What are the differences between eToro and Plus500? If you are unsure which broker among eToro and Plus500 will help you to navigate the financial market and help you in the best possible way in your trading and investment endeavors, you are in the right place.
This article deals with all the differences between these two brokers and will enable you to make the right choice between the two based on the flexibility, accessibility, and efficiency offered.
The crypto market, as you may know, is quite volatile in nature and comes with a mystery of its own. This makes it extremely difficult to master trading especially if you do not have a reliable broker or an exchange platform like eToro and Plus500 to back you up.
When it comes to choosing between these two exchanges, you will need to know the fundamentals differences between them and then make a choice so that you can maximize the chances of making profits.
This is where this article steps in. Going through this article you will know how each of these exchanges fits into your investment and trading needs and which will be a better one to serve your purposes.
With all the major and minor features combined and compared, it will be really easy for you to make an informed decision.
With every feature highlighted clearly in this article, you will know for sure where each of these two exchange platforms stands out.
- 14 Differences Between eToro and Plus500
- Which is Better – eToro or Plus500?
14 Differences Between eToro and Plus500
Here in this article, these two exchanges are compared on the basis of the investment selection, fees charged, security measures, coins support and much more.
This will, in turn, help you to strengthen your portfolio via a wide range of assets and ensure its health with more profitability.
Most importantly, it will help in your trading style and play your role as an active investor or an amateur trader in the best possible manner.
This is irrespective of making the decisions all by you or by following the trading strategies of some of the most experienced traders and investors.
Are you curious to know more? Here you go.
All brokers that are regulated and licensed by a trusted regulator are safe to use for trading, which also is applicable to eToro and Plus 500 since both of them have multiple licensing.
As for eToro, it has proper licensing from the Cyprus Securities and Exchange Commission or The CySEC with a registration number HE20058 to operate in Europe, from the Financial Conduct Authority or The FCA with a registration number 7973792 to operate in the United Kingdom, and is regulated by The Australian Securities and Investments Commission or The ASIC to operate in Australia as eToro AUS Capital Pty Ltd with a license issued by the Australian Financial Services License or the AFSL numbered 491139. This platform has become a member of FINRA recently to allow a large number of its US users to do stock trading as well.
On the other hand, Plus500 has obtained licenses from The CySEC with a registration number 250/14 to operate as Plus500 CY Ltd, from the FCA with a registration number 509909 to operate as Plus500 UK Ltd, from The MAS and IE Singapore with registrations numbers CMS100648-1 and PLUS/CBL/2018 respectively to operate as Plus500SG Pte Ltd and from the ASIC to operate in Australia as Plus500 AU Pty Ltd with registration ACN 153301681 and license numbered 417727 from AFSL, from the FMA with registration number 486026 to operate in New Zealand, and also authorized by the Financial Services Provider in South Africa or the FSP with a registration number 47546.
2. Basics and Trader Eligibility
It is also important to know whether or not you are eligible to trade with eToro or Plus500. For that, you will first need to know the basics of these two platforms.
As for eToro, this company was created and launched in 2006 in Israel in order to make trading more accessible to any average trader.
This platform has all those features that make it suitable for the beginners who want to play a passive role as well as the experienced traders alike who are more active. This platform is accessible to traders all over the globe including Australia and the United States.
As for Plus500, this Israel-based broker is more favored by the experienced and serious CFDs and instruments. It also operates in The United Kingdom, Cyprus, Singapore, and Australia. Each of these subsidiaries is well-regulated by the respective local regulatory authorities.
The platform is easy to use and is well-designed for optimized use by the professional traders. This platform is accessible to the users in most of the countries but not to the residents of the United States.
3. Account Types
As for the account types, the eToro platform offers its clients two types of them namely retail accounts and professional accounts.
In addition to that, the eToro Club members also have the privilege to enjoy some extra benefits and features but that is subject to the regulations of the platform and its language. The members are entitled to enjoy tier-based benefits on equity. These tiers are silver, gold, platinum, platinum+, and diamond.
On the other hand, the Plus500 platform offers only individual accounts to its users that come with the same benefits for all users. There are also no corporate accounts offered as well.
4. Investment Choices
As for eToro, this platform primarily serves CFDs and forex to the investors. However, in addition to that it also offers its users to choose from a wide range of stocks, ETFs, and quite a few crypto coins.
On the other hand, the Plus500 platform is primarily an all-round CFD broker with quite a wide selection of instruments offered to the users to choose from. In fact, it has a much larger product offering in comparison to eToro. It also offers its users some crypto coins to choose from but the range is not as wide as that of eToro.
You will also need to understand the fees charged by the two brokers in order to make an informed decision. As for the fees of eToro, it cut up the commission fees in 2019 that made it one of the most favored platforms for trading in the United Kingdom.
However, its spreads are still high in comparison to some of its nearest competitors when it comes to indices, forex, and commodities trading which are 3 pips and 75 pips for S&P 500 for its EUR/USD pair.
It also charges a standard fee of $10 for accounts lying inactive for a year, a withdrawal fee of $5 for every withdrawal with a minimum limit of $30, but there is no deposit fee.
On the other hand, the fees of Plus500 are quite low overall in comparison to that of eToro. It includes commission-free trading since all the fees are included in the spread.
However, there are withdrawal fees charged after the user crosses the five free withdrawal limit in a month. However, if you withdraw less than the minimum limit of $100, you will have to pay a hefty fee of $10 and if you make withdrawals through bank transfer the fee charged by the platform is $6.
The account inactivity fee is the same as eToro but is charged after three months of inactivity. You can avoid this fee by simply logging into your account.
You do not have to make a trade as it is required by other platforms. Once again, this platform does not charge any deposit fee as well. However, the minimum deposit requirement is $100 for all payment methods and $500 for a bank or a wire transfer.
6. Deposit and Banking Methods
When it comes to the methods of making your payments, with eToro there are many options to choose from. These include credit and debit card payments, PayPal, Skrill, Neteller, iDEAL, Rapid Transfer, Klarna or Sofort Banking, local online banking, and bank transfer.
However, the availability of a particular option depends on the location as well as the regulator supervising your account.
7. Coins Supported
As for Plus500, the platform supports some of the major crypto coins such as BCH, BTC, XRP, IOTA, ETH, LTC, EOS, NEO, and XMR.
In comparison, the coins supported by the eToro platform are much more and include BTC, BCH, XRP, ETH, DASH, LTC, MIOTA, XLM, ETC, ADA, EOS, BNB, VET, NEO, and ZEC.
As for eToro, the spreads are variable. This means that depending on the market condition the pip value of an asset is subject to change. Therefore, those assets that are extremely volatile in nature will usually have wider spreads as compared to those assets that are more constant.
On the other hand, as for Plus500, the spreads offered are both variable and fixed. The variable or dynamic spreads are adjusted on a regular basis depending on the market conditions.
On the other hand, the fixed spreads usually do not change with the market conditions provided that it does not become extremely illiquid and volatile.
Typically, eToro has two platforms, one is a web-based platform that you can access easily on any browser, and the other is a mobile app, which however is not compatible with Windows or Mac.
Therefore, if you are using a desktop or a laptop to access eToro, you can only do so through Chrome, Edge, Firefox, or any other web browser. Smartphone users can run this app on any Android or iOS device.
In comparison, the Plus500 has a platform that is a little more diversified than eToro and offers its users its web-based version called the WebTrader.
This version is downloadable on Windows 10 Trader for using it on Windows 10 desktops or laptops. It also has a mobile app that supports any Android or iOS device.
10. Minimum Deposit Requirements
As for eToro, in most of the cases, the minimum deposit requirement is $200. However, depending on the jurisdictions, it may vary.
For example, in Israel, it is $10,000, in Australia and the United States it is just $50, and in China, Russia, Taiwan, Hong Kong, and Macau as well as for bank transfers it is $500.
On the other hand, the minimum deposit requirement of Plus500 is more competitive and is just 100 in the base currency. The currency can be USD, GBP, EUR or AUD but the minimum deposit is 100.
11. Withdrawal Process
The withdrawal process of Plus500 is pretty simple. All you have to do is click on Funds Management and then on Withdrawal. You will then need to select the preferred method, fill in the desired fields and finally click on Submit.
On the other hand, the withdrawal process of eToro is even simpler with a few steps cut short. It will require you to log in to your account and click on Withdraw funds.
You will have to enter the amount that you want to withdraw, choose the preferred payment method and finally click on Submit.
12. Withdrawal Request Processing Time
First of all, if you use eToro, you will have to wait for 7 days before you can withdraw your funds after making a deposit. When this holding period is over, the entire withdrawing process will take about one business day, two at the maximum, to complete.
In comparison, it will take anywhere from one to three business days to get your withdrawal request processed by Plus500 even if you have submitted all the necessary documents and fulfilled all the required conditions.
This is because it has to go through different stages. The good news is that it does not charge any withdrawal fees.
13. Customer Service
As for customer support, service of Plus500 is unique though it does not have any phone service. However, they offer a live chat service directly on the website.
Add to that, it also accepts WhatsApp messages and the customer support team is quite responsive to these messages and is quick and efficient enough to resolve most of the issues of their users in a matter of a few minutes.
It is the same for their email support. Apart from that, the FAQs section of the website is also quite exhaustive and helpful with all the relevant and necessary information and answers to most of the common questions included in one place.
As for eToro customer service, it does not have phone support as well and supports email and live chat queries just like Plus500. However, the platform also offers a few complimentary options such as a ticket system and the Help Center. This Help Center has a complete library of information and therefore is quite useful.
The eToro platform has gained recognition and in popularity pretty soon due to its social trading feature and Copy Trader. These features allow the traders to learn and trade like the experienced traders in the community by following their strategies.
There are also a few special features included in this platform such as the popular Copy Portfolio tool and newsfeeds. The other features of eToro that make it a slightly better platform than Plus500 include the Popular Investor Program which allows investors to earn some extra income.
It offers more than 2,000 tradable assets, enough charting and drawing tools, and a set of 66 indicators. There is also a CopyPortfolios feature that helps to connect with the community, the crypto wallet app that allows to store or move crypto coins safely and securely on the go, and a fully automated Staking-as-a-Service that allows users to earn rewards from TRX and ADA as of now but more will be added.
In comparison, the Plus500 platform does not come with as many features as eToro but its WebTrader mobile app is as good as the desktop version which enables it to meet most of the needs of the traders using this platform.
It helps the users to access all available trading instruments, make provisional orders, and view their account information. The charting tools and more than 100 indicators in its web platform are also very useful features.
The two-step authentication feature makes the app more secure which you can make even more secure by setting up fingerprint authentication as well, if you wish.
The app supports more than 36 languages but traders still feel that they need a few more features in it to add to their trading convenience.
Which is Better – eToro or Plus500?
Going by all the differences between the two platforms that are mentioned above, you may tend to think that the eToro platform is much better than Plus500.
Yes, it appears to be true when you look at the summary of the differentiating factors and the overview. Here are a few fast facts that will corroborate the same.
- eToro is much faster in trade execution speed than the proprietary Plus500 platform.
- eToro is liked more because it has a highly user-friendly appeal due to its trading software.
- eToro is more useful for the experienced and advanced traders who want to share their trading ideas and win rewards while Plus500 is good for the CFD traders.
- The investment selection option is much wider in the case of eToro which includes multiple financial instruments as opposed to the primary focus of Plus500 on CFD instruments.
- The strength of eToro lies in its copy trading feature and the Popular Trader Program.
Though eToro allows making commission-free trades, it does charge some fees. Based on these fees, Plus500 stands out because the fees are much lower on this platform as compared to those of eToro.
Also, the customer support of Plus500 seems to be more modern in comparison to that of eToro.
The eToro platform is good for new traders but is best for the experts. The reason behind this is its Copy Trading feature.
However, this feature is also quite helpful for those traders who are less active and prefer copying their chosen traders.
This platform is also favored by traders who can build a large following by engaging with the community the most and get rewarded for their efforts.
On the other hand, Plus500 is the best for the CFD traders not only because it offers a much wider selection of CFDs but also due to the fact that it is regulated in some of the major jurisdictions such as the United Kingdom, Australia, and Cyprus.
It is one of the most suitable platforms for those traders who do not prefer to use scalping but still want a good platform.
If you are still wondering which of these two platforms are best for whom, then here are a few more facts summarized for you from the differences mentioned above to help you choose according to your suitability.
- The minimum account requirement is $50 for the US traders.
- It is regulated by the FINRA, the FCA, the ASIC, and the CySEC for operating in the USA, UK, Australia, and Cyprus respectively.
- In terms of asset coverage, it supports stocks, forex, and CFDs for traders outside the US and crypto coins for the US traders.
As for Plus500:
- The minimum account requirement is $100.
- It is regulated by the FCA, the CySEC, and the ASIC to operate in the UK, Cyprus and Australia respectively.
- In terms of asset coverage it supports stocks, ETFs, CFDs on forex, commodities, cryptocurrencies, indices, and options.
However, you should also consider the impact of the COVID 19 on these two platforms before you make your choice as well.
As for Plus500, most companies, such as the asset management company Black Rock of New York, have diluted their stake in the company.
The shares of the company continued to drop and moved to a stable bull run only in April last year.
The company has also declared that it is curtailing its share buyback. However, there is nothing much to worry about because the platform is regulated.
As for eToro, it seems to have been less affected due to the pandemic, once again due to its social trading ability, a much wider community, and greater ease in use and for the more options offered.
This is in spite of its high fees and deficiency in other offerings such as better customer service.
However, Plus500 has a more effective mobile app to allow the users to trade on the go and a better customer service in comparison to eToro.
With lower spreads, it is a good platform for serious forex traders with a more extensive array of tradable currencies offered.
Therefore, in the end, it can be said that if you are a casual trader, eToro is the right platform for you.
Its social capabilities and the Trading Academy will allow you to learn the nuances and improve your trading capabilities with all those tools offered that you need for it.
It will not be exaggerating by even an iota if it is said that eToro is the platform for beginners to go to and reach the desired level of skill to switch over and use the Plus500 platform.
However, that should not be the final conclusion because you should not judge the two platforms by their differences and face value only.
Instead, you should research further and match your preferences, needs, and trading style to make the final choice.
Both the platforms eToro and Plus500 will help you to play your role as a trader and investor in a better way with their active support. However, how much will depend on which one you choose after knowing the differences from this article.