eToro vs Stake: Which Is Best For Australian Investors & Traders?

Stake’s offering is straightforward perfect for investors who want the bare minimum. But in a world where brokers are battling to innovate, is simplicity enough?

Enter eToro, with its broader selection of assets, social trading features like CopyTrade and Smart Portfolios, and a user experience that feels as smooth as scrolling your Instagram feed. It’s aiming squarely at investors who want ease and innovation.

So, is Stake quietly genius or just too basic? Is eToro all style and no substance? Let’s break it down.

eToro vs Stake: My Quick & Dirty Verdict.

I’ve researched many Aussie brokers over the past couple of months. Normally, their target market is quite clear.

With Stake, however…

I’m not sure who it’s targeting.

Its fees are low, but not the lowest (Interactive Brokers being the cheapest for international trades and CMC beating it domestically if you trade <$1,000 per day).

(Related: 9 Best Online Brokers In Australia).

Its ‘Stake Black’ subscription doesn’t exactly scream premium – it’s more like it’s catching up to the competition, providing the type of features and services most brokers provide as standard.

And while its customer service doesn’t let it down, it’s hardly a selling point.

eToro, on the other hand, knows exactly who it’s for: investors who want a polished experience.

Time-poor? Beginner? No patience for clunky tech? This one’s for you.

Social features like CopyTrade and Smart Portfolios are a godsend for beginners or anyone who doesn’t have time for endless research.

Yes, it costs more, but if you use its tools effectively, eToro’s premium offering might pay for itself in the long run.

Selection Of Assets.

Stake keeps it simple. Two equity markets: Australia and the US. Beyond that?

You’ll need to use a range of US-traded ETFs for more diverse exposure.

It’s fine for those who want to dabble in local or US markets, but the lack of direct access to European or Asian stocks will frustrate many investors.

Over 20 equity markets. Commodities. Crypto. Indices. Forex.

While it may not have that Polish telco available on Interactive Brokers, it’s a veritable buffet in comparison to Stake’s offering.

Normally, too much choice would probably be a bad thing for retail investors.

However, Stake’s limited offering means investors will have to use ETFs to build out a diverse portfolio.

Therefore, investors need to consider whether they want to use multiple brokers and if Stake is worth having as part of that.

Trading Tools & Features.

This section is where the two platforms take different paths.

Stake is all about simplicity. You can deposit, trade, and withdraw. That’s it.

This is probably all most investors need, but the $14 monthly subscription for basic analysis containing publicly available info feels a bit of a stretch.

For context, that’s $168/year on top of your trading costs.

eToro, on the other hand, really understands what a ‘premium’ service should look like.

Its eToro club is a bit like airline status (which should excite most Aussies reading this!). The more money you invest with eToro, the more you’ll get back.

Fees are discounted by 50% at the Platinum ($25,000) Level, while Diamond ($250,000) Level investors will have conversion fees waived, be ‘wined & dined’ at sporting events and receive a Priority Pass for airport lounges.

(Related: 15 Best Share Trading Platforms In Australia Compared).

It comes also comes armed with time-saving features, such as CopyTrade and Smart Portfolios.

Want to mimic a top investor’s moves? Done.

Want to invest in a ‘Big Tech’ portfolio? Easy (and, no management fees!).

These tools aren’t just features; they’re game-changers for anyone short on time or confidence.

Clearly, none of this is essential to investing (although the fee discounts remove the biggest frustration with eToro).

But at least eToro shows a clear understanding of its target market and, if you have a larger portfolio, why not receive some perks for it?

Not only can you access professional tools, such as TradingView and an economic calendar, but there’s an enticing upside with eToro: the broker pays you a cut of your Assets Under Copy (AUC).

A bit like fund manager fees, but for retail traders, with a 1.5% commission structure offering a not-to-be-sniffed at passive income for professional investors.

For example, if you have $500,000 in AUC and at least 10 people copying your strategy, you’d pocket $5,500 annually in commission.

User Experience.

There is not a whole lot separating these two platforms in terms of user experience.

Both can be accessed via their website and Android/iOS apps (which contain almost all the same features as the full web platform).

eToro will feel much more like a social network, whereas Stake sticks to its no-frills, monochrome layout, which functions pretty seamlessly.

It’s unlikely anyone would be unhappy with the user experience, and this is unlikely to be a factor in deciding between these brokers.

Fees & Commissions (How They Make Their Money).

When it comes to fees, the devil is most definitely in the detail.

On the surface, Stake’s fees look great: $3 per trade for US and ASX stocks. But dig deeper, and the cracks start to show.

eToro’s 1.5% FX conversion fee is worse, no question – its mandatory conversion to US dollars really lets the broker down in the Aussie market.

But basic company analysis is free, and there are no restrictions on trading.

Plus, a $5,000 balance gets you into the eToro Club, unlocking perks like a dedicated Account Manager, interest on cash balances (up to 4.55%!) and discounted fees.

eToro, while pricier, feels like a premium product, designed to save your most valuable asset, time.

This can be a trade-off worth making if your focus is on your primary income, not micromanaging your portfolio (particularly if you have a larger portfolio).

Security Measures.

Both companies are registered with the ASX and FINRA (Stake via its US broker, DriveWealth). eToro is registered with a few more, reflecting the increased number of tradable markets on its platform.

Stake offers CHESS-sponsorship, which is not offered by eToro.

CHESS-sponsorship means the shares are purchased in your name, rather than held by a custodian for your benefit.

Nice, but largely irrelevant for most investors. eToro counters with $1 million insurance per account and segregated investor funds.

Unless you’re trading over $1 million, security shouldn’t be a deciding factor.

Customer Support.

Ah, customer support… the Achilles’ heel of almost every broker.

Stake is pretty limited in its offering, with just email support available beyond its FAQ section.

That said, the responses to queries are generally pretty good, and it at least feels like the representative has genuine expertise in the area, rather than just copy + pasting replies.

On top of an FAQ section and email support, it offers a live chat option for club members.

This does feel quite generic in its responses, however, meaning most investors will need to use its email support, which can be painfully slow for detailed queries.

One positive is that its social network influence provides a community that can be a great additional support option.

Understanding Negative Reviews.

Three common complaints emerge in user feedback:

Let’s start with the first issue: financial losses. Many users attribute this to stop-loss orders failing.

Important Context.

Stop-losses are not guaranteed to execute at your exact price, particularly during periods of high volatility.

It’s frustrating to have a position closed at a significant loss, only to see the asset rebound afterward. However, brokers execute orders based on the market, which doesn’t always align with your expectations.

The takeaway? Stop-losses are a great risk management tool but are not foolproof.

Next, Let’s Address KYC Regulations.

If you feel bombarded by personal data requests, know that this is a regulatory requirement to combat money laundering. U.S.-based brokers, in particular, must adhere to strict compliance rules.

With regulations becoming stricter, more information requests are inevitable. Non-compliance could lead to frozen accounts, so staying compliant is essential.

Inconvenient? Yes. Avoidable? No.

Lastly, Fund Transfer Issues.

For long-term investors, small delays in transferring funds usually aren’t a big deal. If you’re holding Tesla stock for the long haul, a slight variation in today’s price won’t matter.

For active traders, however, these delays can be more problematic. Remember, trading platforms aren’t banks, so keeping some liquidity on hand – both in and out of your account – can help mitigate disruptions.

Steven