eToro vs Plus500: Direct Broker Comparison & Guide

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When it comes to choosing a reliable online broker for trading stocks, ETFs, cryptocurrencies, and CFDs, two platforms frequently stand out: eToro and Plus500. Both have established strong reputations over the years, offering access to a wide range of financial instruments. But which one is better suited to your trading goals?

This comprehensive comparison dives into the key aspects of both platforms—ranging from fees and asset offerings to user experience and security—so you can make an informed decision. We’ll also explore unique features like copy trading and leveraged CFDs, helping you determine whether eToro or Plus500 aligns best with your investment strategy.


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Overview: eToro vs Plus500

To evaluate which platform performs better, we analyze the following categories:

Let’s begin by understanding what each platform is and how they operate.


What Is eToro?

Founded in 2007 in Israel, eToro started as a forex broker before expanding into stocks, ETFs, and cryptocurrencies. A pioneer in social investing, eToro allows users to observe, interact with, and automatically copy trades from experienced investors—a feature known as copy trading.

The platform supports both real asset ownership (like buying actual shares or holding crypto) and CFD trading. This dual approach makes eToro appealing to both long-term investors and active traders.

eToro operates under multiple regulatory bodies globally, including CySEC in Cyprus, ensuring compliance with European financial standards. With offices in the UK, US, Australia, and Hong Kong, it serves millions of users worldwide.

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What Is Plus500?

Launched in 2008, also in Israel, Plus500 is primarily a CFD-focused broker. It went public on the London Stock Exchange in 2013 and currently holds a market capitalization of over $2 billion.

Unlike eToro, Plus500 specializes almost exclusively in contracts for difference (CFDs)—derivative products that allow speculation on price movements without owning the underlying asset. While this enables high-leverage trading, it also increases risk significantly.

Recently, Plus500 introduced limited access to real stock trading through its "Plus500 Invest" service. However, CFDs remain the core offering across thousands of assets including forex pairs, indices, commodities, and cryptos.

Regulated by CySEC and offering investor protection up to €20,000 under the EU framework, Plus500 maintains solid credibility despite its narrow focus.


Asset Offerings: Real Assets vs CFDs

Both platforms are multi-asset brokers, but their approaches differ:

For traders seeking flexibility between ownership and speculation, eToro wins clearly. Its ability to buy real crypto and stocks appeals to conservative investors, while CFD options cater to aggressive traders.

Plus500’s strength lies in depth rather than breadth—offering tighter spreads on certain CFDs due to specialization.


Fees & Cost Transparency

Cost efficiency matters—especially for frequent traders.

FeatureeToroPlus500
Stock/ETF Trading Fee0% commissionNot applicable (CFD-only model)
Crypto Transaction Fee1% spreadBuilt into spread
Inactivity Fee$10/month after 12 months$10/month after 3 months
Deposit FeesFree (all methods)Free (all methods)
Withdrawal Fee$5No published fee

eToro stands out with transparent pricing—especially its zero-commission stock trades. While crypto trades carry a 1% spread, this is standard across many platforms.

Plus500 does not publish exact spreads upfront; instead, they appear during trade execution. This lack of transparency may concern some users. Additionally, its shorter inactivity window (3 months vs 12) could penalize casual investors faster.

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Deposits & Withdrawals

Both platforms support:

Minimum deposits:

Withdrawal processing times are similar (1–5 business days), though eToro charges a flat $5 fee per withdrawal.

Overall, both perform well—but eToro edges ahead with lower entry barriers and clearer fee disclosure.


Security & Regulation

Both eToro and Plus500 are regulated by CySEC (Cyprus Securities and Exchange Commission) and fall under the European Investor Compensation Scheme, protecting client funds up to €20,000 in case of insolvency.

Additionally:

Both are secure choices for European traders.


Customer Support

Support quality impacts user satisfaction during technical or account issues.

Both platforms offer:

User reviews on Trustpilot show generally positive ratings for both, with slight advantages for Plus500 in responsiveness. However, eToro’s multilingual support and community forums add value for international users.

Verdict: Tie.


User Experience & Interface

First impressions matter—and here, opinions diverge.

Mobile apps for both are highly rated on iOS and Android, offering seamless trading on the go.

While neither platform is perfectly intuitive for novices, both improve with use.


Trading Tools & Features

Advanced tools enhance decision-making:

eToro’s inclusion of educational resources and trader sentiment metrics gives it an edge for informed trading decisions.


Account Types & Demo Access

Both offer:

Demo accounts mirror live environments exactly—ideal for testing strategies risk-free.

Another tie—but a welcome one for new traders wanting hands-on practice.


Copy Trading: A Game-Changer?

Only eToro offers true copy trading, allowing users to automatically replicate trades of top-performing investors. This feature is ideal for beginners lacking time or expertise.

You select a trader based on performance history, risk score, and drawdown levels. Once copied, all future trades execute automatically in your portfolio.

Plus500 has no equivalent feature—making it less suitable for passive or social investors.

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CFD & Leveraged Trading Performance

For experienced traders focused on short-term gains:

If your goal is active leveraged trading, Plus500 is the stronger choice.


Final Verdict: Who Wins?

CategoryWinner
Asset VarietyeToro
Fee TransparencyeToro
SecurityTie
SupportTie
User ExperienceTie
Trading ToolseToro
Copy TradingeToro
CFD FocusPlus500
Overall WinnereToro

While Plus500 dominates in pure CFD execution, eToro emerges as the more versatile and beginner-friendly platform, especially for those interested in long-term investing or social trading.


Frequently Asked Questions (FAQ)

Is eToro better than Plus500?

Yes, for most users. eToro offers greater flexibility with real asset ownership, zero-commission stock trading, copy trading, and stronger educational tools—making it ideal for beginners and diversified investors.

Can I trade real stocks on Plus500?

Limited real stock trading is available via Plus500 Invest, but the main platform focuses on CFDs. For full ownership of equities, eToro is a better option.

Is copy trading safe?

Copy trading carries risks—it replicates both wins and losses. However, eToro provides detailed performance metrics and risk scores for each trader, helping you make informed choices. Always diversify across multiple investors.

Which platform has lower fees?

eToro has clearer and generally lower fees—especially for stock and ETF trades (0% commission). Plus500’s spreads aren’t disclosed upfront, making cost prediction harder.

Is CFD trading allowed in the US?

No. Neither eToro nor Plus500 offers CFDs to US residents due to regulatory restrictions. US users can only trade real stocks and ETFs on eToro; Plus500 is not available in the US at all.

Are my funds safe on these platforms?

Yes. Both are regulated by CySEC and participate in the European Investor Compensation Scheme (up to €20,000 protection). Client funds are held in segregated accounts.