Sammie Ellard-King
I’m Sammie, a money expert and business owner passionate about helping you take control of your wallet. My mission with Up the Gains is to create a safe space to help improve your finances, cut your costs and make you feel good while doing it.
Quickfire Roundup:
This one isn’t a close call. eToro is the clear winner, with a much more powerful platform and a wider range of investment options.
It’s also much cheaper, and the app has many more features and available assets than Freetrade.
The only downside to eToro is the lack of an ISA, which they have addressed recently, but it’s through a 3rd party. Freetrade offers a Stocks and Shares ISA and SIPP (self-invested personal pension) built in, albeit for a monthly cost.
Both trading platforms operate with a 0% commission on stocks and ETFs which is highly attractive to beginners and more experienced traders alike.
Retail investing apps like eToro and Freetrade have grown tremendously since the pandemic as they offer you access to the stock market on your mobile phone.
You can trade stocks in a matter of seconds and this makes both apps very attractive.
For me if you do want an ISA then Trading 212 is the better option than Freetrade. It has a lot more features and is very similar to eToro with low cost investing.
If you’ve heard enough already then visit eToro here but if you want more let’s unpack more in this eToro vs Freetrade review.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
30 million users worldwide enjoy social investing with over 3000 of stocks, funds, trusts and cryptocurrency available.
Use their social features and copy trading to follow and invest with the best investors on the app.
- 0% commission on real stocks and ETFs
- Social Investing
- Copy the top investors in the world
- Regulated by the Financial Conduct Authority (FCA)
- Lack of research
Table of Contents
etoro vs Freetrade - Introductions
eToro
eToro is a trading platform with over 30 million users. It’s got a unique model called social trading, which allows you to interact with other users on the platform, similar to how you would do on Facebook or Twitter.
This means you have access to some of the top investors in the world, where you can visit their profile and their investments.
A big USP for eToro is their copy trading feature which allows you to copy the exact investments of an investor you like. When that investor buys or sells an asset, it will automatically do the same on your portfolio.
You can copy as many investors as you like, which is an amazing feature for beginners to learn how to invest.
The platform also has diverse asset classes, including thousands of individual stocks, index funds, ETFs (exchange-traded funds) and cryptocurrencies.
You can buy stocks directly, but you can also get involved with CFD trading (contract for differences), where you are trading the price rather than owning the physical asset.
With a wide range of trading tools, this makes eToro perfect for beginners and more experienced investors. You can read the full eToro review here or visit their website below.
Open an account and enjoy social investing with a wide selection of available stocks, funds, trusts and cryptocurrency.
Freetrade
Freetrade is similar in many ways to eToro, but it is a mobile app only, which has actually been a big factor in its recent popularity.
It has many assets available, including access to US stocks and global markets. It doesn’t, however, offer direct access to crypto trading.
The app is super slick and smart. Easy to navigate around and understand, which is great for a beginner. You can also link your bank account for quick and easy deposits and withdrawals.
The general investment account comes for free, but you must upgrade to the different tiers to access the Stocks and Shares ISA and personal pension options. You can read the full Freetrade review here.
eToro Pros and Cons
Pros
- Commission free trading
- Social trading, including copy trading
- Stocks and Shares ISA available (New Feature)
- Advanced mobile app
- Excellent customer reviews
- Etoro academy
- Crypto trading
Cons
- Customer service could be improved
- Trade in dollars rather than the local currency
- Trading forex can be pricey
Freetrade Pros and Cons
Pros
- Commission free investing
- Free share when you refer a friend
- User friendly
- Easy setup
- Stocks and Shares ISA available
Cons
- Lack of research available
- No desktop version
- Monthly charges for wider products
Investment Options
There’s really not a lot of difference between the two trading platforms when it comes to the assets available.
What makes both eToro and Freetrade so good is their wide selection. This includes pretty much every major stock, fund, commodity and currency.
The main difference is eToro offers traders access to cryptocurrency trading and slightly more stocks and funds.
eToro has an extensive array of crypto available on the platform, including the big ones like Bitcoin, Ethereum and Cardano.
This is a big reason eToro has over 30 million more users than Freetrade, as people often want some exposure to cryptocurrency and the ability to use a desktop version.
Open an account and enjoy social investing with a wide selection of available stocks, funds, trusts and cryptocurrency.
What are the apps like to use?
Both eToro and Freetrade have fantastic mobile trading apps that are fast, intuitive and easy to navigate.
When I compare eToro vs Freetrade, the apps are very similar in quality.
If you are a beginner it’s very easy to understand where things are and navigate from your own portfolio to the market areas where you can buy or sell investments.
The eToro academy, which offers extensive research on each asset, sets the two apps apart. More on this later.
That being said, it is a minor thing when it comes to the apps; of course, everyone has a personal preference.
One thing I like about Freetrade for UK investors is the ability to trade in pounds, whereas eToro will convert your cash into dollars.
eToro also offers a free demo account for users to play around with virtual money before committing capital. This is useful for beginners and experienced investors who want to learn their way around.
Trading Fees
A main factor for you investors is the fees. Even though the apps are 0% commission on stocks and ETFs, you still pay some fees, such as the spread and conversion fees.
What an earth is a spread fee, I hear you ask? Well, it’s a tiny fee that both apps make when you trade CFDs or Forex.
Essentially if you buy an asset for £100, the app may sell it to you at £99.90, taking the 10p as a spread which is how it makes its money. Both apps do this, but eToro’s spreads are slightly more favourable.
We mentioned eToro trading in dollars above, and because you put would be depositing in pounds, the app will charge a conversion fee of 0.5% for switching to a foreign currency.
This is also the case with Freetrade’s foreign exchange fee, which is 0.45% per transaction when you buy US stocks. This currency conversion fee is inactive when buying UK or European stocks.
Freetrade also offers two upgraded tiers (standard £4.99 a month & plus £9.99 a month) which give you access to the stocks and shares ISA and SIPP.
There are also some other added benefits like a wider range of stocks and a small interest given on cash reserves over £2,000.
Deposits and withdrawals
I tested withdrawing from both apps within a matter of minutes of each, and they were both pretty quick. Freetrade was almost instant, and eToro took 24 hours, which is normal
Etoro minimum deposit – £10 (1st deposit £45) – $5 withdrawal fees
Freetrade minimum deposit – £1 (1st deposit £1) Free withdrawals
eToro vs Freetrade - Account Types
Both accounts offer GIA’s (general investment accounts) and Stocks and Shares ISA. eToro has just launched its ISA in 2023, a new feature to its arsenal.Â
However it is a 3rd party ISA held with Moneyfarm so Freetrade wins this round as it also offer the SIPP too.
Personally, I think eToro needs to up its game here as this does let it down compared to other UK providers like FreeTrade, Hargreaves Lansdown and Trading 212.
Opening an Account
Opening an account with both brokers is relatively hassle-free. Regarding Freetrade, I had to wait for extra verification mainly because I have a long name which was slightly frustrating.
However, I’m used to it by now!
You will need an ID to verify your identity and important details like your national insurance number.
In most cases, you’ll be set up and active on the same day, but in some cases, you may need to wait longer for extra checks to be completed.
In terms of security and safety – both apps are regulated by the FCA (financial conduct authority) plus offer FaceID and banking level 2FA (two-factor authentication).
Research and Educational Resources
Now, this is something that makes both apps very attractive to both beginners and more experienced investors.
Research
eToro offers an extensive array of research options on each asset class.
This includes analyst predictions, the latest articles from top investing publications, and sentiment trends to see what other etoro customers and investors feel.
There is basically no research available on Freetrade which does let it down somewhat!
Education
eToro, as a trading platform, offers an extensive academy with access to videos, courses and blog posts that can guide you through their app and investment strategies.
I personally used a lot of the academy when I was starting out to brush up on knowledge and alien terminology.
Freetrade has a blog which it contributes to regularly. There is some good stuff in there but you have to go digging, something which the app needs to improve on for me.
Customer Reviews
Trustpilot reviews from other eToro customers have a 4.3 out of 5.
Freetrade has a Trustpilot rating of 4 out of 5, which is a few lower points. Most people complain about the lack of customer service, which is interesting!
Open an account and enjoy social investing with a wide selection of available stocks, funds, trusts and cryptocurrency.
eToro vs Freetrade - The Winner
When looking for a stock trading app, it’s important to assess the entire picture. As you can see, both trading platforms are close in terms of their offering, but eToro is the elite version.
The sheer inclusion of popular investment services, trading tools, social trading, and wider research makes eToro a more attractive trading platform. Though if you were to choose Freetrade as a beginner, you would undoubtedly be very happy with it.
MORE LIKE THIS
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
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Disclaimer: Content on this page is for informational purposes and does not constitute financial advice. Always do your own research before making a financially related decision.
