There are lots of trading platforms in the U.K. One of the most heavily promoted is eToro. You may have seen the ads online and wondered if it's the right platform for you.
Note – This post doesn't apply to US customers
Here is my review of eToro for U.K investors:
What I like about eToro:
I've been using eToro for the past few years, here is what makes it stand out from the pack:
Trade Stocks without Commissions
You don't need to pay brokerage fees anymore! You can buy stocks like Apple, Tesla, Netflix and more and you won't pay any commissions. eToro offers real stock trading (not CFDs). So you own the underlying asset!
While there are lots of trading platforms in the U.K, eToro is one of the only platforms that offers social trading features. On eToro you can follow and automatically copy the trades made by more experienced traders. It's a great way to learn more about trading. It's also great for automating part of your portfolio if you don't have a lot of time to dedicate to research and trading.
Traditionally trading stocks has required a large investment. But because eToro doesn't charge commissions, you don't need to invest a huge amount to offset brokerage fees. eToro also offers fractional share trading. This means you can invest less capital to own just part of a share. You don't need to buy a full share.
This is really useful if you want to invest in companies like Apple or Alphabet. There shares are priced in the hundreds of dollars (Alphabet is priced over $1000!).
Trade Other Assets
On eToro you can trade a huge range of assets. It's not just a stock trading platform. More recently they have added crypto trading. So if you've ever wanted to use a small portion of your capital to invest in something like Bitcoin, you can do that through eToro, alongside your other trades.
Well Designed Platform
eToro is one of the easiest to use platforms I've traded on. I find most trading apps to be poorly designed and difficult to use. eToro's interface is straight forward and logical. Anyone can use it, even if you don't have technical skills.
If you've always wanted to start stock trading but never known where to start, then practice trading might be for you. You can learn how to open and close trades, set orders and do research all without losing any money. eToro offers a full featured practice trading account which comes with $100k in virtual money. It works just like a real account, but the money you trade isn't real.
Is eToro a good trading platform for U.K residents?
Overall I think eToro is a great place for U.K investors. Since they've added real stock trading, the platform has really grown and is true competitor to traditional brokers.