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Freetrade vs eToro

Which is better, eToro or Freetrade? We compare them in detail below.

Freetrade and eToro are share-trading providers that let you buy and sell investments, such as stocks and exchange-traded funds (ETFs). Freetrade is suited to beginners, while eToro is probably better suited to more intermediate investors (or confident beginners). Both of these providers are commission free with very similar foreign exchange fees. We’d argue that Freetrade is a lot easier to use, but eToro has a much more comprehensive platform. We’ve pitted these platforms against one another, comparing the investments available, fees and features.

Freetrade vs eToro: Vital stats

FreetradeeToro Free Stocks
Finder rating★★★★★★★★★★
Customer satisfaction rating★★★★★★★★★★
Stocks and shares ISA available?
FSCS protected?
Costs rating★★★★★★★★★★
Keep in mindCapital at risk78% of retail CFD accounts lose money
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At first glance, these providers look very similar, with both scoring 5 stars out of 5 when we analysed them using 83 different features and fees. One major benefit of Freetrade over eToro is that it offers an individual savings account (ISA), so you can invest up to £20,000 in each tax year without having to pay capital gains tax on your profits. eToro does not offer ISAs, so you could be liable to pay capital gains tax on profits over £12,300 in each tax year.

Freetrade was a winner in the Finder Customer Satisfaction Awards 2021.

Both Freetrade and eToro are protected by the Financial Services Compensation Scheme (FSCS), which protects your deposits by up to £85,000 if the platform were to go bankrupt.

Round 1: Stock exchanges

FreetradeeToro Free Stocks
Exchanges covered score★★★★★★★★★★
UK - London Stock Exchange
US - NASDAQ
US - New York Stock Exchange
Canada - Toronto Stock Exchange
Japan - Japan Exchange Group
Euronext
Germany - Deutsche Börse
Keep in mindCapital at risk78% of retail CFD accounts lose money
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Both Freetrade and eToro have access to the main stock exchanges, such as the London Stock Exchange, NASDAQ andNew York Stock Exchange (NYSE). The main exchange that Freetrade does not have is the Toronto Stock Exchange.

Winner: eToro

Round 2: Types of investments

FreetradeeToro Free Stocks
Financial instruments score★★★★★★★★★★
Shares
ETFs
Bonds
Funds
Keep in mindCapital at risk78% of retail CFD accounts lose money
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Freetrade and eToro both let you invest in shares and exchange traded funds. With both providers you can also access ETFs that invest in bonds. Neither Freetrade or eToro offer funds. An added bonus of eToro is tht it also offers cryptocurrencies.

Winner: eToro

Round 3: Fees

FreetradeeToro Free Stocks
Costs rating★★★★★★★★★★
Platform fees£0£0
Minimum deposit£1£50
Standard trading fee£0£0.00
Best trading fee£0£0.00
Foreign exchange fee0.45%0.5%
Keep in mindCapital at risk78% of retail CFD accounts lose money
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Both eToro and Freetrade are commission-free, so there’s not a set fee for buying or selling investments. There are other fees that might be applicable with both providers, though. The main one is the foreign exchange fee, which you’ll pay to change your currency if you were to trade overseas shares. Freetrade’s foreign exchange fee is 0.45%, while eToro’s is 0.5%.

eToro has additional fees, such as for withdrawal and inactivity. If you want to invest in an ISA with Freetrade, you’ll need to pay £3 per month, or subscribe to its Plus account.

Winner: Freetrade

Round 4: Mobile and web features

FreetradeeToro Free Stocks
Features rating★★★★★★★★★★
iPhone app
Android app
Desktop/web app
Notifications
Watch lists
Community or forums
Keep in mindCapital at risk78% of retail CFD accounts lose money
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The main benefit of eToro over Freetrade is that it lets you trade on desktop, although this is something that Freetrade has started to offer in beta with its Plus members. Both Freetrade and eToro have mobile apps with notifications and watch lists, as well as forums to allow users to chat between them, either to get support or investment ideas.

Winner: eToro

Round 5: Learning resources

FreetradeeToro Free Stocks
Resources rating★★★★★★★★★★
Guides
Videos and walkthroughs
Demo account
In-depth learning tools
Keep in mindCapital at risk78% of retail CFD accounts lose money
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Learning resources can be a great way for beginners to learn how to invest along the way. One of the best resources we’ve found are demo accounts. These give you a set amount of virtual funds, which can be reset if you run out. This way, you can have a go at investing without using real money. eToro offers a demo account, while Freetrade does not.

Both eToro and Freetrade have guides to help you learn and eToro has videos to help you out. Freetrade has a great range of in-depth tools to help investors learn how to get started.

Winner: eToro

Bottom line: Is Freetrade better than eToro?

We’d say that eToro is better than Freetrade as it’s a lot more comprehensive compared with eToro, offering a fantastic web trading platform and a demo account for beginners to try it out. That being said, Freetrade is a platform that’s much more suited to beginners, it’s really easy to use and puts everything into plain terms.

If you’d like to invest in an ISA, you’d want to choose Freetrade between these two as eToro does not offer one.

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