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eToro versus Freetrade - a detailed comparison for 2022

Commission-free stock trading took the world by storm  in 2019 and became an industry standard among top online brokers. Although both eToro and Freetrade offer this service to their clients, other services and the overall trading experience provided by the two platforms differ greatly. This article provides a detailed comparison of what each broker offers to users. 

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eToro is the largest social trading platform in the world with a great selection of cryptocurrencies and a range of other assets (i.e. stocks, CFDs). Freetrade is a UK-based fintech startup founded in 2016 offering only stocks and ETFs. 

eToro vs Freetrade overview
eToro Freetrade
Recommended for investors interested copy trading and and zero commission stock trading Recommended for  long-term investors on the hunt for low fees and focusing on the UK and US markets

Pros: 

  • Free stock and ETF trading
  • Wide range of social trading features
  • Seamless account opening  

Pros: 

  • Free stock and ETF trading
  • Easy and fast account opening
  • Great mobile trading platform

Cons

  • High non-trading fees
  • Only USD accepted as account base currency
  • Sub-optimal customer service

Cons

  • Available in UK and a limited number of other EU countries
  • Basic product portfoli
  • Debit card only for deposits
Read our eToro review for 2022 Read our Freetrade review for 2022

TABLE OF CONTENTS 

  1.  eToro vs Freetrade: markets and products
  2. eToro vs Freetrade: fees
  3. eToro vs Freetrade: account opening
  4. eToro vs Freetrade: customer service

 

eToro vs Freetrade: markets and products

 

eToro clients can trade CFDs and forex, as well as real stocks, ETFs and a wide selection of crypto coins. Innovative services like social trading and Smart Portfolios are also available.

US clients have access to US Stocks, ETFs and crypto. 

At Freetrade , signed-up users can invest in stocks and ETFs listed on the London Stock Exchange (LSE), the New York Stock Exchange (NYSE), and the NASDAQ. Freetrade is continuously expanding its selection of stocks and ETFs, but has no plans to add more asset classes to its offering.

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eToro vs Freetrade: fees
 

As an eToro client, you can trade stocks and ETFs for free, and forex and CFD fees are low. With the free feature, you're buying the real stock, not a CFD product, therefore you cannot use leverage. Trades that involve stocks not traded in USD (like UK or European stocks) will be converted to USD at actual market prices by eToro, without taking any commission or markup. What's more, eToro will also absorb any tax duty that might be due if you trade on the UK market.
In terms of non-trading fees, eToro becomes a bit more expensive. The most notable charges are a $5 withdrawal fee and an inactivity fee of $10 per month that kicks in after one year of inactivity. It’s enough to log into your account to avoid having to pay this fee. 

True to its name, Freetrade offers free stock and ETF trading. As an advantage over eToro, there are no account, inactivity or withdrawal fees at Freetrade. Note that account maintenance is free of charge only for the basic account, if you choose Freetrade Plus, which provides more stocks, limit options and priority customer service, there is a £9.99 monthly fee.
The only negative aspect in terms of fees is that the conversion fee is relatively high at 0.45%. Also, if you opt for same-day withdrawal, you will be charged a £5 fee.

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eToro vs Freetrade: account opening
 

eToro accepts clients from all around the globe, with a few notable exceptions including Russia, China, Hong Kong, India, Indonesia, Japan, New Zealand, Saudi Arabia and Turkey. The account opening is super fast and the minimum deposit for most clients is $200. Residents of Australia and the US have to deposit an initial minimum amount of $50. Note however that the minimum amount for a bank transfer is $500.

eToro offers two simple account types: there is a live account and a demo (or virtual) account, where you can test the platform with play money.

At the time of writing, Freetrade accepted clients from the UK, Ireland and the Netherlands. The platform is working on rolling out its service to the EEA. 

The account opening process is fast, fully digital and user-friendly. There is no minimum deposit requirement. Clients can  choose from 4 different account types:
 

  • General Investment Account – standard account for stock and ETF tradingű
  • Investment Savings Account – a tax-efficient savings account
  • Freetrade Plus Account (NEW) – a tax-efficient solution with an expanded product portfolio and order types
  • SIPP Account (waitlist) – flexible investments in pension savings

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eToro vs Freetrade: customer service

 

Customer service is one of the weakest points of the eToro user experience. You can reach the broker mainly via a web-based ticketing system and answers take a long time to arrive. Live chat is only available to Club members. The lowest tier of eToro Club membership is silver, which one can reach by having more than $5,000 in equity on their account. According to eToro, customer service is available in all 21 languages that the web and mobile trading platforms offer. 

You can contact customer service at Freetrade via live chat and email. Both channels are fast and efficient, however they are not available 24/7. 

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Your capital is at risk

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>Back to eToro review

 

Author of this article

Edith Balázs

Author of this article

Edith is an experienced financial journalist having worked for 15+ years as a correspondent for Bloomberg, Dow Jones and The Wall Street Journal covering macroeconomics, stock, currency and fixed income markets. She holds a master's degree in American Studies and Journalism.

Edith Balázs

Senior Editor

Edith is an experienced financial journalist having worked for 15+ years as a correspondent for Bloomberg, Dow Jones and The Wall Street Journal covering macroeconomics, stock, currency and fixed income markets. She holds a master's degree in American Studies and Journalism.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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