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 that its ISA runs through a third party (Moneyfarm) rather than in-house. 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.
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.
35 million users worldwide enjoy social investing with over 7000 assets available.
Use their social features and copy trading to follow and invest with the best investors on the app.
- 0% commission on stocks
- Low minimum investment
- Social Investing
- Copy the top investors in the world
- Lack of research
Table of Contents
Meet eToro and Freetrade
eToro
eToro is a trading platform with over 40 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, ETFs, 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, Stocks and Shares ISA and SIPP are all available even on the free plan, with the paid tiers adding extra features. You can read the full Freetrade review here.
eToro Pros and Cons
Pros
- Commission free trading on real stocks
- 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 far 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, ETFs, 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.
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.
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 on earth is a spread fee? It’s a tiny fee 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 charges a 0.75% conversion fee when switching currency, though there is no fee if you hold and trade in GBP.
Freetrade also charges an FX fee on US stocks that depends on your plan: 0.99% on the free Basic plan, 0.59% on Standard and 0.39% on Plus. There is no FX fee on UK stocks.
Freetrade also offers two paid tiers, Standard (£5.99 a month) and Plus (£11.99 a month), which add a lower FX fee, more interest on cash and a wider range of stocks.
Freetrade also pays interest on uninvested cash, from 1% on the free plan (up to £1,000) to 3.5% on Plus (up to £3,000).
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: $50 (first deposit). Withdrawals are free from a GBP account.
Freetrade minimum deposit – £1 (1st deposit £1) Free withdrawals
Account Types
Both accounts offer GIA’s (general investment accounts) and Stocks and Shares ISA. eToro now offers a Stocks and Shares ISA too.
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
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 give it 4.1 out of 5.
Freetrade has a Trustpilot rating of 4.2 out of 5. Most people complain about the lack of customer service.
Open an account and enjoy social investing with a wide selection of available stocks, ETFs, trusts and cryptocurrency.
What about Trading 212?
Trading 212 is the third name worth knowing here, and for some people it is the best of the lot. Like eToro and Freetrade it offers commission-free investing in thousands of stocks and ETFs, but it bundles in more for free.
You get a Stocks and Shares ISA and a Cash ISA with no platform fee, and its foreign-exchange fee on overseas shares is just 0.15%, the lowest of the three. There is no built-in crypto in a standard UK account, though you can get exposure through crypto ETNs.
If your priority is a free ISA with the lowest running costs, Trading 212 is hard to beat. eToro still wins on social and copy trading and the widest choice of assets, while Freetrade keeps things simple. Read our full Trading 212 review for the detail.
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.
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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. 52% 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: This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more at https://etoro.tw/44JRWLY
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.
