DEGIRO vs Etoro: Choosing the Best Brokerage

When investing, choosing a broker to work with is a crucial step. It can be not easy to choose the best broker for your needs. Comparing investing in ETFs with DEGIRO vs eToro. Both brokers are available for Europeans. Also, we look at how difficult it is to invest through a broker.

What is DEGIRO?

DEGIRO, a Dutch brokerage firm. The company was established in 2018. Their services are available in 18 different countries. They have also been in Switzerland since 2018. As of 2022, they claim to have two million clients.

DEGIRO’s low charges are its main selling point. The company has grown rapidly, using fees as its primary marketing tool.

These brokers offer access to many investment instruments (stocks, bonds, and ETFs) on many stock exchanges. This article will compare the two brokers only on ETFs and stocks.

What is eToro, and how does it work?

eToro was founded in Israel in 2007. The company now operates in over 140 countries and claims 11 million customers. This company has a current value of over 800 million dollars. This is a staggering number!

eToro’s selling points can be found on both fronts.

• Low commissions.
• Social trading systems are a great way to get involved in social commerce.

First point, it is obvious. eToro is different from other brokerage firms in the second area. Two features are important for this. You can copy trades from the best traders of the customer using the CopyTrading function. You can use CopyPortfolio to duplicate the portfolios or other users.

Is DEGIRO a good broker?

DEGIRO, despite being a sub-par trading platform, offers low-cost stock trading. It charges only 1.75 PS + 1 PS handling fee for each trade with a max charge of 5 PS. Trading funds are, however, more expensive. DEGIRO lags behind competitors in fundamental research education and offers no ISA or SIPP account.

Is eToro a good broker?

eToro is a good broker, except for hidden charges and restricted research areas. The platform is easy to use and functional, offering zero-commission stock trades and an excellent copy-trading option. The only limitation of this broker is that they have a different range of investment options than some traditional brokers.

What is the better minimum?

DEGIRO vs eToro:  Firstly, let’s compare the DEGIRO minimum with eToro.

eToro’s minimum deposit is 200$. To start Trading, you will require at least 200$. DEGIRO, on the other hand, has no deposit minimum. You can begin with just a small amount. This is not an issue since it is only a small amount.

eToro allows you to buy fraction (with a minimal amount of USD) shares. DEGIRO doesn’t support fractional shares. You must purchase entire shares. This should also be fine for most people.

Both brokers offer good minimums.

What is the difference?DEGIRO or Toro: Which is better?

We can then check the availability worldwide of degiro vs etoro.

eToro can be found in over 60 countries, including the United States. eToro has been blocked in some countries.

DEGIRO, on the other hand, is available in 18 European nations.

eToro offers a much wider range of products than DEGIRO.

Pros and Cons

DEGIRO

Pros

• List of ETFs that are available with no commission
• User-friendly web and mobile app
• Wide range of investment options
• Educational material: Investor’s Academy and Investing With DEGIRO
• Low overall commission structure
• There is no account opening fee, withdrawal fees, or inactivity fees

Cons

• Currency conversion fee of 0.25% (charged when you invest or deposit in a currency other than your base currency).
• EUR/PS1 flat handling fee (charged in most transactions)
• Connectivity fee of EUR/PS2.50 (paid annually) per exchange you are invested
• Does Not Offer Forex, CFDs, and Cryptos
• No demo account
• Little research
• Low-quality customer support

eToro

Pros

• Commission-free stock trading
• Social Trading, other innovations and products
• Wide variety of financial products
• Modern, easy to use, and slick
• Top tier regulators

Cons

• Limited disclosed financial information
• Fees for withdrawal and inactivity
• Spreads, currency exchange fees, and overnight inactivity are higher than the average
• You can only have one currency (USD). If you choose to deposit another currency, a conversion fee will be charged.
• It doesn’t offer bonds, futures, or options.

Which broker has a greater range of options for investment?

DEGIRO provides investors access to Bonds – Corporate, Bonds – Government (Gilts), Investment Trusts, and ETFs. eToro gives investors access to Share Trading and CFD Trading. ISAs, SIPPs, Spread Betting, and Advisor Services are not available. Finding a broker who offers all the investment types you’re interested in can be difficult.

General Information about DEGIRO and eToro

Founded in

DEGIRO – 2008

eToro – 2007

Account Minimum

DEGIRO – EUR/PS1

eToro – $50 – It varies between countries

Interest on uninvested cash (annually)

DEGIRO – 0%

eToro – 0%

Key Differences Between DEGIRO and eToro

Investment Options

DEGIRO

Stocks, bonds, ETFs, options, futures, and more

eToro

Stocks, cryptocurrencies, ETFs, indices, commodities, and more

Fees

DEGIRO

Low trading fees; additional fees for certain markets

eToro

Trading with no commission; spreads as fees

User Experience

DEGIRO

A user-friendly interface that focuses on simplicity

eToro

A platform for social Trading with a modernized interface

Social Trading

DEGIRO

Individual Trading is the main feature.

eToro

The core feature of the trading platform, which allows users to copy and follow other traders

Regulation

DEGIRO

Regulated top-tier bodies such as AFM and FCA

eToro

Multiple authorities, including CySEC, FCA

Mobile App

DEGIRO

Mobile app available for on-the-go Trading

eToro

Mobile app that is intuitive and user-friendly

DEGIRO vs eToro: Verdict

To summarise, here’s our verdict:

DEGIRO is the best for ETFs with no commissions

eToro – Best social trading platform and free stock trading

It’s not always easy to choose between the two online brokers. DEGIRO and eToro differ regarding trading platforms, product offerings, fees, and security. Would you rather use a simple trading platform? Would you like to only invest in ETFs? Are you more concerned with security?

The best online broker will ultimately depend on your profile, personal preferences, and goals. Visit the sites above to make your own decision!

What is the best trading platform?

We tested the websites, trading platforms, tools, and mobile apps of DEGIRO vs eToro to compare their trading platforms. Our analysis shows that eToro has a superior share trading platform, and eToro also offers a more robust stock app.

Conclusion

In the ever-evolving landscape of investment platforms, DEGIRO and eToro offer distinctive features catering to various investor profiles. By assessing fees, investment options, and usability, you can make a well-informed decision that propels you toward your financial objectives. Remember, the ideal platform is the one that aligns with your investment strategy and empowers you to achieve your goals with confidence.

FAQ’s

Can I invest in cryptocurrencies on DEGIRO?

DEGIRO currently does not offer cryptocurrency as an investment option.

What platform is best for newbies?

DEGIRO is a great choice for newbies, and eToro offers a social trading option that can be incredibly valuable.

Does eToro charge trading fees?

eToro provides commission-free Trading, but investors must be aware of possible spreads.

Do I have confidence in the security of this platform?

DEGIRO, as well as eToro, are regulated and supervised by reputable institutions. This enhances their credibility and security.

What exactly is social Trading, and how does this work?

Users can follow the trades and learn from experienced investors using eToro’s social trading platform.

Which platform provides a greater range of options for investment?

eToro offers a broader range of investment options, including cryptocurrencies.