eToro vs Freetrade: which offers better value to its customers?

A growing trend in trading, whether in stocks and shares or cryptocurrencies, has led to investment platforms like eToro and Freetrade* also gaining in popularity. In this article we compare the two options, looking at their similarities and differences to help you decide which is the better option for you.

We also show you how to get a free share worth between £10 and £100* with our reader offer with Freetrade (capital is at risk).

eToro vs Freetrade - which is better?

	eToro	Freetrade
Services	Investing in shares, ETFs, commodities, currencies, CFDs and cryptocurrencies CopyTrader CopyPortfolios Virtual portfolios Fractional shares eToro Academy	Investing in shares, ETFs and investment trusts Fractional shares 6,500+ Global equities, ETFs, and investment trusts 28 Vanguard mutual funds (Standard and Plus plans only)
Products	ISA accounts are available via Moneyfarm eToro CFD trading account eToro Money account	ISA, General Investment Account, SIPP
Minimum investment	$10 USD after a $50 initial deposit	No minimum investment requirement
Fees	Buying and selling - free Currency conversion fee -from 0.75% (No charge if depositing via the eToro money account) Inactivity fee - $10 USD per month after 1 year of inactivity Withdrawal fee - $5 USD per withdrawal (minimum $30 from a USD account, no minimums from GBP or EUR accounts)	Basic account - Free - FX fees 0.99% Freetrade Standard - £5.99 per month - FX fees 0.59% Freetrade Plus (Includes ISA & SIPP) - £11.99 per month - FX fees 0.39% All plans include access to an ISA & SIPP
Customer reviews (Trustpilot)	4.2 out of 5.0	4.3 out of 5.0

Money to the Masses offer

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Receive a free share worth between £10 and £100* when you sign up for a basic account and deposit a minimum of £50. (Terms and conditions apply. Capital at risk).

 

eToro vs Freetrade - services

Both eToro and Freetrade offer low-cost ways to trade in shares, ETFs and investment trusts. eToro also allows investors to access commodities, currency and cryptocurrencies, as well as CFDs. Freetrade's app is simple and clean and it has made significant changes to its subscription plans meaning investors no longer have to pay a fee to invest in its Stocks & Shares ISA or SIPP. With no minimum investment required, it is an excellent option for beginner investors. eToro has its eToro Academy, which provides education and guidance, which is appropriate considering the riskier nature of some of the asset classes it offers. It also has CopyTrader* and CopyPortfolio options, which, in effect, let you mimic the choices made by experienced and successful investors. These popular features are particularly good for beginners, who may be overwhelmed by the level of choice available.

eToro vs Freetrade - products

If you are looking for a tax-efficient way to manage your investments, Freetrade has the upper hand over eToro as it offers both ISA and SIPP wrappers. Meanwhile, eToro offers a standard account with access to CFD trading and a Money account to make savings on trades and withdrawals. It also offers an ISA via its partnership with Moneyfarm.

Upgrading to the paid subscription plans with Freetrade gives investors access to lower FX fees and the opportunity to earn higher rates of interest on their uninvested cash. The Freetrade 'Standard' plan costs £5.99 per month (or £59.88 per year if paying annually), has lower FX fees (0.59%) and pays 2.5% interest on up to £2,000 of uninvested cash. The Freetrade 'Plus' plan costs £11.99 per month (or £119.88 per year if paying annually), has even lower FX fees (0.39%) and pays 3.5% interest on up to £3,000 of uninvested cash.

eToro vs Freetrade - minimum investment

While Freetrade does not have a minimum investment requirement, eToro requires an initial minimum deposit of $10 US after an initial deposit of $50 to start investing. It is also worth noting that while Freetrade doesn't charge a withdrawal fee, eToro has a fee of $5 for each withdrawal, with a minimum withdrawal of $30 from USD accounts but none from GBP or EUR accounts.

eToro vs Freetrade - fees

Freetrade and eToro have both designed their business models around the concept that they provide commission-free buying and selling, keeping costs to a minimum for investors. However, in addition to eToro making money from the spread between the offer and bid price on assets, each also makes money in other ways. For eToro that is through additional charges, such as inactivity fees and withdrawal fees.

eToro vs Freetrade - customer reviews

According to customer review site Trustpilot, eToro is ranked "Great" overall with a score of 4.2 out of 5.0 based on over 30,000 reviewers. Freetrade is rated "Excellent", with a score of 4.3 out of 5.0 based on over 7,100 reviews. Many of the positive reviews of eToro centred on the fact that users are assigned an account manager, and this helps with navigating the available features and resolving any problems. Freetrade, meanwhile, was praised for its low cost and usability.

Summary: eToro vs Freetrade

eToro has become a popular option for those looking to invest in "alternative" asset classes, such as cryptocurrencies and CFDs, who like the extra support they get from the eToro Academy and, crucially, from the feature that allows them to copy other investors' portfolios. A large proportion of that audience may be willing to overlook the lack of a SIPP and the additional fees, including a $5 USD withdrawal fee.

While Freetrade* doesn't have as many investment choices available, it does have both an ISA and a SIPP, which means interest and dividends can be earned tax-free. It also does not charge additional fees for withdrawals or inactivity.

For more details on both platforms read our Freetrade review and eToro review.

 

When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.

 

If a link has an * beside it this means that it is an affiliated link. If you go via the link Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. But as you can clearly see this has in no way influenced this independent and balanced review of the product. The following link can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - Freetrade, eToro

eToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFD assets. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 50% 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.