For UK investors looking to buy stocks, Revolut and eToro are two popular options. Both offer commission-free trading and an easy-to-use interface, but they cater to different types of investors. While Revolut is primarily known as a digital banking app with stock trading features, eToro is a dedicated trading platform with advanced tools and social trading capabilities.
So, which is better for buying stocks? In this detailed comparison, we break down their features, fees, security, and usability to help you make an informed choice.
Quick Overview: Revolut vs. eToro
Revolut – Best for Everyday Banking & Simple Investing
Revolut is primarily a digital bank that offers stock trading as an additional feature. It’s ideal for users who want a simple way to invest without needing a full-fledged trading platform.
eToro – Best for Advanced Traders & Social Investing
eToro is a trading platform designed for stock, forex, and cryptocurrency investing. It’s perfect for those looking for a more advanced experience, with features like CopyTrading and a wider range of investment options.
Key Differences Between Revolut & eToro
1. Stock Trading Fees & Costs
Revolut: Offers commission-free stock trading, but users may need to pay monthly subscription fees for more trades.
eToro: Also commission-free but charges a small spread and has additional fees for withdrawals and inactivity.
2. Number of Stocks Available
Revolut: Limited selection of stocks (mainly US-based companies).
eToro: Offers thousands of stocks from the UK, US, and global markets.
3. Account Types
Revolut: Primarily a banking app with stock trading as an add-on.
eToro: A fully-fledged investment platform with stocks, ETFs, forex, and crypto trading.
4. Social Trading & Copy Trading
Revolut: No social or copy trading features.
eToro: Allows users to copy top investors’ trades.
5. Regulation & Security
Revolut: Regulated by the FCA for banking services but has limited investor protection.
eToro: FCA-regulated for stock trading with additional financial safeguards.
Fees Breakdown: Revolut vs. eToro
Revolut Fees
Commission-free stock trading (limited to a few trades per month on the free plan)
Monthly subscription fees for premium users (£2.99 - £12.99 per month)
Foreign exchange fee of 0.5% for non-USD stock trades
No withdrawal fees for stock trades
eToro Fees
Commission-free stock trading
1% spread for cryptocurrency trading
£5 withdrawal fee
Inactivity fee ($10 per month after 12 months of inactivity)
No monthly subscription required
User Experience & Ease of Use
Revolut: Simple & Integrated with Banking
Revolut’s stock trading feature is seamlessly integrated into its mobile banking app. Users can buy stocks with a few taps, making it ideal for those new to investing.
eToro: Feature-Rich Trading Platform
eToro provides more in-depth market data, research tools, and a more comprehensive trading experience. The interface is still beginner-friendly but includes advanced features for serious investors.
Security & Regulation
Security is a major concern when investing online. Here’s how Revolut and eToro compare:
Revolut: Regulated by the FCA for banking but does not offer full investor protection under the FSCS.
eToro: FCA-regulated for stock trading, meaning UK investors are covered under the Financial Services Compensation Scheme (FSCS) up to £85,000 in case of broker insolvency.
Who Should Use Revolut?
Revolut is best for:
Casual investors looking for a simple way to buy a few stocks
People who already use Revolut for banking and want an all-in-one solution
Those who don’t need advanced trading tools
Who Should Use eToro?
eToro is best for:
Users looking for a dedicated stock trading platform
Those interested in social trading and CopyTrading
Investors who want access to a wider range of stocks and assets
FAQs
1. Which is better for beginners, Revolut or eToro?
Revolut is easier to use but has fewer trading features. eToro is also beginner-friendly but offers more tools for investors who want to expand their trading knowledge.
2. Does Revolut charge commission on stock trades?
No, Revolut offers commission-free trading, but free users are limited to a few trades per month before needing a paid subscription.
3. Can I buy UK stocks on eToro?
Yes, eToro offers a wide range of UK and international stocks.
4. Is my money safe on eToro and Revolut?
Both platforms use encryption and secure authentication. However, eToro is FCA-regulated for stock trading, while Revolut’s investor protections are more limited.
5. Does eToro offer a demo account?
Yes, eToro provides a free demo account with virtual funds to practice trading before using real money.
Final Verdict: Which One Should You Choose?
If you’re looking for a simple way to buy stocks and already use Revolut for banking, it may be a convenient option. However, if you want a more comprehensive trading experience with better stock selection, eToro is the better choice.
For serious investors who want access to UK and global markets, plus advanced features like social trading, eToro is the clear winner. On the other hand, if you’re just looking for an easy way to buy a few stocks, Revolut’s integration with its banking services makes it a decent choice.
Final Recommendation:
Choose eToro if: You want a feature-rich trading platform with a wider stock selection and better investor protections.
Choose Revolut if: You want a simple way to buy a limited selection of stocks within a banking app.
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