eToro vs Binance - Which provider is better? Direct comparison of online brokers

Binance vs eToro - the big comparison 2021.

The meteoric rise of the Bitcoin makes it clear that cryptocurrencies will be among the most promising forms of investment in 2021. If you want to profit from Bitcoins or other cryptocurrencies yourself, the first step is to look for a suitable crypto exchange that can convince you with its offer, user-friendliness and price-performance ratio.

Therefore, we put two of the largest trading portals to the test in our big broker comparison 2021. What does the offer include, what about security and data protection and how high are the costs? These and other questions are answered in detail in our big binance vs etoro comparison 2021.

eToro vs Binance

Short comparison eToro and Binance

Binance vs eToro - where is the best place to trade cryptocurrencies? In the following section we look at the companies behind the trading platforms.


eToro

Binance

Mobile app

+

+

Wallet

+

-

Number of coins

27

30th

Trading fees

Spreads

from 0.012%

Deposit fees

N / A

0 €

Withdrawal Fees

5 USD

approx. € 1.50

Regulated

CySec, FCA

-

Min. Deposit

200 USD

no

Leveraged trading

1:30

1: 125

Bitcoin

€ 33396.57

€ 32785.00

Ethereum

€ 2130.83

€ 2030.16

XRP

€ 0.73

€ 0.71

Litecoin

€ 147.54

€ 143.01

Bitcoin Cash

€ 525.54

€ 516.82

Chainlink

€ 20.28

€ 20.23

Cardano

€ 1.33

€ 1.27

IOTA

€ 0.95

€ 1.58

Binance Coin

€ 308.99

€ 300.49

Stellar

€ 0.29

€ 0.27

EOS

€ 4.43

€ 4.22

Instant bank transfer

+

-

Sepa transfer

+

+

Credit card

+

+

Paypal

+

-

Skrill

+

-

Buy cryptos with eToro

eToro is much more than a pure crypto exchange. Rather, it is an online broker that offers a wide range of cryptocurrencies and even its own crypto wallet.

eToro was founded in 2007 and has quickly made a name for itself as a trustworthy discount broker. The term "discount broker" encompasses the new generation of online brokers that provide users with a cheap, mobile and all-inclusive brokerage service.

As we will see in more detail later, buying investments from brokers is considered safest as they are bound by strict regulations. eToro, for example, is regulated by two European financial authorities at once, which means that investments are protected under EU law and there is even deposit protection of up to €20,000.

eToro's current offering includes 16 of the most popular cryptocurrencies as well as a range of other investments, such as forex, stocks, CFDs and ETFs.

binance

In contrast to eToro, Binance is a pure crypto exchange. According to its own data, almost 1.4 million transactions are completed on Binance per second, making the crypto exchange one of the most successful trading platforms in the world.

Binance was developed in 2017 by Chinese-Canadian businessman Changpeng Zhao. Initially, the company was headquartered in China, but this was moved to Malta due to increasing regulations.

Since Binance is not a broker in the traditional sense, the provider is not subject to any financial supervisory authority. Crypto exchanges are still uncharted territory for most countries, which also makes the regulations more opaque compared to brokers. In the past, Binance has managed to expand into new markets by buying different platforms.

The provider maintains different subsidiaries in different regions, which are organised in a decentralised manner, but all belong to the Binance ecosystem. The Binance ecosystem includes the Binance Exchange, the Binance Chain, the Trust Wallet and a whole range of other institutions.


eToro

Binance

active since

2007

2017

publicly traded

No

No

Approval in the EU

Yes

No

Number of Tier 1 licenses

2

0

Number of tier 2 licenses

1

0

Number of tier 3 licenses

1

0

Headquarters

UK / Cyprus / Israel

Malta

Costs and fees comparison

Cost comparison: As the two counterparties are platforms with a different business model, the costs and fees are only comparable to a limited extent. When it comes to cryptocurrencies, for example, the online broker eToro does not charge any commissions and only charges spreads on the transactions, which can range from 0.75% to 5% depending on the product, while Binance charges a flat rate of 0.1% in transaction costs.

In addition, with Binance it is not only possible to buy cryptocurrencies, but also to earn interest at the same time. Here, Binance offers a range of different savings products where investors can invest their cryptocurrencies and earn interest in the double-digit percentage range - depending on the amount, investors can even generate a side income here.


eToro

Binance

Custody account management

Free

Free

Inactivity charges

After 12 months without login, 10 USD per month

n / A

Stocks & ETFs order costs

Free, spread only; for ETF plus ETF-specific management fees

Not on offer

Funds

n / A

Not on offer

CFDs

Free of charge, spread + overnight charges only, if applicable

Not on offer

Savings plans

n / A

Not on offer

Bonds

n / A

Not on offer

Crypto

Free, spread only

0.1% of the transaction costs,
0.05% for BNB tokens

Spreads

Stocks & ETFs: from 0.2%
CFDs: from 1 pip / 0.01%
Crypto: from 0.75%

No spreads

Overnight positions

Yes, depending on the leverage / margin / position

No

Currency trading fees

From 50 pip / 0.5%

Not on offer

Withdrawal Fees

$ 5 per withdrawal

Product dependent

Deposit fees

No

Free

Commissions on stocks

No

Not on offer

Account comparison

Binance vs eToro - Account comparison. The accounts of the two providers differ depending on the amount of deposits. The higher the account level, the more advantages await account holders. The following is a comparison of the most common account types at Binance vs eToro.

eToro

The eToro VIP status is divided into 5 different account types:

  • Silver Tier: Starting with a Silver account, users have access to numerous market webcasts as well as data-based CopyPortfolios, which can increase trading efficiency. In addition, Silver Tier holders receive an account manager who prioritises account holders. Users in the EU or UK can also benefit from an eToro debit card, which is due to be released in 2021.
  • Gold Tier: In addition to all Silver Tier benefits, Gold members also receive enhanced customer service, real-time webcasts, expert updates, and access to detailed market analysis that facilitates investment decisions for cryptocurrencies or other forms of investment.
  • Platinum Tier: Platinum members get all the Gold Tier benefits, plus a range of other attractive bonus features. These include zero withdrawal fees, a subscription to the Wall Street Journal and access to the Delta PRO Investment Tracker app and Trading Central, which sends trading signals to account holders.
  • Platinum+ Tier: Platinum+ gives account holders personal Zoom meetings with account managers and exclusive entry to sporting and cultural events organised by eToro.
  • Diamond Tier: The highest level at eToro is the Diamond Tier. This gives members all the benefits of Platinum+ Tier members, plus a subscription to the Financial Times and zero exchange fees. Diamond members also have access to meetings that are reserved for Diamond Tier members only.

Binance

Binance has a total of 10 different VIP levels to offer, which have a direct impact on trading costs.

VIP0 users have a trading volume of less than 50 BTCs and / or an account balance of less than 50 BNB and therefore have to pay transaction costs of 0.1%. 

The highest level "VIP9" requires a trading volume of over 150,000 BTC and / or an account balance of over 11,000 BNB. The transaction costs are reduced to only 0.02% for the most financially strong traders.


etoro

Binance

Standard account    

Yes

Yes

Demo account

Yes

Yes

Mini account

No

No

Micro account

No

No

VIP account

Yes

Yes

Wallet

Yes

Yes

Trading instruments

As an online broker, eToro can score points with a much wider range of products compared to Binance. While Binance specialises primarily in cryptocurrencies, currency pairs and selected derivatives, eToro can offer all common trading instruments, including CFDs, ETFs, shares and of course all common cryptocurrencies.

Conversely, this does not mean that the point automatically goes to eToro. Even if Binance is not as well positioned as eToro in terms of breadth, the crypto portal also has a lot of specialised products on offer with over 200 cryptocurrencies and a large number of cryptocurrency and fiat pairs. An overview of all the financial instruments offered can be found in the following table:


etoro

Binance

Shares (number)    

More than 2400

No

raw materials

46

No

ETFs

255

No

Indices

13

No

Forex trading

Yes

No

Currency pairs

52

More than 700

Number of CFDs

More than 2400

No

Cryptocurrencies

16

Over 200

Payment methods

Binance vs eToro - Payment options: eToro offers a variety of payment options that make the provider stand out from the crowd of other online brokers. Whether it's PayPal, credit cards or more exotic payment options, eToro offers a whole range of different options, so users are guaranteed to find the right deal here.

Binance also offers a whole range of payment options; in total, the provider has 62 payment methods to offer, even more than eToro, but these payment methods vary depending on the offer. For example, if you want to add euros to your trading account, you can only use SEPA bank transfer, credit cards, iDEAL as well as Advcash and Etana.

With both providers, the costs can vary depending on the payment method. Therefore, it is important to inform yourself in advance about the desired payment method so that there are no surprises when trading.


etoro

Binance

PayPal  

Yes

Yes

Skrill

Yes

No

Neteller

Yes

No

Credit cards

Yes

Yes

UnionPay

Yes

No

Webmoney

Yes

No

Yandex

Yes

Yes

Bank Transfer

Yes

Yes

Giropay

Yes

No

RIGHT AWAY

Yes

No

Trading conditions

When it comes to trading conditions, eToro is clearly ahead as an online broker. The broker has a wide range of different investment forms in stock. Unlike most other brokers, eToro uses a hybrid market maker model, which makes use of both STP and NDD features. This at least partially resolves the conflict that market makers usually profit from their clients' long positions as soon as they lose value.

Some of our readers may be surprised to learn that Binance, as a crypto exchange, can also offer leveraged products. However, in addition to real coins, the crypto exchange also offers derivatives and other products that allow leverage and margin trading. In the following, we have compared the most important trading conditions of these two different business models.

Trading conditions


eToro

Binance

Scalping

No

No

Hedging

Limited

No

EAs

No

No

STP broker

Yes

No

Market maker

Yes

No

Min. Trade

Shares: 50 USD
Crypto: 25 USD
Currencies: 1000 USD
Commodities: 1000 USD
Indices: 1000 USD
CFDs: Depending on the contract

Depending on the product, 0.05 BNB, 0.0001 BTC, 0.005 ETH, 100 TRX, 10 XRP, 10 USDT, 10 EUR

Max. Trade

n / A

Varies by product

lever

Yes

Yes

Margin trading

Yes

Yes

Min. Deposit

100 USD

No

Seriousness

Solid customer service is not only evident in the licences and in topics such as security and data protection, but also in the educational opportunities made available to customers. And here both eToro and Binance can convince. For example, both providers offer a free and non-binding demo account with which customers can test trading in advance under real market conditions completely risk-free.

eToro can score points with a variety of different media. Through news, analysis blogs and webinars, eToro helps beginners take their first steps towards becoming trading professionals and supports experienced traders with valuable trading information: From blog posts to video material, everything is available.

If you look at the table below, you might think at first glance that eToro is completely ahead here. However, this would be a fallacy.

Because while eToro provides users with a variety of media, Binance limits itself in the Academy to highly informative blog articles on the topic of cryptocurrencies. The articles are categorised according to knowledge level and cover a wide range of topics from the crypto world. The Academy is an integral part of the Binance ecosystem and helps beginners and professionals to educate themselves sufficiently.


eToro

Binance

Beginner Trading Videos

Yes

No

Advanced trading videos

Yes

No

Webinars

Yes

No

Forex learning material

Yes

Yes

CFD learning material

No

No

Glossary of the most important terms

Yes

Yes

Security, protection and licence

Binance vs eToro - security and data protection: When it comes to security, data protection and licences, eToro is clearly ahead. As an online broker, eToro is subject to strict regulations, which benefits its customers. eToro has two Tier 1 licenses as well as one Tier 2 and one Tier 3 license, which offers investors security and protection in a variety of situations.

eToro is regulated by the Cyprus Securities & Exchange Commission, an EU financial regulator, and the Financial Conduct Authority (FCA) in the United Kingdom (eToro UK). Through the Cyprus Securities & Exchange Commission, clients are entitled to up to €20,000 through deposit protection in the event of insolvency. EU legislation also prohibits retail investors from having to make margin calls. Binance is less strictly controlled and therefore cannot match eToro's security standards.


eToro

Binance

License

Cyprus Securities & Exchange Commission (License No. 109/10)

n / A

country

Cyprus

-

SSL

Yes

Yes

Deposit insurance

EUR 20,000

No

Customer service

Both eToro and Binance have now become global platforms with millions of users. Both are considered market leaders in their respective target groups. Therefore, the question arises whether and how a global customer service works in detail.

First of all, both providers have set up a rich FAQ page, which is available. Both providers provide users with a variety of common questions here, so that in many cases there is no need to contact customer service at all.

eToro offers a multilingual customer service that can be contacted via contact form or directly via live chat. We recommend using the live chat, as at the moment, due to increased demand, it can take up to seven days for eToro to get back to customers via email. However, the live chat option can make up for this flaw.

Customer service

But Binance is also well positioned and invests heavily in customer service. The provider has over 150 customer service employees worldwide, who come from 20 different countries.

According to the provider, they can handle an average of more than 1,000 tickets and 3,000 online chats per day, which speaks for the provider. At the moment, Binance's customer service is available in eight different languages, unfortunately not including. However, Binance has promised customers that it will soon hire more customer service staff in Southeast Asia and Europe, so we can possibly expect language customer support in the near future.


eToro

Binance

e-mail

Yes

Yes

phone

No

No

Live chat

Yes

Yes

Website

Yes

Yes

Mobile and app comparison

When it comes to the abundance of apps and application possibilities, Binance wins the race. In addition to the website, eToro offers apps for Android and iOS so that traders always have their finances firmly under control from home and on the go. However, Binance is just getting started here. Binance is available for both iOS and Android and also offers software for macOS, Windows and Linux. Even for older Windows versions, a software app is available.

    The eToro app has already been downloaded over 5 million times in the Google Play Store.
    The Binance app has even been downloaded over 10 million times and, with 4.1 out of 5 stars, even outshines eToro's mobile app.


eToro

Binance

iOS

Yes

Yes

Android

Yes

Yes

Windows

No

Yes

User interface

When it comes to user-friendliness, eToro beats not only Binance but also most other online brokers by a long way. eToro has set up an intuitive and user interface that allows even beginners without any trading experience to participate in the market action. However, it is not only the user interface but also the functionality that sets eToro apart from other providers.

eToro has made the term "social trading" socially acceptable, enabling investors to benefit from the expert knowledge of professional investors and simply copy their trading decisions. This ensures that even beginners can make high profits from the very first minute.

Crypto exchanges, on the other hand, are less intuitive and user-friendly than brokers such as eToro, which may discourage beginners. The learning curve is steeper here.


eToro

Binance

MT4

No

No

MT5

No

No

Web trader

Yes

No

CTrader

No

No

DupliTrade

No

No

ZuluTrade

No

No

Social trading / copy trading

Yes

No

Special features

As already indicated, both eToro and Binance are among the leaders in their markets. It is therefore not surprising that each of these providers has special unique selling points and special functions, which we will discuss in more detail in this section.

eToro is considered the first online broker to make the concept of social trading suitable for the masses. This is where CopyTrading comes into play: beginners often don't know which form of investment to invest in - be it shares, ETFs or even cryptocurrencies. CopyTrading from eToro can provide the necessary remedy here. As the name already suggests, CopyTrading means that investors copy experienced traders and can thus benefit from expert knowledge. How do investors know which expert is right for them? The possible risks and return opportunities are transparent for all investors.

In concrete terms, this means that newcomers can make returns like the professionals. Experienced traders, however, can also profit from CopyTrading. For example, those who want to sensibly expand their own portfolio can invest part of their money in other traders instead of traditional forms of investment. Of course, the copied traders do not go away empty-handed here, but can earn money through the Popular Investor programme.

Binance also has many social features to offer - but in a different way than one would expect at first glance. One very daring feature, for example, is the provider's Battle mode, which combines trades with gamification. In a battle, players with long and short positions of the same investment compete against each other. The player who in the end has made the right choice on rising or falling prices through long or short positions has won the battle and can find himself in the leaderboards depending on his success.

Another special feature that you would not expect from a crypto exchange is the fact that Binance also offers leverage functions and margin trading. The Binance Leverage Tokens, for example, allow leverage from 1.25x to 4x. However, this is not a normal leverage as known from online brokers, but flexible investments. This means that high leverage is automatically applied when prices are rising and low leverage when prices are falling, if investors decide to take long positions.

Binance also has many

Account opening for beginners

Opening an account with eToro and Binance is straightforward and can be completed in just a few minutes. The following is an overview of the registration process with both providers.

Step 1: Register with eToro

Registration with eToro can be completed either via the browser variant or the app. To register with eToro, a Facebook or Google account or an email address is required. To complete the registration process, basic data and trading experience are requested and an online verification is carried out. After the entry, users already have access to the interface and can get a first impression of the functions and even access the free demo account. Here, investors can practice trading under real market conditions with a play money amount of $100,000 and test their trading strategy.

Step 2: Deposit into the eToro account

Once the registration has been completed, money can be deposited into the trading account. As already mentioned, eToro offers investors a variety of payment options, which include credit card, bank transfer, instant banking, Skrill, Neteller or PayPal. Depending on the payment method, it may take some time before the money is received in the trading account.

Step 3: Start crypto trading

After the money has been received, investors can invest in eToro's rich offering. Investment types include stocks, ETFs, CFDs and, of course, cryptocurrencies. *Spreads on CFD trading.

Those who want to invest in cryptocurrencies can even get their own wallet at eToro.

Step 1: Register with Binance

Registering with Binance is also quick and easy. The first step is for users to go to the Binance homepage and click on one of the "Register" fields. Users are then prompted to either enter their email address and create a password or, alternatively, log in with their phone number. In the next step, a six-digit verification code is sent, which must be entered into the number field.


Step 2: Deposit and open a deposit at Binance

Before you can buy cryptocurrencies at Binance, the next step is a verification process. Here, basic information such as first and last name, date of birth and residential address are requested and an ID and face check is completed, in which a document photo and a selfie must be uploaded. Once this step has been completed, the deposit can be started by adding the different payment methods such as SEPA bank transfer, VISA or Mastercard.

Step 3: Start crypto trading

As soon as all steps have been completed, which should only take a few minutes in total, you can start crypto trading. At Binance, members have a huge selection of all popular cryptocurrencies and derivatives at their disposal.

Advantages and disadvantages of the two brokers

Advantages and disadvantages of eToro

The following is a summary of the advantages and disadvantages of eToro:

Pros

  • One of the most popular online brokers
  • Regulated by an EU financial regulator
    Security for investors
  • Many asset classes including stocks, ETFs, CFDs and cryptocurrencies
  • Own eToro Wallet available
  • CopyTrading allows even beginners to make quick profits
  • Many payment methods
  • High quality learning materials for all skill levels
  • Financially strong traders benefit from the eToro Club

Cons

  • Withdrawal fee of 5 USD
  • Less choice of cryptocurrencies
  • Limited number of withdrawal options

Advantages and disadvantages of Binance

The following is a summary of the advantages and disadvantages of Binance:

Pros

  • The largest crypto exchange by trading volume
  • A wide range of coins and tokens
  • Derivatives are also tradable
  • Gamification features provide variety when trading
  • Many payment methods
  • Favourable transaction costs
  • VIP status level reduces transaction costs
  • A rich selection of learning materials

Cons

  • Not under the supervision of an EU financial supervisory authority
  • Only cryptocurrencies are traded
  • Difficult for beginners to understand at first glance

Differences

  • Tradable asset classes

  • Trading conditions

  • Customer support

  • Corporate reputation

  • Tutorials and learning material

The biggest difference between eToro and Binance lies in the tradable asset classes, which differ greatly due to the company structure. While eToro is an online broker that can offer a wide range of tradable asset classes such as stocks, CFDs, ETFs, forex and cryptocurrencies, Binance's investments are limited to cryptocurrencies.

For whom is eToro suitable? For whom Binance?

Binance vs eToro - who is the target group? Even though both providers are among the most popular platforms, they are not automatically suitable for all investor types. In the following, we have compiled a small overview for which investor types which platform is best suited.

eToro

  •    eToro convinces with a wide range of trading instruments, including shares, CFDs, ETFs and of course cryptocurrencies. Here, one's own trading portfolio can be sufficiently diversified to spread the risk in the best possible way.
  •     The intuitive user interface and the social trading functions are ideal for beginners.
  •     Those who want to invest for the long term are optimally protected by the EU licence.
  •     Cryptocurrencies are part of the trading portfolio, so interested users can also invest their money here and then store it in the eToro wallet.

Binance

  •    Binance is primarily suitable for die-hard crypto followers who have already gained initial experience in crypto trading.
  •     Crypto investors also have the option of trading derivatives and levers with Binance.
  •     Binance is less suitable for beginners, as the user interface has a steeper learning curve.

Conclusion - who has the edge?

Binance vs eToro - who can take home the win? Of course, the offerings and target groups of the two platforms differ considerably. For beginners or even investors who do not want to specialise completely in cryptocurrencies, we can warmly recommend eToro.

    The selection of trading instruments at eToro is far greater, as it is a licensed online broker.
    Investors enjoy EU legal security, which is not the case with Binance in this form.
    Through social trading, beginners can benefit from the expert knowledge of experienced traders and generate profits directly from day one.

For these reasons, eToro is our test winner. Due to the greater flexibility and legal security, investors can build up a diversified portfolio to generate profits in the short, medium or long term with zero commissions. Those who would like to test eToro's offer can create an eToro demo account completely free of charge and without obligation.

Cryptoscene

Our recommendation: Buy cryptos with eToro

    Incl. wallet
    Buy and sell cryptocurrencies directly in the wallet
    Paypal, credit card and instant bank transfer
    Regulated provider
    Real cryptos or CFD trades

Hi, my name is Benzion. I have twelve years of experience in the Forex industry, and I have launched two successful crypto trading services. I have in-depth experience on several blockchain networks like Bitcoin, Etheruem, EOS, Cardano, Hyperledger, ICON, Komado, etc. I also have in-depth knowledge of blockchain techniques, including various consensus mechanisms, DLT, smart contracts, security, and privacy measures. Benzion Friedman