From our analysis, we recommend Stake as the best option.
eToro and Stake are two stocks and currency trading apps that are popular in Australia.
eToro is a multi-asset brokerage company that lets you trade stocks, cryptocurrencies, CFDs, and ETFs. It is an Israeli startup with offices in Cyprus, U.K, U.S, and Australia.
On the other hand, Stake is a digital brokerage app that lets Australians (and users from other countries) trade more than 6000 U.S. stocks.
So, which one is better among the two?
Well, both platforms offer their trading services without any fees or commissions but there is one clear winner when it comes to a detailed comparison between the two.
Let’s review all aspects and find out who comes on top. For a quick look, the table below shows you some important differences between the two platforms.
eToro lets its users trade from:
- 2500+ stocks
- 250+ ETFs
- 36 cryptocurrencies,
- 32 commodities like gold, silver, copper, oil, etc.
- And 49 currencies.
This wide variety of investment channels gives Aussies much more freedom than usual stock or crypto exchanges with limited investing options. Moreover, its crypto trading feature has specially added to its fame and user base.
Compared to this wide range of investment vehicles, Stake only provides access to U.S stocks. Moreover, if you are into crypto investing, you’d be disappointed to find that Stake doesn’t support cryptocurrencies – a major drawback!
eToro and Stake both let their users play with fiat currencies as well. However, there is a clear difference in the variety of currencies the two platforms offer.
eToro offers a total of 49 fiat currency pairs, which include the Australian Dollar (AUD) as one of the 8 base currencies. This feature lets Australians operate their eToro accounts in their local currency and saves them from paying additional foreign exchange fees.
On the contrary, since Stake allows its users to access U.S stocks only, the platform features only one base currency: USD. As a result, users are bound to pay foreign exchange fees when they convert their earnings back to AUD.
Fees and Charges
Both eToro and Stake are awesome in this regard because both platforms don’t charge any commission fee for stocks trading. But there are some other charges involved in both platforms.
eToro charges a fixed $5 for withdrawals, where the minimum withdrawal amount is $30. In addition, users are charged $10 a month in case of 12 months of inactivity. Moreover, although the $100,000 demo account is free, one needs to deposit at least $50 to start investing.
Stake, on the other hand, has a different fee structure. It charges a 0.5% (US$2 minimum) FX fee on deposits and withdrawals, despite USD being the only supported currency.
(Remember that no FX fees are charged on trades.)
Additionally, Stake offers a premium version (Stake Black) of the app for $9 a month for its advanced users. The paid version lets the users access complete company financial details, analyst ratings, and trade on unsettled funds.
eToro’s platform is suitable for beginner to advanced users for several reasons.
First, all registered users get a free $100,000 account, which gives them a chance to practice their investment strategies before putting real money at stake.
Secondly, eToro’s popular CopyTrader feature is beneficial for beginners or users who cannot continuously monitor market trends. It lets users adopt the strategy of top-performing traders and customize it as per their needs. Users can copy up to 100 traders at a time.
Moreover, a low minimum deposit limit, variety of investment media, and fractional shares make eToro a favorable option for those just starting out in their investment journeys.
Further, eToro has a clean and easy-to-use mobile app interface that makes things easier for all users.
On the other hand, Stake offers new users a starting place to navigate the platform and get familiarized with the stock market but does not provide them any solid learning opportunity. This means that only experienced and knowledgeable traders are more likely to make a profit from trading on Stake.
Finally, some users have complained about the interface of the desktop and mobile app versions being somewhat challenging to grasp.
What should you use: eToro or Stake?
Well, we don’t intend to put down or discourage one platform or the other. With that being said, a fair analysis of the overall features of the two platforms reveals that Stake is a more use-friendly platform for Australians, especially for those who are just starting out.
So, if you are someone starting their investment journey, you know which app to download!