eToro vs Binance

Which One Is Better?

Binance has a solid trading platform for crypto but if you want to diversify your investments then eToro is more appealing.

OPEN REAL ACCOUNT PRACTICE WITH DEMO ACCOUNT

* 68% of retail CFD accounts lose money

Investors trading on social trading platforms should be familiar with both eToro and Binance by now. Why not? Both are the two most popular exchanges in the world and are charting a reputable name in the world of mobile trading. These two apps provide innovative features that bridges traders to financial markets closer than ever before—helping them move assets in and out with great ease.

Here, we compare both trading apps by digging into their strengths and weaknesses to help you determine which is the right trading app for your investing and trading needs.

Table of Contents

  1. Introduction
    What is eToro and Binance? (35sec)
  2. Comparison
    Compare the features (20sec)
  3. CFD Trading
    What is CFD trading? (33sec)
  4. Account Types
    What accounts are offered? (20sec)
  5. Demo Account
    Are practice accounts provided? (57sec)
  6. Assets
    How many tradable assets are there? (34sec)
  1. Fees
    What are the trading costs? (42sec)
  2. Features
    What are the key features of eToro and Binance? (24sec)
  3. User-Friendliness
    How can support be contacted? (11sec)
  4. Regulation
    Are these brokers regulated? (50sec)
  5. Conclusion
    So which one is better? (37sec)


Wondering if you can test out eToro’s platform?

The good news is that yes, you can! You can use their free demo account to explore the user interface and do test trades in virtual mode. Keep in mind that you still need to open an account in order to use the virtual portfolio. Clicking on the button below will take you straight to their online sign-up form so you can open an account in no time.


YES, TAKE ME TO ETORO!

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Introduction

eToro is a social trading app and a brokerage founded in 2007 that allows traders to trade in cryptocurrencies as well as on several financial assets—including CFD trading—while giving users the opportunity to learn wise investment strategies from experienced and successful traders through its CopyTrading feature. eToro users can choose from a wide range of financial instruments such as currencies, stocks, currency pairs, forex, commodities, indices and even cryptocurrencies, to trade on the platform..

Binance is exclusively a cryptocurrency exchange considered as the largest in the world when it comes to the volume of daily crypto trading. It is founded in 2017 in China before it moved operations to Malta. More than 500 cryptocurrencies are available to trade in Binance.

Comparison

Here, we take a look at the side by side comparison of the two trading platforms:

 

Broker eToro Binance
Minimum Deposit $50 - $1000 (depends on country) $0
Markets 3000+ 500+
Market Types Stocks, Commodities, Currencies, Indices, Crypto, ETFs Crypto
Supported Crypto 30+ 500+
Deposit Methods Credit/Debit Card, PayPal, Neteller, Skrill, Rapid Transfer, iDEAL, Klarna/Sofort Banking, Bank Transfer, Local Online Banking Credit/Debit Card, Bank Transfer, Crypto
Demo Account Yes (Unlimited) No
Regulation FCA (UK), CySEC (Cyprus), ASIC (Australia) None
Customer Support Email, Live Chat Email, Live Chat
Side-by-side comparison of eToro vs. Binance

CFD Trading

What makes eToro attract more users is its CFD trading offering that is not available in most trading platforms like Binance. Aside from providing a platform where users can buy cryptocurrencies, the ability to transact in CFD trading serves as one of eToro’s most important features.

Bitcoin CFD trading on eToro's platform
Bitcoin CFD trading on eToro's platform

CFD or contract-for-difference is a contract between a buyer and a seller which instructs that the buyer must compensated the seller with the difference between the present price of the asset and its value at the time of the contract. CFD trading gives investors a chance to earn from the price movement of financial assets even without owning that said asset.

Account Types

eToro provides flexible account classifications for its users depending on their level of investment. Accounts are grouped into a tiered-type of membership known as the eToro Club. Loaded with features, perks, privileges and other offerings all depending on the user’s equity holdings.

Here are eToro's membership categories:

  • Silver
  • Gold
  • Platinum
  • Platinum​+
  • Diamond

Binance only offers a regular account but gives users to its roster of more than 150 cryptocurrencies to trade and invest on.

Demo Account

eToro also provides users with a demo account that comes with a virtual money of $100,000 for them to use in harnessing trading skills by investing in mock trades. Using the demo account also help traders get a feel of familiarization on how trading in the real world would be like.

eToro web-based platform in Virtual Portfolio mode
eToro web-based platform in Virtual Portfolio mode

Binance does not offer a demo account for its users to practice on cryptocurrency trading—therefore, make sure to be already familiar with the ins and outs plus the concepts of crypto trading before using it.

In case you want to check out eToro’s demo account, you can do so via the button below but in order to utilize their virtual portfolio, you’ll need to open an account first but don’t’ worry, you won’t be required to make a deposit if you’re not ready yet. Should you decide to do live trading, you can easily fund your account and use this capital to start investing!


GO EXPLORE THE DEMO!

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Assets

When it comes to exclusively trading cryptocurrencies, Binance's 500 and growing crypto coins will be more than enough for any budding crypto trader. eToro only offers 30+ cryptocurrencies available for trading. However, eToro has a diverse list of other financial instruments for trading such as forex, stocks, currency pairs and more. That's over 3000 instruments to choose from.

Comparison of eToro and Binance's tradable assets
Comparison of eToro and Binance's tradable assets

If you're looking to trade on the major cryptos like Bitcoin, Ripple, Ether, Dogecoin, but is also looking to diversify your investments through other financial instruments, then eToro might fit your trading needs better. However, if you want to trade exclusively on cryptocurrency, then the growing crypto coins in Binance will provide you with more crypto investing opportunities.

Fees

Trading in Binance will cost traders a fixed 0.01% trading fee which can be further reduced by 25% when using a BNB (Binance coin) token to pay. Other fees in Binance includes a $10 fee for each credit card purchase.

Actually, the fee for every purchase is 3.5% but never goes less than the minimum $10.

eToro imposes a fee structure that can increase if you trade with less liquid assets or trading currency pairs. eToro basically makes money on the spread between the buy and ask price.

On average, when trading popular instruments like crypto's Bitcoin, expect a fee from 0.75% to 2% which can go up to 3.5%. For diverse investments, you can be alright with eToro's fees but if you want to exclusively trade in cryptocurrencies, the Binance' low fees on its crypto transactions would be the one for you.

Features

eToro's CopyTrading feature gives it a big edge from other trading platforms. With the CopyTrading feature, eToro gives users a chance to literally copy the buys and sells of successful eToro traders.

Binance recently added a margin trading feature to its platform, joining eToro and a few other trading platforms to offer it. Although Binance and eToro almost have a similar set of features—with the exception of eToro's CopyTrading—eToro's wider portfolio of financial instruments gives it a wide edge over Binance.

Binance web-based platform
Binance web-based platform

User-Friendliness

Look:
eToro has an easy-to-understand interface with option setups properly grouped together and its 1-click trading and fixed spreads process, gives users an easier time exploring all the features and capabilities of eToro than the interface of Binance.

Regulation

Important to keep in mind: Being with a broker or exchange that has a license to operate is the much better choice as it further proves that it is serious in making business with their clients. It also gives you an assurance that they are monitored by financial authorities.

eToro is a multi-regulated brand and currently has licenses from the following:

  • Cyprus Securities & Exchange Commission (CySEC): eToro (Europe) Ltd. is licensed with company registration # HE20058.
  • Financial Conduct Authority (FCA): eToro (UK) Ltd. is authorised and regulated with company registration # 7973792.
  • Australian Securities and Investments Commission (ASIC): eToro AUS Capital Pty Ltd. is the holder of an Australian Financial Services Licence (AFSL) 491139 issued by this regulator.

On the other hand, while Binance is known to be one of the world's largest cryptocurrency trading platforms, it does not have any licenses from known financial authorities like FCA, SFC or MFSA. In fact, it has not registered with the FCA and is not allowed to operate an exchange in the UK.

Conclusion

Unless you are trading crypto exclusively, it’s hard to beat eToro. From its 1-click trading and fixed spreads, to its CopyTrading feature, Demo Account and even the account catering to Islamic traders, Binance will have some mileage to catch-up.

For trading crypto exclusively, Binance presents a solid trading platform. However, as we know how most investors eventually wind up wanting to diversify their investments, the robust features and the additional financial instruments available in eToro becomes a more appealing option.


Have you decided to trade with eToro?

If you’re interested to explore eToro’s online investment services then you can quickly get started by clicking the button below. This will open their registration page so you can have an active online trading account and start investing!

YES, TAKE ME TO ETORO!


eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% 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.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

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.

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*67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.