eToro and Degiro are two heavy-hitters in the world of international stock trading.
eToro is best known for its trade copying option so users can copy the investment choices of other savvy investors. And these savvy investors can make lots of money from eToro by gaining a large following.
Degiro, on the other hand, is known for having low barriers to entry and offering a variety of trading options in Europe. Degiro is also considered to be one of the most secure trading platforms out there, winning awards across Europe consistently.
Is the eToro copy trading worth all the hype? Is Degiro the best choice for European traders looking for a no-nonsense platform that offers just about all the assets you’d want to trade? Read on to learn our opinions on these two international/European trading platforms.
Here are the facts:
eToro:
- Founded in Tel Aviv in 2006
- Founders: Yoni Assia, Ronen Assia, and David Ring
- Tradable assets: depends on where you’re located, but includes stocks, commodities, ETFs, forex, CFDs, and cryptocurrency
- Available in over 60 countries around the world, including those in Europe, Africa, South America, Asia, Australia, and some states in the U.S.
- Fees: varies based on where you are, but includes an account minimum, low activity fees, and a withdrawal fee
- Mobile and web availability
Degiro:
- Founded in the Netherlands in 2013
- Founded by a group of former Binck Bank employees
- Tradable assets: Stocks, ETFs, funds, bonds, options, and futures
- Available across Europe
- Fees: no account minimum, inactivity fee, or withdrawal fee
- Mobile and web availability
eToro’s CopyTrader Tool
eToro was one of the first mobile stock trading platforms with a social side. The CopyTrader tool allows investors to look at the portfolios of other investors and “copy” them. This means that, whenever the investor you’ve selected invests, you do, too. This is all done automatically through the app.
While you can view the investment choices of others on the app, you cannot see the exact dollar value of the investments. This limits copy trading in some ways, because you do not have all the facts on what exactly the investor you’re copying is doing with their money. Instead, you see a percentage as the return on investment, either in red or green.
Copy trading works well if you want a hands-off approach to CFD and crypto trading. You won’t have to study the markets yourself because every time this savvy investor who you’re copying makes a move, you automatically do as well.
But you can’t just copy any average joe on eToro. You can only copy trusted, respected traders who are listed on the “copy people” tab in the app. The percentage returned on their portfolio in the last year, the number of copiers, risk level, and other information on their methodology is listed in their profiles so you can choose the trader that best fits your needs.
When searching for investors to copy, you can filter results by country, assets traded, percent returned, number of people copied, riskiness, and other helpful metrics.
If you don’t want to copy a specific investor, you can invest in one of eToro’s Copy Portfolios, which is essentially a grouping of assets created by the app, like an eToro ETF.
Heading: The social side of eToro
eToro was built to be an early leader in social trading apps. Because there are so many traders from across the world using the app, their in-app messaging feature has an option to translate your message into the language of the trader you are messaging. This is very useful for people communicating about the markets from across the world.
We love how easy it is to meet and connect with investors from around the world on eToro. It facilitates global communication about the markets, which is a unique feature specific to the app that not many other apps offer.
Degiro is trusted by many
Degiro has grown its user base exponentially since its founding. The platform has also won over 60 awards from brokerage reviewers across Europe. It has gained a following as the best and safest low-cost broker in all of Europe.
Degiro is also regulated by top-tier banks in the Netherlands. The platform is very focused on client protection and safety, which can be seen in the awards it has won and the massive growth of users in a short amount of time.
Educational and Advisory Tools
eToro has a variety of charts and research on the assets you can use to make your trading decisions. They also have a news feed built into the app.
The main educational tool of eToro is the availability of professional investors’ profiles to view and copy. You can analyze these investors’ choices and make your own based on what you see, or you can use their CopyTrader feature to make it even easier.
Degiro doesn’t offer many educational tools. If you’re looking for more research and educational options, this stock trading platform is probably not for you. But, for investors who want a simple, no-nonsense approach to European trading, this could be a great option.
Degiro is built to be as simple and no-frills as possible, so there is no option for getting an advisor. This app is better for experienced to mid-level investors who use a variety of external sources for their research and advisory needs.
Customization
Both eToro and Degiro have options to create watchlists, so you can easily see the stocks you want to keep track of on the home screen of the app. There are no passive investing or robo-advisor options on either app, so you are in full control of your assets, making it a highly customizable experience.
Monetizing your skills through eToro
If you’re an experienced, talented investor, you could monetize your skills and gain a following of copy traders on eToro.
The standards to become a Popular Investor on the app are to have a verified profile, recent account activity (including at least one position open), a maximum risk score of 7 out of 10 (calculated by Etoro), and have opened or closed at least one position in the last 30 days.
Getting paid for your skills varies based on how many copiers you have. They break the investors into four levels: cadet, rising star, champion, and elite, with the payment schedules increasing as you move up the ranks. Find a full breakdown of the payment amounts here.
Fees
eToro’s fees vary based on where you are. While the fees slightly higher than some competitors, they are very transparent about what you have to pay and when.
Degiro has some of the lowest fees in a trading app across Europe, making it an exceptionally low cost option for any investor. There is no account minimum, so you can truly start trading with less than a dollar.
Design and functionality
eToro has an easy-to-use and attractive interface. The popular investor portfolios are displayed in easily scrollable thumbnails. You can sort the popular investors based on a variety of parameters, which makes finding your perfect trader to copy very easy.
Degiro has a sleek, minimalist design without many extra bells and whistles.
Degiro has helpful charts and the option to save your favorite stocks that you want to track. These favorites sync between the desktop and mobile versions, making it easy to keep an eye on stocks you may want to invest in.
Drawbacks
eToro:
- Minimum account deposit, inactivity fees, and withdrawal fees
- Limited assets to trade
Degiro:
- Limited educational resources
- No credit or debit card deposit available
- No cryptocurrency trading
With eToro servicing only some states in the U.S. and Degiro only serving Europe, if you’re looking for trading options within the United States, it’s best to look elsewhere. We have reviews of Public, Wealthfront, and many other trading services that could be a better fit.
Q&A
Is my money safe with eToro?
Yes, investors can be certain that eToro is a secure investing platform for traders around the world. The platform follows a variety of regulations including FCA, CySEC, and ASIC. eToro does not directly store your money–other banks do, which encrypt your information. eToro also offers two-factor authentication for your account.
Is my money safe with Degiro?
Yes, investors can be certain that Degiro is a secure investing platform for European traders. The platform is regulated by top-tier banks in the Netherlands. They use a separate legal entity, an SPV, to hold your funds. This means that your assets are separate from Degiro’s assets.
Is eToro available in the U.S.?
eToro is available in some U.S. states, depending on regulations.
Is Degiro available in the U.S.?
Degiro is only available in European countries.
Can you become rich with eToro?
Becoming a Popular Investor on eToro and gaining a following of copy traders can be very lucrative. The platform pays you based on how many traders are copying you, as well as a few other standards. Investing always involves risk, so be aware that your funds will not be guaranteed to increase in value.
How does eToro make money?
eToro makes money through fees associated with trading CFDs, primarily the spread. They also charge fees depending on where you are located. These fees include low activity, withdrawal, and cryptocurrency transfers.
Is Degiro good for long term investing?
Yes, because of the low fees and variety of assets to trade, Degiro is a great long-term investing platform for mid-level or experienced investors. There are no passive investing or robo-advisor options, however, so you will have to make your investment choices on your own.
Can you day trade on Degiro?
Yes, European traders can day trade on Degiro.
Does eToro have crypto?
Yes, eToro has cryptocurrency trading on the platform. There are 14 coins including Bitcoin, Ethereum, and Cardano.
Does Degiro have crypto?
No, as of April 2021, Degiro does not offer cryptocurrency.
Our View
When it comes to trading apps serving Europe and countries outside of the U.S., eToro and Degiro are two great mobile and web trading platforms. So, which types of investors should use eToro and Degiro?
eToro is great for investors on both ends of the spectrum. Traders who want to gain a following and monetize their expertise can see lots of success on the app. On the other hand, traders who want a hands-off approach to investing can see their portfolios soar by copying the trades of popular investors.
Degiro is perfect for European traders who are more experienced in investing and don’t need all the in-app social and educational features that apps like eToro offer. We like Degiro’s low fees and no-frills, minimalist approach to trading. High to mid-level investors will find that Degiro is the ideal bare-bones approach for them.
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