eToro vs. Plus500, Battle of the CFD Traders
eToro VS. Plus500
You might have noticed out there that there is more than one CFD trader.
I will be covering the main differences today between eToro and Plus500 in Cryptocurrencies.
I will start by saying they are completely different animals, the only thing they have in common is that they deal mainly in CFD's across multiple markets. With eToro now basing its positions on the underlying assets. This still means you cannot remove them to a ‘wallet’ but will benefit from future ‘forks’ where a new version is split away from the older code.
If you started off your Trading life cutting your teeth in eToro, Plus500 is a fairly big jump and can be a little daunting at first until you read up what everything actually means.
eToro has made it part of their mandate to be able to trade very easily by using a simple interface that doesn't need a huge amount of explaining to do and after a couple of hours in the Virtual account you can understand the basic premise of how to open a trade with nice round $ value figures.
The different tabs and the News feature I have found very helpful by seeing my intraday gains and losses.
Across all devices Web browser/ iPhone and iPad the interface is universal one size fits all (well almost)
*News feed with Intraday information
*Easy to use tab system
*Chart customisation easy to use and modify
*Social 'boards' to help keep up to date
The only fault that i have found is that on different sizes of screens certain features are inaccessible, such as the intraday read-out on separate positions with-in the 'Portfolio' tab.
Plus500 is directed at more professional traders that want a trading only view, their iPhone app is more designed to give quick updates instead of being able to make complex charts or comparisons. I have found that you benefit from using an iPad Pro (12.9 version) or a desktop with a large screen to really stay on top of things.
*One of the small areas where Plus500 has the edge on eToro is the fact they support Apple Watch and I have found this very useful for updates and to be able to see at a glance what my trades are up to.
IU winner 'eToro'
In terms of ease of use and simplicity of layout you can navigate it far quicker to get to the useful information that you need from your whole profile. As an added plus I do really like the social aspect -most of the time- as it can help you gauge the sentiment out there and also allow you to network with other traders.
After adding Ethereum earlier in the year while it was still around the 15/16 mark there have been a few more additions to the crypto section. Also there is a CrytoCopy fund that is re-calculated each month and gives you exposure to all the Cryptos they offer
*DASH (only available at time of writing in the CopyFund)
Here we have more selection of 7 different cryptos. But of a slightly different flavour.
Crypto Choice Winner
Plus500 only by a whisker though, for me the Bitcoin Cash is one of the pivotal ones that has lead me to this conclusion.
This one is pretty simple, eToro no longer has leverage, Plus500 does.
Plus500 has varying amounts of leverage. Depending on each instrument. This is when the little 'i' dotted throughout the app is so useful. It gives you a pretty good explanations.
The leverage with in Pus500 can go all the way up to 1:300. On cryptos however can be variable and change periodically.
Please remember that CFDs are a leveraged product and can result in the loss of your entire deposit. Trading CFDs may not be suitable for you. Please ensure you fully understand the risks involved. I personally do not trade with leverage lightly. Please use extreme caution when trading with it.
At time of writing, eToro has now implemented a minimum position value of $250 and their positions have no time limits so can be kept open indefinitely.
At time of writing, the minimum position value varies on Plus500. You buy on a unit or point of a % of a unit. Please check the app for the specific details as the unit prices change on very regular basis due to volatility.
There is also a drawback of trading on Plus500 that the crypto positions will close EVERY DAY at a certain time! So this means that Plus500 in my mind lends itself more to day-trading. There is also a minimum amount of margin that is required to open a trade, although I believe that in some circumstances eToro use a similar system.
All in all I think this is a draw. Both have Pro's and Con's, it is down to each person and their own personal trading style.
Plus500 UK Ltd is authorised and regulated by the Financial Conduct Authority (FRN 509909). You do not own or have any rights to the underlying assets on Plus500.
And also Plus500 CY LTD is authorised and regulated by the Cyprus Securities and Exchange Commission (License No. 250/14)
eToro also is regulated by Financial Conduct Authority. But now new positions are based on the underlying asset of cryptos.
All information is correct at time of posting