eToro vs Revolut: Which Platform Is Better For Trading and Investing

About eToro

The origins of eToro date back to 2017, when it was launched as a forex trading platform. However, very quickly, the eToro team expanded the platform’s services and products to create a more well-rounded offering.

Today, eToro provides access to commission-free trading CFDs, stocks, commodities, and ETFs and provides access to crypto and options. eToro is truly a multi asset platform that also acts as a crypto exchange.

eToro USA LLC does not offer CFDs, only real Crypto assets available.

However, what makes eToro stand apart from many low-fee trading platforms is its feature set. eToro has incorporated a social media feature, allowing users to check what more experienced traders are buying and selling, creating a feeling of community that is welcoming to both newbies and more experienced traders. This feature is called Copy trading and is actually a form of social trading - you invest your money in companies that other, more popular investors have bought shares of.

There are also automated portfolios, charting, research tools, and cash management features that take this platform to the next level. eToro is available in 140 countries and currently has approximately 20 million users. 

About Revolut

Revolut is a banking app that has been designed to cover most of your financial needs. It has been operating since 2015 with the initial aim of providing online and mobile banking services, but Revolut has recently started offering brokerage services, with fee-free trading on stocks and cryptocurrencies. Some fees may apply, depending on your Revolut account type.

eToro vs Revolut: Services

While eToro started offering cash management recently, the company focuses on trading. On the other hand, Revolut focuses more on banking and money-transferring services, but you can still use the platform to buy and sell stocks with no inactivity fees.

eToro vs Revolut: Fees

eToro offers commission-free trading on stocks and ETFs, but if you want to buy or trade crypto, the fees get a little complicated. Rather than paying a purchase fee and then a sales fee, eToro combines these fees, and you will need to pay them upfront. 

Crypto trades incur a 1% flat fee, which is technically the trade’s bid-ask spread. However, since you’re paying for the entire “round trip” when you make a purchase, you’ll need to pay a 1% purchase fee and a 1% fee to cover the eventual sale. 

The trading fees for Revolut vary according to the type of account you have. The Standard account is free and provides one free stock trade each month.

Plus account holders receive three free stock trades per month, while Premium account holders receive five free stock trades each month. Metal account holders can enjoy an unlimited number of trades per month. 

If you exceed the monthly free trade limit for your account type, the trade fee is 0.25% or £1, whichever is higher. 

eToro vs Revolut: Platform

The eToro trading platform has been designed to have a streamlined onboarding process. There is a self-guided questionnaire to help to set up your account, so you can get trading quite quickly. 

Once you’re signed up, the user interface is quite intuitive. There is a trading tab to view prices and buy and sell with real-time pricing. You will also find the Popular Investor Program and CopyTrade features easy to find on your home screen. This adds a “social media” feel to the platform as you can watch what more experienced traders are buying and selling.

You’ll also see embedded ESG ratings, which score assets according to socially conscious factors. You can filter your search results according to ESG score if you are concerned about creating a socially conscious portfolio. Not many brokers offer their clients this feature.

You can create custom watchlists, which can be synced between the web and mobile platforms, so you don’t need to be tied to your desk. You can set notification alerts, so you can track your interests on the go. 

Revolut is designed to be an easy-to-use banking app, so making trades is quite intuitive. While there is a great selection of banking-related tools, such as budgets, and simple money transfers, there are limited tools for making trades, which some users may find frustrating. 

eToro vs Revolut: Offerings

eToro has a decent selection of trade offerings which include 2,075+ stocks, options, 24 cryptocurrencies, and 22 ETFs from several markets, EU countries included. You can also purchase fractional shares above $10. With eToro, you can also trade CFDs, but these are high-risk instruments and should only be used by an experienced trader. Around 2/3 of retail cfd accounts lose money when trading with this broker.

Compared to eToro, Revolut has a paltry selection of stock and real crypto assets offerings.

Security

eToro takes security very seriously, with biometric entry and two-factor authentication to access your account. For crypto traders, there is an eToro wallet for secure storage of your coins, but coin transfers are only possible one way. So, be aware that if you move coins to another wallet, you will not be able to transfer them back to eToro. 

eToro also provides the reassurance of SIPC coverage. This offers up to $500,000 of protection, including up to $250,000 for cash in your account, should the platform fail. 

Revolut’s primary purpose is as a banking app, so it takes security very seriously. Some of the security features include fingerprint id for login attempts and customization to decrease the risk of phishing. 

Additionally, the Revolut “Vault” encrypts your data with four layers of protection, including two-factor authentication, biometrics, and pin & password. 

Other Features

It is worth noting that Revolut offers a wide selection of banking features that will allow you to use the platform as your primary bank account in addition to making trades. 

However, if your main aim is to find a comprehensive trading platform, eToro has a suite of additional features, including charting, news feeds, research tools, and an education center that will appeal to newbies and more experienced traders. 

eToro vs Revolut Conclusion: Which is Better

So, eToro vs Revolut, which is better? Well, this will depend on what you are looking for. If you are interested in switching banks and may want to perform the occasional trade, Revolut is likely to be sufficient for you.

However, if you are interested in developing your trading skills and want to take investing seriously, you’re likely to find Revolut seriously lacking and prefer eToro.

It's also worth mentioning that both companies operate in Europe (the UK included) and other countries around the world.

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