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Etoro vs Binance 2024 – WARNING, Everything Exposed!

Publisher

February 7, 2024
Etoro vs Binance Comparison

If you want to trade cryptocurrencies, the first thing to do is choose the right exchange. With hundreds of crypto trading platforms, it can be hard to choose the right one. Etoro and Binance are some of the largest trading platforms in the world. In this Etoro vs Binance comparison, we will expose everything you need to know about the two exchanges.

We will cover trading features, fees, security, KYC requirements, withdrawal and deposit methods, and more.

After this Binance and Etoro guide, you can make an informed decision and select the platform that suits you best! First, we will start with a table comparing all key measures of Binance and Etoro at a glance.

This table compares all key measures of Binance and Etoro, the two largest trading platforms in the world

 

Quick Overview

Etoro was launched in 2007 in Israel and is one of the oldest trading platforms in the world. Due to the rise in popularity of cryptocurrencies, Etoro decided to offer crypto trading in 2013. One key thing to note is that Etoro is not a crypto-focused platform. Initially, Etoro offered trading for stocks, indices, and commodities. With now over 80 tradable crypto assets, Etoro is trying to take a share of the crypto market.

With a user-friendly design and basic trading features, Etoro is a popular broker among beginners. Especially the copy trading feature is heavily marketed by Etoro as it is an interesting product for newbies.

 

Etoro Home Page

 

Binance was launched in 2017 in Canada and is the largest cryptocurrency exchange in the world. With over 100 million users, the highest trading volume, low fees, and comprehensive service all around crypto, Binance has proven many times why they are the market leader. With over 350 cryptos to trade and almost 2000 trading pairs, day traders will have a great time on the platform.

With an advanced interface and a comprehensive spot and futures market, Binance is a top choice for crypto enthusiasts from over 150 countries.

Binance Home Page

 

Etoro and Binance Sign Up & KYC Process

The sign-up process on both platforms is simple and straightforward. An email and a strong password is everything you need to get started. Alternatively, Binance offers users to register with their phone number. Verify your email or phone number with the 6-digit code that you received in your inbox and you are good to go! (almost…)

Binance and Etoro are both regulated trading platforms and require their customers to finalize the KYC process. This is crucial to avoid illegal activities such as money laundering or terrorism financing.

For the Level 1 KYC on Binance, you must provide your ID, Passport, or Driver’s License. Additionally, you need a device to scan your face. Normally, the KYC process on Binance takes no longer than 15 minutes and the instructions are very clear.

Etoro also requires its customers to verify their identity before they can deposit, withdraw, or trade.

 

Trading on Etoro and Binance

Etoro offers over 80 cryptos to trade. Unfortunately, etoro does not provide information about the 24-hour on the platform, however, they show the global trading volume of the respective cryptos which can be very misleading. We suspect that the trading volume on Etoro is very low.

With ridiculously high trading fees of 1% and spreads on BTC of $600, day trading on Etoro is impossible. Furthermore, Etoro charges an inactivity fee for users that didn’t use their account in the last 12 months. The highest leverage for crypto assets is 2x.

While Etoro is an expensive platform to use, it is very beginner friendly and offers basic tools to trade on the platform such as live charts, drawings, and indicators that you can add to the chart. As Etoro is mostly marketed towards beginners rather than experienced traders, the platform does not offer advanced order types, nor does Etoro provide an order book.

Etoro Trading Interface

 

Binance offers over 300 cryptos to trade and has a daily trading volume of over $15 billion. The spot trading fees start at 0.1% for makers and takers, while the futures fees start at 0.02% for makers and 0.04% for takers. With advanced order types such as TWAP and Iceberg orders, margin of up to 10x on the spot market, and 125x leverage on the futures market, Binance offers all the tools that experienced traders require. While the interface is not user-friendly at all, we think that figuring out how Binance works is worth it for every crypto enthusiast that is serious about trading.

Binance Trading Interface

 

Fees Compared: Binance vs Etoro

When comparing the fees, you will quickly notice that Binance and Etoro could not be any more different. Furthermore, we include spread in this comparison which we normally don’t do. The average spread for Bitcoin (on Tier 1 exchanges) is $0.01 to $0.1. However, Etoros spread is a whopping $600. This is a sign of poor liquidity and a lack of market makers.

Etoro Spread Between Bid-Ask Price

 

Also, Etoro does not offer spot trading. When buying cryptos on Etoro, you don’t actually own them. You also can not withdraw them to your personal wallet. Below you will find a

Type Etoro Binance
Spot Fees (Maker / Taker) x / x 0.1% / 0.1%
Futures Fees (Maker/Taker) 1% / 1% 0.02% / 0.04%
BTC Spread (Spot / Futures) x / $600 $0.01 / $0.1

 

Etoro Trading Fees

 

In terms of fees and trading costs, Binance easily beats Etoro. If you are a passive investor and just plan to hold your assets for a long time, Etoro is a good and reliable platform, however, if you are looking to trade cryptos, we highly recommend you stay away from Etoro and use serious crypto exchanges such as Binance.

Binance Trading Fees

 

Visit Binance

 

Copy Trading

If you have seen Etoros advertisements before, you will know that the platform heavily advertises the copy trading feature. This only makes sense, as Etoro is mainly targeting newbies and beginners. The copy trading feature on Etoro is a good way for beginners to let professionals do the work for them. You can select traders to follow based on their past performance. The setup is fairly simple and straightforward.

Etoro Copy Trading

 

Unfortunately, Binance does not have a directly integrated copy trading feature. Yet, there is a way to copy trade on Binance and most people don’t even know about it. With the third-party copy trading provider TraderWagon, you can activate copy trades on Binance. You can analyze the win rate, drawdown, and trade history of traders and make an informed decision if you want to follow a trader or not.

Binance Copy Trading with TraderWagon

 

For copy trading, Etoro takes the lead as it is directly integrated into the platform and very simple to set up. Binance on the other hand requires third-party applications and takes more time to set up.

 

Deposits and Withdrawals

What we love about Etoro is how easy it is to deposit on the platform. While crypto deposits are not supported, you can easily deposit FIAT via credit card, Paypal, Sofort, and bank transfers. The fees are relatively low and Etoro supports FIAT deposits in EUR, GBP, and AUD.

Etoro FIAT Deposit Methods

 

Binance offers FIAT deposits via cards and bank transfers. Card payments have a fee between 1-4%, based on your currency and payment provider. With over 40 different FIAT currencies supported, you should find exactly what you are looking for. If you deposit cryptos via Banktransfer, the fees are fixed at 1€ / 1£.

Binance Crypto Purchase Method

 

As Binance is a comprehensive crypto platform, you can also deposit and withdraw over 200 different cryptocurrencies into and out of your Binance account. The fees for each crypto are different and they are also impacted by the selected network.

Etoro offers FIAT withdrawals via cards, Skrill, Netler, Paypal, Bank transfers, and Etoro money. The fees for withdrawals are fixed at $5 which is a very low rate. The withdrawals take 1-5 business days. Furthermore, there are no withdrawal limits on Etoro. You can withdraw as much as you hold on your account.

Etoro Withdrawals

 

Binance offers FIAT withdrawals via cards, SEPA, and bank transfers. The fees for SEPA and bank transfers are fixed at 1€ / 1£, while card withdrawals range between 1-3% based on your FIAT currency. The withdrawals take between 1-3 business days. With level 2 KYC, the 24-hour withdrawal limit for FIAT is $2 million, and for crypto $8 million. If you need higher daily withdrawal limits, you can manually request a limit lift from Binance.

Binance Withdrawal Limits

 

Security

The crypto industry is a mostly unregulated space. However, there are some platforms that take regulations and laws very seriously. Etoro is one of those. With the highest level of regulatory compliance, Etoro appears to be one of the most secure platforms and even offers FDIC insurance of up to 250.000€.

Binance had some issues with regulators, especially in the US and some European countries. That’s why some global Binance services, such as leverage trading, are not offered in Germany or France.

Both platforms, Binance and Etoro, hold customer funds in cold storage, making it impossible for hackers to steal them.

Binance even provides full proof of reserves, meaning that customer funds are backed 1:1 on the exchange, in many cases by even more than 100%. Furthermore, Binance has the largest security fund in the crypto industry. With the SAFU fund being worth $1 billion, Binance aims to protect customers at all costs in Black Swan events such as hacks. So far, Binance luckily never had to make use of the fund which keeps growing steadily.

Binance SAFU Security Fund

 

Visit Binance

 

Conclusion

Binance and Etoro have many differences. It is important to keep in mind that Etoro is not a crypto-focused platform. With a wide variety of stocks, indices, and commodities that you can trade, Etoro is great for all-rounders that are not only interested in cryptos. Also, Etoro is very beginner friendly, making it a good choice for inexperienced traders.

However, if you are interested in actively buying and selling cryptos (e.g. active day trading), we highly recommend you stay away from Etoro. The fees and spreads are too high to make crypto trading profitable on Etoro. Make sure to check out our guide on how to choose the right exchange for trading.

 

Binance puts all its focus on cryptocurrencies. You can access a comprehensive spot and futures market with low fees and high leverage while enjoying some of the most advanced features and order types in the crypto space. Lastly, Binance does not just offer crypto trading but many ways to make passive income on the side such as staking, mining, and lending. Binance even offers OTC, P2P, and NFT trading.

 

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