Author: Aristi Christoforou
Publication date: 03.07.2024
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The financial technology landscape is populated with numerous platforms offering a range of services from traditional banking to cryptocurrency trading. Among these, eToro and Revolut stand out for their innovative approaches and wide user bases. In this article someone can find a detailed comparison between eToro and Revolut, focusing on various aspects such as trading platforms, fees, user experience, and overall service quality.
Overview
eToro is a social trading platform headquartered in Central Israel, renowned for its CopyTrading feature and extensive range of trading instruments. Revolut, based in the UK and authorized in Lithuania, is a challenger bank that integrates banking with trading, primarily focusing on cryptocurrency and a select range of US equities and ETFs.
User Experience and Platforms
eToro generally offers a superior user experience compared to Revolut. eToro’s web-based platform and mobile app are user-friendly, making it easier for both novice and experienced traders to navigate and execute trades. Revolut’s platform, while also user-friendly, is primarily designed for casual traders and lifestyle users, which may not meet the needs of more active or advanced traders.
Trading Instruments and Markets
eToro provides access to over 3,000 trading instruments, including Forex, equities, ETFs, and cryptocurrencies. This extensive selection allows for significant cross-asset diversification and caters to a wide range of trading strategies. In contrast, Revolut focuses heavily on cryptocurrencies, offering over 100 physical cryptocurrencies, and US-listed equities and ETFs. This makes Revolut a strong contender for cryptocurrency enthusiasts but less versatile for those looking to trade a broader array of assets.
Fees and Commissions
Both platforms offer commission-free trading for specific transactions. eToro provides commission-free trading for unleveraged buy-only trades in Forex, equities, and ETFs. However, CFD traders on eToro incur a 0.09% commission fee. Revolut offers commission-free trading within the limits of its monthly subscription plans; beyond these limits, it charges a transaction fee of £/€ 1.00 or 0.25% of the transaction value, along with an annual custody fee of 0.12%.
When it comes to cryptocurrency trading, eToro charges between 0.1% and 0.75%, with an additional 1% fee included in the spread. Revolut charges a flat 2.5% trading fee, making eToro generally more cost-effective for crypto traders.
Account Types and Minimum Deposits
eToro offers a variety of account types, including demo accounts, Islamic accounts, and managed portfolios, which are not available on Revolut. The minimum deposit requirement on eToro varies by region but is generally accessible, with amounts as low as $10 for US and UK residents. Revolut, on the other hand, has no minimum deposit requirement, making it easily accessible to a broader audience.
Customer Service and Support
Customer service quality is slightly better at eToro compared to Revolut. While both platforms provide adequate support, eToro’s customer service is noted for being more responsive and helpful.
Security and Trust
Both eToro and Revolut are regulated by reputable financial authorities and maintain high security standards, including the segregation of client funds from corporate funds. eToro operates under the scrutiny of multiple regulators across different countries, including the Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC). Revolut, as a challenger bank, operates under stringent EU regulatory frameworks, providing robust security and trust to its users.
Final Verdict
eToro emerges as the better overall choice for most traders due to its extensive range of trading instruments, user-friendly platforms, and superior customer service. Its CopyTrading feature and educational resources further enhance its appeal, particularly for novice traders. Revolut, while an excellent option for casual and cryptocurrency traders, lacks the comprehensive trading tools and market access that eToro offers.
In conclusion, both platforms have their unique strengths and cater to different types of users. eToro is ideal for those looking for a robust trading platform with diverse asset options and advanced features. In contrast, Revolut is suitable for users seeking a convenient, all-in-one financial solution with a strong emphasis on cryptocurrency trading.
Sign up to Revolut where you can invest in stocks and crypto and exchange currencies with low fees.
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