For buy-and-hold ETF investors, Trading 212 is usually the cheaper and simpler choice. Both charge no commission on ETFs. However, Trading 212’s FX fee is 0.15% against eToro’s 0.75% (0.70% in its ISA). Also, Trading 212 runs its own ISA, while Moneyfarm provides eToro’s. eToro’s strengths are its social and copy-trading features and interest on USD balances (as of September 2026).
Comparing options? Take the decision workbook with you.
The ETF Comparison Workbook: TER, domicile, withholding tax and overlap checks in one printable spreadsheet.
eToro vs Trading 212 at a glance
Both are app-based brokers with regulators in the UK and the EU, and both let you buy UCITS ETFs without commission. They differ in how they handle currencies and in how their ISAs work. They also differ in what they are built for. eToro grew up around social trading and copying other investors. Trading 212, by contrast, has focused on low-cost investing, Pies and interest on cash.
Fees: the currency question decides it
Neither broker charges commission on ETFs. eToro states that it charges zero commission on ETF trades of any size, and no custody or management fee. Similarly, Trading 212 says the only fee it can charge on Invest, ISA and SIPP accounts is its FX fee, with no commission or custody fee. On individual shares, eToro may charge a $1 or $2 commission depending on your country and the exchange. However, this does not apply to ETFs.
The real difference is currency conversion. eToro holds a USD account for every client, and eligible UK and European clients can also hold a GBP or EUR account. Converting between a local account and USD costs 0.75% for UK and European clients. Higher eToro Club tiers get discounts of 20% to 80%. Trading 212, on the other hand, converts at the spot rate plus 0.15%.
For example, on a £1,000 purchase of a dollar-priced asset, that is about £7.50 at eToro’s standard rate versus £1.50 at Trading 212. You also pay again when you sell. The easy way to avoid FX costs on either platform is to buy the ETF line that trades in your own currency. That could be a London-listed sterling line or a Xetra-listed euro line of a global tracker.
Other costs to check
- Withdrawals. eToro charges nothing to withdraw from a local currency account. However, it charges $5 for withdrawals from its USD account (minimum $30). Trading 212 does not charge withdrawal fees.
- Deposits. Trading 212 makes card, Apple Pay and Google Pay deposits free up to 2,000 GBP or EUR in total, then charges 0.7%. Bank transfers remain free. eToro charges conversion fees on deposits to its USD account in other currencies. But it does not charge them on deposits to a local account in that currency.
- CFD execution. eToro notes a point about product restrictions. Because of them, it executes some non-leveraged buy positions in stocks and ETFs as CFDs, and these incur CFD spreads. The trade ticket marks any CFD trade “CFD”. So check before you confirm if you want to own the underlying ETF.
Our Trading 212 fees guide and how to buy ETFs on eToro go into each platform’s costs step by step.
ISA: in-house vs powered by Moneyfarm
For UK investors this is a major structural difference. Trading 212’s stocks and shares ISA sits inside the same app and account structure as its Invest account. It has a £1 minimum, fractional shares and Pies. Its ISA is also flexible, so you can withdraw and replace money in the same tax year without using extra allowance.
Moneyfarm powers eToro’s ISA range (cash, stocks and shares, and managed). MFM Investment Ltd holds your ISA money. The Financial Conduct Authority (FCA number 629539) authorises that firm, and the FSCS covers the money up to £85,000. On 29 July 2026 eToro removed dealing commission and the annual custody fee from its stocks and shares ISA. That left an FX charge of 0.70% on non-GBP assets. The DIY ISA offers more than 1,000 stocks, ETFs, bonds and mutual funds.
One detail to note concerns transfers. eToro says it sells ISA transfers in and moves them as cash, rather than transferring the original holdings. As a result, you could be out of the market for the length of the transfer.
The overall ISA allowance for 2026/27 is £20,000 either way. If you are weighing ISA against a pension, see our ISA, LISA and SIPP decision tree.
Interest on uninvested cash
eToro pays interest only on its USD cash balance. For eligible residents of the EU and UK, the rate was 3% on a total balance of $1 to $50,000 and 3.80% above $50,000. eToro calculates it daily and pays it monthly, and you must switch it on in the Club dashboard. However, cash in GBP or EUR accounts does not earn this interest. eToro also notes it may renew the programme at a lower rate.
Trading 212 pays interest on uninvested cash with no minimum or maximum balance, across Invest, ISA and SIPP accounts. It publishes rates for new clients on its terms and fees page, and the app shows your own rate. New Trading 212 EU GmbH clients may qualify for a promotional EUR rate for an initial period. That rate links to the ECB deposit facility rate plus a fixed markup. We could not access Trading 212’s live rate table when writing, so check the app before comparing numbers.
For a European investor holding euros, or a UK investor holding pounds, Trading 212’s approach is more useful. That is because you earn interest without first converting to dollars and paying 0.75%.
Regulation and protection
UK clients
The FCA authorises and regulates eToro (UK) Ltd (FRN 583263), and the FSCS covers it. If the firm fails with a shortfall, investment protection runs up to £85,000 per eligible client. In addition, deposit protection runs up to £120,000 where third-party banks hold the cash. The FCA also authorises Trading 212 UK Ltd (register number 609146). It has the same FSCS limits of £85,000 for investments and £120,000 for bank deposits.
EU clients
The Cyprus Securities and Exchange Commission (CySEC, licence 109/10) regulates eToro (Europe) Ltd. It is also a member of the Investor Compensation Fund, which covers up to €20,000. Trading 212 serves EU clients through Trading 212 Markets Ltd (CySEC licence 398/21, ICF cover up to €20,000). It also uses Trading 212 EU GmbH, which BaFin regulates in Germany. There, the German investor protection scheme covers 90% of eligible funds up to €20,000. In addition, deposit protection covers cash at partner banks up to €100,000 per bank.
Both keep client money and assets segregated from their own. Note that both use qualifying money market funds for interest. Cash in those funds is an investment rather than a bank deposit, so deposit protection does not cover it. More detail in is Trading 212 safe?
Which should you choose?
Choose Trading 212 if you are a long-term ETF investor who wants the lowest running costs. It also suits you if you want interest on cash in your own currency, automated Pies and a simple in-app ISA. Our Trading 212 review covers it in full.
Choose eToro if you specifically want social features such as CopyTrader. It also fits if you already hold USD and want interest on it, or if you like a managed ISA option inside the same app. Keep your trades in your own currency where possible. Also check that eToro does not execute your ETF orders as CFDs. Our eToro review weighs these features up.
Frequently asked questions
Is eToro or Trading 212 cheaper for ETFs?
Both charge no commission on ETFs, so the difference is currency conversion. Trading 212 charges 0.15%. eToro, however, charges 0.75% between a local account and USD for UK and European clients (0.70% in its ISA), before Club discounts. If you buy ETF lines in your own currency, both are close to free.
Does eToro have a stocks and shares ISA?
Yes. eToro offers cash, stocks and shares and managed ISAs powered by Moneyfarm (MFM Investment Ltd). Since 29 July 2026 the stocks and shares ISA has no dealing commission or custody fee. Instead, there is a 0.70% FX charge on non-GBP assets.
What is the downside to Trading 212?
It does not offer mutual funds or a Junior ISA, and its SIPP accepts only personal contributions. Also, card deposits above 2,000 GBP or EUR in total cost 0.7%. We could not access the published interest rate table, so compare the rate in your app before relying on it.
Is my money safe with eToro and Trading 212?
For UK clients of both, the FSCS covers investments up to £85,000 if the firm fails. For EU clients of eToro (Europe) and Trading 212 Markets, the Cyprus ICF covers up to €20,000. However, neither scheme covers normal market losses.
Cited sources: eToro fees and charges, eToro conversion fees, eToro interest on balance, eToro press release, 29 July 2026, eToro Stocks & Shares ISA, eToro regulation and licence, Trading 212: fees in Invest, ISAs and SIPP, and Trading 212: who regulates Trading 212. Verify current fund figures before investing. Educational content, not financial advice.
Not personalised financial advice. Verify your situation with a qualified adviser. Operated by Aurum Digital Marketing LTD (UK), Companies House 15203665.
European UCITS/ETF investor with 11+ years building a global dividend and index portfolio, and founder of Financial Expert Class. I write every guide here from first-hand experience investing across EU brokers and tax regimes — not theory. More about me →