eToro vs Degiro Compared Who is Better Broker

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eToro vs Degiro Compared: Who is the Better Broker?

Investing is a journey that requires reliable tools, insightful platforms, and trustworthy brokers. Whether you’re an experienced trader or just starting out, choosing the right brokerage can significantly influence your financial growth and overall investing experience. Two names that often surface during this decision process—particularly among European and US-based investors—are eToro and Degiro. Both have carved impressive reputations for themselves, but they cater to somewhat different audiences with varying needs and priorities.

In this comprehensive guide, we’ll delve into everything you need to know about eToro and Degiro—from their core features, fee structures, and available asset classes to their platform usability, customer support, security, and more. Our goal is to provide you with a clear, balanced perspective to help determine who is the better broker for your specific needs.

Prepare for an in-depth analysis rooted in experience, facts, and a keen understanding of what investors in the United States and beyond are looking for today.

An Introduction to eToro and Degiro: Who Are They?

What is eToro?

Founded in 2007, eToro has rapidly grown into one of the world’s leading social trading platforms. Headquartered in Israel, eToro is renowned for its innovative approach that combines traditional trading with social networking features. Its mission? To make investing accessible, social, and engaging for everyone.

eToro operates globally, with a special focus on the retail investing market. Its platform is user-friendly and designed to appeal both to beginners and experienced traders. One of its standout features is social trading, which allows users to follow and copy trades of successful investors—known as "Popular Investors."

What is Degiro?

Degiro, founded in 2008 in the Netherlands, emerged as a low-cost, European-focused online broker. Known for its transparent fee structure and broad access to international markets, Degiro has built a loyal user base, especially among more seasoned investors seeking cost-effective trading.

Degiro’s approach emphasizes low fees, a vast asset class offering, and an intuitive platform that caters to professional and semi-professional investors alike. Unlike eToro, Degiro does not focus on social features or trading signals but instead provides a more traditional, robust trading environment.

Core Differences at a Glance

Feature eToro Degiro
Focus Social trading & CFDs Low-cost investing & international markets
Regulation Regulated by FCA, ASIC, CySEC, FINRA Regulated by AFM (Netherlands), other European regulators
Account Minimum $50 (USD) No minimum deposit in most countries, varies by region
Trading Instruments Stocks, ETFs, Cryptocurrencies, CFDs, Commodities Stocks, ETFs, Options, Bonds, Futures, Currencies
Commission & Fees Zero-commission stocks, CFDs on spreads, Crypto fees Very low commissions, mostly fixed or percentage-based fees on trades
Platforms Proprietary eToro platform, mobile app Degiro’s trader platform, WebTrader, API access
Social Features Yes No (focused on trading)
Leverage & CFDs Yes, high leverage on CFDs No, no CFDs available

Platform Usability and Accessibility

eToro Platform: Designed for the Social Trader

eToro’s platform harmonizes simplicity and innovation. Its user interface is intuitive, making it especially appealing to newcomers. The social aspect enhances engagement—users can follow top traders, view their strategies, and even copy their trades automatically.

Key Features of eToro’s Platform:

  • User-friendly UI: Clear menus, streamlined navigation
  • Copy Trading: Auto-copy top traders’ portfolios
  • Mobile App: Fully functional, similar features as desktop
  • Social Feed: News, insights, and trader activity streams
  • Educational Resources: Webinars, articles, and tutorials

Though eToro’s platform is accessible, some experienced traders may find limited advanced trading tools compared to traditional brokers.

Degiro’s Platform: Professional and Precise

Degiro offers a more traditional trading platform, primarily designed for efficient order execution and access to a broad range of asset classes and markets.

Key Features of Degiro’s Platform:

  • WebTrader: Clean, simple interface, quick execution
  • Advanced Trading Tools: Charts, order types, research
  • API Access: For algorithmic trading if desired
  • Mobile App: Available, functional, but with less social interaction
  • Customizable workspace: For more experienced traders

While Degiro might lack the "social trading" flair, it appeals to those who prioritize speed, efficiency, and in-depth market access.

Asset Offerings and Market Access

eToro: The Social, Trader-Friendly Platform

eToro caters predominantly to retail investors interested in stocks, ETFs, cryptocurrencies, commodities, and CFDs. Its offering is designed to cater to both casual investors and social traders.

Assets available include:

  • Stocks (Over 2,000 global stocks)
  • ETFs (Over 2500)
  • Cryptocurrencies (Over 50 coins)
  • CFDs (on stocks, indices, commodities, currencies)
  • Commodities (Gold, silver, oil, etc.)

Degiro: The Market Access Powerhouse

Degiro stands out with access to over 50 international stock markets, including those in the US, Europe, and Asia. It offers an extensive range of asset classes:

  • Stocks & ETFs: On all major exchanges
  • Options & Futures: Extensive derivatives trading
  • Bonds: Numerous government and corporate bonds
  • Funds & Mutual Funds: Without additional fees
  • Currencies: FX trading on major pairs

Degiro is particularly popular among active traders and professionals because of its comprehensive market access and deep selections.

Fee Structures and Cost Comparison

Perhaps the most decisive factor for many is cost. Here’s a detailed look:

eToro Fees

  • Stocks & ETFs: Zero commission; traders pay the spread (difference between bid and ask prices).
  • Cryptocurrencies: Usually high spreads, varying per coin.
  • CFD Trading: Spreads are applied; no overnight fees for stocks.
  • Withdrawal Fees: $5 per withdrawal.
  • Inactivity Fee: $10/month after one year of no login.
  • Currency Conversion Fee: 0.5% on trades not in USD or EUR.

Degiro Fees

  • Stock & ETF Trades: As low as €2-€5 per trade, depending on the exchange.
  • Options & Futures: Very competitive, often just a few euros per order.
  • Bonds & Funds: Low or no transaction fees.
  • Currency Conversion: Slightly higher spreads (often around 0.1-0.5%), but transparent.
  • Inactivity Fees: Usually none, but some subscriptions carry monthly charges.
  • Strikes & Expiry Fees: Minimal, making it appealing for active traders.

Summary:

While eToro’s fee model is simple with zero commissions on stocks, its spreads on cryptos and CFDs can add up. Degiro, on the other hand, excels in low-cost trades across many asset classes, especially for high-volume traders.

Regulatory Environment and Security

eToro’s Regulatory Framework

eToro is regulated in multiple jurisdictions:

  • UK: FCA
  • Australia: ASIC
  • Cyprus: CySEC
  • US: FINRA (via eToro USA LLC)

Funds Safety: Segregated accounts, investor protection schemes in some regions.

Degiro’s Regulatory Standards

Degiro is regulated by:

  • AFM (Dutch Authority for the Financial Markets)
  • De Nederlandsche Bank (DNB)

Funds Safety: Segregated client accounts, adherence to European regulations.

Note: Both brokers are generally considered safe, but their regulation differs in scope and coverage for US investors.

Customer Support and Educational Resources

eToro’s Support & Resources

  • Customer Support: 24/5 via live chat, email, phone
  • Educational Content: Webinars, guides, social trading insights
  • Community Engagement: Active social feed, trader spotlight stories

Degiro’s Support & Resources

  • Customer Support: Email and ticket-based support, European-based help desk
  • Educational Content: Limited, more focused on delivering quick market access
  • Research & Tools: Advanced charts, market news

eToro’s social and educational ecosystem may be more engaging, especially for beginners, whereas Degiro caters to those who need straightforward, professional trade execution.

Pros and Cons: A Comparative Summary

eToro

Pros:

  • Rich social trading features
  • Easy-to-use, friendly interface
  • No commission on stock trades
  • Wide array of cryptocurrencies
  • Strong regulatory presence

Cons:

  • Higher spreads on cryptos
  • Limited advanced trading tools
  • Inactivity fees
  • Not suitable for high-frequency trading

Degiro

Pros:

  • Extremely low trading fees
  • Access to global markets and asset classes
  • No account minimum in most regions
  • Advanced trading options (options, futures)
  • Strong European regulation

Cons:

  • No social trading features
  • Less educational content
  • No mobile app with social features
  • Limited customer support channels (compared to eToro)

Which Broker Is Better for You?

Choosing who is better between eToro and Degiro depends largely on your trading goals and preferences. Let’s consider various investor profiles:

For Beginners & Social Traders

eToro shines brightly here. Its intuitive platform, social trading, and educational resources make it manageable and engaging. If you want to learn by copying professional traders and enjoy a user-friendly experience, eToro is the ideal pick.

For Cost-Conscious & Active Traders

Degiro is better suited for cost-sensitive traders and those needing broad international market access. Its low fees, advanced trading tools, and diverse asset classes attract professionals and serious investors who value efficiency and cost savings.

For Cryptocurrency Enthusiasts

While eToro offers access to cryptocurrencies with a social twist, its spread costs can be high, making it less attractive for high-volume crypto traders. Degiro doesn’t offer cryptocurrencies directly but might be better for traders interested solely in the traditional markets.

For Professional & Institutional Investors

Degiro’s more traditional platform, competitive fees, and extensive market access** position it as a strong choice. eToro’s social features are less relevant here.

Final Thoughts: Who Wins?

It’s not about a clear winner; it’s about matching your needs.

  • If you seek a social, beginner-friendly experience along with exposure to cryptocurrencies and a straightforward fee structure, eToro is the way to go.
  • If you prioritize low-cost trading, broad asset access, and professional tools, then Degiro offers compelling value.

Both brokers are reputable and regulated—your decision should hinge on your trading style, asset interests, and how you prefer to engage with your investments.

Frequently Asked Questions (FAQs)

1. Is eToro available for US traders?

eToro operates in the US through eToro USA LLC, primarily offering stocks, ETFs, and cryptocurrencies. However, its cryptocurrency trading is more limited compared to Europe, and some features like CFDs are restricted or unavailable.

2. Can I open an account with Degiro as a US-based investor?

Degiro primarily caters to European residents, and US-based investors may face restrictions or limited access. Always check the broker’s regional acceptance before opening an account.

3. Which broker offers better educational resources?

eToro, with its social trading, has more extensive educational content including webinars, tutorials, and social feeds. Degiro provides platform tutorials and basic market insights but is less focused on education.

4. How do fees compare for large-volume trading?

Degiro’s low fixed fees per trade make it more cost-effective for high-volume traders. eToro’s spreads could add up for frequent traders, especially in cryptocurrencies and CFDs.

5. Are my funds protected with either broker?

Both are regulated entities, and funds are held in segregated accounts. However, customer protection schemes depend on the jurisdiction—eToro in the UK, Australia, Cyprus, and US, while Degiro is regulated by Dutch authorities.

6. Which broker has better mobile apps?

eToro’s mobile app is highly rated for its social features and usability. Degiro’s app offers solid trading performance but lacks social integrations.

7. Does eToro support margin trading?

Yes, eToro offers margin trading on CFDs with leverage limits depending on regulation and asset class. Degiro does not offer leveraged trading or CFDs.

8. Can I trade options and futures with these brokers?

Degiro supports options and futures trading. eToro currently does not offer these derivatives.

Final Note

Selecting the right broker is a personal decision rooted in your trading objectives, budget, preferred assets, and platform preferences. Both eToro and Degiro are highly reputable—each excels in different areas.

Thoroughly assess what matters most to you—be it cost efficiency, social trading features, or market access—and choose accordingly. Remember, an effective trader always aligns their tools with their goals.

Happy investing!

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