In this comparison of eToro and Plus500, we assess which is the best trading site, particularly for those interested in contracts for difference (CFDs). We look at the strengths and weaknesses of each option, considering their products and services, fees and customer reviews.
eToro vs Plus500 - which is better?
| eToro | Plus500 | |
| Services | Trading in shares, ETFs, commodities, currencies, CFDs and cryptocurrencies
CopyTrader CopyPortfolios Virtual portfolios Fractional shares eToro Academy |
Trading in indices, forex, commodities, shares, options and ETF CFDs
Trading alerts Risk management tools Traders' Guide Demo account 24/7 customer support |
| Products | No ISA or SIPP accounts available
eToro CFD trading account eToro Money account |
Standard account
Plus500 Premium Service (invitation only) |
| Minimum investment | $100 (to open an account), $10 in the UK thereafter, or $500 via bank transfer | $100 (card payment), $500 (bank transfer) |
| Fees | Buying and selling - free
Currency conversion fee - 1.5% to 3.0% for every deposit (Not applicable if depositing via eToro money account) Inactivity fee - $10 USD per month after an inactivity period of 1 year Withdrawal fee - $5 USD per withdrawal (minimum $30) |
No commission or transaction fees
Up to 0.70% currency conversion fee Overnight funding fee Guaranteed stop order $10 inactivity fee per month after an inactivity period of 3 months |
| Customer reviews (Trustpilot) | 4.2 out of 5.0 | 4.1 out of 5.0 |
eToro vs Plus500 - services
While both eToro and Plus500 allow people to trade CFDs, eToro also has a range of other options, including shares, ETFs, commodities, currencies and cryptocurrencies. It also has a feature that allows users to "copy" other successful investors' portfolios, which is popular among those who are just starting out. Similarly, Plus500 allows users to practise with a dummy account worth £40,000 without having to risk their own money.
Both platforms offer guides and customer support, with each acknowledging the high-risk nature of some of the investments they offer. This is particularly true of CFDs, where 80% of retail investor accounts lose money when trading CFDs with Plus500 while 51% lose money when trading CFDs with eToro.
eToro vs Plus500 - products
Neither eToro or Plus500 have an ISA or SIPP in their ranges, which means there isn't an option to invest in a tax-efficient way. Instead, they each have general accounts, with eToro also having a dedicated CFD account and Money account. Plus500, meanwhile, has a premium service, but this is only open to a select number of customers on an invitation-only basis.
eToro vs Plus500 - minimum investment
If you want to open an account with Plus500, you will need to deposit a minimum of $100 if you are paying by card, or $500 if you do a bank transfer. On the other hand, eToro requires a minimum of $100 for your first deposit. After that, the minimum deposit is $10 or $500 if you decide to deposit via bank transfer.
eToro vs Plus500 - fees
Both eToro and Plus500 primarily make their money through the "spread", which is the difference between the bid and the ask price of the instruments it is trading, as neither charges users commission for buying or selling. They do, however, charge for currency conversion - eToro 1.5% to 3.0% and Plus500 0.70% - for transactions in a different currency from the one the account is in. They also both charge a $10 monthly inactivity fee, with eToro also charging a fee of $5 each time customers make a withdrawal.
eToro vs Plus500 - customer reviews
According to customer review site Trustpilot, eToro is rated as 'Excellent', while Plus500 is rated as 'Great'. eToro currently has a score of 4.2 out of 5.0, while Plus500 has a score of 4.1. More than half of the reviewers for each company classified them as "Excellent", citing the fact they are easy to use and have good levels of customer service. Negative reviews for both eToro and Plus500 tend to centre on issues with individuals' accounts, or the belief that there are better and cheaper options available as better alternatives.
Summary: eToro vs Plus500
The choice of whether to opt for eToro or Plus500 largely comes down to whether you solely want to trade CFDs, in which case both are open to you, or whether you want a more diversified portfolio, which means CFD specialist Plus500 won't be suitable. Overall, the product range and fees are broadly the same for each, although the withdrawal fee charged by eToro may put off some potential customers.
For a full and independent analysis of each, read our eToro review and Plus500 review.
