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 (eToro, Tiger Brokers and Webull are lower).

Its ‘Stake Black’ subscription doesn’t exactly scream premium – it’s more like it’s catching up to the competition, providing access to a Level 2 data feed – while eToro offers Level 1 for free.

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. You get access to two equity markets: Australia and “Wall St” – aka US.

Beyond that?

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

(Related: 19 Highest-Performing ETFs In Australia).

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.

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.

Stake Black is basically an ASX or a US Level 2 data feed that Stake charges you $14/month for. If you want both, you’ll pay $20/month.

For context, that’s $168-$240/year on top of your trading costs.

eToro, on the other hand, gives you free access to Level 1 data (which is more than enough for most retail traders).

But you don’t use eToro because you plan to dive into Fibonacci charts.

You do it because you plan to take advantage of its excellent copy trading features.

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.

And if you’re an advanced investor? You can let other users copy your trades, and get paid a cut of your Assets Under Copy (AUC).

Think of this arrangement as running your own fund on the eToro platform, and getting paid a 1.5% commission.

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

It’s unlikely that either of these platforms will upset you with their UX. Both are great.

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: AU$3 per trade on the ASX and US$3 per trade on US exchanges. But dig deeper, and the cracks start to show.

eToro’s FX conversion fee is far better, no question.

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

Plus, a US$5,000 balance gets you into the eToro Club, unlocking perks like a dedicated Account Manager, interest on cash balances (up to 3.8%!) 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