Therefore, it is vital that you know how both these crypto exchanges compare and excel, if at all.
For that matter you will need to go through a few articles like this that speak about the differences between them. It will help you to make the right choice.
Ideally, even a couple of years back, the names of these two exchanges, eToro and Binance, were not mentioned in the same sentence much too often.
This is because both served different purposes. Check out Differences Between Binance and Bitpanda.
The eToro platform was well known for trading different types of financial products and it is only in 2018 that they included crypto trading into their platform. This is when the paths of these two exchanges crossed.
Ideally, for a better comparison, you will need to know exactly how long eToro and Binance has been in business, about their reputation and trust factors, reliability and security features, and lots more.
This will ensure that you eventually team up with a dependable and reputable broker which is a crucial factor in making successful crypto trades.
The reason behind this is pretty straightforward – you need to know that your money is in safe hands.
10 Differences Between Binance and eToro
It needs very little or no introduction being the largest crypto exchange and the most favored place for the traders.
It has a high trading volume and an easy to use interface favoring the newcomers in the industry to use.
However, eToro is a promising entry in this crypto space with its innovative approach and features.
Ideally, eToro is famous for its social trading features and innovative approach to financial markets, making it a promising new player in the crypto landscape.
Here, in this article, you will find a side by side comparison of eToro and Binance that will help you to judge the price, support, effectiveness, ease of use, and more of both of these two crypto exchanges.
You will be able to analyze things in a much better way to make an informed decision.
1. Purpose and Features
Binance is one of the largest cryptocurrency exchanges in the world by trading volume. The main purpose of it is to allow the experienced as well as the inexperienced crypto traders both in their venture.
It aims to make the entire process convenient for the users and to offer them the best user experience. It is truly one of the best crypto platforms to go for those people who are looking for low trading fees, reasonable deposit and withdrawal requirements, and most importantly a wider coin support.
On the other hand, eToro is a good crypto exchange that aims at promoting social crypto trading. This platform is also good for socializing, learning more about cryptocurrencies as well as copy-trading.
The Copy Trading feature of eToro is quite well known and convenient to use. The platform aims at providing higher rewards for staking a few specific types of coins on it. They support quite a reasonable range of crypto coins and charge moderate fees as compared to other crypto exchanges.
The fees charged by Binance for trading is usually fixed at 0.1%. However, it can be reduced by 25% if the fees are paid in its native token BNB.
As for credit card purchases made on this platform, the minimum fee to pay is $10, though the actual fee is 3.5%. This fee too gets lowered significantly when you trade in bigger lots.
However, eToro, on the other hand, has a variable fee structure. It is usually higher when you trade with less liquid trading pairs or assets. If you use popular crypto assets such as Bitcoin or Ether, you will have to pay fees for it to the tune of 0.75% and up to 2%.
In comparison, if you trade with less popular crypto then the same fee can go as high up as 3.5%. And, if you want a payout, you will need to pay $25. However, all deposits here are made free of any charge.
3. Customer Support
The customer support of Binance is offered in seven different languages and combining the online and detailed FAQ section, it is quite thorough.
The email ticket system also seems to get resolved in the case of Binance more quickly, usually within 24 hours. And, you can also take help from the live chat support within the business hours of the platform.
On the other hand, eToro does not offer any phone support to their users just like Binance does not. It also has a basic FAQ section but it does not provide you with enough information and centralized help.
However, the eToro community is far more useful and active than the customer support. If you can make some friends, you may even get some inside information apart from quick answers.
The platform also has a help center that provides necessary information along with the answers to some of the most common user problems as well regarding crypto trading.
In addition to that, the platform also provides support through a simple ticket system to its users and answers the questions and complaints but it is pretty slow as compared to that of Binance.
Apart from these traditional methods of providing support to their customers, the eToro platform also answers the questions of the users through social media. The variety of training materials offered by this beginner-friendly crypto platform also provides help in hand to the customers.
4. Ease of Use
Without any doubt, it can be said that the Binance platform is good for beginners as well as advanced traders but in terms of ease of use, eToro leaves it behind.
The eToro platform is designed for providing utility and a better experience to the users. It comes with lots of added features such as advanced option setups. The user interface of this platform comes with standardized features that you will get in any commercial platform.
In the case of eToro, there are actually no limits imposed on how much crypto you can buy on this platform. However, the platform does have a minimum requirement of deposit which is $200 in order to be eligible to take part in Copy Trading.
And, to take part in Copy Portfolios, the minimum amount of investment required is $5,000. The minimum deposit requirements for maintaining manual positions however will largely depend and vary on the basis of the type of the instrument.
And, for withdrawals, the limit is 2 BTC for unverified accounts. This can however be lifted if the account passes the Know Your Customer verification process successfully.
6. Countries Supported
The main Binance platform is not accessible in China and the United States due to regulatory reasons. However, the US citizens can access its other platform, Binance US, to trade crypto coins but the features and coin support of it are not as high as the main platform.
On the other hand, eToro is available in all of the major countries of the globe including Canada, the US, Cuba, Iran, Syria, Japan, North Korea, Turkey, Albania, Serbia, and Sudan.
7. Market Reputation and Security
Though Binance is the largest crypto exchange in the world, it has a somewhat stained reputation due to several incidents of hacks, identity thefts, and losses.
However, over time, the platform has upgraded its security features and claims that they have been awarded the information security accreditation by the International Organization for Standardization or ISO since they now meet their standards as set out.
It also claims to conduct audits on a regular basis to keep a check on its security policy, information and asset management systems.
On the other hand, the eToro exchange boasts that its system has not been hacked into being a regulated platform. It follows the highest regulatory standards of transparency and accountability.
It is a licensed platform that is regulated by the Cyprus Securities and Exchange Commission or CySEC as of now.
It is a highly safe and secure platform to trade on since they take extra precautions to keep the money and personal information of the users well protected from the hackers and other types of cyber attacks. They also hold all the funds of their customers in secure and Tier 1 European banks.
8. Added Features and Expansion
When it comes to expansion, Binance is quite ferocious in it and keeps on adding new features and functionalities to the existing platform.
Some of these features include OTO options, staking, lending, custody, IEO or Initial Exchange Offering, and education portal. Margin trading is the recent addition to this platform which enables it to boast of having all of the basic functions that eToro has.
The eToro platform also comes with unique features that are different from Binance such as its next generation Copy Portfolio investment product which allows investors to invest in some of the top trader portfolios.
With this feature the users can copy the best trades of the best traders on the website and avoid any guesswork in trading and management of capital.
It also comes with a unique Copy Trading feature that allows the users to copy the trading practices of other successful crypto traders based on particular conditions.
This feature also allows the users to dedicate a percentage of their portfolio to several traders as well. This offers them the ability to create their own mutual fund managers. The platform also allows access to a greater assortment of options as well as switching between the options much easier.
9. Payment Methods
Both the trading platforms support different payment methods. As for eToro, it includes Apple Pay, BPAY, Neteller, PayPal, Diners Club, JCB Card, Perfect Money, Rapid Transfer, UnionPay, Venmo, Skrill, Swift, Visa, Webmoney, Yandex Money, and wire transfer.
In comparison, some of the payment methods supported by the Binance platform are the same as that of eToro and a few are different.
It includes ACH transfer, ADVcash, Etana, Flutterwave, Bitcoin Payments, credit card, Google Pay, Mastercard, PIX Payment, Samsung Pay, Paybis, PayID, Simplex, Visa, Vietcombank Transfer, and wire transfer.
10. Other Differences
A few other factors will also help in differentiating between eToro and Binance crypto exchange. Here they are.
As said earlier, one of the newest features of the Binance platform is margin trading. Though eToro offers this option as well, the process is slightly different.
Users of Binance will have to transfer their BNB coins from the regular exchange wallet to their Margin Wallet for that and use them as collateral while borrowing money.
The amount of funds that can be borrowed depends on the balance of the Margin Wallet which is usually 5:1.
The rate of interest charged will depend entirely on the type of coin opted for as well as the account level. On the other hand, eToro, as of now, offers margin trading with leverage up to 2 times.
The platforms also differ in terms of the instruments supported by them. As for eToro, you can use this FCA regulated platform to trade other financial instruments apart from crypto coins such as stocks, forex, and CFD.
As for cryptocurrency trading especially, the eToro platform leads the way with the lowest spreads offered which is usually from 1% for BTC and their own wallet service.
In comparison, the Binance platform, which is also regulated by the FCA, is known to support cryptocurrency trading only. On this platform, you can buy and sell a large number of some of the major crypto coins along with other leading and emerging ones.
The Binance platform also does not offer a demo account to the users to practice just like eToro does. There is also no STP or ECN account offered by Binance, unlike eToro.
The minimum deposit requirement of the eToro platform is $50 in the case of US users and $200 for all other users and the minimum trade allowed on this exchange is $1.
In comparison, the Binance platform does not have any minimum deposit requirement but the minimum trade allowed by them is $10.
The Binance platform also does not offer an auto trading feature as eToro where users can automate their trades through Copy Trading.
This feature not only allows them to follow the footsteps of the profitable traders but also to open and close their trades automatically.
The spread on eToro is less than 1% for BTC and 2% for ETH but on the Binance platform, the fees are variable and largely depend on the account tiers.
The list of coins supported by the eToro platform includes BTC, ETH, LTC, ETC, BCH, XRP, MIOTA, XLM, DASH, ADA EOS, NEO, VET, ZEC, and BNB.
In comparison, the longer list of coins supported by the Binance platform includes and is not limited to USDT, BTC, DOGE, VET, VTHO, ADA, BNB, ETH, ONE, SOL, XLM, NANO, NEO, LINK, LTC, BUSD, MANA, ZIL, HBAR, ALGO, ENJ, BCH, HNT, EOS, MATIC, EGLD, QTUM, RVN, ONT, STORJ, DAI, IOTA, UNI, ETC, XTZ, USDC, BAND, OMG, ATOM, DASH, ICX, BAT, ZEC, ZEN, MKR, OXT, ZRX, COMP, REP, PAXG, WAVES, KNC, FIL, WBTC, SHIB, and THETA.
Value for money is another important aspect of your comparison analysis between eToro and Binance. Taking this aspect into consideration while comparing the two crypto platforms, it shows that Binance has a higher value for money score as compared to eToro. It will therefore offer you a more acceptable quality of service.
Another important factor that differentiates between these two crypto exchanges is the respective number of active users on each of these platforms. According to the latest statistics, Binance is the clear winner in this particular aspect as well.
While the number of active users on the Binance platform add up to millions, that on the eToro platform is just a couple of hundred thousand.
Also, in terms of acceptable crypto, Binance once again has a higher number as compared to that of eToro.
Which is Better – Binance or eToro?
There is no doubt that Binance and eToro are two of the most popular exchanges in the world.
Their basic function is the same which is to allow the traders to move in and out of assets easily. However, the ways in which they facilitate this is significantly different.
This is where focusing on their differences becomes so important a factor in order to make the right choice.
Ideally, if you want to choose the better crypto exchange among eToro and Binance, you will need to look at all the other factors and features as well apart from the differences between them.
It is important to know which of these two crypto exchanges will allow you to access the market more easily and also help you to achieve your crypto goals and shape your portfolio.
However, it is really not possible for one to eclipse the other completely because it is all about personal preference and choice, but still, here are a few things that will help you a lot in your choice.
If you prefer a crypto exchange that has been in the market for quite some time, eToro should be the one you should opt for.
However, at this point, you should remember that eToro has been around in the finance market since 2007 but then they mainly dealt with financial instruments and cryptocurrency trading is just a new addition to their list of varied services offered.
This is ideally a multi-asset platform where you will be able to make trades on stocks, cryptocurrencies as well as CFDs.
However, if you prefer going for a crypto exchange that is the largest in the world, Binance is the one you should choose.
It has larger trading volumes and supports a long list of crypto coins as well. And, if you are looking to trade with smaller Altcoins, Binance is a more preferable choice.
Taking all these factors as well as the differences of the two platforms in consideration, it can be said that Binance is best for a specific set of users while eToro is fit for a completely different set.
Typically, eToro is best for:
- Those crypto traders who are based in the United States
- Those who prefer social and copy trading
- Those who want a simple user interface that will help in navigation and
- Those who believe in community engagement and want to follow other traders.
On the other hand, the Binance exchange is best for:
- The non-US citizens
- Those who make day trades frequently and
- Those who are interested in Binance coin BNB and Binance Smart Chain.
The advantages enjoyed by the users of eToro include being able to use an unrestrained network that comes with useful social trading features and the ability of the new traders specifically to imitate a large client base.
However, the significant downside of this platform is that the US traders can only buy cryptocurrencies which are not as many as one will find on the Binance exchange.
In comparison, the users of Binance exchange enjoy the benefits such as low trading fees, reasonably good customer support, and an easy to use platform that offers higher liquidity due to the higher trading volume and a wider selection of Altcoins.
However, the platform does not offer an option for telephonic customer support.
If you consider its newer and distinct trading platform designed for the residents of the United States only, Binance US, you must be informed that you will not be able to use it if you reside in any of the following US states:
- New York
- Vermont and
Another important point to remember is that though this platform supports a large selection of Altcoins, the number of coins supported on this specific platform is not as high or comparable to those couple of hundreds supported on the Binance global exchange.
Few crypto experts believe that, in spite of being a new entrant in the crypto market especially, eToro is the overall winner when compared to Binance specifically and especially in terms of crypto trading.
This is because this platform offers a one-click trading feature and fixed spreads.
Also, this platform offers demo accounts for the users to get hands-on experience in crypto trading as well as accounts created particularly for the Islamic traders. Both of these features are found to be lacking in the Binance exchange.
And of course, they feel that the Copy Trade feature of eToro is something that is unmatched in the crypto industry and is extremely helpful for those participants who want to take advantage of the crypto market and trading by following the techniques of an established trader.
Apart from the fact that eToro is quite popular in lots of countries as a crypto trading platform, it also offers more utility to the traders who would like to move between different asset classes or make trades by using a forex standard.
However, the experts also warn about a few particular points of the eToro platform that every user should keep in mind such as it does not allow making crypto deposits or hold the assets and does not support too many crypto coins as such.
Therefore, considering all of the points and facts mentioned above, it can be said summarily that both Binance and eToro beat one another in specific aspects.
For example, when it comes to the fees for trading on these platforms, Binance is an obvious choice because it is not only cheaper than eToro but the users can avail a discount of up to 25% when they use the native token of the platform BNB to pay the fees.
Though, apparently, it may seem that you are paying higher on Binance for your trades, over time you will pay less from your pocket, especially when you trade with bigger lots.
The Binance platform also significantly dominates any crypto exchange in currency support.
As for eToro, it beats Binance in specific aspects such as licensing and regulatory compliance, deposit and withdrawal methods, payment options and security measures since there has not been any incident of data or fund losses in its 14 years of existence.
Regulation, currency support, and other factors are important to decide which among Binance and eToro is a better exchange. It is therefore good to know their differences beforehand so that you can trust them with your money.