Plus500 vs eToro | Which CFD Broker to Choose?

Summary: In the rapidly evolving landscape of online trading, picking the right broker becomes more than just a choice—it’s a strategy crucial to optimizing your investment returns, especially in the intricate world of CFD trading. Two platforms, Plus500 vs eToro, often emerge at the center of this discussion, each boasting unique features and strengths. But how do you discern which one aligns most closely with your trading goals? Our guide here is crafted to shed light on this very dilemma. Within it, we’ll unpack each broker’s strengths, offerings, fee structures, and more so that you can make an informed choice tailored to your specific needs. 

At a glance: Plus500 vs. eToro

Plus500

Established in 2008, Plus500 Ltd (LSE: PLUS) is publicly traded on the London Stock Exchange and is part of the FTSE 250 index.

Serving clients across over 50 countries, Plus500 provides a diverse range of CFDs, encompassing forex, stock indices, individual stocks, commodities, ETFs, options, and cryptocurrencies (availability varies based on regulatory environments) through a web as well as a mobile option. 

Plus500 has amassed a user base of over 25 million and has seen a traded value upwards of $800 billion.

Recommended Multi-asset Broker for Online CFD Trading

• Reliable & Regulated by CySEC (#250/14) - Plus500 Ltd is a FTSE 250 company listed on the London Stock Exchange

• Wide range of instruments - CFDs on stocks, crypto, forex, commodities, ETFs, and more

• Low cost investing - No commissions and tight spreads.

• Transparent pricing on overnight funding, currency conversion fees, guaranteed stop orders, and inactivity fees.

• Advanced platform - Top notch analytical tools, real-time quotes, fast order execution, secure withdrawals

Over 24 million users since the inception of Plus500 Group

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82% 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.

eToro

Pioneering the concept of social trading, eToro’s unique “Copy Trading” feature allows users to mirror the strategies of successful traders, fostering a community where knowledge is shared and success is collectively celebrated.

eToro is accessible across various devices, ensuring users can trade on-the-go with its mobile application or delve deep into market analysis via its web platform. 

Currently, eToro is home to over 30 million registered users and has $7.5 billion in assets under management. 

Highly Rated Stock Trading & Investing Platform

• Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

• 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

• Copy top-performing traders in real time, automatically.

• eToro USA is registered with FINRA for securities trading.

30+ million Users

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eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Plus500 vs. eToro: Product offering

Plus500 offers over 2800+ CFDs, covering a diverse set of asset classes such as:

• Indices (both country and sector-specific); 
• Forex; 
• Commodities; 
• Individual Stocks; 
• ETFs; 
• Options; 
• Cryptocurrencies (availability depending on regulatory constraints).

eToro provides access to more than 5,000 financial instruments spanning various asset categories, including:

• Stocks;
• Indices;
• ETFs;
• Currencies;
• Commodities;
• Cryptoassets.

Plus500 vs. eToro: Fees

Plus500 vs. eToro: Order types

eToro offers a range of order types on the platform. 

To open a trade on eToro:

• Market Order: Buy or sell an asset immediately at the best current price; 
• Limit Order: Executes when your set price is met, allowing you to capitalize on market price fluctuations.

Closing a trade:

• Stop Loss (S.L.): Closes a trade at a set rate or amount to prevent further losses if the market turns unfavorable;
• Take Profit (T.P.): Closes a trade at a designated rate when the market is favorable, ensuring profit transfer to your available balance.

Similarly to eToro, Plus500 offers a variety of order types, including Market, Limit, and Stop Orders. Within the “Stop Orders” category, there are four specific types available: the “Close at Loss Order” (often referred to as a Stop Loss Order), the “Close at Profit Order” (also known as a Stop Limit Order), the “Trailing Stop Order,” and the “Guaranteed Stop Order.”

Plus500 vs. eToro: Safety

Plus500 and eToro are both overseen by the relevant regulatory agencies set up by governments or other entities to safeguard investors and foster transparent and stable financial markets.

Client funds at Plus500 are separated from company funds, protecting users in case of insolvency. Additionally, client funds are insured by the Financial Services Compensation Scheme (FSCS) in the U.K. for up to £85,000. 

Additionally, per the 2018 European Securities and Markets Authority (ESMA) rules, Plus500 provides negative balance protection, ensuring clients cannot lose more than their account balance. 

Equities, including stocks and ETFs, are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 for each customer, with cash protection capped at $250,000. Beyond this SIPC coverage, eToro’s clearing ally, Apex, offers additional insurance, safeguarding eToro users up to $37.5 million in securities and $900,000 in cash for each person. Note that cryptocurrencies held at eToro aren’t insured.

Furthermore, eToro ensures clients’ funds and assets are kept in distinct accounts, enforced with internal and external supervision. 

Plus500 vs. eToro: Educational and research resources

Choosing the right platform can be challenging, especially for beginners. Central to this decision is the quality and comprehensiveness of educational and research tools provided by the platform.

Here are the educational and research features offered by each platform:

Plus500

• Insights: This feature allows you to observe the real-time activities of millions of Plus500 users;
• Trading Academy: Offers a range of educational resources such as eBooks, video guides, FAQs, risk management tools, and the latest market updates. Plus500 also provides the “Key Information Document” (KID), detailing the fundamentals and associated risks of each trading instrument;
• Economic calendar: Allows traders to utilize the economic calendar to strategize trades and forthcoming orders and stay informed about imminent market occurrences (changes in interest rates, inflation metrics, trade statistics, energy reserves, and monthly employment figures);
• Portfolio analysis: Instant updates about your account details, including balance, transaction history, and profit/loss summaries;
• Research: Plus500 offers customizable charts for technical analysis on trading instruments, along with a “Traders’ Sentiment” indicator displaying the percentage of buyers and sellers among Plus500 clients, and a “Live Statistics” indicator showing instrument performance across various time frames.

eToro 

• eToro Academy: eToro offers a wide array of educational materials, including articles, videos, webinars, podcasts, and both virtual and in-person training sessions;
• Copy trading: Users can monitor and automatically mimic the live trades of proficient traders on the platform. A minimum investment of $200 per trader is required for copying;
• Curated portfolios: Smart Portfolios are curated investment bundles that combine various assets and strategies to create diversified investment opportunities for users. An investment of at least $500 is required;
• Demo account: eToro’s demo account replicates the natural trading environment, allowing users to familiarize themselves with the platform and refine their trading techniques without financial risks;
• Charting: With ProCharts, eToro delivers advanced charting tools, enabling users to study an asset’s past performance using various chart types. It also lets you view multiple charts on the same screen, allowing you to compare their performance;
• News: The platform features a news and analysis section that includes weekly articles and insights on diverse topics, like the Crypto Roundup and The Bottom Line; 
• Third-Party research: eToro integrates research from TipRanks, a premier platform that aggregates the latest insights from global t investment banks and financial companies. 

Plus500 vs. eToro: Availability by country

Plus500 operates in over 50 countries (details not fully disclosed on the website) via various authorized and regulated entities globally.

eToro is available in 76 countries worldwide. Within the U.S., it serves residents in 46 states, except Hawaii, Nevada, New York, and Minnesota. Additionally, it’s not accessible in the territories of American Samoa, Guam, Puerto Rico, and the U.S. Virgin Islands. For a list of blocked countries and territories, please click here. 

Plus500 vs eToro: Customer service

On Plus500, customer support is accessible through live chat, WhatsApp, and email 24/7. While phone assistance is unavailable, there’s a dedicated ‘Contact Us’ page for any queries. Their services are offered in up to 32 languages (details not fully disclosed on the website).

eToro offers a comprehensive help center packed with FAQs covering various topics. Other direct customer help channels are somewhat restricted. While phone and email support exist, their contact details aren’t easily accessible. However, there’s a chat feature integrated into the help center, allowing direct interaction with a representative. Additionally, users can submit a support ticket online. eToro is available in 19 languages.

Pros and cons of Plus500

Pros

• Extensive CFD offerings: Plus500 grants clients from over 50 countries access to a broad spectrum of CFDs, including those on forex, stock indices, individual stocks, commodities, ETFs, options, and cryptocurrencies (availability may vary based on regulations);
• Intuitive platform: The trading platform showcases a user-friendly interface, allowing for efficient watchlist creation, chart analysis, and trade management; 
• Regulation: Plus500 operates under the oversight of various regulatory bodies around the globe;
• Guaranteed stop loss: Available for certain instruments (depending on market conditions) to protect traders from market gaps, albeit with a broader spread;
• Robust risk management: Includes features like negative balance protection, in line with ESMA regulations from 2018, ensuring clients can’t lose more than their account balance.

Cons

• Indirect investment approach: On Plus500, users cannot directly invest in the underlying assets. Instead, they can only speculate on price fluctuations, which may not align with the preferences of those looking for direct ownership and the associated benefits;
• Limited customer support: Plus500’s support is confined to WhatsApp and email, noticeably lacking a direct phone line, even for sales-related queries;
• U.S. CFD trading restrictions: Due to CFDs being largely prohibited in the U.S., Plus500 doesn’t offer CFD trading for U.S. clients. However, they’ve introduced TradeSniper, a platform for futures trading catering to U.S. traders;
• Platform incompatibility: Advanced traders seeking integration with third-party analytical or automation tools will face challenges. The platform doesn’t support direct integration with such tools, and there’s no back-testing functionality available.

Pros and cons of eToro

Pros

• Social and copy trading: Allows users to monitor and replicate the trades of top-performing investors;
• Intuitive interface: Crafted to cater to both novices and seasoned traders;
• Variety of investment choices: Trade and invest in a variety of assets, from stocks and ETFs to commodities or crypto;
• Fractional share trading: This allows traders to tap into pricier investments without committing a large sum. Purchases of fractional shares can be initiated with any amount exceeding the $10 minimum deposit; 
• Regulation and oversight: eToro operates under the guidance of several regulatory entities, ensuring credibility;
• Learning materials: Provide resources for user education on trading and investing;
• Global availability: Accessible in 76 nations, catering to a broad user base;
• Smart portfolios: Curated portfolios offering a range of investment options;
• Crypto staking: Rewards for holding onto cryptocurrency;
• Expansive user community: Trusted by 30 million users worldwide;
• Strategic partnerships: X (formerly Twitter) partnered with eToro to bring stock and crypto trading to over 350 million of its users, bolstering eToro’s credibility and reach.

Cons

• Restricted U.S. availability: While eToro has been broadening its presence, it’s still not accessible for residents in all U.S. states. That said, the virtual demo account is available nationwide. Furthermore, CFD trading on eToro (as well as CFD trading in general) is prohibited for U.S. residents;
• Narrow account variety: eToro exclusively offers brokerage accounts, leaving out options for retirement or other specific account types;
• Limited choice of advanced resources: The platform might fall short for seasoned investors due to a general deficiency in sophisticated trading tools, features, and in-depth research;
• Fees: eToro can have steeper fees for specific transactions when compared to other platforms, particularly with crypto spreads;
• Restricted wallet features: eToro’s proprietary wallet lacks compatibility with various blockchain applications and other exchanges. 

Verdict 

When it comes to choosing between Plus500 and eToro, the ideal platform largely depends on the trader’s or investor’s individual needs and preferences.

Plus500 is best for:

• Best for CFD trading: Plus500 specializes in CFDs and offers a wide selection to choose from. Traders looking to speculate on price movements rather than owning the underlying asset might prefer this platform;
• User-friendly interface: The platform is known for its straightforward and intuitive interface, which can be beneficial for both beginners and experienced traders;
• Robust risk management tools: For traders who are particularly risk-averse, Plus500’s guaranteed stop-loss orders and negative balance protection can be attractive.

eToro is best for: 

• Social and copy trading: eToro stands out with its flagship CopyTrader and Popular Investor Program features. These are ideal for beginners or those who wish to leverage the expertise of successful traders;
• Diverse asset selection: With its offering of cryptocurrencies, stocks, and ETFs, eToro provides a more diverse range for those interested in a varied investment portfolio;
• ESG ratings: Those who prioritize socially conscious investments will appreciate eToro’s embedded ESG ratings.

As always, as with all trading and investment decisions, it’s essential to do your own research, consider your financial situation and investment goals, and, if necessary, consult with a financial advisor before making a choice.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

FAQs about Plus500 vs. eToro