Plus500 vs. eToro

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Plus500 vs. eToro – elite brokerages for all your trading needs.

Two prominent players in the world of online trading, Plus500 and eToro, attract millions of users worldwide. Both platforms cater to the needs of traders, but they differ in their product offerings and trading strategies. In this article, we explore their key features, trading instruments, fees and overall user experience, so you can decide which broker best suits your needs. 

What is Plus500?

Founded in 2008, Plus500 is an Israeli-based online trading platform and multi-asset fintech company. It is listed on the London Stock Exchange and FTSE 250. 

Plus500 clients can trade a broad range of financial instruments, including stocks, commodities, indices, cryptocurrencies and forex. The broker specializes in Contract for Difference (CFD) trading. With CFD trading, users don’t own the underlying assets, speculating instead on price movements. Plus500 added shares trading to its trading options in 2021 and U.S. futures in 2022. Plus500 users can choose from over 2,800 tradable assets, including 65 currencies, stock trading and crypto CFDs. 

A demo account offers users unlimited access to test strategies and practice trading with virtual money. There is no social trading on the platform, but you do have access to +Insights, a view into what the other traders are doing. Plus500 is present in over 50 countries and has more than 24 million registered users. 

The CFD broker has a user-friendly interface with access to real-time market prices, charts and analysis tools. Risk management tools include take profit, stop loss, guaranteed and trailing stops. 

Plus500 is registered with six Tier-1 regulators, including the Financial Conduct Authority (FCA) and the Australian Securities and Investment Commission (ASIC). 

What is eToro?

eToro is a social trading and multi-asset brokerage platform enabling trade in more than 3,000 financial instruments, including stocks, cryptocurrencies, commodities and currencies. Founded in 2007, eToro’s user-friendly interface and unique features have gained enormous popularity. Today, the broker has over thirty million users across more than 100 countries. 

One of the key aspects of the eToro product portfolio is its social trading, where users interact with and learn from other traders. The platform incorporates a social feed, allowing users to follow and copy successful traders’ trades in real time. Users can also take advantage of smart contracts, harnessing the power of AI, machine learning and advanced algorithms. 

A demo account with $100,000 worth of virtual money allows users to try the system and test trading strategies. eToro users can buy and sell CFDs and their underlying assets. 

eToro offers a range of innovative tools and features, including a virtual portfolio for practice trading, advanced charting capabilities and various educational resources. eToro falls under the jurisdiction of three Tier-1 regulators. 

The eToro proprietary trading app is easy to use. The web and mobile apps have similar features. EToro charges no commissions, relying instead on the spread between the buy and sell prices. 

Comparing eToro vs. Plus500

Let’s see how eToro and Plus500 compare.

Features

eToro traders have a wide choice of assets, with over 3,000 in six asset classes. These include cryptocurrencies, forex, EFTs, stocks, indices and commodities. Users can trade in CFDs or buy the underlying assets using leverage of 1:30. Fractional shares are available for as little as $10. 

Plus500 specializes in CFD trades, though the company has recently added stock trading and U.S. futures trading to its product portfolio. Users can trade 2,800 tradable assets, including commodities, forex, cryptocurrencies, shares, indices and options. Plus500 clients can access leverage of 1:30. For professional accounts, the leverage can go up to 1:300. 

Trading Platforms

Neither eToro nor Plus500 supports MetaTrader. Traders must use proprietary platforms. The Plus500 platform is intuitive and easy to use. It comes in both browser and mobile formats. but it doesn’t have the level of functionality and the customization tools of MT4 and MT5. It is also not possible to integrate third-party tools with the Plus500 system. The mobile platform mirrors the browser functionality. 

Like the Plus500 platform, the eToro mobile app has the same functionality as the browser. The platform is easy to use and navigate. It also connects seamlessly with the eToro wallet. 

Trading Tools

CFD trading is inherently risky, and Plus500 recognizes this with a suite of risk management tools. These include “close at profit” or stop loss, “close at loss” or stop limit, “guaranteed stop” and “trailing stop” orders. Traders use these risk mitigation tools to set closing positions. They must set limits on order placement and will pay for the privilege with a slightly higher spread. These risk mitigation tools are intended to protect profits and reduce the risk of loss.  

eToro Social Trading

Social and copy trading is the foundation of the eToro business model. It is a process from which all traders can benefit. Less-experienced traders can use this functionality to learn from the strategies and insights of more experienced traders and replicate their success. Skilled traders receive bonuses for sharing their trades. 

Plus500 doesn’t support copy or algorithm trading, but you do have access to +Insights, your view into what other traders are doing. You can also buy and sell directly from the trend charts. Filters help you to find the trends you’re looking for. Use this tool to understand the trading sentiment, discover trade volumes and see the biggest trade wins.

Charting Tools and Market Analysis

eToro has 104 charting indicators and 161 chart drawing tools on eToro. The platform has an economic calendar, news, daily market analysis and an earnings report calendar. Users can create watchlists to send alerts under certain preset conditions. 

The Plus500 platform offers users 110 indicators, 13 chart types and 20 charting tools. Plus500 publishes up-to-date online news and market updates. Users can set real-time alerts. There is also an economic calendar. However, the platform lacks technical analysis support, perhaps one of its biggest weaknesses.  

Fees and Commissions

Neither eToro nor Plus500 charge commission, relying on the spread for income. 

Plus500 monitors and publishes real-time spreads. With spreads starting at 0.6 pips, the costs are competitive. Spreads are higher where a stop loss is applied. An inactivity fee of $10 per month applies after three inactive months. There are no transaction or termination fees, but traders holding an overnight position pay financing fees. 

Starting at 1 pip, eToro spreads are not as competitive as those of Plus500. The broker will, however, refund part of the spread if the trader suffers a significant loss. There are no management fees. eToro charges a withdrawal fee of $5. 

User Feedback and Reviews

By most accounts, Plus500 users seem satisfied with the platform’s performance and the customer service received. However, there is some confusion about the trading costs.

Plus500 Pros:

• Excellent customer service
• Fast responsive and simple platform
• Fast withdrawals
• Risk mitigation tools give the users control

Plus500 Cons:

• High overnight funding costs
• Users are confused by the costs

With a TrustPilot score of 4.4 stars, eToro can’t do much wrong. Users love the easy-to-use platform and the copy trading functions. Withdrawals are quick, and account managers are willing to go the extra mile to help clients.

eToro Pros:

• User-friendly – easy for even first-timers to navigate
• Copy trading helps beginners to learn the ropes
• Quick withdrawals
• Excellent account manager reviews

eToro Cons:

• Slow response to email queries

Plus500 vs eToro – Which is Best?

Both eToro and Plus500 are regulated, so you can have more confidence in the safety of your money with either platform. Both offer excellent customer service, easy-to-use trading platforms and demo accounts. Still, that’s where the similarities end. CFD traders may appreciate the tight spreads charged by Plus500. For copy trading, it’s a no-brainer – you’ll find your trading home at eToro.  

Frequently Asked Questions 

The post Plus500 vs. eToro by Anna Yen appeared first on Benzinga. Visit Benzinga to get more great content like this.