eToro is a forex broker with a social trading Platform to copy trade with the best traders. Plus500 is a CFD provider with its own CFD trading platform and risk management tools. Our experts’ review eToro vs Plus500 to find the best broker.
See our review of eToro and Plus500 for in-depth information about each broker and our comparison below.
The first factor we used to assess Plus500 vs eToro is the spread cost. Plus500 offers two forex pricing models (fixed and variable spreads) compared to eToro’s fixed spread model. The average spread on the most popular forex currency pair EUR/USD is (fixed spread model):
Note* Plus500 doesn’t advertise their average spreads. Our team of experts assessed the Plus500 spread using live price data.
Low spreads matter because it reduces the overall costs of trading. The EUR/USD spread is with 2.2 pips tighter on the Plus500 retail investor accounts. If you trade with eToro, this translates into losing $44 for each one EUR/USD standard lot traded (100,000 USD units traded).
In the foreign exchange market, the forex broker typically charges two types of spreads:
The online brokers that offer fixed spread act as a market maker and they are the counterparties of your trades.
| Average Spreads (6/8/2020) | Plus500 Spreads | eToro Spreads |
|---|---|---|
| EUR/USD | 0.8 | 3 |
| USD/JPY | 1.0 | 2.0 |
| Gold | $1 | 45 pips |
| Oil | $0.04 | 5 pips |
| US SPX 500 Index | 0.7 | 75 pips |
| DAX30 | 1.97 | 200 pips |
| Bitcoin | $36 | 0.75% |
Forex Currency Pairs SpreadWith eToro, clients can trade with spreads of as low as 4 pip on AUD/USD, 2 pips on USD/JPY and 3 pips on EUR/USD. The maximum leverage allowed is 1:300.
On the other hand, Plus500 retail clients can choose from 70 currency pairs with spreads of as low as 0.8 pips on AUD/USD and EUR/USD. The maximum leverage allowed for retail CFD accounts is 1:30.
CFD Commodities SpreadFor every 100 ounces of gold, traded with eToro you pay USD 4.5 compared to the USD 10 spread cost you pay through Plus500. The gold spread cost is with USD 5.5 cheaper on the eToro trading account.
On the other hand, Oil CFD trading is cheaper with CFD provider Plus500. 10 barrels of Crude Oil will cost you USD 40 with Plus500, compared to USD 50 you pay through eToro.
The indices spread is slightly cheaper with Plus500 compared to eToro. Trading 10 contracts on the SPX 500 index comes with a cost spread of USD 7 on Plus500 compared to USD 7.5 on eToro.
Bitcoin trading with Plus500 is 50% cheaper than trading with eToro. The Plus500 spread cost is USD 35 compared USD 75, which can be found with eToro retail CFD accounts.
Overall, the Plus500 spread cost is cheaper than eToro’s spread cost. The pricing structure varies from one CFD market to another, but based on our assessment, Plus500 offers lower spreads. If you’re using low spread trading strategies, Plus500 is a better suit for you.
View Plus500 Review >>Visit Plus500 >>
*Your capital is at risk ‘76.4% of retail CFD accounts lose money’
In this section, we compared the CFD account types offered by the two online brokers. Our team of experts will analyze for you the most important features so you can choose the right CFD account type.
Unlike other online brokers, Plus500 and eToro only offer a live trading account type for:
Additionally, you can open a free demo account that comes with zero risks. More, Muslim traders have the option to apply for a swap-free account that complies with the Sharia law.
You can review the Plus500 vs eToro trading features in the comparison table below.
| Plus500 Account | eToro Account | |
|---|---|---|
| Range of Account Types | 1 | 1 |
| Minimum Deposit | $100 | $200 |
| Account Currencies | 10 Base currencies | USD Accounts Only |
| Deposit Methods | 5 Funding Options (Credit and Debit cards, PayPal, Skrill, Bank transfer) | 9 Funding Options (Credit Card, Skrill, Neteller, PayPal and Wire Transfers, etc.) |
| Spread Type | Fixed and Variable | Fixed |
| Lot Sizes Available | Micro, Mini, Standard | Micro, Mini, Standard |
| Maximum Leverage | 1:300 | 1:400 |
| Commission | 0% Commission | 0% Commission |
| Forex Pairs | 70 | 47 |
| CFD instruments | +2,000 | +2,000 |
| Trading Platforms | 1 Plus500 WebTrader | 1 eToro Platform |
| Swap Free Account | Yes | Yes |
| Expert Advisors | No | No |
| Scalping / Hedging | No | No |
| Guaranteed Stop Loss | Yes | No |
Note* The eToro Club membership program offers personalized service for loyal clients. There are 5 different membership tiers (Silver, Gold, Platinum, Platinum+, and Diamond) that can unlock more competitive trading conditions and features.
With Plus500, account funding via a credit card or a debit card is associated with a minimum deposit of USD 100, while funding via bank transfer requires a minimum deposit amount of USD 500. Plus500 allows 10 different base currencies, including USD, GBP, EUR, CAD, AUD and CHF among others.
With eToro, the minimum deposit for CFD trading is:
However, there are certain exceptions. Israel-based clients are required to deposit as little as USD 10,000, while clients from Australia and the United States are required to make a first-time deposit of at least USD 50. At the same time, clients from countries such as China, Hong Kong, Russia and Taiwan are required to make a first-time deposit of at least USD 500.
eToro allows deposits only in US Dollars. Deposits in other currencies will have to be converted to USD and will incur a conversion fee.
Both online brokers offer an equal amount of financial instruments (+2,000 CFD instruments) across several asset classes, including currency pairs, indices, shares, ETFs, commodities, cryptocurrencies and options.
Trading CFDs can be done on:
Note* Options CFD trading is the only additional market that you can trade with Plus500, but not with eToro.
Depending on your favourite market, traders have more tradable instruments with Plus500 if they want CFD trading in currencies, indices commodities and options. For CFD trading in stocks, cryptocurrencies and ETFs, traders have more options with eToro.
For a side-by-side comparison of eToro vs Plus500 range of CFD markets, please view the comparison table below.
| eToro | Plus500 | |
|---|---|---|
| Currency Pairs | 47 | 70 |
| Stocks | 2012 | 1668 |
| Indices | 13 | 30 |
| Commodities | 15 | 22 |
| Cryptocurrencies | 16 | 14 |
| ETFs | 153 | 95 |
| Options | None | 367 |
eToro will start charging an inactivity fee of USD 10 per month if clients do not log in to their live account for 12 months.
At the same time, Plus500 will charge an inactivity fee of up to USD 10 per month, in case clients do not log in to their trading account for a period of at least 3 months.
Both CFD providers allow practice trading risk-free with paper money. Plus500 allows clients to open and use a Demo Account for as long as they wish. It has USD 40,000 in virtual funds.
eToro also offers a free Demo Account, which comes with USD 100,000 in virtual funds. Since it mimics real market conditions, it is suitable for testing trading strategies with no risk of losing real money as well as for testing the broker’s social trading feature.
Both brokers have a swap-free account option (Islamic Account) for clients of the Muslim faith.
Overall, Plus500 has a slight edge over eToro’s account features. Our team of FX experts has noted a lack of account types diversification. Both, CFD brokers combine all their trading features into a single trading account that is suitable for all types of traders. Claim your free demo account by clicking the button below.
View Plus500 Review >>Visit Plus500 >>
*Your capital is at risk ‘76.4% of retail CFD accounts lose money’
Plu500 and eToro are CFD providers with a different focus. While Plus500 aims to ensure the simplest, most transparent trading conditions for retail clients on an easy-to-use CFD platform, eToro focuses on the social side of trading and its benefits for retail customers.
eToro has a well-designed, user-friendly web-based trading platform provides higher security with a two-step login, executes trade orders at a reasonably fast speed and has a good search function. However, it does not offer much in terms of workspace or chart customizability.
On the other hand, Plus500’s trading platform has some notable features such as trade alerts. Clients can receive real-time email, SMS and push notifications, based on:
Meanwhile, eToro’s copy trading technology enables retail clients to automatically replicate the activity of top-performing traders without the need to pay management fees or other hidden costs. Clients are able to search through eToro’s vast active trader base (more than 3,000,000 traders) by using certain parameters such as return, risk score, number of copiers or preferred markets to trade.
Once a top-performing trader is located, clients can exactly copy his/her trading positions. We should note that every copied position has to be at least $1 in value.
At the same time, experienced traders with proven strategy are able to earn an additional income each month by being followed and copied by other platform users. They can participate in eToro’s Popular Investor Program. When copied, traders will receive a fixed payment equal to 2% of their annual assets under management (the total amount allocated by other clients to copy trades).
eToro’s Popular Investor Program includes four different levels that have their own specifications – Cadet, Rising Star, Champion and Elite.
Plus500 vs eToro: Mobile Trading PlatformPlus500’s mobile apps are compatible with both iOS and Android-based devices as well as for Windows Phone. Plus500 trading App supports 31 languages and has the same features as the broker’s Webtrader. The most important tools and trading features include:
The broker’s mobile apps also feature a secure two-step login and biometric authentication.
eToro’s intuitive and innovative mobile trading app is also available for iOS and Android devices. It supports 21 languages and has the same functionalities as eToro’s web-based platform (Webtrader), including the following features:
eToro’s mobile apps also provide good touch interactions, with clients being able to access charts or open trades with a simple swipe to the left and to the right in their portfolio.
We found Plus500 trading platform to provide a better user experience for purely CFD trading. On the other hand, eToro offers a better experience for social trading. Finally, both trading platforms are designed with the tools and capabilities to serve the trading needs of CFD traders vs copy trading. We should note that both Forex brokers do not allow Hedging and Scalping on their platforms.
Both Forex brokers comply with strict regulatory standards of some of the most reputable Forex authorities across the globe. As such, both Plus500 and eToro can be considered safe.
eToro and its corporate arms are authorized to conduct online trading services business in the following jurisdictions:
At the same time, Plus500 and its corporate arms are authorized to provide financial services in the following jurisdictions:
Plus500UK Ltd operates in the United Kingdom and falls under the regulation of the Financial Conduct Authority (FCA)In addition, both Forex brokers assure that they keep client funds fully segregated from their own corporate accounts, which minimizes the risk of misuse.
Listed on the London Stock Exchange (LSE), Plus500 is regulated across over 6 forex regulatory authorities (3 global Tier-1 licenses and 3 global Tier-2 licenses). Plus500 complies with the local regulatory standards of each country it does business, which is why it gained more points in our star scoring system. Nevertheless, it’s also safe to trade with eToro which has strong regulation.
View Plus500 Review >>Visit Plus500 >>
*Your capital is at risk ‘76.4% of retail CFD accounts lose money’
Contracts for Difference (CFDs) are complex instruments, enabling retail traders to speculate on price movements of financial instruments. However, trading CFDs carries a high risk of losing capital rapidly, because leverage is used. Leverage is a double-edged sword, as it amplifies both potential gains and potential losses.
Note* Trading CFDs with high leverage ratios can lead to blowing up your CFD account, which is why clients need proper tools to minimize risk.
In this line of thought, with Plus500 retail investors can use three valuable trading tools in order to manage high leverage:
Stop Limit, also known as Close at Profit – specifies a price level at which the active position will be closed and gains will be locked in. No fees will be chargedIn comparison, eToro’s trading platform offers the Stop Loss, Stop Limit and Trailing Stop tools only. eToro doesn’t offer guaranteed SL in which case your SL may incur negative slippage due to unfavourable market conditions (gaps, spikes or whipsaws).
Another risk management tool, which is not offered by all Forex brokers, includes negative balance protection. Both CFD providers Plus500 and eToro offer negative balance protection. If your account equity falls into negative territory the broker will swallow up the loss and bring your balance to zero. With negative balance protection in place, retail investor accounts cannot lose larger amounts than initial deposits.
Overall, Plus500 offers a full suite of risk management tools aimed to protect your money. Plus500’s risk tools will help you better control your risk and better respond to the constant unfavourable market conditions.
View Plus500 Review >>Visit Plus500 >>
*Your capital is at risk ‘76.4% of retail CFD accounts lose money’
Plus500 offers professional 24/7 customer support service via email or live chat in the majority of jurisdictions where it conducts business. The live chat service turned out to be quick and reliable, while we received relevant answers to our inquiries about trading and non-trading fees. The customer support team’s response by email was also timely (within an hour) and the information we were provided – relevant.
Additionally, retail clients can also contact the broker’s support department through the WhatsApp messaging platform.
On the downside, Plus500 offers no client support over the phone.
In comparison, eToro offers 24/5 customer support service via live chat or a web-based ticketing system. With the latter clients will receive an answer to their query via email.
We should note that the live chat link is not immediately found on the broker’s website. It turned out to be located below the FAQ in the “Help Center” section. Another circumstance, we found as inconvenient was that the chat function appeared offline too frequently.
Similar to Plus500, eToro does not offer client support over the phone, which is a drawback given nowadays’ relentless dynamics.
Plus500 has a slight edge over eToro because its customer service is faster and open even on the weekends. Thanks to their superior customer support, Plus500 scored more points in this category surpassing eToro.
View Plus500 Review >>Visit Plus500 >>
*Your capital is at risk ‘76.4% of retail CFD accounts lose money’
Both brokers offer a range of account funding methods and will charge no fees on deposits. The most popular payment options include:
Note* Plus500 offers 13 different payment options compared to eToro’s 9 different payment options.
eToro also allows funding via Neteller, China UnionPay, RapidTransfer and Klarna/Sofort Banking. Despite that the broker will not charge a deposit fee, there will be a conversion fee (as little as 50 pips) when clients deposit in base currencies (EUR, GBP, AUD, RMB, THB, IDR, MYR, VND, PHP) different than USD.
Wire transfer deposits are usually processed within a period of 4-7 business days, but there are no limitations for the maximum amount. On the other hand, deposits via Credit/Debit Cards and electronic wallets are instant, but there are limits for the maximum amount:
eToro requires all deposits following the First Time Deposit to be at least $50, while for bank wire transfers the required minimum deposit is $500.
As far as withdrawals are concerned, Plus500 will charge no fees on the first five withdrawals made every month. Any subsequent withdrawals during the month will incur a $10 withdrawal fee. Plus500 has a minimum withdrawal amount requirement, which includes:
If clients withdraw lesser amounts than the above-mentioned, there will be a $10 fee.
In comparison, eToro will charge a $5 withdrawal fee and has a minimum withdrawal amount requirement of $30. Depending on the payment method used, clients will be able to receive their funds on average between 1-2 business days.
Both brokers eToro and Plus500 offer a good selection of payment gateways. There is no meaningful difference between the two brokers except the small USD 5 withdrawal fee charged by eToro. This alone is the reason why Plus500 won this broker comparison category.
All in all, when it comes to CFD trading, Plus500 turns out to be the better choice for retail clients, as it offers more competitive spreads, more tools to manage risk, more reliable customer support service and charges no fees on deposits and withdrawals.
Learn how CFDs work before you risk your money and start trading with a live account. Our team at Compare Forex Brokers doesn’t provide any investment advice. We only use our expertise to help you find a broker that better suits your needs. Below show head-to-head comparisons including providers such as eToro.
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