eToro vs. DEGIRO: A Comparison of Two Popular Brokerage Platforms

When deciding between eToro and DEGIRO, investors encounter two very different brokerage platforms that cater to varying types of traders. Both are popular among retail investors, but they differ significantly in terms of investment options, fees, platforms, and the overall trading experience. This comparison outlines the key features of both platforms to help you decide which is the better fit for your investing style.

eToro Overview

eToro is a global social trading platform that stands out for its unique copy-trading feature. This allows users to replicate the trades of other successful investors, making it especially attractive to beginners. Beyond its social aspect, eToro provides access to a wide range of financial instruments, including stocks, ETFs, cryptocurrencies, commodities, and forex. Regulated by several financial authorities, eToro offers a secure trading environment.

One of eToro’s key selling points is commission-free trading for stocks and ETFs. However, it generates revenue through other means, such as spreads, withdrawal fees, and currency conversion fees. The platform is highly user-friendly, with a clean interface, simple navigation, and built-in social features. Its mobile app is also well-regarded, making it convenient for investors on the move.

DEGIRO Overview

DEGIRO is a European-based brokerage that has gained popularity for its ultra-low-cost trading model. It offers access to a broad range of assets, including stocks, ETFs, bonds, options, and futures. DEGIRO’s cost structure is highly competitive, with low fees across most products and commission-free ETF trading once a month. However, connectivity fees for certain exchanges can increase costs for frequent traders.

DEGIRO’s platform is simple and easy to use, designed for investors who prefer a no-frills trading experience. It lacks some advanced features but provides all the essential tools for regular investors. DEGIRO also offers a straightforward mobile app, though it is less feature-rich than some competitors.

Fees Comparison

In terms of fees, DEGIRO is widely known for its affordability. It offers very low commissions on stocks, bonds, and options, with no inactivity fees. DEGIRO’s commission-free ETF trades once per month further enhance its appeal, though some additional fees, such as connectivity charges, may apply.

eToro, on the other hand, offers commission-free trading for stocks and ETFs, which is an attractive feature. However, eToro compensates for this through wider spreads on other assets like forex and cryptocurrencies. The platform also charges withdrawal fees and currency conversion fees, which can reduce overall profitability for some investors.

Trading Platforms

eToro’s platform is designed with social and copy trading in mind. Its intuitive interface allows users to follow top traders, view their portfolios, and replicate their strategies. This creates a community-driven environment ideal for new investors who want to learn from more experienced traders. eToro also supports fractional share trading, making it easier to invest in high-priced stocks with smaller amounts.

DEGIRO’s platform, by contrast, is more traditional, catering to investors who prefer self-directed trading. While it lacks the social and copy trading features of eToro, DEGIRO’s platform is simple, offering price alerts, customizable watchlists, and basic research tools. It is ideal for investors who value simplicity and low fees over advanced features.

Asset Selection

eToro offers a broad selection of assets, including stocks, ETFs, cryptocurrencies, commodities, and forex. Its support for cryptocurrency trading is a major draw for those looking to diversify into digital assets.

DEGIRO, meanwhile, provides a wide range of traditional assets such as stocks, ETFs, bonds, and options but does not offer cryptocurrency or forex trading. This makes it less attractive for those interested in those asset classes.

Conclusion

Choosing between eToro and DEGIRO depends on the investor’s preferences and specific trading goals. For those seeking a social trading experience with access to cryptocurrencies and forex, eToro is an excellent choice. Its commission-free stock trading and user-friendly platform are ideal for newcomers and social traders. On the other hand, DEGIRO is a top pick for cost-conscious European investors who value low fees and a straightforward platform designed for basic investing needs.

For a broader look at top broker options, check out our curated Best Brokers List.