-free.

Capital at risk if you invest.

What is eToro?

Founded in 2007 in Israel, eToro has become one of the most popular trading platforms in the world.

It now has over 20 million users across the globe and is popular with full-time traders. eToro was one of the pioneers of commission-free trading and app-based trading. 

eToro is also well-known for its CopyTrading service, where you can copy the trades of popular traders through the eToro community. 

Read all the deatils on eToro in our dedicated eToro review.

What is Plus500?

Plus500 is a trading platform with its shares publicly listed on the London Stock Exchange (LSE). Despite its listing on the LSE, Plus500 was actually founded in Israel, like eToro, where it has its global headquarters.

You can invest via Plus500’s mobile apps or its web platform. It offers over 2,800 instruments across shares, commodities, ETFs and currencies, all through CFDs (Contracts For difference).

Plus500 also offers options trading (via CFDs) which is usually associated with US investment platforms. CFDs are prohibited in the US which is why options trading is popular among US retail traders.

Plus500 was founded in 2008 and now claims to have more than 26 million registered customers across its global platforms. In 2023 it had $2.4 billion in customer deposits.

eToro vs Plus500: Fees

Let’s look in more detail at the all-important costs for eToro vs Plus500.

Both platforms charge a range of transaction fees, as well as several fees centred around CFD trading:

eToroPlus500
Platform FeesNo platform fee for holding investments

Withdrawal Fee: $5 on all withdrawals (deposits are free)

FX conversion fee on all non-US dollar withdrawals & deposits. This fee is in pips and depends on the method of transaction, e.g. bank transfer is 50 pips mark up on the spot FX rate. eToro Money users face no conversion fees when depositing GBP, EUR, AUD or CHF

Inactivity Fee: $10 monthly inactivity fee if no login after 12 months
No platform fee for holding investments

No deposit or withdrawal fees

Inactivity fee of $10 per month if no login after 3 months
Ready-Made Portfolio Management FeesNo additional charge for investing in ready-made Smart Portfolios.

Market spread may apply when building the portfolio
N/A
Individual Stocks & Shares / Share DealingNo commissions, dealing charges or broker spreads on directly buying and selling stocks, ETFs and Cryptocurrencies (non-CFDs)

Market spread may apply (difference between bid and ask price), varies by asset being traded and is outside of eToro’s control
Broker spreads are applied on all transactions and vary by instrument. We take a closer look at Plus500’s spread later in this comparison

FX Fee: 0.70% on the realised profit or loss of all orders placed in a currency other than the currency of your account. E.g. if your account is in GBP, the fee applies to non-GBP trades such as in US stocks
CFD TradingBroker spread: varies by asset being traded and is in addition to market spread. Full spread details here

Daily financing fees on all CFD trades kept open overnight (inc. weekends), exact fee depends on asset being traded – more below

No additional FX fees on CFD trades
Broker spread: varies by asset being traded and is in addition to market spread. 

Daily financing fees on all CFD trades kept open overnight (inc. weekends), exact fee depends on asset being traded – more below

FX Fee: 0.70% on the realised profit or loss of all orders placed in a currency other than the currency of your account. E.g. if your account is in GBP, the fee applies to non-GBP trades such as in US stocks

As shown in the table above, the pricing structures of eToro and Plus500 are pretty similar. 

Rather than charging annual platform or management fees like other major platforms, they charge fees on deposits & withdrawals (in eToro’s case), FX conversions and trading CFDs (Contracts For Difference). 

Deposit & Withdrawal Fees

eToro is well-known for its commission-free share trading and Plus500 also doesn’t charge commission. This doesn’t mean it’s totally free to buy stocks and shares without incurring any charges, though. 

First, you have to fund your account before you can invest or trade on either platform. Plus500 doesn’t charge any deposit or withdrawal fees. 

eToro, on the other hand, does charge fees on funding and withdrawing from your account.

eToro Deposits & Withdrawals

There’s an FX conversion fee whenever you deposit into or withdraw funds from your eToro account using a currency other than US Dollars. This is because all eToro investment accounts are denominated in US Dollars no matter your location. The rates for depositing in GBP are outlined below:

  • Bank Transfer: 50 pips mark up on the GBP/USD exchange rate, or 0.50%. 
  • Online Banking: 150 pips / 1.50%
  • Debit/Credit Card: 150 pips / 1.50% 
How to avoid eToro deposit fees

There are two ways to minimise these fees. First, you can open an account with Revolut, the digital finance app, and deposit money in GBP. Revolut allows you to open a US Dollar account for free and charges no conversion fees when exchanging currency between your own accounts. 

So you can open a GBP account with Revolut, then open a USD account. Fund your Revolut account for free in GBP and then convert it to USD for free. You can then fund your eToro account by bank transfer, in which case you can see your USD bank details in your Revolut account. 

Or can you use your Revolut virtual card to pay into your eToro account directly in USD. Go to your Revolut virtual card details in the app, then go to settings and choose to ‘spend from’ your USD balance.

Alternatively, you can open an eToro Money account. This is eToro’s version of a digital payments and banking service.

All deposits via eToro Money into your eToro investment account in GBP are free. Holding an eToro Money account is currently also free, but this may change in 2024 as eToro is planning to bring in monthly fees, much like you see with Revolut and Monzo accounts.

It should also be noted that money held in an eToro Money account does not fall under FSCS protection, but it is held in a segregated and protected bank account. More details later in this article.

There’s a fixed $5 withdrawal fee on all withdrawals from your eToro investment account. This is in addition to any FX conversion fees if withdrawing in a currency other than USD.

If you intend to make more frequent withdrawals from your account – which is not optimal for long term growth – then eToro can become expensive. There’s a minimum withdrawal of $30, so the lower the amount of your withdrawal the higher the fixed fee becomes in percentage terms.

The withdrawal fee applies even into an eToro Money account. 

Plus500 Deposits & Withdrawals

Unlike eToro, Plus500 doesn’t charge any fees on deposits or withdrawals. It also allows you to open and fund an account in GBP. This means there are no FX fees for depositing or withdrawing money either. 

Winner: Plus500

However, Plus500 charges a range of other fees as we’ll see next.

Spread on share dealing

eToro charges no commission or dealing fees when directly buying or selling shares. By this we mean that you are actually purchasing the underlying asset, rather than trading it through a CFD where you do not have ownership of the underlying share.

Additionally, eToro doesn’t add a broker spread to share prices on share dealing so you will only pay the market spread (as with all brokers). 

Plus500 only offers CFD trading – you cannot directly invest in shares with them. But, for CFD trading they don’t charge commission or fixed dealing fees – as is the case with most CFD platforms. More on this below.

By not charging dealing fees, eToro stands apart from the traditional stockbrokers who tend to charge fixed dealing fees each time you place an order. 

Winner: eToro

FX Fees

eToro has no further FX fees once you’ve funded your account. This applies to both share dealing and CFD trading.

But, with Plus500 you’ll also be charged an FX fee on the closing profit or loss of any trades you enter on an asset that’s priced in a currency other than your base currency. 

For example, if you open and fund an account in GBP and trade Apple stock, you’ll pay a 0.70% FX fee when you close the trade.

Note that Stamp Duty is not charged on CFDs as you are not trading the underlying asset.

Winner: eToro

CFD Spreads

When trading CFDs you will incur a spread applied by eToro or Plus500. These vary by asset and can fluctuate depending on market conditions and liquidity.

Broker spread is effectively a mark up on the market-quoted buy and sell price of an asset. Brokers add their own spread to make money instead of charging dealing fees.

We checked the spread on a sample of assets (2nd May 2024) on both platforms and we outline these below:

CFD Trade – $1,000 OrdereToro SpreadPlus500 Spread
Gold (1:20)45 pips39 pips
AAPL Stock (1:5)53 cents93 cents
GBP/USD (1:30)1.7 pips1.6 pips
Note: we have recalculated some of the spreads above for like-for-like comparisons, e.g. from percentage to pips

Both eToro and Plus500 charge broadly similar spreads on Gold and GBP/USD. However, eToro’s spread is much lower on Apple Stock (AAPL). Remember, with Plus500 you’ll also pay an FX fee of 0.70% on the closing position of a CFD order for Apple stock if your account is in GBP.

Given the huge range of assets available with both platforms, you should check the spreads on the instruments you’re most interested in trading to get an idea of which is cheaper. But you should bear in mind the 0.70% FX charge on any assets denominated in a non-GBP currency with Plus500 (assuming your account is in GBP) – more on this below.

Overall, our analysis showed that eToro tends to have cheaper spreads on stocks, and both platforms have similar spreads on most other assets.

Winner: eToro

CFD Overnight Fees

Both eToro and Plus500 are major CFD platforms in the UK and you can trade thousands of stocks, ETFs, currencies and commodities with both of them. 

You can also trade Cryptocurrencies with eToro.

Contracts For Difference are major revenue earners for brokers as they’re able to charge a range of fees around them. These include spread (as we saw above), overnight fees (interest on leverage) and FX conversion fees (in the case of Plus500). 

Overnight fees represent the interest charged when eToro or Plus500 lend you trading margin to amplify your positions. The interest charged may vary over time and by asset class.

CFDs Explained

A Contract For Difference (CFD) is an agreement entered into by you and your broker centred around the price of an underlying asset.

By entering a CFD trade, you and your broker each agree to pay each other the difference between the opening and closing price of an underlying asset without either of you owning it. Because the underlying asset isn’t actually involved, CFDs are considered derivative financial instruments (they derive their value from an underlying asset).

If you enter a BUY trade and the underlying asset goes up in price, your broker pays you. If the asset goes down in price, you pay your broker.

Because the underlying asset isn’t directly being traded, CFDs can be traded in multiples of the underlying asset’s price. This is where leverage comes in. Brokers will lend you several times the value of the underlying asset to amplify the trade.

For example, 1:5 leverage on a stock worth £100 means that you can enter a CFD trade worth 5 shares (5 x £100) and only need to put up £100 of your own money. Your profit or loss on the trade is also amplified by 5 times.

Without going into all the details here, CFD brokers have lending facilities with institutional banks (think of a very large overdraft). They use this credit from the bank to lend you the money so that you can trade using leverage. We discuss this more in this Plus500 vs eToro comparison below under Leverage.

The interest charged to you on your overnight positions is a mark-up on the interest rate the broker is charged by their bank. eToro is quite transparent about this, especially compared to Plus500. At the time of writing, eToro’s overnight fee on BUY orders for stocks is 6.4% + the benchmark rate. 

The benchmark rate is variable and depends on the base currency. In the past this would have been the LIBOR rate but this has been phased out and replaced by new reference rates. 

In the UK, SONIA is widely used as the reference rate for interbank lending, and the 1 month SONIA rate is used by eToro to price GBP CFD transactions. At the time of writing, the 1M SONIA rate is 5.20%, which means eToro is currently charging 11.60% annual interest on long UK stock CFD positions.

We checked a range of stocks on Plus500 and they each came out with equivalent annual interest charges of over 20%, much higher than eToro’s.

Winner: eToro

CFD FX Fees – Plus500 Only

As noted above, Plus500 charges a 0.70% fee on the closing position of all CFD trades which are denominated in a currency other than the base currency of your account. 

For example, if your account is funded in GBP, like ours is, and you traded in a US stock using a CFD then you would pay 0.70% on the profit or loss you make when you exit that trade.

eToro does not charge additional FX fees on any of its trading categories. This is another factor to take into account if you will be regularly trading assets which are priced in a foreign currency to your account. You could potentially save 0.70% each time by trading with eToro instead of Plus500.

Winner: eToro

eToro vs Plus500: Products & Accounts

The key difference in the accounts offered by eToro and Plus500 is that eToro allows you to deal directly in shares as well as CFDs – Plus500 only offers CFD trading. 

So if you want to invest in real stocks and shares commission-free then eToro is the winner.

Another area where eToro has the edge over Plus500 is with eToro Money which is a digital payments offering. You can also store your cryptocurrency in your eToro Money wallet.

It’s interesting that investment platforms such as eToro are branching out into payments as typically we’ve seen this happen the other way around. 

Digital payments apps like Revolut and Wise branched out into offering investment services after establishing themselves in the payments market.

eToro Money comes with a digital payments account in multiple currencies, a Visa Debit Card for spending and the ability to store your cryptocurrency. As we outlined in our Fees section above, eToro Money also allows you to avoid some of the FX fees when funding your eToro investment account.

Plus500 does not offer its own e-wallet or money transfer product.

Neither offers a Stocks and Shares ISA – a great option for long term tax-efficient investing. Our top-rated Stocks and Shares ISA provider is Interactive Investor. Read more in our guide to the best Stocks and Shares ISA. If you’re interested in investing through your pension, read our guide to the best SIPP provider.

Winner: eToro

eToro vs Plus500: Investment Options & Services

Let’s first take a look at how the number of tradable assets compares with each platform before we go on to compare other services and features. 

At the time of writing (May 2024), eToro offers over 5,000 instruments to trade. Plus500, meanwhile, offers over 2,800 so eToro clearly offers greater choice over what to trade.

A major difference that Crypto fans will be interested in is that eToro offers over 70 cryptocurrencies to invest in. You can short many of the cryptocurrencies on eToro’s platform, too.

Plus500 does not currently offer cryptocurrencies so if you want to trade or invest in cryptocurrencies then eToro is the clear winner

Neither platform allows you to trade bonds, unlike more traditional investment platforms such as Interactive Investor and Hargreaves Lansdown. Read more on how eToro compares to Hargreaves Lansdown here:

Aside from cryptocurrencies, both eToro and Plus500 offer a huge range of stocks, commodities, ETFs, indices and currencies. 

It’s clear, though, that eToro has greater coverage across these categories. It has far more shares to trade than Plus500 with more than 3,200. eToro offers all the major US shares as well as smaller listed companies such as Manchester United shares.

Winner: eToro

eToro CopyTrader

eToro is ahead of Plus500 when it comes to social community features, including its famous CopyTrader feature. 

CopyTrader allows you to automatically copy the trades of another verified user on eToro’s platform. Copy trading in general has seen a huge rise in popularity in recent years, with some seeing it as a way of accessing the markets without having to learn to trade themselves.

eToro's CopyTrader

However, CopyTrader is a high-risk proposition as very few traders will come from a professional background with a solid track record. You should thoroughly check the record and credentials of a trader before deciding to copy their trades.

As part of its CopyTrader feature, you can become a Popular Investor and receive payment from eToro based on the amount of money invested by other users in your copy trades.

So if you’re a successful trader and want to earn additional income without much extra effort then eToro’s Popular Investor programme is worth considering. You will have to meet their minimum criteria which can be viewed on the eToro website.

Plus500 currently has no copy trade feature.

Winner: eToro

eToro vs Plus500: Social Communities

Aside from its CopyTrader feature, eToro also has a highly active community. This works much like a social media platform, where users can post their thoughts on a feed or leave comments under specific stocks and assets. 

eToro social community
eToro’s home screen looks a little like a social media feed

Occasionally we found some useful discussions going on when we’ve read through eToro’s community. But we would advise you to use caution when reading other people’s opinions and justifications for their investments. 

There’s a lot of bravado and posturing in the trading world, so make sure to do your own research before listening to advice posted on the community forums.

The only comparable feature that Plus500 has is its ‘+Insights’. This allows you to see data based on Plus500’s thousands of live traders.

Examples include the most traded commodities in the past week and the highest return on a Forex trade last month, plus similar data. 

But, eToro includes lots of data like this as standard on its trading screen (as long as you have a funded account).

Winner: eToro

eToro vs Plus500: Fractional Investing

Fractional shares are an increasingly common feature seen in trading apps. 

As the name suggests, you’re able to purchase a fraction of a single share rather than a whole share. This has become more popular among younger investors who have less capital to invest but want to invest in big-name stocks that have high share prices.

Well-known names such as Microsoft, Amazon and Tesla all have triple-digit share prices. For those with smaller amounts to invest, owning single shares of each could take up an entire portfolio.

As a fractional shareholder, you’ll still get voting rights and dividends in proportion to your fractional shareholding.

Of the two platforms, only eToro offers fractional shares.

Winner: eToro

eToro vs Plus500: Ready-made Portfolios

Ready-made portfolios have become a popular way for passive and beginner investors to quickly get invested. This works by allocating your money to an existing investment portfolio that’s setup and managed by someone else.

The most popular examples of these are with robo-advisors, but many other investment platforms now offer ready-made portfolios.

eToro’s are called Smart Portfolios and they’re quite innovative. Some are built around specific industries or sectors, while others are designed to copy the investments of well-known investors such as Warren Buffett and Carl Icahn.

A few of eToro’s Smart Portfolios are created by professionals who claim to use proprietary strategies and technology to manage their portfolios.

However, Smart Portfolios come with risk and you should be comfortable with all of the details surrounding the portfolio before committing your money. You should also regularly monitor performance and make your own adjustments where you see fit. 

The minimum investment for eToro’s Smart Portfolios is $500. Plus500 does not offer ready-made portfolios.

Winner: eToro

eToro vs Plus500: Leverage

Leverage applies to CFD trading and is a form of lending. Brokers that offer CFDs, like eToro and Plus500, allow you to multiply up your potential position in a trade by lending you the money to do so.

As we outlined above under the Fees section of this Plus500 vs eToro comparison, CFD brokers have lending facilities in place with institutional banks. The brokers re-lend this money to you, the client, when you trade with leverage and they charge a mark-up on the interest rate to do so.

CFD leveraging capabilities are regulated by the Financial Conduct Authority (FCA) in the UK. The FCA details the maximum amount of leverage that UK-based investors are permitted to access. The leverage limits available with eToro and Plus500 are the same across all instruments:

  • Stocks & ETFs = 1:5 or 5x
  • Gold = 1:20 or 20x
  • Currencies = 1:30 or 30x
  • Cryptocurrencies = 1:2 or 2x
  • Non-Gold Commodities = 1:10 or 10x
  • Indices = 1:20 or 20x

However, there’s a key difference in how it works between the two platforms. eToro allows you to choose the level of leverage for each trade, whereas Plus500 always requires the maximum leverage (as shown above) to be used.

For example, if trading Gold with eToro you can choose to use leverage of 1x (no leverage), 2x, 5x, 10x or 20x on the market order screen. You do not have to use the maximum leverage of 20x. 

eToro trading screen showing leverage options
Leverage on the eToro trading screen

On the other hand, if trading Gold with Plus500 you must use 20x leverage. As a result, you have much more flexibility and control over your exposure by using eToro and this will suit the more discerning trader.

Winner: eToro

eToro vs Plus500: Which Has The Better App?

Apple App Store ratings:
eToro: 3.9 from over 9,000 ratings
Plus500: 3.7 from 3,100 ratings

Plus500 and eToro both have comprehensive trading apps, which are packed with features and tools. 

However, eToro’s social community features really make it stand out. When you log into the app you’ll be presented with a home tab that looks a lot like a social media homepage:

eToro's app home screen

When you switch over to eToro’s Discover tab and choose an instrument to trade, You can choose how you want to trade it. For example with leverage or without leverage, or to buy or sell.

Using the eToro app is easy, everything is laid out clearly and neatly. 

Plus500’s app doesn’t quite have as nice a design as eToro’s. Searching for instruments is less intuitive as you have to tap the ‘Spotlight’ drop down at the top to start searching. 

Fees on the order execution screen are less clear on Plus500’s app than eToro’s. You have to switch to the ‘Info’ tab, scroll down and then do your own calculation to work out overnight fees:

Plus500 order screen
You’ll have to use the info shown to calculate the overnight fee on your trade with Plus500

By contrast, eToro shows you the exact overnight fee you’ll pay on the CFD instrument:

Overnight fees are shown at the bottom of the order screen

A small inconvenience we discovered using the Plus500 app is that each time you switch away from the app you have to log in again when you jump back to it. 

If you switch away from eToro’s app on your phone and then switch back to it, you can pick up where you left off without logging in again (unless you switched away for a longer period of time).

Plus500 probably does this for security reasons but it’s a little irritating.

Winner: eToro

eToro

eToro is our top-rated investment app, it’s easy to use, has lots of innovative features and allows you to trade commission-free.

Capital at risk if you invest.

eToro vs Plus500: Which Has The Better Customer Service?

Strong customer support is a key feature for any investment platform where you commit your money.

The primary customer support methods with both eToro and Plus500 are their help centres and in-app chat services. We’ve gone through both platform’s help centres and they cover a huge range of frequently asked questions and guides. 

If you can’t find the answer you’re looking for in eToro’s help centre then you can speak to a chatbot. We asked the chatbot of each platform various questions and each time we were given the exact information we needed. Either we were lucky with the questions we asked or their chatbots are just very good.

If you access Plus500’s live chat you’ll be connected to a human customer support agent. We tested this and slightly bombarded Oleksii with a range of questions:

Plus500 live chat for our eToro vs Plus500 comparison
Oleksii was very helpful

All questions were answered promptly and to our satisfaction, even the more technical questions we had.

eToro is less clear on its human agent support hours but we were able to connect to a live agent at various times of the day and night on weekdays. 

You’re also able to speak to an account manager at eToro, including via calls, for guidance on how to use your account and the various methods of investing and trading. 

Overall, it’s hard to separate eToro and Plus500 when it comes to customer service but for the instant live human chat, we give the edge to Plus500.

Winner: Plus500

eToro vs Plus500: Customer reviews

We always check the opinion on popular review sites of the platforms we review. 

On Trustpilot – one of the most popular review sites – eToro has a rating of 4.2 out of 5 from over 23,000 reviews (at the time of writing). Lots of reviews praise eToro’s customer service, in particular the ability to speak to an account manager, as well as its platform features.

Some reviewers mention that the ID verification can take longer than they’d like. But this is increasingly common among investment platforms in the UK with the FCA ordering stronger ID and money laundering checks.

Also on Trustpilot, Plus500 is rated at 4.1 from over 13,000 reviews. Some reviewers praise the trading platform for its ease of use, and others mention that they would like more instruments to be added.

Winner: eToro

eToro vs Plus500: Is My Money Safe?

Both eToro and Plus500 are regulated by the Financial Conduct Authority (FCA) and have Financial Services Compensation Scheme (FSCS) protection.

This means that if either company were to go bust, your money would be protected up to the value of £85,000 by the regulator. 

Furthermore, as eToro and Plus500 are FCA-regulated entities you are able to complain to the Financial Ombudsman Service (FOS) if you cannot resolve a dispute directly with them. They must comply with rulings by the FOS. 

Both Plus500 and eToro segregate client money from their own funds using custodian accounts held with secure 3rd parties. These also fall under FSCS protection.

It should be noted that any money held in an eToro Money account does not fall under the FSCS. 

Trading CFDs comes with a high level of risk and below are the FCA-mandated CFD trading disclosures of each platform:

eToro:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% 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.

Cryptocurrencies markets are unregulated services which are not governed by any specific European regulatory framework (including MiFID). Therefore, when using eToro’s Cryptocurrencies Trading Service, you will not benefit from the protections available to clients receiving MiFID regulated investment services, such as access to the Financial Services Compensation Scheme (FSCS) and the Financial Ombudsman Service for dispute resolution.

Plus500:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% 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.

eToro vs Plus500: Pros & Cons

To summarise our comparison of eToro vs Plus500, we’ve outlined below the main pros and cons of each investment platform.

eToro Pros & Cons

eToro Pros

  • You can directly buy stocks and shares commission-free
  • Much wider range of assets to trade than Plus500, including cryptocurrencies
  • Fractional shares – you can invest in high price shares in fractions starting with just $1
  • CopyTrader service allows you to automatically copy the trades of other eToro traders after assessing their historical performance
  • Over 65 Smart Portfolios which allow you to invest in ready made funds based around specific themes, at no extra charge (transaction fees apply)
  • User friendly app packed with features and in-app analysis
  • eToro Academy provides a good range of investing and trading lessons for less experienced investors
  • FCA regulated and FSCS protection

eToro Cons

  • No ISA products to invest through, so tax charges may apply to any gains made
  • High minimum investment of $500 for Smart Portfolios
  • Fee applies to all withdrawals
  • Transactions fees can add up if regularly depositing and withdrawing money

Plus500 Pros & Cons

Plus500 Pros

  • Dedicated CFD trading platform
  • Completely free deposits and withdrawals
  • You can trade options (unlike many other UK platforms)
  • +Insights let’s you see how other traders are trading
  • FCA regulated and FSCS protection

Plus500 Cons

  • No copy trader feature
  • Does not support cryptocurrencies
  • Not as many instruments to trade as eToro
  • FX fees apply to all transactions not denominated in your account’s primary currency, e.g. buying/selling US shares

eToro vs Plus500: Final Verdict

eToro is our overall winner in our eToro vs Plus500 comparison. It’s also our top pick for best investment app in the UK.

eToro has the edge due to having more innovative features, such as CopyTrader, mostly lower fees, share dealing and for supporting cryptocurrencies. You can also control the amount of leverage you want to use when trading CFDs, unlike on Plus500’s platform.

But, eToro charges a fixed $5 withdrawal fee on all withdrawals and FX conversion fees if you fund or withdraw from your account in a currency other than US Dollars. These can add up.

Both platforms are good, though. Plus500 doesn’t charge any deposit or withdrawal fees and its desktop platform allows you to use advanced trading tools. It’s still a great option for CFD trading.

eToro

eToro is our top-rated investment app, it’s easy to use, has lots of innovative features and allows you to trade commission-free.

Capital at risk if you invest.

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eToro is our winner

More instruments to trade, better pricing and lots more features.
Capital at risk if you invest. FCA regulated and FSCS protected.

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