Choosing the right investment platform can greatly impact your investment journey.
If you can’t decide between interactive investor and eToro, this guide is for you.
In this eToro vs interactive investor head-to-head, I will highlight each platform’s unique features and help you find the one that suits your investment goals.
What Are eToro & interactive investor?
Interactive investor is among the biggest investment platforms in the UK.
Users can manage their funds through the platform and make informed investment decisions. It is also designed for beginner investors who want to grow their wealth through trading.
On the other hand, eToro doubles as both a cryptocurrency exchange platform and an online investment provider.
As an investor at eToro, you can trade in assets and cryptocurrencies.
Investment Options
When it comes to investment options, both interactive investor and eToro have various investment products.
As an interactive investor user, you can invest in the following products:
- Funds: If you are new to the world of trading and wish to have your money managed by a professional, you can invest in actively managed and index funds. Therefore, fund managers will invest your money on your behalf.
- ETFs: If you’d like to invest in several securities, such as bonds, commodities, and stocks, at the same time, you can opt for an ETF. This way, you’ll reap the benefits of all three and diversify your investment portfolio.
- Stocks: As an investor, owning shares in reputable companies such as Apple, Microsoft, and Google has several benefits. Luckily, you can invest in these companies’ shares through interactive investor.
- Bonds: Through interactive investor, you can also invest in different bonds, such as corporate and government bonds.
Here are the investment options for users of eToro:
- Cryptocurrencies: Besides trading in fiat currencies, users can buy, sell and hold cryptocurrencies on eToro. This makes the platform perfect for investors who want to dabble in crypto.
- ETFs: Just like interactive investor, eToro customers can also invest in ETFs and spread their risk.
- Stocks: On eToro, you can trade stocks from well-known companies listed on major stock exchanges. Once you join the platform, you can buy and sell individual stocks and potentially profit from price changes.
- Commodities: You also trade using commodities on eToro. These include natural gas, oil, silver, and gold. By investing in these commodities, you can benefit from changes in their values.
Although both platforms offer the above great investment products, eToro sets itself apart by allowing users to trade fiat currencies (USD, EUR, etc) and cryptocurrencies.
Account Features & Benefits
If you’re a beginner investor and trying to decide between interactive investor and eToro, here’s what you should know about each platform account type:
Interactive investor:
- Individual Savings Account (ISA): Interactive investor is widely recognised for its ISA accounts, which offer tax benefits to UK citizens. With an ISA account, you can invest in shares, stocks, and funds while enjoying tax savings.
- SIPP (Self-Invested Personal Pension): Are you planning for retirement? If so, interactive investor provides SIPP accounts that offer more control over your pension savings. With a SIPP, you can choose from several investment options based on your needs.
- Trading Account: If you’re looking for a standard trading account, interactive investor offers a trading account where you can invest in its diverse range of products.
eToro:
- Individual Account: With eToro’s Individual account, you gain access to a wide variety of assets and can participate in trading and investment opportunities. This account type offers flexibility and allows you to explore different investment avenues.
- Islamic Account: For those seeking Islamic finance options, eToro offers Islamic accounts that comply with Sharia law. This ensures that your investments align with your ethical and religious beliefs.
Fees Structure
Here’s a clear outline of how eToro and interactive investor charge for deposits, withdrawals, and account maintenance transactions.
eToro:
- Deposits: You won’t be charged anything for depositing eToro.
- Withdrawals: If you need to withdraw money from your eToro account, you’ll pay $5 per transaction. However, if you become a platinum or diamond club member, you won’t have to pay any withdrawal fees.
- Account Inactivity: If your eToro account remains inactive for 12 months, you’ll be charged a monthly inactivity fee of $10 each month.
Interactive investor:
- Deposits: Just like eToro, depositing on interactive investor is free of charge.
- Withdrawals: You can withdraw your funds without paying any additional costs.
- Account Inactivity: Unlike eToro, interactive investor doesn’t charge an account inactivity fee.
Security & Regulatory Compliance
Both interactive investor and eToro prioritise the security of their customer’s accounts.
Here’s how the security measures of both platforms compare.
Interactive investor:
- Two-Factor Authentication (2FA): Interactive investor goes the extra mile by offering two-factor authentication. This means that, besides your password, you’ll need to use a unique code generated by their mobile app.
- Secure Website & Mobile App: Interactive investor uses secure HTTPS connections on their website and mobile app to encrypt your data and keep it safe and protected.
eToro:
- Two-Factor Authentication: eToro also prioritises account security with its support for two-factor authentication. This additional layer of protection helps safeguard your account from hackers and fraud.
- Secure Socket Layer (SSL) Encryption: eToro takes data security to another level using SSL encryption. This ensures that communication between your devices and their servers is secure. Therefore your sensitive information, like login credentials and financial details, will be protected from potential hackers.
- Investor Protection: eToro provides diamond and platinum club investors with free insurance. This goes a long way to reassure investors that the company will compensate them even if security gets breached.
Trading Tools
Interactive investor:
- Stock Screening: Through stock screening, you can easily filter and search for stocks that meet your specific criteria. This way, you can find potential investment opportunities that match your needs with only a few clicks.
- Portfolio Tracking & Analysis: This tool can help you track your investments’ performance, assess your portfolio and stay on top of your investment game.
eToro:
- Social Trading: On eToro, you can connect and learn from successful traders through the social trading platform. Additionally, you can interact with fellow investors and share insights with them.
- Smart Portfolios: eToro offers themed portfolios that provide a diversified selection of assets, making it easier for beginner investors to build a well-rounded investment portfolio.
- CopyTrading: One of the best trading tools of eToro is that beginners can mirror the trades of successful traders and benefit from their expertise. eToro is hands down one of the best copy trading platforms in the UK.
Investor Resources
Interactive investor provides educational articles and guides that can give you valuable insights into investing concepts, strategies, and market trends.
This will keep you up-to-date with the market and potential investment opportunities.
At eToro, their Trading Academy offers access to articles, videos, tutorials, and courses to help beginners expand their trading knowledge.
eToro also has a social trading community where investors can connect with other traders, ask questions, and engage in discussions.
In general, eToro’s Trading academy and social trading community make it the better choice for beginners.
User Experience
Interactive investor provides a user-friendly interface that makes navigation easy. You can quickly find what you’re looking for without wasting a lot of time.
Additionally, the platform offers a customisable dashboard where you can categorise the most important information regarding your investments.
Interactive investor also has watchlists and alerts where you can track your investments and receive real-time notifications.
On the other hand, eToro has a great and user-friendly platform design. It also provides a demo portfolio, where you can practise trading without risking your real money.
Mobile Accessibility
- Design: When it comes to design, interactive investor’s mobile app has a clean and intuitive interface. On the other hand, eToro’s app has a sleek and modern design that prioritises a seamless user experience.
- Functionality: Both apps provide features like account management, real-time market data, and the ability to execute trades.
- Accessibility: Both eToro and interactive investor have you covered, no matter the operating system or device that you’re using. You can access your investment portfolio wherever you are, whether you have an Android phone, an iPhone, or a tablet.
eToro’s app stands out with its unique social trading features. With this, you can interact with other investors and access additional tools for learning and copying trades.
Customer Support
Interactive investor offers customer support through email, online chat, and phone.
They also have special phone lines for different types of accounts. This personalised support makes it stand out from other trading platforms.
eToro, on the other hand, offers customer support through an online help centre with FAQs, live chat, and email.
Pros & Cons of interactive investor vs eToro
Let’s take a closer look at the pros and cons of each platform:
Interactive investor
Here are the advantages of using interactive investor:
- It offers several investment products, including stocks, bonds, ETFs, and trusts.
- Interactive investor provides research and analysis tools to help you make informed investment decisions.
- With a customisable dashboard and watchlist features, interactive investor allows you to tailor your investing experience to your preferences.
- If you ever need help, interactive investor offers dedicated phone support and online chat.
Some disadvantages of interactive investor include:
- Compared to eToro, interactive investor has relatively higher fees.
- Interactive investor charges a monthly fee.
- Lastly, Interactive investor has limited social features compared to eToro.
eToro
Here are the advantages of using eToro:
- eToro offers a unique social trading platform where you can follow and copy successful traders.
- It provides a wide selection of investment options, giving you access to various markets and assets. This can provide you with more opportunities to diversify your portfolio.
- eToro offers educational resources to help you learn more about investing and trading.
- Lastly, eToro provides a demo portfolio for practising trading strategies.
Some disadvantages of eToro include:
- eToro has account inactivity fees when you don’t use your account for 12 months.
- It also charges a $5 withdrawal fee. While this may not be a large amount, it’s still something you should consider when you weigh your options.
Alternatives to interactive investor & eToro
If you’re interested in exploring other options besides eToro and interactive investor, here are some good options that might interest you.
- Barclays Smart Investor: This investment platform is famous for its excellent reputation and long track record since 1992. One of the highlights of Barclays is its low fees, including no withdrawal or account inactivity fee. The downside is it might take a while before your account is approved. This is because they handle a lot of orders per day.
- Charles Stanley Direct: This platform has been around for more than 30 years, and it’s trusted by UK investors. Some of its highlights include great customer service and no withdrawal fee. The downside is the platform requires you to pay a minimum deposit of £20.
eToro vs interactive investor – Final Thoughts
To sum it up, both interactive investor and eToro have unique features.
However, if you’re a beginner looking for a platform with additional cryptocurrency trading and social trading features, along with an affordable fee structure, eToro is your best option.
On the other hand, if you’re an experienced investor aiming to invest in an individual savings account with tax exemption benefits, go for interactive investor.
I hope my comparison review has given you a better insight into what these two trading platforms have to offer. You can now decide on the one that’s right for you!
