eToro and Webull are both platforms allowing investors to invest in stock and cryptocurrency, but each one has different options.
At a Glance
eToro and Webull each have different features. However, they both offer unique qualities that support other traders. eToro is ideal for beginners because they offer features beneficial for newbies, such as practice accounts for trading. eToro has a CopyTrading system. This is a platform allowing for multi-asset investment in stocks trades and contract for differences (CFD). eToro uses percentages to determine the fees.
Webull, on the other hand, has more technical indicators, stocks, and exchange traded funds (ETF). This application is most beneficial for those who are more experienced traders. Webull is a top stock trading app that has both low fees and large bonuses. The best trading platform is based on your experience level with trading. Those who are new to trading and stocks may not be able to use this platform.
How the Best Choice Was Determined
When determining which of the two platforms is the better option, we looked at many of the features and compared them. We wanted to make sure the information was factual and valid before comparing the two platforms to each other. In addition to that, we wanted to understand the feedback from users, pricing, and the service features of the platforms. We completely understand the value of user feedback and know how important it is to make decisions; it is also valuable to ensure that none of the claims are false. As a result, it was essential to dig deeply into the features to get an understanding of which platform provides options to traders.
It is clear that eToro is the winner for the beginner and Webull is the winner for the experienced investor, which we have outlined here.
Comparison
Here we’ll breakdown more of the intricate differences between the platforms and compare them.
Webull Overview
Webull is an online broker platform that is relatively new. It has only been around since 2017 and is a mobile app as of May 2018. The intention of Webull’s mobile app was to attract millennials, as well as traders that are new and highly active. Webull offers an easy to use platform with a wide variety of tools and features, including margin rates that are highly competitive.
Pros:
- No commissions on stock, options, or cryptocurrencies
- Easy to set up an account
- No fees or minimums
- Real time quotes
- Extended hour trading and pre-market trading
Cons:
- Cannot earn income on excess cash
- Limited range of tools
- Cannot access to fixed income, future markets, or mutual funds
eToro Overview
eToro is based in the United Kingdom and was founded in 2007. It is known for being one of the leading forces for investing and social trading. On the eToro platform, traders can network and interact with other traders to learn strategies utilized by other traders. eToro is geared more to the beginning trader. It has an easy to use and intuitive interface. In addition, they provide a large number of financial tools and trading features to assist you. eToro is also a brokerage platform that extends beyond cryptocurrency to include the stock exchange, forex, and commodities trading, along with many others.
eToro extends to over 100 countries with more than 17 million users. They are licensed to operate in Europe, the UK, and the US. It also maintains a custodial approach to assets on the platform.
Pros:
- Provides support for the leading cryptocurrency options
- Incorporates a mobile app
- Regulated for security
- The interface is easy to use
Cons:
- There is no option for self custody
- Fees for crypto trades can be high
- Limited opportunities for US traders
Next: eToro vs eTorox (differences compared)
Security
When you are using a platform at this level, you expect a high amount of security. So you can feel confident that your information is safe from hackers but will not be used by the platform in nefarious ways. You want to be able to trust the platform you are utilizing.
eToro is well regulated by the Financial Conduct Authority (FCA) of the UK and the Australian Securities and Exchange Commission (ASIC). It uses SSL encryption to protect the security of the users. SSL is the standard for online encryption. eToro also uses 2-factor authentication. Webull uses Plaid and AES-256 encryption to provide security for users. This encryption is a security staple in the financial world. Plaid is a service offered by a third party to allow secure access to bank accounts. It also uses 2-factor authentication.
They both provide the same amount of security; however, eToro secures their funds in tier 1 banks to provide additional security.
Next: Our in-depth eToro review
Fees
The fees that a platform charges are essential because this impacts your bottom line. These fees are taken directly from your money, and most of us want them as low as possible.
eToro says they have trade with zero commission, but it is critical to dig into the details. eToro uses a percentage spread that changes with the conditions of the market. This percentage increases the profit margin for them between the buying and selling. The spread ranges from 0.75 percent and can go as high as 2.9 percent. This is a significant variance in how much comes off your bottom line. Therefore, it is critical that you understand the fee structure of eToro, especially when it comes to figuring out the percentage difference between buying and selling. eToro also requires a minimum of $50 for trading crypto. They also have a minimum deposit amount of $200.
Webull uses a point system but is still considered spread fees. Webull claims they have no platform fees, trade fees and are commission free. Webull wins in the fee category.
Cryptocurrency
Both eToro and Webull offer cryptocurrency trading. eToro is leading the way in cryptocurrency, but they offer more than just that. They have expanded to shares, ETFs, commodities, Forex, and contract for difference. As a result, they offer fewer crypto options for trading. Instead, they have 19 tokens available and the big-cap cryptos. eToro also allows the ability to margin trade crypto against tokens, coins, currencies, and commodities.
If you are simply looking for crypto, Webull is the clear winner with a list of 26 tokens. Unfortunately, the list is too long to add here, but it includes Bitcoin, Ripple, Litecoin, and Ethereum.
eToro vs Webull: The Winner
Best Overall
When looking for the best overall trading platform, eToro and Webull are fairly evenly matched. They both have accessible platforms to use and various features. What sets the two platforms apart and raises one above the other is the fees. Webull has lower fees which makes it the best overall platform in some ways.
Best for a New Trader
eToro is best for the new trader because of the features. They have trading accounts for beginners to practice. eToro also has a CopyTrading system. This system allows a new trader to follow other crypto traders’ investments. The new trader can even copy their exact trades. This is an excellent platform for those wanting to learn more about cryptocurrency.
Best for a Skilled Trader
Webull is best for the advanced or skilled trader. They have more technical indicators, stocks, and EFTs. Webull is also ideal for professional day traders and portfolio managers.
Now that you know all about Webull and eToro, now is the time to get started. Getting started on Webull as your trading platform is easy. It should only take a few minutes.
First, go to the Webull website or mobile app to create an account. You must be at least age 18 and have a valid social security number to create an account. You must also live in the US and be a US citizen. Webull also runs a soft inquiry on your credit that will not impact your credit history. When you start to open an account, you choose between a margin or a cash account. It is helpful if you understand the difference between a margin and a cash account so that you can make the right choice for you and your needs. A cash account is more straightforward. If you have used a brokerage account before, you may be familiar with cash accounts. On the other hand, a margin account is riskier as you are borrowing money against investments. You can also choose an IRA. After this, you need to fill out an application, and then you are ready.
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