Do you want to take a leap of faith and start your trading journey?
Or are you already a pro-investor looking to widen your horizons?
Either way, a comparison of eToro vs Hargreaves Lansdown will help you narrow down your list of good trading platforms in the UK.
eToro has an upper hand over Hargreaves Lansdown in many aspects.
However, Hargreaves Lansdown is still a close competitor when it comes to access to funds, research, and credibility built over the years.
Let’s dive into a detailed comparison. But first, a quick overview of each of the trading platforms!
Table of Contents
eToro is a UK-based social trading and investment platform that houses over 3,000 financial assets.
It was founded in 2007 and is known for its zero-commission (no broker fee) trading. It wouldn’t be wrong to say eToro is to traders what Facebook and Instagram are to the everyday person.
With over 30 million users, eToro helps beginners and experts alike learn something new about investing every day. It helps you diversify your portfolio and shift your focus from just investing in stocks to cryptocurrencies and even ETFs.
My favourite feature of eToro is its trademark feature, CopyTrader. Through this feature, beginners can just follow or replicate the investing actions of top investors in the field.
Though it doesn’t equate to investment advice, it provides guidance and you can gain experience along the way.
Read my full eToro review.
About Hargreaves Lansdown
Hargreaves Lansdown claims itself to be the UK’s No. 1 investment platform. It may be because it has a long history, as it was founded in 1981.
It allows traders to invest in stocks, ISAs, pension funds, retirements, and ETFs.
Hargreaves Lansdown is useful for novice investors embarking on their investing journey due to its education features. Its features help traders make informed investing decisions.
However, it’s less of a trading platform and more like a stock broker.
It’s also preferable for long-term investing and not regular trading.
Read my full Hargreaves Lansdown review.
At Hargreaves Lansdown, there is no minimum deposit required.
However, the other hidden costs pertaining to platform fees, subscription fees per month, fees for telephonic trading, and more make it a high-cost platform.
On the other hand, eToro is a zero-commission-fee platform. Though eToro has a £10 minimum deposit, a currency conversion fee, and a 5% withdrawal fee, the overall costs are still fairly low as compared to its counterpart, Hargreaves Lansdown.
Final Call: eToro
Hargreaves Lansdown helps you invest in ISAs (Individual savings accounts), SIPPs, Share trading, ETFs, bonds, government bonds, and investment trusts.
In terms of numbers, this list is nothing compared to the investment options provided by eToro. It’s a modern-day social trading platform with a plethora of options not limited to just stocks and commodities.
If you are more into Web3, it also provides the benefit of investing in cryptocurrencies.
Also, the range and variety of funds available in each option at eToro are a plus.
Final call: eToro
It’s a close call between eToro and Hargreaves Lansdown when it comes to research features.
The difference is eToro uses modern methods like replicating social media feeds to provide the latest research news, whereas Hargreaves Lansdown follows a traditional method.
Hargreaves Lansdown is flooded with investing information, but not in the same engaging manner as provided by eToro. It also has a separate fund news and research section, which I could not find on eToro.
However, eToro does have an upper hand in providing insights using interactive charts. It also provides market research papers for free.
eToro provides research information on shares, CFDs, and ETFs, whereas Hargreaves Lansdown provides research information on all of these except CFDs.
Thus, Hargreaves Lansdown should be preferred when it comes to research features.
Final Call: Hargreaves Lansdown
It’s neck-and-neck again for eToro and Hargreaves Lansdown when it comes to education features.
To begin with, eToro provides a demo trading account which Hargreaves Lansdown doesn’t.
At Hargreaves Landsdown, you will find HL podcasts, HL Insights, an HL newsroom, an HL glossary, a separate Learn section, webinars, and a free initial consultation to educate yourself.
On the other hand, eToro has a dedicated Education menu. This helps you find all education-related stuff in a single place.
eToro has podcasts (Digest & Invest) and in-depth analysis (eToro Plus) and provides the latest news and analysis in the investment setup.
Also, the news feed setup, similar to social media platforms, acts as a huge plus in education as well. Users can interact and learn from each other.
Final Call: eToro
When it comes to customer service, review sites are the only ones that can portray the true picture.
At Trustpilot, eToro has 20,000+ reviews with an overall rating of 4.4 stars.
On the other hand, Hargreaves Lansdown has 8,000+ reviews and an overall rating of 4.1 stars.
After going through the reviews, eToro has slightly better customer service.
When it comes to providing customer support options, Hargreaves Lansdown has more options.
It provides telephone customer support for your queries. It has a separate investment helpdesk, a pensions helpdesk, a withdrawals helpdesk, and a bereavement helpdesk dedicated to each investment type.
It also provides an email address and a user-friendly ‘Make Changes Online’ service.
On the other hand, eToro follows a ticketing system for granting customer service. You need to open a new ticket, specifying your query and trouble.
You can also reach out to them using social media platforms, such as Twitter and Facebook direct messages. It also has live chat support.
Final Call: Draw
Alternatives to eToro & Hargreaves Lansdown
If you want to explore more options, here are some of the alternatives to eToro and Hargreaves Lansdown:
- IG: The IG trading platform is best known for trading in CFDs. Other services it offers include indices, options, commodities, forex trading, bonds, and more. It is also known for its spread betting. It currently has over 313,000 active users and also provides 0% commission on US shares.
- Freetrade: Freetrade is particularly popular for investing on the go and as a zero-commission stock trader. The platform allows investing only through their Freetrade mobile app. Also, have three pricing plans that determine the range of stocks, shares, and investment options you can invest in.
- Plus 500: Plus 500 is preferable for trading exclusively in CFDs like indices, commodities, stocks, indices, options, and other underlying assets. You can also trade in crypto. It also provides a walkthrough through a free demo account.
- FXOpen: With over 1 million traders, FXOpen is also a fairly popular trading platform known for its intuitive features. It also allows traders to open different types of accounts: commission-free STP accounts, competitive ECN accounts, crypto accounts, demo accounts, and more. The trading options available at FXOpen include forex, indices, crypto, shares, and ETFs.
Pros & Cons
- An interface similar to social media platforms
- Access to trading in cryptocurrencies
- Zero-commission trading platform
- Smart features like CopyTrader and Smart Portfolios
- Better customer service and educational features
- High conversion and withdrawal fees
- No option to invest in stocks and ISAs
- Provides great research resources
- More feasible for expert traders
- Provides access to trading in stocks and shares in ISAs
- No conversion or withdrawal fees
- No cryptocurrency trading is available
- High-cost structure and hidden costs
eToro vs Hargreaves Lansdown – Final Thoughts
If you are looking for a zero-commission platform for trading and investing in crypto, stocks, and other assets, eToro is the best option.
If you are looking to use an ISA tax wrapper, invest in funds, or have help from a financial advisor, Hargreaves Lansdown is best.
But, you cannot ignore the high platform fees and other costs involved with trading at Hargreaves Lansdown.
Therefore, my final pick between the two is eToro.
Although ultimately the decision comes down to your specific needs as a trader.
Hopefully, my review has given you some insight into what eToro and Hargreaves Lansdown have to offer.