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eToro versus Hargreaves Lansdown – a detailed comparison for 2022

eToro and Hargreaves Lansdown are both highly-rated brokers even though their profile is rather different. One of the most obvious distinctions is that eToro has a global outreach while Hargreaves Lansdown has a distinctly UK focus.
The list of differences doesn’t end here and we put together a detailed comparison of the two brokers highlighting both similarities and dissemblances in their services. 

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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). Hargreaves Lansdown is one of the biggest UK-based stockbrokers. The company was founded in 1981 and it is listed on the London Stock Exchange, being a member of the FTSE 100, a stock index of the biggest listed companies in the UK.

eToro vs Hargreaves Lansdown overview
eToro Hargreaves Lansdown 

Recommended for investors interested copy trading and and zero commission stock trading

Recommended for beginners and buy-and-hold investors looking for great customer service and easy-to-use trading platformst

Pros: 

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

Pros: 

  • Easy-to-use trading platforms 
  •  Low non-trading fees and free withdrawal
  • Great customer service

Cons

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

Cons

  • High fees for stocks and ETFs
  • Offline account opening for clients outside the UK
  • Only GBP base currency
Read our eToro review for 2022 Read our Hargreaves Lansdown review for 2022

TABLE OF CONTENTS 

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

 

eToro vs Hargreaves Lansdown: markets and products

 

One of the major difference between the two brokers is in their product portfolios. 

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. A word of caution: we do not recommend eToro for long-term investors focusing on collecting dividends from US stocks because eToro deducts the 30% default US dividend tax. 

At Hargreaves Lansdown , clients can trade a lot of funds, ETFs, stocks and bonds. The broker grants access to a good number of stock markets in Europe ans North America. It also offers penny stocks. However, other products such as forex, CFDs, options or futures are not available. You can invest in portfolios that are managed by Hargreaves Lansdown's fund managers. This is a great service if you don’t want to manage your investments on your own.

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eToro vs Hargreaves Lansdown: 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. 

As opposed to eToro , at Hargreaves Lansdown clients have to pay rather high fees for trading stocks and ETFs. The fees for stocks are volume-based, so the more you traded in the previous month, the lower the commission you will have to pay in the current month.
At the same time, mutual fund and bond trading fees are low and there is no inactivity fee. Keep in mind that there is an annual fee for holding funds; the charge is volume-tiered based on the value of funds you hold. Withdrawals are free of charge and there is no account fee for a standard Fund & Share account. The annual account fees for SIPP and ISA accounts are 0.45% of the trade value, respectively, with a maximum of £200 for SIPP accounts and £45 for an ISA account. 

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eToro vs Hargreaves Lansdown: 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.

Hargreaves Lansdown 's account opening process is quick and easy as long as you're in the UK and electronic verification works. If this fails or you live outside the UK, you will have to send photocopied documents by post.

There is no minimum deposit at Hargreaves Lansdown, you can set up an account with as little as £1. If you want to use the robo-advisory service Portfolio+, the minimum account balance is £1,000. 

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eToro vs Hargreaves Lansdown: 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. 

Customer support at Hargreaves Lansdown works without a hitch. You can contact them via phone and email, and the phone support is great. We were connected instantly and received relevant answers to our questions. We emailed them several times and received relevant answers within a day in all cases. The broker should enable 24/7 availability and a live chat option to make the experience even more satisfying. 

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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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