Andras Crow-Hreidar 
eToro and Plus500 are online trading platforms that allow users to trade various financial instruments such as stocks, currencies, commodities, and cryptocurrencies. eToro is a social trading platform that enables users to track and copy successful traders’ trades. Plus500 is his CFD trading platform that offers traders the opportunity to speculate on the price movements of various financial instruments. Both platforms provide commission-free trading and feature different financial instruments but differ in trading features, fees, and user experience. Researching and comparing the two platforms is essential before choosing the one that best suits your trading needs.
Comparing the eToro vs. Plus500
eToro and Plus500 have different features. Let’s explain them.
Trading Instrument
EToro and Plus500 offer various trading instruments, including stocks, currencies, commodities, and cryptocurrencies. However, eToro offers additional assets such as ETFs and indices, and Plus500 offers trading options.
Charting Tools
eToro offers a variety of advanced charting tools and technical indicators to aid in analysis and trading decisions. Plus500 offers fewer charting tools but still provides essential indicators for traders.
Order Type
Both platforms offer different order types, such as market orders, limit orders, and stop loss orders. eToro also provides one-click trading and the ability to place take-profit orders.
Mobile App Capabilities
Both eToro and Plus500 have mobile trading apps that allow traders to access and trade their accounts on the go. The eToro mobile app has a user-friendly interface and includes social trading features. The Plus500 mobile app, on the other hand, is highly responsive and provides real-time quote information.
Unique Features
One of eToro’s unique features is a social trading platform that allows users to follow and copy the trades of successful traders. This feature is handy for beginners who are still learning the ropes. eToro also offers virtual trading accounts that allow traders to practice and improve their trading strategies without risking real money.
Plus500, on the other hand, offers guaranteed stop-loss orders to help traders minimize potential losses in volatile markets. Plus500 also offers a comprehensive risk management toolset, including features such as negative balance protection and limit orders.
Overall, eToro may suit beginners who prefer a more social trading approach, while Plus500 may suit experienced traders who need advanced risk management tools. However, both platforms offer a user-friendly trading experience and a wide range of trading instruments, making them suitable for traders of all levels.
eToro vs. Plus500 – Fees:
eToro and Plus500 have different fee structures, and it is vital to understand how these fees affect the profitability of your trading.
Spreads
Both eToro and Plus500 operate on a spread-based pricing structure. eToro offers variable spreads for its commodities with an average EUR/USD spread of 1.5 pips. Plus500, on the other hand, offers fixed spaces, with EUR/USD spreads starting at 0.6 pips.
Commissions
eToro does not charge commissions for trading, but Plus500 does charge commissions for stock CFDs.
Overnight fees
Both platforms charge an overnight fee if a position is open for more than one day. eToro’s overnight cost varies by product, while Plus500’s overnight price is based on a percentage of the notional value of the trade.
Deposit and withdrawal fees
eToro charges no deposit or withdrawal fees except a $5 withdrawal fee for non-USD transactions. Plus500 also charges no deposit fees but a withdrawal fee of $10 for each withdrawal.
Examples
Suppose you start trading EUR/USD with a position size of 1 lot (100,000 units) on both eToro and Plus500. If you keep a trade open for three days, eToro charges an overnight fee of $3.75, while Plus500 charges an overnight fee of $14.00. If you start trading Tesla stock with a position size of $1,000 on both platforms and hold the position for a week, eToro will not charge you any fees, but you will pay an overnight fee of $4.20. Plus500 charges a commission of $10.00 and an overnight fee of $24.50.
Overall, it is essential to consider the fees associated with each platform when choosing a trading platform. eToro may offer lower spreads and commission-free trading, but Plus500’s fixed spreads and risk management tools may suit some traders. Calculating the fees associated with trading is essential so that your profits are not compromised.
What Are the Pros And Cons Of eToro and Plus500?
Pros of eToro
- The social trading feature allows novice traders to follow and copy the trades of successful traders
- Wide range of trading instruments, including stocks, currencies, commodities, ETFs, and cryptocurrencies
- Commission-free trading
- User-friendly trading platform with advanced charting tools
- Virtual trading account for practicing trading strategies
Cons eToro
- Higher spreads than some other trading platforms
- Limited customization options for order types
- No access to MetaTrader 4 platform
- Overnight fees can be increased for some instruments
Overall, eToro is an excellent choice for beginner traders who prefer a more social approach to trading. It offers commission-free trading, a user-friendly platform, and a virtual trading account for practice. However, the platform’s spreads and overnight fees can be higher than others, and advanced traders may feel limited by the platform’s order customization options.
Pros of Plus500
- Fixed spreads on many instruments
- Guaranteed stop-loss orders for managing risk
- Comprehensive risk management toolset, including negative balance protection and limit orders
- Wide range of trading instruments, including stocks, currencies, commodities, options, and cryptocurrencies
- User-friendly trading platform with real-time quotes
Cons of Plus500
- A commission charged on share CFDs
- Overnight fees can be high for some instruments
- Limited charting tools compared to other platforms
- Withdrawal fees
Overall, Plus500 is an excellent choice for experienced traders who require advanced risk management tools. It offers guaranteed stop-loss orders, negative balance protection, and a comprehensive risk management toolset. However, the platform’s withdrawal fees and commission charged on share CFDs can be a drawback for some traders. The platform’s limited charting tools may need to be more suitable for advanced technical analysis.
In conclusion, both eToro and Plus500 offer a range of features and benefits, and choosing the right platform depends on your trading style and preferences. eToro’s social trading feature and user-friendly platform make it an excellent choice for beginner traders. In contrast, Plus500’s advanced risk management tools and fixed spreads make it a good option for experienced traders. Ultimately, it’s essential to consider each platform’s fees, trading instruments, and features to determine which is the best fit for your trading needs.
Conclusion
In summary, eToro and Plus500 are reputable trading platforms offering various trading instruments, user-friendly platforms, and risk management tools. However, each forum has pros and cons, and your choice depends on your trading style and preferences.
For those looking for a more social trading experience, his eToro may be the preferred option with its commission-free trading, virtual trading accounts, and social trading features. Plus500 may be more suitable for experienced traders who require advanced risk management tools, fixed spreads, and guaranteed stop-loss orders.
When choosing a trading platform, it is essential to consider factors such as fees, trading instruments, charting tools, and mobile app features. Ultimately, I recommend trying both platforms and comparing their features before deciding.
