Everyone seems interested in trading cryptocurrency. But you must have also heard some horror stories about investments that didn’t go as planned. 

When you’re trading cryptocurrency, the platform you choose for your investment significantly impacts your experience. Since the market is surging in popularity, more exchange platforms are available for beginner and seasoned traders. 

Among the leading names eToro and Binance, each offering different features and benefits, although at their core these two platforms work similarly. Our comprehensive eToro vs. Binance will highlight each platform’s strengths, weaknesses, and suitability for different traders. By reading this article, you’ll have all the necessary data to help you pick the most adequate cryptocurrency trading platform.

TL;DR

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• eToro is a social trading platform with a user-friendly experience. It offers copy trading features and a diverse range of assets beyond cryptocurrencies.
• Binance is a dedicated cryptocurrency exchange known for its vast selection of cryptocurrencies, advanced trading tools, and low trading fees.
• eToro is more suitable for beginners and those seeking a simplified entry into investing. Binance caters to experienced traders with its advanced features and focus on cryptocurrencies.
• Both platforms offer robust security measures, but eToro has the advantage of being regulated by various financial authorities.
• Binance generally offers lower trading fees, especially for those using its native Binance Coin (BNB).

Criteria Breakdown

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Several factors will impact your crypto trading experience. We used these same factors in our detailed eToro vs. Binance Australia comparison to shed light on each platform. 

These include trading fees, safety and regulations, user experience, customer support, and available payment methods. 

We analysed each platform’s performance according to these metrics to better understand all its strengths and weaknesses. You can make an informed investment decision powered by the information these measures provide. By using this data, you can better choose a platform that suits your trading goals and preferences.

eToro

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What eToro is Best Known For

It has a user-friendly interface, which combined with its accessibility, makes it an excellent choice for beginners and first-time users. Thanks to the diverse range of assets it supports, eToro suits all traders of all experience levels.

eToro Description

eToro has cemented its status as a leading social trading platform since its launch in 2007. Traders have access to multiple types of assets including cryptocurrencies, stocks, indices, ETFs, and commodities, making it a versatile platform that works for first-time and seasoned traders. 

This platform combines a traditional investment approach with a solid social network, offering a blend of both to help traders maximise their profits. This is done by allowing them to follow in the footsteps of successful traders for financial gains. 

As a result, this platform gives first-time traders supported access to online trading while helping more experienced users make profits. 

eToro Features

As a multi-asset platform, eToro offers several unique features that appeal to all traders and investors. 

• Thanks to the user-friendly graphical user interface, or GUI, anyone can access and start trading with eToro. Less experienced and first-time traders won’t feel lost when they use this platform as it caters to the needs of new and seasoned users. 
• This platform offers ready-made smart portfolios curated by eToro analysts. Each one of these portfolios comes with its unique investment strategy based on the financial goals you set. Yet, it’s managed by an automated algorithm, allowing traders to access major market trends without paying portfolio management fees. 
• eToro offers the CopyTrader feature, allowing users to replicate other traders’ actions in real time. At the same time, major traders are encouraged to get copied, thanks to the Popular Investor program, which offers unique rewards and perks when they get copied. 
• A busy community of traders and investors that provides beginners with the wisdom of the crowd with a combination of other resources and analytical tools. These factors offer traders a learning opportunity while ensuring a more informed decision-making process. 

eToro Pros

Here are some benefits of using eToro. 

User-Friendly Interface

Even if you’re not tech-savvy, you can still access eToro and start trading, thanks to the user-friendly interface. The platform is straightforward to use, and multiple educational resources exist to help first-time users navigate and use it successfully. 

Social Trading Features

Although trading is mainly a solitary practice, eToro offers social trading features to make it more accessible. Copy trading changes the process into a more collaborative experience, as traders are allowed to copy the moves of major investors. At the same time, successful traders gain unique rewards and perks by making their trading decisions public. 

Encouraging traders to use copy trading makes eToro a great platform for anyone seeking to earn passive income if they’re not confident about their own investment decisions. Moreover, it offers an impressive educational opportunity, where people can learn by following in the footsteps of professional traders. 

Practice Accounts

In addition to the abundant educational tools, eToro offers practice or demo trading accounts for beginners. Using these accounts, first-time and beginner traders can practise and improve their trading skills without risking real money. 

Traders will make mistakes and learn from them before they proceed to the real thing. Moreover, they can discuss their investment strategies with top investors. 

Multiple Asset Classes

eToro is one of the most diverse platforms as it provides access to multiple asset classes. Traders can build well-rounded portfolios and diversify their holdings with a combination of cryptocurrencies, ETFs, stocks, indices, and commodities. 

eToro Cons

Despite these pros, eToro comes with some drawbacks. 

Higher Crypto Trading Fees

Unlike other exchanges that are solely dedicated to crypto trading, eToro charges a higher trading fee. As a trader, you’ll pay a 1% fee every time you buy or sell a crypto asset, included in the quoted price. 

Limited Cryptocurrency Selection

Although eToro has a wide selection of assets, its selection of cryptocurrencies is limited compared to other exchanges. This can be a major drawback to traders interested in crypto trading. 

Withdrawal Fees and Inactivity Fees

eToro charges withdrawal and inactivity fees that add up to increase the cost of using the platform. Withdrawal fees of $5 apply to all withdrawals, in addition to conversion fees if the withdrawal is in a currency other than the USD. 

The platform charges an inactivity monthly fee of $10 of your balance after 12 months of not using the platform.

eToro Criteria Evaluation

Trading Fees 3/5

eToro trading fees make it less appealing to traders on a tight budget. Compared to other exchange platforms, crypto trading fees are higher. 

These fees charged by eToro are divided as follows. 

• An overall withdrawal fee of $5 is applied to all transactions. 
• Crypto trading fees of 1% of the transaction’s value. 
• Crypto asset transfer fee of 2%. 
• Conversion fee if you’re withdrawing using a currency other than the USD, and is determined based on the payment method. 
• A stamp duty reserve tax of 0.5%.
• CFD spreads and overnight fees. 
• Supported Cryptocurrencies 3/5

Currently, eToro supports about 100 crypto assets. While this might seem sufficient if you plan to diversify your investment portfolio, it’s quite limited compared to other exchanges that focus solely on crypto trading. 

The platform offers more than 5000 instruments to appeal to different types of traders and investors. However, its crypto offering, as mentioned earlier, falls short of meeting expectations. 

Regulation and Security 4/5

eToro is a secure and safe platform for all traders, as it’s regulated by various financial authorities. These include the Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC). Such security measures make it an appealing choice to most traders. 

The platform constantly improves its security measures by introducing new procedures and technologies, like the segregated storage of client funds and transparent bankruptcy procedures. Moreover, it provides third-party insurance for non-crypto assets in some countries.

User Experience 5/5

eToro’s intuitive user-friendly interface is one of its biggest assets. You don’t have to be a seasoned tech-savvy trader to use the platform and make money. The application is easy to use and many educational resources are available to help you. 

Moreover, it supports social trading, allowing you to follow and copy successful investors. This feature supports a community-driven environment where people can learn from one another. 

Finally, eToro offers practice demo accounts and smart portfolios. Both help less experienced users learn and accordingly refine their investment strategies. 

Customer Support 3/5

eToro currently offers customer support in multiple languages through their web-based ticketing system. Nevertheless, many users reported that the reply process can be lengthy, leaving their questions unanswered. Live chat support is only available to Club Members, with a minimum account balance of $5000. 

Payment Methods 4/5

eToro accepts different payment methods, including credit cards, debit cards, and bank transfers. The platform offers free debit card deposits and withdrawals for a limited number of fiat currencies. However, this can be an advantage to some traders. 

eToro Community Reviews and Expert Recommendations

In general, eToro receives positive reviews from most users and experts in the trading community. Many users praise the platform’s user-friendly interface and access to community and copy trading, which makes it appealing to first-timers. 

Experts also highlight the platform’s accessibility, especially with the smart portfolios. Nevertheless, the limited number of cryptocurrencies available for traders can be a drawback. 

Here are some testimonials. 

“I love the social trading aspect of eToro. Being able to copy the trades of successful investors has helped me learn a lot and make profits.” – John D. (Source: Trustpilot)

“While the fees are a bit high, eToro’s user-friendly platform and the ability to invest in multiple assets make it a great choice for beginners like me.” – Sarah K. (Source: Sitejabber)

eToro Price

You can have an eToro account for free. The platform charges a 1% fee on cryptocurrency trades, in addition to spreads built into the quoted prices. 

As mentioned earlier, there is also a $5 withdrawal fee per transaction, with a minimum withdrawal amount of $30. Finally, eToro charges a $10 monthly inactivity fee after 12 months of no account activity.

Where to Find eToro

Visit eToro to learn more and start trading like a pro! You can also check out our comprehensive eToro Australia Review for more information.

Binance

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What Binance is Best Known For

This platform isn’t a multi-asset trading platform, as it solely focuses on cryptocurrencies. It offers advanced trading tools and low fees, making it a popular choice among beginner and experienced traders and investors.

Binance Description

Binance was founded as a cryptocurrency exchange in 2017. It offers more than 350 crypto assets for trading, in addition to several advanced features to cater to the needs of blockchain developers. 

This isn’t a multi-asset platform like eToro, as it specialises in crypto trading. As a result, it offers exclusive features like Binance NFT, Binance Earn, and Binance Launchpad to facilitate and support crypto trading. The platform also supports trading bots to educate less experienced investors. 

Binance Features

Binance is dedicated to crypto trading, with several exclusive features to support users looking for a rich investment environment. 

• The offerings include staking, lending, and the ability to trade non-fungible tokens or NFTs. 
• This platform offers an extensive range of cryptocurrencies available for trade, allowing traders to diversify their portfolios and reduce risk. 
• Binance allows users to list, de-list, trade, fundraise, and withdraw cryptocurrencies, in addition to advanced trading tools like margin trading, futures trading, and options trading. These features allow traders to leverage their positions and engage in more complicated investing and trading practices. 
• User-friendly mobile apps are available in advanced and lite modes. 

Binance Pros

Here are some of the pros of using Binance. 

Extensive Crypto Offerings

Binance offers one of the biggest selections of crypto trading options in the trading industry. These include well-established currencies like Bitcoins, in addition to new and niche altcoins. 

Thanks to this diversity, traders and investors can design their trading portfolios based on their preferences, whether looking for a stable or investment. 

Unlike stable commodities, altcoins involve high gain and high loss risks. This means that there’s a bigger opportunity for substantial financial gains with Binance. 

Low Trading Fees

Compared to eToro, Binance offers lower crypto trading fees. Bitcoin and Ethereum trades are free, while other trading fees start at 0.57% of the overall transaction cost. These lower fees make the platform more appealing to those who want to maximise their gains. 

Binance Coin

The Binance Coin or BN is the platform’s native cryptocurrency. The value of this currency is directly linked to the platform’s success and growth, making it a safe choice for traders and investors. 

But that’s not all. By investing in BNs, traders can reduce their transaction trading fees, maximising their profits in the long run. The platform offers a reduction of 25% in transaction fees if you add BNs to your investment portfolio.

Advanced Trading Tools

Binance currently offers several exclusive trading tools. 

• Grid Trading allows the platform to execute automatic trading transactions according to preset conditions, determined by the trader. 
• Time-Weighted Average Price or TWAP allows users to disperse and divide larger orders into smaller ones and execute them at different intervals to minimise the market impact. 
• Advanced TP/SL to execute orders once the price reaches a predetermined level. 
• Drag-and-Adjust TP/SL provides traders with more flexibility by responding to market changes and adjusting the trigger price of their profit and loss stop orders. 
• Multi-Symbol Trading Page to help traders analyse the performance of several assets. 

Binance Cons

In spite of these advantages, several shortcomings can make Binance less appealing to some users. 

Steep Learning Curve for Beginners

Some first-timers and beginners might struggle before they can benefit from all the features of Binance. Its advanced traders provide intermediate-level and experienced users with an excellent trading experience, but they might be difficult to understand if you’re a novice user. 

Those new to crypto trading will need more time to understand all the features and their benefits to enjoy a profitable and rewarding trading experience. 

Regulatory Challenges

Due to its decentralised nature, Binance faced several regulatory issues since its launch. As a result, several countries and regions restricted access to the platform, making it inaccessible to some users. 

Limited Fiat Currencies

Although Binance supports a large number of cryptocurrencies, its support of fiat currencies is limited. This, in turn, can make withdrawal and deposit more challenging and less convenient for some users. 

Binance Criteria Evaluation

Trading Fees 5/5

Compared to other trading exchanges, Binance offers some of the lowest trading fees for cryptocurrencies. Most traders come with a fee of 0.1% trading fee, and users can enjoy additional discounts by paying using the platform’s native currency. As mentioned above, those who use the Binance coin can enjoy a 25% discount on overall fees. 

Supported Cryptocurrencies 5/5

Binance offers an extensive range of cryptocurrencies and assets compared to eToro and other exchange platforms. The numbers keep increasing, offering traders and investors numerous opportunities to diversify their portfolios. 

Moreover, as the platform introduces new currencies all the time, it offers an exclusive opportunity to explore emerging digital assets. 

Regulation and Security 3/5

Although Binance implements some security measures like cold storage for most of its assets and mandatory KYC verification for most features, this platform faces several regulatory challenges. Binance’s hit with spam act breach resulted in a $2 million fine. 

The platform has a decentralised nature, which makes it more difficult to control. As a result, some countries and jurisdictions have limited its access, affecting the number of potential users. 

User Experience 4/5

Binance offers an enriching, trade experience to those interested in crypto trading. However, as discussed, its interface and trading tools can be quite challenging and overwhelming for beginners. First-time users will more than likely need some time before they can fully understand the platform’s potential. 

On the other hand, its mobile app offers an excellent trading experience on the go. Thanks to this app, traders won’t have limited access wherever they are. 

Customer Support 4/5

Binance offers 24/7 customer support through its live chat. Moreover, the company’s experts and representatives often engage in online discussions., offering assistance on third-party forums like Reddit. 

However, before talking to a real person in the live chat, you’ll have to talk to a bot. This might be frustrating and time-consuming for those who need immediate assistance. 

Payment Methods 4/5

Just like eToro, Binance accepts several payment methods like bank transfers and credit and debit cards. However, users can pay extra fees associated with using their cards, adding to the cost of trading on Binance. 

The platform also supports several fiat currencies for payment transactions. However, its offering is still limited, affecting the experience of some users compared to other exchange platforms. 

Binance Community Reviews and Expert Recommendations

Binance has received widespread acclaim within the cryptocurrency community from users and experts. Many users praise its vast range of available crypto assets, while experts highlight its exclusive trading features. 

Moreover, it charges lower trading fees compared to other platforms. Using its native cryptocurrency is an additional plus. Nevertheless, the platform might be less inviting to first-time users, having a steep learning curve that can be an obstacle to many. 

Here are some testimonials. 

“Binance has an incredible selection of cryptocurrencies, and the fees are very reasonable, especially if you use BNB. The trading tools are also top-notch.” – Mike T. (Source: Reddit)

“As a beginner, I found the Binance interface a bit overwhelming at first. But once I got the hang of it, the low fees and advanced features made it worth it.” – Emily W. (Source: TrustPilot)

Binance Price

Binance charges a standard trading fee of 0.1% for most trades, which can be reduced 25% by paying fees with Binance Coin (BNB) (as mentioned above). Additionally, there are withdrawal fees that vary by cryptocurrency (e.g., 0.00057 BTC for Bitcoin, 0.0012 ETH for Ethereum).

Where to Find Binance

Visit Binance to check it out for yourself. For users in the United States, Binance offers a separate platform called Binance.US.

Alternative Options

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The following options might appeal to you if you don’t enjoy your experience on eToro or Binance. 

Coinbase

Coinbase is a popular trading exchange that works for beginners. Like Binance, it’s dedicated to cryptocurrency trading, but it’s more user-friendly. However, it offers a limited selection of crypto assets compared to Binance. 

It’s a regulated exchange, which makes it a safer choice and can provide an easy way to trade famous cryptocurrencies like Bitcoin, Ethereum, and Litecoin.

Kraken

Kraken is a cryptocurrency exchange that works for beginner and experienced traders. It offers a wider range of cryptocurrencies compared to eToro, but it still falls behind when compared to Binance. 

This trading platform offers several advanced trading tools like margin trading, but the fees can go up to 5%. Despite its commitment to compliance and regulatory and safety measures, this platform isn’t available or accessible at all locations. 

Robinhood

Robinhood is primarily a stock trading app. However, it allows users to trade selected cryptocurrencies including Bitcoin, Ethereum, and Dogecoin. 

This is a beginner-friendly platform with a simple interface. Moreover, it has no trading fees for crypto transactions. Its cryptocurrency selection is limited compared to dedicated exchanges like Binance. It might be a good choice if you’re primarily interested in stock trading but want to give crypto trading a try.

Valuable Resources

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Privacy Australia is a website focused on providing in-depth information and reviews about virtual private networks (VPNs) and other privacy-related tools. 

While not a direct alternative to eToro or Binance as a trading platform, Privacy Australia can be a valuable resource for individuals concerned about online privacy and security when engaging in cryptocurrency trading or other online activities.

Using the information available on Privacy Australia, traders and investors can make informed decisions that maximise their gains and protect their investments. It’s a complementary resource to traditional cryptocurrency exchanges for privacy-conscious traders.

FAQs

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Is eToro or Binance better for beginners? 

Generally speaking, eToro is a better choice for beginner traders. It features a user-friendly interface and offers exclusive features like copy trading to help novice users. 

Copy trading provides investors with a valuable tool to learn from more seasoned traders as well as minimise their investment risks. Moreover, the platform offers demo accounts for first-timers to help them learn about trading without risking their money. So if you want to learn how to invest in cryptocurrency for beginners, eToro would be the way to go. 

Which platform has lower trading fees, eToro or Binance? 

Binance has lower crypto trading fees. This platform charges a standard fee of 0.1%, which can be lowered by 25% when traders use Binance Coin or BNB. 

On the other hand, eToro charges 1% trading fees on cryptocurrency transactions, in addition to spreads added to quoted prices. 

Is eToro or Binance more regulated and secure? 

eToro is considered more regulated and secure than Binance. The Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC) regulate and supervise the transactions performed on eToro providing traders and investors with peace of mind. 

But that’s not all. eToro also offers segregated storage of client funds and transparent bankruptcy procedures, making it a safe choice for most traders. 

Binance has a decentralised nature. This feature makes it more challenging to govern than eToro. The platform still offers some robust security measures like cold storage for assets and mandatory KYC verification but its regulatory status is under par in some locations. 

What are the main differences between eToro and Binance in terms of supported assets? 

eToro offers a wider collection of trading assets, including cryptocurrencies, stocks, indices, and other commodities. However, its collection of cryptocurrencies is pretty limited compared to other platforms. Nevertheless, it will work for traders interested in building diverse portfolios. 

Binance is dedicated to crypto assets. It offers more cryptocurrencies and provides access to niche altcoins that traders might not be able to access elsewhere. It’s more suitable for those interested in the crypto trading world. 

Can users withdraw their cryptocurrencies from eToro and Binance to personal wallets? 

Yes, both platforms allow users to withdraw their cryptocurrencies directly to their personal wallets. However, the process is done differently on each platform. 

eToro allows users to transfer their cryptocurrencies to eToro’s non-custodial wallet called eToro Money. However, this transaction is one-way and it requires some additional information. Moreover, there could be some delays. 

Binance is more flexible, allowing users to withdraw funds to almost any blockchain address in several wallets, including the recommended Trust Wallet, which Binance acquired in 2018. This makes it more appealing to some users.

Final Thoughts

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Choosing between eToro and Binance is a matter of personal preference that should be based on your trading goals and experience level. 

eToro is a beginner-friendly exchange and trading platform with robust social trading features. It also offers a diverse number of assets, making it an excellent choice for beginner and seasoned traders. 

Binance is dedicated to crypto trading, featuring more crypto assets than eToro. It also offers several exclusive crypto trading features to help investors maximise their profits, and it charges lower trading fees. 

It’s crucial to remember that each platform has its strengths and weaknesses, that you should take into consideration in your Binance vs eToro Australia comparison. 

For example, some might be discouraged by eToro’s higher fees, but others will consider it more suitable for those who want to minimise the volatility of their investments. On the other hand, Binance’s regulatory challenges and steep learning curve might be an obstacle to many, although it offers lower trading charges. 

When you’re evaluating these two platforms, it’s crucial to think about all the fees, supported assets, user experience, security, and customer support to choose one that works for you. 

At Privacy Australia we’ll provide you with valuable information and independent research to help you maintain your online privacy and security while you’re doing things online such as crypto trading. For more from Privacy Australia, explore our research check out our post: how is crypto taxed.

Whether you choose eToro, Binance, or explore alternative options, remember to prioritise online privacy to protect your digital assets and personal information. With the right platform and complementary resources, you can embark on your cryptocurrency trading journey with confidence and peace of mind.

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