When choosing a trading platform, Australian investors have a multitude of options, but two names often rise to the top: Stake and eToro.
Honestly, I love both of these apps.
Each platform offers unique features and services, catering to different aspects of trading and investment strategies.
This article provides a detailed comparison to help you decide which platform might be best suited to your financial needs.
Access and Account Opening
Both Stake and eToro offer easy account opening processes with no minimum deposit, making them accessible to both novice and experienced traders.
The registration process is straightforward, with Stake offering a bonus for new users who sign up and deposit within 24 hours, including A$10 and a U.S. stock.
This incentive is slightly more appealing than eToro’s offers, which are typically tied to referrals and membership levels.
Trading Platforms and User Experience
Stake and eToro both support web and mobile (Android, iOS) applications, ensuring traders can access their accounts and trade from anywhere.
| Feature | Stake | eToro |
|---|---|---|
| Platform Availability | Web, Android, iOS | Web, Android, iOS |
| Regulated by | ASIC | ASIC |
| Signup/Referral Bonus | Signup bonus, Referral available | Referral available |
| Minimum Deposit | A$0 | A$0 |
| Funding Methods | Bank transfer, Credit/Debit card, Apple Pay, Google Pay | Bank transfer, Credit/Debit card |
| Brokerage Fees (ASX) | A$3 up to A$30,000, then 0.01% | N/A |
| Brokerage Fees (U.S.) | US$3 up to A$30,000, then 0.01% | US$2 |
| FX Fees | 70 bps (minimum $2) | Varies by payment method |
| Premium Membership | Stake Black: $12 to $20/mo | eToro Club (tier-based) |
| Stock Transfer (Incoming) | Free for Australian shares, fees may apply for U.S. shares | Not available |
| Markets Available | ASX, CBOE, NASDAQ, NYSE | ASX, NASDAQ, NYSE, and various global markets |
| Tradable Securities | Australian shares, International shares, ETFs | Stocks, Forex, Commodities, Cryptocurrencies, ETFs |
| Extended Hours Trading | Available | Available for CFD products |
| Fractional Shares | Available | Available |
Stake’s platform is tailored for those who want a direct, no-fuss trading experience, with a focus on Australian and U.S. markets.
Its interface is praised for its clarity and ease of use, which is great for those who might feel overwhelmed by more complex platforms.
eToro, on the other hand, shines with its social trading features, allowing users to follow and copy the trades of experienced investors.
This can be a significant advantage for beginners who wish to learn from seasoned market participants.
Furthermore, eToro’s platform is considered a multi-asset investment platform, offering access to stocks, forex, commodities, and cryptocurrencies, thereby providing a broader range of investment opportunities compared to Stake.
Fees and Costs
Comparing fees between Stake and eToro shows that both platforms are competitive, but they cater to different types of investors.
Stake offers a clear, low-cost fee structure with A$3 brokerage for all trades up to A$30,000, which is incredibly appealing for frequent traders who perform large transactions. For trades above this threshold, the fee switches to 0.01%, maintaining affordability.
eToro’s fee structure is somewhat different, focusing on a broader range of financial instruments and including variable FX fees and conversion charges based on the payment method used for deposits and withdrawals.
This can influence the overall cost-effectiveness depending on the investor’s strategy and the type of assets they are trading.
Market Access and Trading Options
Stake provides access to over 12,000 shares and ETFs across the Australian Securities Exchange (ASX) and Wall Street, including features like fractional shares and extended hours trading.
This makes it an excellent option for investors focused on stock markets.
eToro offers a similarly wide range of markets, including major global exchanges like NASDAQ, NYSE, and various European and Asian markets.
Its social trading aspect, combined with the ability to trade multiple assets from a single platform, makes eToro a versatile choice for investors looking to diversify their portfolios beyond traditional stock markets.
Safety and Regulation
Both platforms are regulated by the Australian Securities and Investment Commission (ASIC), ensuring that they adhere to strict financial standards and practices.
This regulatory oversight provides traders with a level of security and peace of mind when it comes to the safety of their investments.
Customer Service and Support
Customer service quality can significantly impact user experience. Stake and eToro both provide robust support systems, but users have found that Stake’s focus on the Australian and U.S. markets often results in more tailored and responsive customer service.
This can be particularly valuable for those new to trading or those who might not be as familiar with international trading regulations and practices.
Conclusion
In the contest of Stake vs eToro, the choice depends largely on what you value most in a trading platform.
If you prefer a straightforward, cost-effective service with strong access to Australian and U.S. stocks, Stake could be the better option.
However, if you’re interested in a more interactive trading experience with the ability to invest in a wide range of assets and learn from others, eToro might be the way to go.
Before deciding, it’s advisable to check the latest details on each platform as offerings and fees can change.
Whichever you choose, both Stake and eToro offer compelling features that can provide valuable support to your investment journey in the Australian market.
