Choosing the right trading platform is crucial, especially if you’re just starting out. Trading 212 and eToro are two of the most popular platforms in the UK, but which one is better suited for beginners? In this detailed comparison, we’ll break down their features, fees, and usability to help you decide which platform best fits your trading needs.
What to Look for in a Beginner-Friendly Trading Platform
Before diving into the comparison, it's important to understand what makes a platform ideal for beginners. Here are key factors to consider:
Ease of Use – A simple and intuitive interface helps new traders navigate without confusion.
Low Fees – Commission-free trading and low spreads keep costs down.
Educational Resources – Tutorials, guides, and a demo account can accelerate learning.
Customer Support – Accessible support ensures quick resolution of issues.
Regulation and Security – Platforms should be FCA-regulated for investor protection.
Now, let’s see how Trading 212 and eToro compare.
1. Platform Overview
Trading 212 is a UK-based platform offering commission-free stock and ETF trading. It has a user-friendly mobile app and provides access to thousands of global stocks. The platform also includes CFD trading, making it appealing to traders of different experience levels.
Pros:
Commission-free stock and ETF trading
Free demo account for practice
No inactivity fees
FCA-regulated with investor protection
Cons:
Limited cryptocurrency offerings
CFD trading carries risk
eToro is a global social trading platform known for its CopyTrading feature, which allows beginners to mirror the trades of experienced investors. It also offers commission-free stock trading and access to forex, crypto, and commodities.
Pros:
Commission-free stock trading
CopyTrading makes it easy for beginners to follow expert traders
Offers a diverse range of assets
Social trading community for learning
Cons:
Higher spreads compared to some competitors
£5 withdrawal fee
2. Ease of Use
Both Trading 212 and eToro are designed to be beginner-friendly, but they have different strengths. Trading 212 has a clean and simple interface, making it easy for new traders to navigate. The mobile-first approach ensures seamless usability, even for those with no prior trading experience. On the other hand, eToro offers a visually engaging interface with a strong focus on social trading. However, the variety of features may feel overwhelming to complete beginners.
Overall, Trading 212 is the better option for those seeking a straightforward and user-friendly platform.
3. Fees & Charges
When it comes to costs, Trading 212 and eToro both offer commission-free stock trading. However, eToro applies additional charges, such as a £5 withdrawal fee and inactivity fees for accounts left idle for 12 months. Trading 212, in contrast, has no deposit, withdrawal, or inactivity fees, making it the more cost-effective choice for beginners who want to keep trading expenses low.
4. Asset Variety
Trading 212 primarily focuses on stocks, ETFs, forex, and CFDs, providing a solid selection for investors. However, eToro goes a step further by offering additional asset classes, including cryptocurrencies and commodities. For those looking to trade beyond stocks and ETFs, eToro’s wider asset selection makes it the better choice.
5. Educational Resources
Education is key for beginner traders, and eToro excels in this area. It provides extensive learning materials, including guides, webinars, and the CopyTrading feature, which allows beginners to learn from experienced traders by mimicking their trades. Trading 212, while offering a demo account, lacks the depth of educational content found on eToro.
If learning resources are a priority, eToro is the better platform for expanding your trading knowledge.
6. Customer Support
Reliable customer service is essential for beginner traders. Trading 212 offers responsive email and in-app chat support, with generally fast response times. eToro provides customer support via live chat and email, but users have reported slower response times compared to Trading 212.
For those who value quick assistance, Trading 212 comes out ahead in customer support.
7. Regulation & Security
Both Trading 212 and eToro are regulated by the Financial Conduct Authority (FCA), ensuring that traders’ funds are protected. They also provide security measures, such as investor protection schemes and secure payment options.
Since both platforms offer strong regulatory protection, there is no clear winner in this category.
Which is Better for Beginners?
Trading 212 is the best choice for absolute beginners due to its simple interface, low fees, and fast customer support. It’s a great option for those who want a straightforward trading experience with no unnecessary charges.
eToro is ideal for beginners who want to learn through CopyTrading and have access to a wider range of assets. While its interface may take some getting used to, the educational resources make it a great option for those willing to learn.
For simplicity and cost-effectiveness, Trading 212 is the winner. For learning and asset variety, eToro takes the lead.
FAQs
1. Is Trading 212 better than eToro for UK beginners?
Trading 212 is generally easier to use and has fewer fees, making it a great choice for absolute beginners. However, eToro offers better learning resources and CopyTrading.
2. Does eToro have higher fees than Trading 212?
Yes, eToro has a £5 withdrawal fee and an inactivity fee after 12 months, whereas Trading 212 does not charge these fees.
3. Can I trade cryptocurrencies on Trading 212 and eToro?
Yes, but eToro offers a wider selection of cryptocurrencies compared to Trading 212.
4. Which platform has better customer support?
Trading 212 tends to have faster response times, whereas eToro’s support can sometimes be slow.
5. Is my money safe with Trading 212 and eToro?
Yes, both platforms are FCA-regulated and offer investor protection.
Final Thoughts
Choosing between Trading 212 and eToro depends on your trading style and learning preference. If you want a simple, low-cost platform, go with Trading 212. If you’re interested in social trading and learning from experienced investors, eToro is a better fit.
No matter which platform you choose, always research and practice with a demo account before investing real money.
Subscribe for more tips! Subscribe to our newsletter
Disclaimer: Smart With Money may receive compensation from affiliate links, advertisements, and partners featured on this site. This compensation does not influence our editorial content, reviews, or recommendations. Our opinions are our own, and we aim to provide accurate and objective financial information to help you make informed decisions.
Additionally, all content provided on SmartWithMoney.co.uk is for informational purposes only and does not constitute financial advice. Please seek independent financial advice before making any financial decisions.