eToro and IG are both trading platforms that let you buy and sell stocks, exchange traded funds (ETFs), cryptocurrencies, commodities and currencies. They both also allow you to trade contracts for difference (CFDs).
Investing has recently become pretty popular. As a result, there are loads of “robo-advisors” and investment platforms appearing out of nowhere which allow everyone and their dogs to dip their toes in investing, no matter how much experience or knowledge of the subject they have.
IG and eToro are two major investment providers in the UK, but how do they compare?
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| Finder rating | ★★★★★ | ★★★★★ |
| Customer satisfaction rating | ★★★★★ | ★★★★★ |
| Stocks and shares ISA available? | ||
| FSCS protected? | ||
| Costs rating | ★★★★★ | ★★★★★ |
| Keep in mind | 68% of retail CFD accounts lose money | 68% of retail CFD accounts lose money |
| Go to site More Info | Go to site More Info |
On the face of it, these are similar providers – they’re both protected by the Financial Services Compensation Scheme (FSCS), which means that you are protected by up to £85,000 if either provider were to go bust.
eToro doesn’t let you invest in an individual savings account (ISA), but IG does – which means you can invest up to £20,000 in the 2021/2022 tax year without paying any capital gains tax on your profits.
In our customer satisfaction survey in December 2020, we surveyed both eToro and IG customers. eToro’s customers found that it had great fees, is easy to use, and has excellent customer service. Some customers didn’t like the additional fees.
IG’s customers said that it has great customer service and is easy to use. Some felt that it wasn’t the cheapest provider available.
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| Stocks and shares ISA available? | ||
| Lifetime ISA (LISA) | ||
| Contracts for difference | ||
| Pension | ||
| Keep in mind | 68% of retail CFD accounts lose money | 68% of retail CFD accounts lose money |
| Go to site More Info | Go to site More Info |
IG lets you invest in a stocks and shares ISA, which means that you can make use of your annual ISA allowance. It also lets you invest in a private pension, if you want to save up for your retirement. You can invest up to £40,000 per year and get some great tax benefits. However, you can’t cash out until you turn 55.
eToro doesn’t have either of these products, and neither IG nor eToro lets you invest in a lifetime ISA.
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| Rating | ★★★★★ | ★★★★★ |
| Forex | ||
| Shares | ||
| Options | ||
| ETFs | ||
| Keep in mind | 68% of retail CFD accounts lose money | 68% of retail CFD accounts lose money |
| Go to site More Info | Go to site More Info |
Both eToro and IG let you invest in and trade foreign exchange (forex), shares, options and exchange traded funds (ETFs).
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| 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 mind | 68% of retail CFD accounts lose money | 68% of retail CFD accounts lose money |
| Go to site More Info | Go to site More Info |
Both of these platforms let you invest in most of the largest stock exchanges in the world. You can invest in UK, US and most European shares with both providers. The slight difference is that IG also lets you invest in Canadian shares.
| Logo | | |
|---|---|---|
| Costs rating | ★★★★★ | ★★★★★ |
| Minimum deposit | £250 | £50 |
| Standard platform charge | 0% | 0% |
| Best platform charge | 0% | 0% |
| Standard trading fee | £8 | £0.00 |
| Best trading fee | £3 | £0.00 |
| Keep in mind | 68% of retail CFD accounts lose money | 68% of retail CFD accounts lose money |
| Go to site More Info | Go to site More Info |
eToro is a free trading platform, but IG does have pretty competitive fees. You can trade for as low as £3 per trade if you make 20 or more trades each month.
Basic trades are free with eToro, but there is a withdrawal fee of $5 USD and an inactivity fee of $10 USD. The minimum deposits are pretty similar – you need to deposit at least £250 with IG and $200 with eToro (about £145).
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| Features rating | ★★★★★ | ★★★★★ |
| Desktop or web access | ||
| iPhone app | ||
| Android app | ||
| In-app news and research | ||
| In-app top-up | ||
| Keep in mind | 68% of retail CFD accounts lose money | 68% of retail CFD accounts lose money |
| Go to site More Info | Go to site More Info |
eToro and IG both have desktop or web access as well as both iPhone and Android apps, so you can access your investments anywhere you like. With both apps you can access in-app news and research and top up in the app.
The main difference between these providers is eToro’s social trading feature. eToro allows you to copy the actions of other traders. This lets you potentially profit from the experience of others, which allows you to learn about trading yourself. The platform shows you the average risk scores of the users and their gain over the last 12 months.
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| Resources rating | ★★★★★ | ★★★★★ |
| Guides | ||
| Videos and walkthroughs | ||
| Demo account | ||
| In-depth learning tools | ||
| Keep in mind | 68% of retail CFD accounts lose money | 68% of retail CFD accounts lose money |
| Go to site More Info | Go to site More Info |
IG and eToro have a lot to offer in terms of learning resources. Both platforms have information on what they offer. IG has an entire course on investing and trading that you can take to find out more, including quizzes and videos.
Meanwhile, eToro has a blog, a podcast and video tutorials. At the moment, it has one selection of videos about trading, but it has videos specifically targeted at beginners and pros coming soon.
Both eToro and IG have demo accounts available. This means that you can give trading a go without putting down real money. So, whether you’re deciding between platforms, or just want to give investing a go, this is a nice way.
On both platforms, there is no obligation to go ahead and trade real money. You can make imaginary trades for life, if you want.
These platforms have very different things on offer. IG has been around since 1974 and has a really solid platform in all areas. eToro is a little newer to the game, but it’s made great headway and is trusted by about 200,000 active users.
Which platform you choose to use will depend on what you are looking for. If you need an ISA or a pension, you’re better off with IG. IG also has ready-made portfolios available, if you prefer a bit of hand holding. If you’re looking for low-cost trading, then eToro is your best bet, as it’s commission-free.
There are options for both beginners and experienced investors for both platforms, as well. The demo accounts and educational resources allow those newer to investing to find out how it works.
Capital at risk, investments may fall
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
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