eToro vs Trade Republic
eToro and Trade Republic are both popular with young investors. However, we see many differences between the two brokers. eToro is ideal for those who want to learn and try out different things. Trade Republic is simpler and more focused on regular monthly investing. eToro offers more features, while Trade Republic is usually cheaper.
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Note: investing involves risks, and you can lose (part of) your money.
eToro vs. Trade Republic
According to Investment Platforms Europe, both eToro and Trade Republic are good and affordable brokers. They are easy to use, which makes them suitable stock brokers for new investors. However, they focus on very different types of users.
eToro is especially good for curious beginners who want to experiment. The platform offers a lot of information, and you can learn by doing or by following other investors. You can even copy someone else’s strategy. If you want to invest and also get better at it, eToro is an interesting choice.
Trade Republic is made for investors who want to keep things simple. There are fewer options and fewer distractions. It mainly focuses on fixed investment products. Most users invest with a fixed plan, where they put in a set amount every month in chosen stocks or ETFs.
Open an account directly with eToro, a large European broker, or with Freedom24, which offers a range of one million stocks, ETFs and options. Investing involves risks. You can lose your investment.
Ease of use
Trade Republic has a simple design. You can easily open an account, add money, and start investing. There are few notifications or questions. Buying or selling takes just one click, without complex order types. This makes it very smooth if you just want to invest in a stock or ETF every month.
eToro is also easy to use, but it has many more features. You get access to a lot more information, sometimes shown in charts or user results. You can see what other investors are doing. If you like that, you can follow them or even copy their actions automatically.
Do not be tempted too quickly: some users show great results, but often take more risks. Stocks that move a lot can bring quick profit, but also quick losses. The dashboard is busier than Trade Republic’s and offers more options. Opening an account and making your first investment is easy, but after that it takes more time to understand everything.
Offer: eToro gives more options
eToro gives you more choices. Besides European and American stocks, you can easily invest in many ETFs, over one hundred types of crypto, and in commodities like gold or silver. You can also invest in CFDs, although these are not recommended for beginners.
Trade Republic focuses more on European stocks, ETFs, and a few cryptocurrencies. You have fewer options, but that also means less distraction and less hassle. The most popular products are available. This makes it easier to learn and lowers the chance of taking high risks too quickly.
Fees
Trade Republic has a clear fee model: you pay 1 euro per transaction. Investment plans are free. For foreign dividends, you sometimes pay a currency fee, and since all orders go through the Lang & Schwarz exchange, the spreads can be higher than at other brokers. Still, the overall fees are low.
eToro seems free, as there are no transaction fees for stocks or ETFs. This makes it very cheap for small trades in the same currency. However, the spreads, which are the differences between the buying and selling prices, can be larger. Currency exchange rates can also be less favorable. There are also fees for withdrawing money.
If you are just testing the platforms with trades of 100 euros or less, both are very cheap. If you want to invest larger amounts, especially over 1,000 euros, Trade Republic is often cheaper because of better spreads. Still, platforms like DEGIRO or Scalable are often even cheaper for big investments.
Reliability and safety
Both Trade Republic and eToro are safe platforms for private investors. They follow European laws and offer similar protection. Investments are protected up to 20,000 euros if the broker runs into trouble. Trade Republic is supervised by the German BaFin, while eToro is regulated in Cyprus or the United Kingdom.
As an investor, you will not notice much difference in practice. However, there are some differences when it comes to uninvested money. Trade Republic is a bank, so cash is protected up to 100,000 euros under the European deposit guarantee system. eToro keeps money in separate bank accounts or money market funds, which fall under the 20,000 euro limit.
Conclusion: eToro is more complete, Trade Republic is simpler
Both Trade Republic and eToro are suitable for new investors. They are both affordable. eToro is especially cheap for small trades, since it does not charge fixed transaction fees. For larger amounts, eToro becomes more expensive because of spreads and currency margins. In our tests, Trade Republic was usually cheaper.
The focus of the two platforms is also very different. eToro is a good choice if you want to learn and experiment with investing. The platform is more advanced and offers a lot of information. A unique feature is that you can learn from other investors. However, this also brings more distraction and possibly more risk.
Trade Republic is simpler and calmer. It is aimed at people who want to invest monthly in stocks or ETFs without too much effort. The limited product range and clean design make it easy to get started.
