IG vs eToro

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.

Two competitors in the investing world are IG and eToro. Both platforms cover off most of the things that investment has to offer, so how do they compare?

IG vs eToro: markets and products

When it comes to markets and products, these providers both offer quite different things. eToro offers fractional shares and DIY portfolios, while IG offers ISAs and pensions. IG has much more to offer here, but if you plan to purchase any fractional shares then you’d be more suited to eToro.

IG vs eToro: fee, costs and charges

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 per month.
Basic trades are free with eToro, but there is a withdrawal fee of $5 USD and an inactivity fee of $10 USD.

IG’s fees are pretty simple. For one of its ready-made portfolios, the “Smart Portfolio”, it charges 0.72% on investments up to £50,000 made up of a 0.50% IG management fee, an average of 0.15% in fund costs and 0.07% for transaction costs. For investments over £50,000 it charges 0.22%, made up of an average of 0.15% in fund costs and 0.07% in transaction costs. You pay no IG management fee over £50,000.

eToro doesn’t have any ready-made portfolios, so the cost of your portfolio will depend on what you choose to invest in.

Mobile and web features

IG vs eToro: learning resources

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.

IG vs eToro: CFD Trading

Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with IG and 71% of retail investor accounts lose money when trading CFDs with eToro. You should consider whether you can afford to take the high risk of losing your money.

The main difference between the CFD offerings for 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.

IG vs eToro: demo account

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.

Our verdict: is IG better than eToro?

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.

Compare investment services

• Share dealing platforms
• Stocks and shares ISAs
• Pensions

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.