Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with Plus500. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Choosing between Plus500↗︎ and eToro↗︎ depends largely on whether you’re looking for an active trading platform or a platform that combines investing with social features.
Plus500 is primarily a CFD broker designed for traders who want leveraged exposure to financial markets through Contracts for Difference (CFDs). eToro, by comparison, offers both CFD trading and traditional investing, allowing users to buy shares and ETFs outright alongside its well-known CopyTrader and social investing features.
Plus500 Vs eToro
Plus500 focuses almost entirely on CFD trading. Users can speculate on thousands of financial instruments including shares, indices, forex, commodities, ETFs, options, futures and bonds without owning the underlying assets. The platform is designed around short-term trading and leveraged positions rather than long-term investing.
For UK retail clients, Plus500 does not offer cryptocurrency CFDs due to FCA restrictions.
eToro takes a broader approach by combining investing and trading within a single platform. UK users can purchase real shares and ETFs without leverage, trade CFDs across multiple asset classes and access social investing features that allow users to follow and automatically copy the trades of other investors.
Unlike Plus500, eToro also supports cryptocurrency investing, allowing eligible users to buy and hold digital assets directly rather than simply speculating on price movements through derivatives.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with eToro. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Markets And Trading Options
The biggest distinction between Plus500 and eToro is how each platform approaches investing.
Plus500 offers more than 2,800 CFD instruments covering global shares, indices, forex, commodities, ETFs, options, futures and bonds. Every trade is a CFD, meaning users never own the underlying asset.
eToro offers CFD trading alongside direct investing. Investors can purchase real shares and ETFs without leverage while traders can access CFDs across forex, indices, commodities and other markets. The platform also supports cryptocurrency investing in eligible jurisdictions.
For long-term investors, eToro provides considerably more flexibility since users can build portfolios of actual investments rather than trading purely through leveraged derivatives.
Social Investing And Copy Trading
One feature that separates eToro from nearly every major broker is its social investing network.
Through CopyTrader, users can automatically replicate the portfolios and trades of experienced investors. Each trader’s historical performance, risk score, portfolio allocation and trading history are displayed publicly, allowing users to evaluate traders before copying them.
Plus500 does not offer copy trading, social investing or public trader profiles. Every trading decision is made independently through its own platform.
For beginners who prefer learning by following experienced investors, this is one of eToro’s biggest differentiators.
Tax Efficiency For UK Traders
Both brokers primarily offer CFDs for active trading in the UK.
Profits generated from CFD trading may be subject to Capital Gains Tax depending on an individual’s overall tax position, while losses may potentially be offset against future capital gains.
Unlike IG, neither Plus500 nor eToro currently offers Financial Spread Betting for UK clients, meaning neither platform benefits from the tax advantages associated with spread betting under current UK legislation.
Tax-Advantaged Accounts (ISAs)
For UK retail investors, tax treatment goes beyond trading derivatives:
eToro: Offers UK clients both Stocks & Shares ISAs and Cash ISAs via a partnership with Moneyfarm. This allows investors to shelter up to £20,000 per tax year from Capital Gains Tax and Income Tax. Note that social copy-trading features and CFD leverage are not supported inside the ISA wrapper.
Plus500: Does not offer ISAs. All positions are held in standard taxable accounts, meaning profits above your allowance are subject to UK Capital Gains Tax.
Trading Platforms And User Experience
Plus500 has built its reputation around simplicity.
Its proprietary web and mobile platforms provide fast execution, integrated charting, price alerts and risk management tools while maintaining a clean interface with relatively little complexity. The platform is designed for traders who simply want to analyse markets and execute CFD trades efficiently.
eToro’s platform is equally beginner-friendly but focuses more heavily on portfolio management and social interaction. Users can browse investor profiles, discuss markets with other traders, monitor copied portfolios and invest in themed “Smart Portfolios” covering sectors such as artificial intelligence, renewable energy and technology.
The overall experience differs significantly. Plus500 feels like a dedicated trading platform, whereas eToro resembles a hybrid between a brokerage and a social network.
Customer Support & Service Availability
Plus500: Provides 24/7 customer support via live chat, email, and WhatsApp, which is particularly beneficial for active traders managing positions outside standard market hours.
eToro: Uses a ticketing and web chat system for standard users. Faster support and dedicated account managers are unlocked as account equity grows through the tiered eToro Club program (Silver level and above).
Third-Party Integrations & Automated Trading
Neither platform is designed for algorithmic trading.
Plus500 operates entirely within its own proprietary ecosystem and does not support MetaTrader, TradingView integration or Expert Advisors (EAs).
Similarly, eToro does not provide access to MetaTrader, custom indicators or automated trading software. Trading is conducted exclusively through the eToro platform.
As a result, neither broker is particularly suitable for traders looking to automate strategies or build algorithmic trading systems.
Order Execution & Pricing Mechanics
Plus500 acts as a Market Maker, executing client CFD orders through its own pricing model.
eToro also operates primarily as a Market Maker for retail CFD trading while routing investments in real shares through its investment infrastructure where applicable.
Both brokers earn much of their trading revenue through spreads rather than charging commissions on most CFD products.
Fees And Trading Costs
Both brokers generate most of their CFD revenue through bid-ask spreads rather than traditional dealing commissions.
Plus500 charges spreads on CFD positions alongside overnight funding costs for leveraged positions held after the daily financing cut-off. Currency conversion fees may apply where assets are denominated in another currency. The platform also applies an inactivity fee after three months without logging in.
eToro similarly charges spreads and overnight financing on CFD trades. For investors purchasing real shares, eToro generally offers commission-free investing on eligible stocks, although currency conversion charges and other account-related fees may apply depending on the transaction.
Unlike Plus500, eToro also charges a withdrawal fee and operates accounts primarily in US dollars, meaning UK investors may incur currency conversion costs when depositing or withdrawing funds.
Yield on Uninvested Cash
- eToro: Pays up to 4.05% interest on eligible, uninvested USD cash balances (calculated daily and paid monthly), alongside interest-bearing Cash ISA options for GBP.
- Plus500: Does not pay interest on uninvested cash balances sitting in standard retail accounts.
Hidden Costs To Watch
Inactivity Fees: Plus500 charges $10 per month after three months of inactivity. eToro no longer charges $10 per month after 12 months of inactivity, they have scrapped the fee.
Withdrawal Fees: Plus500 does not charge a standard withdrawal fee. eToro charges a fixed withdrawal fee, subject to its current fee schedule.
Base Currency Differences: Plus500 supports local account base currencies (including GBP), allowing UK traders to deposit and trade without incurring immediate FX conversion fees on non-leveraged balances. eToro operates primarily with USD base accounts; UK users depositing in GBP will pay an FX conversion fee on entry and exit, unless using an eToro Money GBP account.
Regulation And Security
Both Plus500 and eToro are regulated by the UK’s Financial Conduct Authority (FCA) through their UK entities.
Client funds are held separately from company funds in accordance with FCA client money rules.
Plus500 was founded in 2008 and is listed on the London Stock Exchange. eToro was founded in 2007 and has grown into one of the world’s largest online investment platforms, serving millions of users across multiple countries.
Which Broker Is Better?
| Feature | Plus500 | eToro |
|---|---|---|
| Account Types | Standard Trading Account, Demo | General Account, Stocks & Shares ISA, Cash ISA |
| Tax-Free Allowance (UK) | ❌ No ISA available | ✅ ISA available (powered by Moneyfarm) |
| Interest on Cash | ❌ None | ✅ Up to 4.05% APY on USD balances |
| Base Currency | Multi-currency (e.g., GBP, EUR, USD) | USD-centric (FX fees apply to GBP deposits) |
| Customer Service | 24/7 Live Chat & WhatsApp | Ticket & Chat (Tiered priority via eToro Club) |
| Social / Copy Trading | ❌ None | ✅ CopyTrader & Smart Portfolios |
The better platform depends on how you intend to use it.
Plus500 is designed primarily for traders who want a straightforward CFD platform focused on leveraged trading across thousands of financial markets. Its clean interface and trading-focused approach appeal to users who simply want to speculate on market movements.
eToro offers a broader investing ecosystem by combining CFD trading with commission-free share investing, ETF investing, cryptocurrency investing and its unique social investing features. Users looking to build long-term portfolios while also having access to CFD trading may find it offers greater versatility.
For traders interested solely in CFDs, Plus500 provides a focused trading experience. For investors who want both investing and trading within a single platform, together with CopyTrader and social investing features, eToro offers a wider range of services.
