Which is Better eToro vs Coinbase Fees for Cryptocurrency Trading

What Exchange Comes Out On Top: eToro Vs Coinbase

We’re not talking about mythological creatures or the newest Internet craze when we say eToro, Coinbase, Kraken, CoinEgg, and Gemini—they all are ever-popular cryptocurrency exchanges or digital marketplaces where you may buy and sell digital assets. With the market being flooded with crypto exchanges, all claiming to be the next big thing, how do you know which one is right for you? To make things easier, we shortlisted the best for you—eToro vs. Coinbase. Considering there’s only one hero, below, we have compared both so you know which to go for.

What is eToro?

Established in 2007 to serve the needs of investors, eToro is a multi-asset broker and cryptocurrency exchange based in Israel, with an ultimate objective to become a one-stop shop for all financial assets. Currently, you may use the site to purchase stocks and exchange-traded funds (ETFs), cryptocurrencies, and CFDs (contracts for difference) for commodities and FX.

In the first place, it’s one of the few multi-asset brokerages that also function as a real cryptocurrency exchange—that is, it allows you to directly buy and sell cryptocurrencies rather than merely trading them via derivatives. Second, eToro has a built-in social trading network to imitate trades. 

Finally, eToro is governed by several top-tier financial regulators, including the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) of the United Kingdom), and the Australian Securities and Investments Commission (ASIC).

Take a look at another one of our articles: eToro Crypto Exchange.

What is Coinbase?

Established in 2012, Coinbase is a cryptocurrency exchange based in the United States with a concerted effort to engage cooperatively with authorities in the United States rather than operating behind the scenes as many other cryptocurrency exchanges do. 

However, Coinbase, in contrast to eToro, solely sells cryptocurrencies and cryptocurrency-related assets. In addition to buying and selling 96 cryptocurrencies, you can also borrow money in cryptocurrency and earn cryptocurrency interest by lending out your coins.

The exchange has licenses in 42 states, including New York, and has been granted an e-money license by the Financial Conduct Authority (FCA) of the United Kingdom. It filed for an initial public offering (IPO) on the NASDAQ stock market in 2021 and is presently the top cryptocurrency exchange in the United States in terms of the trading volume.

See our other Coinbase comparison: FTX US vs Coinbase

eToro Vs Coinbase – An Overview

eToro and Coinbase are both very adaptable cryptocurrency exchanges that can accommodate a broad range of investors and traders with varying experience levels. Both platforms include user-friendly tools for beginners and more complex technical charts and trading capabilities. However, the following pointers compare the characteristics of eToro and Coinbase side by side to understand the differences better. Unless otherwise stated, all of the information included in this section is based on the most current information available from these brands (2022).

eToro

• Licensing (FCA, Cysec, ASIC)
• Cryptocurrencies (40+)
• Deposit Methods (Credit/Debit Card, Paypal, Neteller, Skrill, Rapid Transfer, etc.) 
• Pricing Structure (Fixed Transaction Fees)
• Bitcoin Fee (1% of Purchase)
• Market Types (Stocks, Commodities, Currencies, Indices, Crypto, EFTs)
• Demo Account (Worth $100,000 Account for Free)
• Customer Support (Live Chat/Email)
• Mobile App Rating (4/5)
• Trading Tools and Features (Technical Charts, Social Networks, Copy Trading)
• Minimum deposit ($10)

For a free startup account visit eToro site.

Coinbase

• Licensing (42 US States, FCA, BaFIN)
• Cryptocurrencies (4,500+)
• Deposit Methods (Bank Account (ACH), Debit Card, Wire Transfer, Paypal)
• Pricing Structure (Flat Fee + Transaction Fee)
• Bitcoin Fee ($0.99-$2.99 + 1.49%-3.99% of Purchase)
• Market Types (Crypto)
• Demo Account (N/A)
• Customer Support (Phone/Live Chat/Email)
• Mobile App Rating (4/5)
• Trading Tools and Features (Crypto Order Book)
• Minimum deposit ($2)

Comparison of eToro and Coinbase Fee Structure

The following pointers distinguish eToro due to its minimal commissions and simple fee structure. To purchase or sell cryptocurrencies on eToro, you’ll be charged a 1 percent transaction fee, regardless of which coin is involved in the transaction. In addition, you may pay using a credit card or an e-wallet, which makes it easy to transfer funds between fiat and digital currencies. 

When it comes to fees,Coinbase charges up to 3.99 percent transaction fees, making it difficult to estimate the cost ahead of time. In comparison, eToro charges as little as one percent. However, if you only want to purchase cryptocurrencies that aren’t currently accessible on eToro or if you require charting software that is extremely customizable, Coinbase is the one for you.

Account Types

To better serve its customers, eToro provides both retail and professional accounts. A tier system for retail accounts is named the eToro Club that comes with additional rights depending on the user’s equity rather than the deposit amount). However, eToro Club is only accessible for accounts registered with specified regulators and platform languages. 

Coinbase, on the other hand, does not distinguish between various account kinds but rather between multiple bitcoin exchange types: Coinbase and Coinbase Pro are two cryptocurrency exchanges. Since of its streamlined layout, the Coinbase service is appropriate for novices, but the Coinbase Pro service is better suitable for experienced users because it offers more extensive capabilities.

Demo Account

Demo accounts are often provided by brokerage companies so that their customers may get a feel for the platform without having to invest any of their own money. The good news is that eToro is one of these brokers, and this functionality may be used at any time. 

To use eToro’s virtual portfolio, you’ll need to register for an account first. Don’t worry; you won’t be required to deposit if you aren’t ready to do so just yet. If you opt to engage in live trading, you may quickly fill your account and utilize the funds to begin making investments right away.

Unfortunately, Coinbase does not provide a demo account because it is a digital exchange rather than an online financial institution. However, the company does provide consumers with introductory guidelines that they may study to understand how to utilize their platform.

Account Registration

To register for an account with eToro, you must provide your chosen user name, password, and email address. However, keep in mind that you will still need to complete your profile and verify it, though you may do that later—the same is the case with Coinbase. Initially, you will be asked to submit your first and last names, following an email address and password. Still, after that, you will be required to verify your identity for fraud protection.

Minimum Deposit

It is necessary to fund your account to trade with eToro. The minimum amount that may be deposited will be determined by the nation you currently live in. Those who live in the United States or the United Kingdom may deposit as little as $10 into their accounts; however, those who live in Australia or Germany will need to invest a minimum of $50 into their accounts at the start of their trading career. With this broker, the minimum deposit might vary anywhere from $10 to $1000, depending on the circumstances. 

Given that Coinbase is a digital exchange, there are theoretically no minimum deposit limits, allowing you to fund your account with as little as $1.

Customer Service

It is possible to communicate with the eToro customer support department by email and live chat with only the slight drawback of no phone assistance; however, this is regarded as a non-issue since communicating online is more convenient than communicating over the phone. Those who use Coinbase’s services may reach out to their customer service department by phone, email, or live chat if they have any questions. It should be noted that phone support may only be utilized to deactivate a compromised account immediately and cannot be used to speak with a live representative.

Security Regulations

Regarding security regulations, both eToro and Coinbase are well-established licensed exchanges with a long track record of success. Several regulatory bodies, including the Financial Conduct Authority (FCA) in the United Kingdom, Australian Securities and Investments Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC), regulate eToro, with a maximum of $250,000 cash deposits protected by the Federal Deposit Insurance Corporation (FDIC). 

Coinbase is regulated in the United States, where it has licenses from 42 states and has an e-money license from the Financial Conduct Authority (FCA) of the United Kingdom. Coinbase keeps all of its clients’ monies in US banks, and all cash deposits are FDIC insured up to a maximum of $250,000 in value. The company claims to have an insurance policy protecting any bitcoins stored by customers on its exchange, but this is still not proven.

eToro vs. Coinbase: The Winner Is…

When it comes to cryptocurrency trading, both eToro and Coinbase offer some noteworthy features, particularly if you’re new to the game. However, what distinguishes eToro from its competitors is that it offers a greater number of cryptocurrency trading solutions: a trading platform that simplifies purchasing cryptocurrency, an advanced cryptocurrency exchange, and a cryptocurrency wallet service for storing these tokens, among others. Fees at eToro are also much more reasonable.

Coinbase, on the other hand, is a specialized cryptocurrency exchange that offers a greater number of digital currencies. However, suppose you’re interested in exploring other markets besides crypto. In that case, we recommend opening an account with eToro to access a wide range of products and instruments.

So when it comes to eToro vs Coinbase we choose to lean towards eToro for its simplicity and trading options.

Register your free account today through this unique link.