eToro and Freetrade Key Features
eToro's main key feature is its wide range of markets. There are no other platforms around the world that offer as many tradable assets as eToro. Their exchange is the only brokerage in the world where you can buy stocks and ETFs, and also buy cryptocurrencies and stake them natively.
Freetrade is a slightly more traditional share brokerage platform like Hargreaves Lansdown or AJ Bell that gives investors easy access to UK, US & other global markets. They do not have any standout features, but the user experience on their mobile app is slick & easy to use.
78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Winner: eToro provides investors with more flexibility and access to a wider variety of asset classes.
eToro vs Freetrade Trading Fees
eToro offers charges a fee in the spread when trading on their platform, this varies depending on they coin you buy or sell. They also charge an FX fee of 0.30% to deposit GBP on their platform, which gets swapped for USD.
Freetrade also offers free trading for the 6,000 assets listed on their app, but charges a slightly higher FX rate of 0.45% plus the Spot Rate (0.5%). This means Freetrade fees are up to 1% per transaction. Our research team also noted that they left out eToro from their pricing comparison, highlighting that they do not have better fees.
Winner: eToro is a cheaper trading platform by 0.7% per transaction compared to Freetrade.
Security and Regulation
eToro and Freetrade both have the same licensing to operate in the United Kingdom, Europe, and abroad. Both platforms fall under the regulatory purview of the Financial Conduct Authority (FCA), which means that are both safe to use.
We cannot select a winner with respect to regulatory compliance and it is a tie.
Overall, eToro is the superior platform when compared to Freetrade because they offer more markets and lower fees. We think that Freetrade offers a significantly worse user experience because they do not support the digital asset economy, nor do they plan to in the future.