eToro vs Binance

Introduction

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.

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.

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.

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.

77% 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.

Comparison

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

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.

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 500 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.

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!

77% 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.

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.

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.

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.