Cryptocurrency trading has exploded in popularity over the last few years. With so many platforms to choose from, it can be tricky to decide which one best suits your needs. In this article, we compare two of the biggest names in crypto trading: eToro vs Binance.
Summary
Our goal is to provide an in-depth look at the key features, security, fees, and overall usability of both eToro vs Binance. By the end, you’ll have all the information you need to determine which platform is the better fit for you. Whether you’re a beginner looking to dip your toes into crypto or a seasoned trader seeking advanced tools and deep liquidity, this comparison has you covered. Let’s dive in!
At a Glance
eToro is a multi-asset investment platform where users can trade cryptocurrency alongside stocks, ETFs, currencies, and more. The platform is known for its social trading features, copy trading, and user-friendly interface.
- Our Rating: 4/5
- Globally regulated across multiple jurisdictions
- Allows trading of crypto, stocks, ETFs, and more
- Copy trading system to mimic expert investors
- Supports wallet transfers and non-custodial storage
Binance is the world’s largest cryptocurrency exchange, offering deep liquidity across an extensive range of digital assets. It’s popular for its low fees, futures and margin trading options, as well as its native BNB token.
- Our Rating: 4.5/5
- Holds licenses in multiple countries under localized entities
- Over 500 tradeable cryptocurrencies
- Up to 125x leverage via Binance Futures
- Access to exclusive token sales via Launchpad
Platform Details
eToro
Founded in 2007, eToro began as a general trading platform and later shifted its focus to multi-asset investing, including cryptocurrencies. Today, eToro supports trading across over 3,000 financial instruments, including popular coins like Bitcoin, Ethereum, XRP, and more.
Some key features offered by eToro include:
- Social trading – Interact with other traders, share strategies, and copy the trades of successful investors.
- CopyPortfolios – Invest in curated baskets of assets or traders.
- eToro Wallet – Store purchased crypto safely and made transfers to other wallets.
- Trading tools – Utilize charts, technical analysis, risk management tools, and more.
- Multiple regulatory licenses – Authorized to operate across multiple jurisdictions including the UK, Europe, Australia, and some US states.
Binance
Founded by Changpeng “CZ” Zhao in 2017, Binance quickly became the largest global cryptocurrency exchange by trading volume. The platform is praised for its vast selection of coins, top-tier liquidity, competitive fees, and features tailored to both new and professional traders.
Some key aspects of Binance include:
- Spot trading – Trade over 500 cryptocurrencies with low fees and instant settlement.
- Futures, Margin trading, OTC – Take advantage of up to 25x leverage and deep liquidity pools.
- Staking, Earning – Earn interest on your coins or stake them to support blockchain networks.
- Binance Coin (BNB) – Utilize BNB for reduced fees and gain access to token sales.
- Secure Asset Fund – Insurance fund with over $1 billion in coverage for user assets.
- Binance Smart Chain – High speed, low cost chain powering a booming DeFi ecosystem.
Feature Comparison: eToro vs Binance
When comparing eToro vs Binance, it’s important to analyze some of their key features side-by-side. Here is an overview:
| Feature | eToro | Binance |
| Trading Interface | Focuses on simplicity and user-friendliness catering to beginner investors. Offers mobile app access. | Cutting-edge platform with advanced tools for professional crypto traders. Also has mobile apps. |
| Account Types | Supports a single account type with standard access and tools. | Multiple account tiers based on verification level, with more features and higher limits for verified users. |
| Asset Selection | Around 100 cryptos plus stocks, ETFs, commodities and other assets. | Over 500 cryptocurrencies and 1200+ trading pairs. |
| Liquidity | Scores well across range of assets offered. | Commands some of the highest liquidity and volumes in the crypto space. |
| Trading Tools | Handy risk management tools like stop losses. Less focus on technical analysis. | Professional-grade tools including order books, indicators, alerts, grids and more. |
| Staking & Earning | Limited crypto earning options. | Wide selection of staking, DeFi yield options via Binance Earn. |
| Educational Resources | Trading Academy with videos, guides and community forums ideal for new investors. | Academy with text tutorials on trading, blockchain, security and more. |
| Copy Trading | Pioneered copy trading which lets users mimic positions of experienced traders. | Feature not available. |
| Security | Robust security plus biometric authentication, withdrawal approvals and USD insurance. | Industry best practices around encryption, 2FA, whitelists. Large asset insurance fund. |
Fees Compared
The fee structure varies significantly between these two heavy-hitters. Let’s break it down:
eToro
- No commissions – only a small built-in spread + 1% markup for crypto trades
- Overnight and weekend fees charged for leveraged CFD positions
- $5 crypto withdrawal fee
- $10 per month inactivity fee after 1 year of no logins
Binance
- Low trading fees starting at 0.1% via tiered structure discounted by holding BNB
- Zero-fee options for select BTC/BUSD pairs
- Withdrawal fees differ per coin; average fee is 0.0005 BTC
- No inactivity fees
- Margin, futures and options trades carry separate interest rates and fees
It’s clear Binance outmatches eToro when it comes to basic buying and selling of crypto. Power users also benefit more from Binance’s tiered pricing for high volume traders. However, eToro provides a nice hybrid solution for investing in both equities and crypto within a unified platform.
Security & Regulation
As online trading carries inherent risks, we must consider the regulatory compliance and security measures implemented by any investment platform.
Licensing & Regulation
- eToro holds registrations across over 30 global jurisdictions, including CySEC, FCA, and FinCEN. This covers most major markets except parts of Asia.
- Binance has acquired licenses under corporate entities across France, Italy, Lithuania, Spain, Poland and more. They take a localized approach to compliance.
User Asset Protection
- Both firms use cold wallet storage, address whitelisting, 2FA and global security standards around encryption and access controls.
- eToro provides additional protection via withdrawal approval requirements and terms clarifying asset custody in the unlikely event of bankruptcy.
Insurance Coverage
- eToro insures USD cash balances up to $250K through UK’s FSCS and Australia’s NDIS. Crypto holdings have no formal coverage.
- Binance’s Secure Asset Fund provides close to $1 billion in insurance protections but details have not been independently verified yet.
Although eToro clearly makes conservative efforts to satisfy regulators, Binance has by far the better track record and sentiment within the blockchain community. Ultimately, both platforms implement security controls following industry best practices.
Customer Support
Let’s quickly compare how these platforms provide support when their users need help:
eToro
- Email, ticket and chat support with fairly quick response times. Less than 10 minute average wait on chat.
- Operates global customer service centers staffed 24/7.
- Supports inquiries in 17 languages.
Binance
- 24/7 multilingual chat plus email and troubleshooting FAQs available.
- Offers remote video customer support sessions for complex issues.
- Response times vary from 2 minutes to over an hour depending on demand influxes.
Both platforms provide solid customer support across common channels, with eToro having the edge is average response times.
Mobile Trading
Mobile apps are crucial for easily managing your account and accessing trading tools on the go.
eToro
- Slick mobile app available on iOS and Android devices.
- Supports full account access, buying/selling, education features and research.
- Over 2 million downloads across app stores.
Binance
- Robust mobile app with nearly identical tools and features as desktop site.
- Buy, sell, deposit and withdraw while trading spot, margin and futures.
- Over 5 million downloads with high ratings on both operating systems.
Binance has a more fully featured but complex mobile experience. eToro focuses more on simplicity and usability. Both offer top notch performance for trading and managing your portfolio on mobile devices.
Supported Countries
It’s important to consider the geographic availability of these platforms:
- eToro is available in over 100 countries including popular markets across North America, Europe, Australia and parts of Asia and Africa.
- Binance has similarly massive global reach with notable exceptions being China, the U.S. and a few other restricted jurisdictions. Users in those markets can access via VPN.
Between their multiple localized operations, most world regions can access one or both of these services. Restrictions apply to certain trading instruments based on user locations. U.S. investors have access to eToro but will need to use Binance.US.
User Experience
Usability, intuitive design, and resources for newbies are all vital components of a quality trading platform.
eToro
- Clean layout with simple buying and selling interface ideal for beginners.
- Social feed for discovering other traders and their strategies.
- Trading Coach feature which provides guided tutorials for using the platform.
- MasterClasses covering fundamentals, technical analysis, and interpreted news events.
Binance
- Modern interface but can feel overwhelming for new traders.
- TradingView charts, dynamic order books and pro tools satisfy advanced crypto traders.
- Academy resource center covering basics of crypto, trading strategies, DeFi, NFTs and more.
- Simulated demo account to test platform before trading actual assets.
eToro undoubtedly provides the more welcoming and engaging user experience. Binance caters well to seasoned traders via rich features and coin variety.
Community & Reviews
With over 30 million users globally, eToro can be considered the “people’s broker” and maintains an active social community on the platform. Thousands of investors share their approaches, have public profile rankings and develop a following. Positive sentiment also stems from eToro’s practice of compensating top traders.
Comparatively, Binance tends to focus less on social dynamics but that has shifted somewhat with newer features like user testimonials and incentivized referrals. Reviews frequently praise Binance for having the deepest liquidity across an unparalleled diversity of cryptocurrencies.
Final Thoughts
Evaluating eToro vs Binance presents investors with a common dilemma – simplicity versus functionality. eToro excels in user experience with copy trading, multi-asset offerings tailored to beginners, and strong compliance standards. Binance is the undisputed leader for trading altcoins thanks to low fees, stellar liquidity and a rapidly growing ecosystem adding new use cases across DeFi, NFTs, Layer 2 networks and more.
Ultimately, Binance is the superior platform for investors focused exclusively on crypto trading and seeking advanced account management. eToro offers a balanced experience for those looking to trade both crypto and traditional assets under one roof.
Hopefully this comprehensive feature comparison provides clarity around which platform best meets your specific needs as a cryptocurrency investor!
Frequently Asked Questions
Which is best Binance or eToro?
For pure crypto trading and maximum coin selection, Binance is the best option. eToro is better for investing in both crypto and traditional securities via an easy-to-use social interface.
Is eToro best for crypto?
eToro is certainly good for crypto thanks to social features, copy trading and a simple buying process. But advanced traders may prefer an exchange like Binance with lower fees, futures/margin trading and significantly more coin options.
Is there something better than Binance?
Binance leads the industry across core aspects like fees, variety of listed assets, liquidity and global user base. Some upstarts like FTX show promise to compete with Binance but have yet to match its dominance in total crypto trading volume.
Why is eToro so cheap?
eToro isn’t necessarily “cheap” as it has higher crypto trading fees compared to exchanges. It charges no commissions but makes money via built-in spreads plus a 1% markup on trades. This pricing model keeps costs low compared to traditional brokers. As users don’t directly interact with order books, eToro can focus more on usability over advanced trading options which exchanges specialize in.
