eToro vs Binance | Use Both Platforms But For Different Reasons
Jack Moreau
Mar 2024
9 min read
Fact checked
Looking for the best crypto exchange for your needs? Look no further than our comparison of eToro vs Binance. We've analyzed everything from fees and product offerings to KYC requirements and deposit methods. Keep reading to find out which exchange comes out on top for you.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
eToro USA LLC: Investments are subject to market risk. Including the possible loss of principal. Don’t invest unless you’re prepared to lose all the money you invest.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
eToro USA LLC: Investments are subject to market risk. Including the possible loss of principal. Don’t invest unless you’re prepared to lose all the money you invest.
If you're looking to trade cryptocurrency, two exchanges that are likely at the top of your list are eToro and Binance. Both exchanges have made a name for themselves by offering a range of trading options to users around the globe.
eToro was founded in 2007 and is a global trading platform that allows users to trade a variety of financial instruments, including cryptocurrencies, stocks and ETFs. With 30 million users in over 140 support countries, it's one of the largest exchanges/brokers in the industry.
eToro exchange
eToro offers a user-friendly interface along with social trading features that allow users to follow and copy the trades of successful investors.
The exchange supports a limited range of 80 cryptocurrencies, but also allows users to trade other financial instruments like stocks and ETFs.
eToro app
eToro is available in over 140 countries and has it's main office in Tel Aviv, Israel, and legal entities in the US, UK, EU and Australia.
On the other hand, Binance was founded in 2017 and is the largest trading platform in the world with 150 million users.
The exchange supports over 350 cryptocurrencies with numerous trading pairs like BTC, ETH, USDT, USDC, BNB and BUSD.
Binance exchange
Binance is also known for its comprehensive suite of services which includes spot trading, futures trading, earning products, and variety of DeFi products.
One reason for the wide variety of trading services offered by Binance is due in part to the fact that Binance is based in the Cayman Islands.
Both eToro and Binance are available on Android and IOS with eToro having a 4-star rating on Google Play based on over 100,000 reviews, while the Binance app has a 4.4-star rating based on over 1 million reviews.
Binance app
eToro vs Binance Signup & KYC
While eToro and Binance differ in terms of their product offering, one thing that both of them have in common is KYC requirements. Let's take a closer look at the signup process and KYC requirements for each of these exchanges.
Binance requires users to verify their identity through a Know Your Customer (KYC) process and users can't trade before having completed it. Creating a Binance account takes less than a minute but in order to unlock full account privileges, users must verify their account.
Binance KYC
Submitting all of the required information and documents for verification such as country of residence, address and government ID takes a few minutes tops.
Generally, the KYC verification process on Binance can be as short as 15 minutes but can take up to 2-3 business days in some cases to complete.
Similar to Binance, eToro also requires KYC verification for trading on their platform. Users just need to enter a username, email and confirm the email verification.
To get verified on eToro, users must submit personal information, country of residence, address etc together with a valid government ID.
eToro KYC
Once the information has been provided, it can take eToro up to 1-2 business days to process the information and verify the account. While the KYC process differs slightly between eToro and Binance, the punchline is that no trading can occur without it.
eToro vs Binance Products & Services
When it comes to eToro and Binance, there are some notable differences in the products and services that they offer.
eToro stands out as a comprehensive trading platform that seamlessly accommodates a variety of trading needs, offering a broad spectrum of financial assets and essential tools for trading.
Central to eToro's offerings is its expansive asset portfolio. It houses more than 3,200 prime stocks from global giants like Apple, Google, Microsoft and Amazon.
eToro Stocks
Traders can also navigate the diverse landscapes of over 50 currencies, more than 30 commodities, and an array of 20+ world indices. At the time of writing, commodities, currencies and indices are not available to users in the United States.
eToro Indices
For the digitally inclined, eToro extends access to a robust lineup of over 70 cryptocurrencies, with major players like Bitcoin and Ethereum leading the pack.
eToro Cryptocurrencies
And for those seeking a mix in their investment strategy, eToro's list of over 400 ETFs featuring household names like SPDR S&P 500 and Ark Innovation, comes in handy.
eToro ETFs
Through its dedicated eToro Academy, users can gain access to a vast repository of learning materials encompassing courses, insightful webinars, and step-by-step tutorials.
eToro Academy
eToro has a collaboration with TradingView that provides users with intricate charts that serve as valuable decision-making aids.
eToro Trading Tools
To help traders strategise, there are user-friendly risk management tools, allowing for setting up profit targets and safeguarding against unexpected market dips. Stop Loss and Take Profit are not guaranteed.
For beginners or those wishing to experiment without financial implications, eToro offers a demo mode which is a virtual fund to simulate real-market trading.
eToro Demo Account
Another innovative feature that sets eToro apart is its CopyTrader feature. This tool lets users observe and emulate the trading activities of seasoned market professionals, fostering a social trading environment.
eToro Copy Trading (Past performances are not an indication of future results)
To round off its versatile offerings, eToro has ventured into the trending NFT space through its Delta platform. Here, users can effortlessly transact in NFTs on the Ethereum blockchain.
eToro NFTs
Compared to eToro, Binance provides a more crypto focused variety of trading services that includes spot trading, futures trading, margin trading, perpetual swaps (perps), and options trading.
Binance spot trading
Binance also offers contracts that can be settled either perpetually or on a quarterly basis, using USDT, BUSD, or other cryptocurrencies. Binance also offers trading bots and copy trading, which allows users to follow and copy the trades of successful traders automatically.
Leveraged tokens on Binance
Liquidity on Binance is one of the best in the world with daily spot trading volumes frequently exceeding $10 billion. When it comes to leverage, eToro does not provide any kind of leverage, while Binance offers a max leverage of up to 125X on futures.
Binance future contracts
Additionally, margin trading is available on Binance with up to 5X leverage with USDT, BUSD, BNB, BT, Alts, and fiat as underlying collateral.
Besides this already wide range of products, Binance also offers it's own non-custodial wallet in Trust Wallet, it's own NFT marketplace, Proof of Reserves and custody solutions for institutions.
Binance NFTs
And for those that wish to earn interest on their digital assets, they can do so on Binance via lending and borrowing, DeFi vaults and a range of staking opportunities for cryptocurrencies like BNB, ATOM, DOT, SOL and others.
When it comes to trading fees, eToro and Binance offer different options for their users.
Let's start with eToro, which charges a 1% fee for buying and selling cryptocurrencies. Unfortunately, eToro does not offer any rebates for higher trading volumes, so users are stuck with that 1% fee regardless of how much they trade.
eToro Crypto Fees
Users on eToro can also buy and sell stocks without having to pay any commission, nor any rollover or management fees.
eToro Stock Fees
On the other hand, Binance offers a more competitive trading fee structure. For spot trading, Binance charges a maker fee of 0.1% and a taker fee of 0.10%. If you're into futures trading, the maker fee is equally competitive with 0.02% for makers and the taker fee is 0.04%.
Binance spot fees
One thing to note is that trading fees on Binance can be lowered if monthly trade volumes exceed $1 million or if users hold at least 25 BNB tokens.
While it's clear that Binance offers much lower trading fees, for some, the simplicity of eToro maybe worth paying higher trading fees. For more experienced investors or traders, they are more likely to be taking advantage of the competitive fees of Binance.
Let's take a closer look at the deposit options available on each platform. Starting with eToro, this exchange supports four fiat currencies including USD, EUR, GBP and AUD.
In terms of deposit methods, eToro offers users the choice between bank transfer, PayPal, Skrill, Neteller and debit card. All fiat deposits are completely free of charge on eToro which is pretty awesome. Conversion fee may however be applied as deposits are conducted in $.
Binance supports over 20 fiat currencies such as USD, EUR, AUD, GBP, SEK, DKK, PLN and many others. The fiat deposit methods for Binance include Bank transfers via Swift, Signet, SEPA and Faster Payments (FSP). Fiat deposits are also possible with Visa, Mastercard, PayID and Advacash.
Binance fiat deposit
In terms of trading fees, fiat currencies deposited with Visa and Mastercard incur a 1.8% fee while bank transfer via SEPA come with a low 1 EUR fee. For those that have an Advcash account, they can make fiat deposit by paying a 1.5% fee. Clearly bank deposits are the way to go for those that want to save on deposit fees.
As we can see, both eToro and Binance offer a range of deposit methods for their users. Binance has the edge in terms of number of fiat currencies and deposit methods, while the free bank deposits offered by eToro are hard to beat.
eToro offers two withdrawal methods for fiat currencies, bank account an debit/credit card. when it comes to withdrawing funds from eToro, there is a $5 withdrawal fee for both methods. Additionally, if you have a fiat currency besides USD, you will be subject to conversion fees.
As expected, Binance offers multiple withdrawal methods for fiat currencies including SWIFT for USD, SEPA for EUR, and Faster Payments for GBP. While Binance charges a 1.8% withdrawal fee for fiat withdrawals with Visa and MasterCard, SEPA withdrawals have once again a low 1 EUR withdrawal fee. Moreover, many other fiat currencies have free bank withdrawals.
Binance fiat withdrawal
Moving on to cryptocurrency withdrawals, Binance like all exchanges has varying withdrawal fees depending on the cryptocurrency. The BTC withdrawal fee is 0.0002, the ETH withdrawal fee is 0.000768 and the SOL withdrawal fee is 0.008. For USDT (ERC-20) withdrawals, Binance charges 2.5 USDT. These are low withdrawal fees overall and kudos to Binance for not over charging here.
While both eToro and Binance have millions of users worldwide, they have some key differences in the products they offer, their user demographics, and their fee structures.
eToro is primarly a trading platform that allows mainly beginners and investors to trade a wide variety of over 3,000 financial instruments including 80 cryptocurrencies and 100s of stocks.
In contrast, Binance for the time being is solely dedicated to cryptocurrency trading, offering a wider range of services to its users, including spot trading, futures margin, options, earn products, staking, NFTs and much more. Binance supports over 350 cryptocurrencies and low trading fees of only 0.1% for makers and takers compared to 1% for eToro.
Another key difference is the user base. While both exchanges have millions of users worldwide, their user demographics differ. eToro has a stronger presence in North America and Europe while Binance has a more global user base with availability in over 180 countries.
So for those that wish to access a one stop shop for all types of investing, eToro offers is the right place to be with it's simple and easy to use interface. For those that want access to a boatload of crypto trading features with low trading fees, Binance is clearly the answer.
Disclaimer
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured.
Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance.
luckyaltcoin.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
eToro USA LLC: Investments are subject to market risk. Including the possible loss of principal. Don’t invest unless you’re prepared to lose all the money you invest.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
eToro USA LLC: Investments are subject to market risk. Including the possible loss of principal. Don’t invest unless you’re prepared to lose all the money you invest.
Author
Jack Moreau
Jack is a crypto writer and reviewer who has been active in the space since he caught the crypto bug in 2017. With a passion for trying out new shiny things, Jack is always eager to try the latest cryptocurrency exchanges, wallets or DeFi applications.
