So you are looking to trade crypto and wonder whether you should use the eToro or Binance platform? Although both are popular with crypto traders around the world, the trading experience they offer differs greatly. This article provides a detailed comparison of what each platform offers to users.
Your capital is at risk
is the largest social trading platform in the world with a great selection of cryptocurrencies and a range of other assets (i.e. stocks, CFDs). Binance, meanwhile, is one of the largest cryptocurrency exchanges based on trading volume. Let’s see how they compare in terms of fees, products, and services.
The BrokerChooser team of financial experts selected eToro as the Best crypto broker in 2022 after analysing 101 online brokers and checking their crypto offerings and services.
|Recommended for investors interested in copying others’ trades, cryptocurrency traders and those looking for a user-friendly interface||Recommended for cryptocurrency traders (including day traders) looking for low fees and an abundant selection of crypto coins|
|Read our eToro review for 2022||Read our Binance review for 2022|
TABLE OF CONTENTS
- eToro vs Binance: markets and products
- eToro vs Binance: fees
- eToro vs Binance: account opening
- eToro vs Binance: customer service
eToro clients can trade 35+ different coins, 14 crypto crosses (i.e. ETH/BTC) and 63 non-USD currency crosses (like LTC/AUD). In addition, users have access to the following crypto-related products:
- crypto CFDs
- spot crypto
- crypto exchange (eToroX for institutional users mainly)
- crypto wallet.
Not every method is available in every country. Check out our spreadsheet for a detailed breakdown of which crypto product is available in your country.
Here’s a basic rule of how crypto trading works at eToro : when you go long in any virtual currency, you will own the real coin. When you go short, it is a CFD. As with any rule, there are exceptions. For example, US residents can only go long on the real coin; trading CFDs and therefore going short on cryptocurrencies is not allowed.
At Binance, signed-up users have access to over 400 coins, which is by far the largest selection of cryptocurrencies any exchange has to offer. In addition, there are derivatives, as well as margin and options trading available. Margin rates and borrowing limits depend on your BNB balance and trade volume.
eToro charges a 1% fee for crypto trades. Crypto deposits at eToro are free of charge and an inactivity fee of $10 per month kicks in after one year of inactivity. It’s enough to log into your account to avoid having to pay this fee.
Binance charges some of the lowest fees among crypto exchanges. The standard trading fee for trading crypto assets on Binance is 0.1%, but if you have a positive BNB balance on your Binance account, the trading fee is reduced to 0.075%. Clients will have to pay a 2% fee for credit/debit instant buy orders while for non-instant transactions, the fee is 0.012-0.100% of the trade value, depending on cumulative trade volume and your BNB balance. Binance does not charge an inactivity fee or any account management fees. There are no deposit fees unless you deposit by credit/debit card, for which you will have to pay a 1.8% fee. All withdrawal options carry a price tag at Binance.
eToro accepts clients from all around the globe, with a few notable exceptions including Russia, China, Hong Kong, India, Indonesia, Japan, New Zealand, Saudi Arabia and Turkey. The account opening is super fast and the minimum deposit for most clients is $200. Residents of Australia and the US have to deposit an initial minimum amount of $50. Note however that the minimum amount for a bank transfer is $500.
eToro offers two simple account types: there is a live account and a demo (or virtual) account, where you can test the platform with play money.
Binance is available in many countries worldwide, but not in the United States. From the US, you can use Binance's partner site, Binance.US, which uses matching engine and wallet technologies licensed from Binance, but the product selection and the number of available crypto pairs is limited compared with Binance.
There is no minimum deposit at Binance and clients can choose from 4 types of accounts. The account opening process is fairly easy and fully digital, verification usually takes just a few minutes when the system works properly (we encountered some issues when testing this service provider).
Customer service is one of the weakest points of the eToro user experience. You can reach the broker mainly via a web-based ticketing system and answers take a long time to arrive. Live chat is only available to Club members. The lowest tier of eToro Club membership is silver, which one can reach by having more than $5,000 in equity on their account. According to eToro, customer service is available in all 21 languages that the web and mobile trading platforms offer.
Customer service at Binance is available 24/7 but live chat is the only option to reach them. Live agents are helpful and provide relevant information, but first you need to pass a hit-and-miss chatbot. In addition, Binance experts to weigh in and offer assistance on forums on third-party sites such as Reddit.
Your capital is at risk
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
- About eToro
- eToro fees
- eToro crypto wallet: here's how you can transfer your assets
- Crypto trading on eToro: a detailed guide
- Can you buy Bitcoins on eToro? Yes, and here’s how
- Is eToro legit? And who are they?
- What is the minimum account balance at eToro?
- How to withdraw money from eToro
- eToro copy trading
- eToro app
- eToro alternatives
- eToro vs Freetrade
- eToro vs Robinhood
- eToro vs Hargreaves Lansdown
- How to sell on eToro
- Does eToro pay dividends?