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eToro vs Hargreaves Lansdown

In my unbiased comparison of eToro vs Hargreaves Lansdown, I have taken into account the investment options, costs, and platform tools among other entities to bring you this definitive guide on why I believe eToro to be one of the best trading platforms compared to Hargreaves Lansdown.

Is eToro better than Hargreaves Lansdown?

Yes, eToro is better than Hargreaves Lansdown, not least due to its zero-commission trading and robust copy and social trading capabilities, which make it an excellent choice for active traders and beginners.

However, it is prudent to point out that for investors seeking access to funds or a tax wrapper, this is only available at Hargreaves Lansdown and more experienced traders, building their own portfolio, may benefit from the extensive list of investment options available at Hargreaves Lansdown.

etoro vs Hargreaves Lansdown

Key takeaways

eToro has outperformed Hargreaves Lansdown in the following areas:

  • Whilst Hargreaves Lansdown are one of the most expensive options available, eToro are a low-cost alternative that provide commission-free trading.
  • eToro has one of the largest copy trading and social trading environments
  • eToro provide live chat support
  • eToro is very easy to use, even for beginners
eToro logo
Hargreaves Lansdown logo
Minimum deposit $10One of the longest established
VisitVisit

Overall Rating

Platform
Ratings
Overall Rating:
90%
Fees:
90%
Account opening:
100%
Deposit and withdrawal:
70%
Trading platform:
90%
Markets and products:
80%
Research:
70%
Customer service:
70%
Education:
50%
Overall Rating:
80%
Fees:
60%
Account opening:
90%
Deposit and withdrawal:
80%
Trading platform:
80%
Markets and products:
80%
Research:
80%
Customer service:
90%
Education:
90%
ReviewRead ReviewRead Review

Which platform is cheaper?

Fees

Platform
Minimum DepositThe minimum amount required to open an account
$10
£0
Minimum TradeThe minimum amount to trade or buy shares
$1
£1
ETFs FeeFee per ETF trade
0%
£11.95
Investment Trusts FeeFee per investment trust trade
NA
£11.95
Junior S&S ISA FeeSubscription fee per month and the platform fee
NA
0.45%
Non Trading FeeFee for not trading in a period
$10 pcm after 1 year inactivity
£0
Stocks & Shares ISA FeeSubscription fee per month and the platform fee
NA
0.45%
Telephone Dealing FeeFee for trading over the telephone
NA
1% £20 minimum
Withdrawal FeeFee for withdrawing funds from your account
$5
£0

Winner: eToro

This is where the main difference lies between the two platforms with Hargreaves Lansdown being one of the highest cost platforms available, and eToro being one of the lowest cost platforms available.

Whilst Hargreaves Lansdown have a sliding scale when it comes to the platform fee, with accounts of over £250,000 enjoying a reduced fee of 0.25% and accounts over £1 million being further reduced to 0.1% of the account value, this still means that an account holding £250,000 will be paying £1,875 in platform fees before making a single trade. The same value account at eToro would pay nothing in account fees or trading fees.

Whilst eToro can’t compete with these numbers, they are still a very low-cost proposition and also offer zero commission trading on stocks. However, eToro make money with non-trading fees and the spread between the offer and bid price on any asset.

Hargreaves Lansdown or eToro: Which platform offers most?

Platforms & Tools

Platform
Android AppAn Android app available in the Google Play store
Copy TradingOffers the ability to copy other traders portfolios
Demo AccountOffers a demo account
iPhone AppAn app available for download from the iOS app store
Islamic AccountDoes the platform offer a sharia compliant Islamic account
MetaTrader 4Offers the MetaTrader 4 trading platform solution
MetaTrader 5Offers the MetaTrader 5 trading platform solution
Social TradingOffers the ability to share your trades on social media
Stock AlertsAbility to set price alerts, volume alerts
Web PlatformOffers a web-based browser trading platform

Winner: Hargreaves Lansdown

Due to the fact that eToro have no downloadable desktop version of their platform, Hargreaves Lansdown have pulled ahead and would represent a better option for retail investors who prefer to trade via a desktop platform.

However, for beginner investors, eToro’s negative balance protection and stop-loss orders are an additional layer of protection to help reduce the risk of losing all their funds.

Which platform has the best financial instruments?

Investments Available

Platform
Auto InvestingAbility to set auto-investing options, usually per month
CFD TradingOffers CFD trading
Corporate BondsOffers corporate bonds
CryptoAbility to buy and sell cryptocurrency
Ethical InvestmentsOffers ethical investment themed funds and ETFs
ETFsAbility to trade ETFs
ForexAble to trade Forex
Fractional SharesAble to buy fractional shares
FundsAble to buy funds
Government Bonds (Gilts)Able to buy government bonds and Gilts
Investment TrustsAble to buy investment trusts
Junior S&S ISAAble to buy a junior stocks and shares ISA
General Investment Account (GIA)Able to buy and sell shares
Spread BettingAble speculate on rising and falling of financial markets
Stocks & Shares ISAAble to buy a stocks and shares ISA

Winner: Draw

eToro is the clear front runner for investors looking for access to forex trading, cryptocurrency trading, CFDs, copy trading and fractional shares.

However, Hargreaves Lansdown provide access to a wide range of funds as well as an extensive list of stocks and other financial instruments that might suit experienced investors more.

It is also a major consideration that Hargreaves Lansdown provide an ISA account to protect any gains from the taxman and a pension account, which would be a tipping point for anyone saving for their retirement.

Which platform has the best research?

Research

Platform
Research - SharesHas share trading research available
Research - CFDsHas CFD research available
Research - FundsHas funds research available
Research - ETFsHas research available for ETFs
Research - BondsHas research available for bonds

Winner: Hargreaves Lansdown

Hargreaves Lansdown are one of the strongest platforms when it comes to research, providing investors with trading ideas, data on asset fundamentals, and a quality news flow.

The research is crisp and clean and easy to follow with a plethora of tools at your disposal.

However, for investors who are after comprehensive charting, this isn’t available at Hargreaves Lansdown whereas eToro have excellent interactive charts, trading ideas and analyst recommendations.

Who has the best customer service?

Customer Service

Platform
PhoneMain phone number for customer services
NA
0117 900 9000
Live chatHas live chat available
Yes
No
EmailMain email address for customer services
NA
Online messaging
24/7 AvailabilityAvailable 24/7 for customer services
Yes
No
TrustPilot RatingThe TrustPilot rating of the platform
4.2
4.3
TwitterThe Twitter account for the platform
https://twitter.com/eToro
@HLInvest

Winner: eToro

Whilst Hargreaves Lansdown offer phone and email channels, which are not offered by eToro, I have nonetheless selected eToro as the winner here due to the fact that they offer live chat where Hargreaves Lansdown do not. Live chat is often the preferred method of communication for investors looking for immediate support.

Who has the best education available?

Education

Platform
Share Trading GuidesHas guides on share trading
Funds EducationHas guides on trading funds
Retirement EducationHas guides and education on retirement
PodcastsHas podcasts available
VideosHas videos on education available

Winner: eToro

Both these platforms offer a good level of education for beginners with tutorial videos, seminars, webinars, and articles all available.

However, for people just starting their investment journey, the demo account at eToro is a practical tool to help hone your investment skills and learn to navigate the platform before risking any of your personal funds.

Which broker is better than eToro?

The broker that could be considered better than eToro for Forex trading is Interactive Brokers who have superior trading tools and research. In addition, the mobile trading app at Interactive Brokers is often considered better.

However, Interactive Brokers cannot compete with eToro when it comes to social and copy trading.

Is Hargreaves Lansdown safe?

Yes, Hargreaves Lansdown is a well-established institution that is listed on the London Stock Exchange as well as being regulated by the Financial Conduct Authority. Both these things ensure that client funds remain safe in addition to protection from the Financial Services Compensation Scheme.

FAQs about eToro vs Hargreaves Lansdown

Is Hargreaves Lansdown any good?

Yes, Hargreaves Lansdown is a good share dealing platform offering an extensive list of investment products and direct access to excellent education. However, they are one of the most expensive platforms available.

Why is eToro not good?

eToro is not good if you are an infrequent trader as they charge an inactivity fee of $10 per month if your account has been inactive for more than a year.

Best Trading Platform

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