eToro vs Hargreaves Lansdown - which is better?
| eToro | Hargreaves Lansdown | |
| Services | Trading in shares, ETFs, commodities, currencies, CFDs and cryptocurrencies
CopyTrader CopyPortfolios Virtual portfolios Fractional shares eToro Academy |
Buy and sell funds, shares and ETFs
HL Select funds Wealth Shortlist Master Portfolios Foreign currency exchange Multi Index Funds |
| Products | No ISA or SIPP accounts available
eToro CFD trading account eToro Money account |
Active Savings
Cash ISA Fund and share account ISA, GIA (General Investment Account), Lifetime ISA, Junior ISA, SIPP, Junior SIPP |
| Minimum investment | $100 minimum initial deposit, then $10 beyond your first deposit. | £1 for a fund and share account
£100 for an ISA or SIPP (or a regular £25 per month) |
| Fees | Buying and selling - free
Currency conversion fee - -1.5% to 3.0% for every deposit (No charge if depositing via the 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 charges for holding shares
No charges for Junior ISA Dealing charges (based on deals completed in previous month): 0-9 deals - £11.95 10-19 deals - £8.95 20+ deals - £5.95 0.3% annual fee for Multi Index Funds On the value of your portfolio between £0-£250,000 there is a 0.45% annual charge. Between £250,000-£1m - 0.25% per annum charge Between £1m-£2m - 0.10% per annum charge Over £2m - 0% per annum charge Additional underlying fund charges |
| Customer reviews (Trustpilot) | 4.2/5.0 | 4.2/5.0 |
eToro vs Hargreaves Lansdown - services
Hargreaves Lansdown is a more traditional investment platform than eToro and, as such, has a wide range of services, including its own range of multi-asset funds, model portfolios, fund recommendations and a wealth of tools and research. eToro, meanwhile, is generally aimed at a more dynamic audience, who are looking to actively trade in different asset types, rather than adopting a "buy and hold" approach.
If you are looking to buy and sell shares, both eToro and Hargreaves Lansdown can cater for your needs, with both allowing you to trade in share and ETFs. A key difference is that you can't invest directly in cryptocurrencies such as bitcoin with Hargreaves Lansdown, while eToro allows you to buy several different cryptocurrencies.
eToro vs Hargreaves Lansdown - products
Unlike Hargreaves Lansdown, which has a full range of wrappers, including Lifetime ISAs and Junior SIPPs, eToro doesn't have any tax-efficient ways to invest, simply offering a general investment account. Its range is divided into a general trading account, a more specialist CFD trading account and a broader "money" account.
eToro vs Hargreaves Lansdown - minimum investment
eToro has a minimum initial deposit of $100, after which the minimum deposit is $10. Hargreaves Lansdown allows you to open a fund and share account - the nearest equivalent to eToro's trading account - with just £1. Meanwhile, Hargreaves Lansdown requires £100 (or £25 monthly investment) to open an ISA or SIPP.
eToro vs Hargreaves Lansdown - fees
eToro markets itself as a low-cost way to trade, with no commission on buying or selling. It does, however, charge a 1.5% to 3.0% currency conversion fee for every deposit in a different currency from the one the account is held in. There is also a $5 withdrawal fee if you want to take some or all of your money out. For Hargreaves Lansdown, meanwhile, there is a £11.95 dealing charge, although this reduces depending on how many trades you have completed in the previous month.
eToro vs Hargreaves Lansdown - customer reviews
Both eToro and Hargreaves Lansdown ranked highly with customers, both scoring 4.2 out of 5.0 according to independent customer review site Trustpilot. Of its 24,000+ reviews, eToro was rated as "Great" by 64% of respondents, while Hargreaves Lansdown received a "Great" rating and an overall score of 4.2 out of 5.0 from 60% of its 10,000+ reviewers. The positive reviews mainly centred on customer service for Hargreaves Lansdown and low cost and efficiency for eToro.
Summary: eToro vs Hargreaves Lansdown
The choice between eToro and Hargreaves Lansdown* is largely down to how you are planning to invest your money. If you are looking for a specific trading account with access to more esoteric asset classes, including cryptocurrencies, eToro may be a better option, particularly because of the low fees associated with it. However, if you are more interested in using a more traditional platform, particularly one that offers a wide range of tax-efficient products, Hargreaves Lansdown is probably more suitable.
For more in depth analysis of each platform, read our eToro review and Hargreaves Lansdown review.
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