eToro vs Coinbase: Fees, Features & Pricing Compared
eToro and Coinbase differ significantly in several key features.
eToro offers social trading alongside a range of investment options.
While eToro doesn't charge commissions on unleveraged cryptocurrency purchases, its wallet has limitations.
In contrast, Coinbase provides access to various cryptocurrencies, caters to beginners and professionals, and offers PayPal integration for withdrawals. However, its fee structure, with high credit/debit card purchase fees, can be complex.
Cryptocurrency trading has gained immense popularity, and two platforms that often come into comparison are eToro and Coinbase.
In this guide, we will break down the key differences between these two platforms, focusing on fees, features and pricing.
Whether you're a novice or an experienced crypto trader, understanding these aspects can help you decide which platform aligns best with your investment goals.
What Are eToro and Coinbase?
Before diving into the details, here’s a brief introduction to both eToro and Coinbase:
Established in 2006, eToro is a versatile trading platform catering to beginners and professional traders.
eToro is renowned for its social aspect, allowing users to follow and interact with other traders and even copy their trading strategies.
Apart from cryptocurrencies, eToro offers a wide range of investment options, including stocks, ETFs, commodities, and fiat currencies.
When trading cryptocurrencies on eToro, a flat fee of 1% applies to both buying and selling.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
In contrast, Coinbase, one of the largest cryptocurrency exchanges globally, was founded in 2012.
Its mobile app and website provide a user-friendly experience for buying, selling and holding cryptocurrencies.
Coinbase Pro, a version designed for professionals, offers advanced features but can be more complex for beginners.
Coinbase charges a transaction fee of 1.49% for buying or selling cryptocurrencies, with an additional 0.5% spread fee, resulting in a total fee of 1.99%.
This fee increases to 3.99% when using a credit or debit card.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
eToro vs Coinbase: The Cost
eToro
Sign-up Cost: eToro does not charge a fee for creating an account.
Deposit and Withdrawal Costs: Deposits via various methods, including bank transfers and credit/debit cards, are generally free. However, there's a 2% fee when transferring crypto from the eToro trading app to your wallet, capped at $100.
Trading Costs: eToro applies a flat 1% fee for both buying and selling cryptocurrencies.
Currency Conversion Fees: Costs associated with converting one currency to another are relatively low on eToro.
Account Closure Fee: eToro imposes an account inactivity fee of $10 per month after 12 months of inactivity.
Coinbase
Sign-up Cost: Like eToro, Coinbase does not charge a fee for registration.
Deposit and Withdrawal Costs: While Coinbase allows you to use PayPal for withdrawals, there may be associated fees depending on your location and currency.
Trading Costs: Coinbase levies a 1.49% transaction fee when buying or selling cryptocurrencies, coupled with an additional 0.5% spread fee, totalling 1.99%. This fee significantly increases to 3.99% when using a credit or debit card.
Currency Conversion Fees: Coinbase's complex fee structure can increase currency conversion costs.
Account Closure Fee: Coinbase does not charge an account closure fee.
Winner: eToro
When it comes to Coinbase vs eToro UK costs, eToro emerges as the most cost-effective choice, offering lower fees for trading and the absence of a complex fee structure compared to Coinbase.
Coinbase vs eToro: Trading Options & Opportunities
When it comes to trading options and opportunities, both Coinbase and eToro offer diverse platforms, each with its unique characteristics.
eToro
eToro provides a broad spectrum of trading options beyond cryptocurrencies. Users can engage in trading the following asset classes:
Cryptocurrencies: eToro offers a selection of popular cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC) and many more. It also includes various altcoins, allowing traders to diversify their crypto portfolio.
Stocks: Unlike Coinbase, eToro extends its offerings to traditional assets. Users can invest in stocks, gaining fractional ownership in companies such as Apple, Amazon and Tesla.
ETFs (Exchange-Traded Funds): eToro provides access to a variety of ETFs, allowing traders to invest in bundles of stocks or other assets, providing diversification and risk management.
Commodities: eToro enables trading in commodities such as gold, silver, and oil, providing further diversification opportunities.
Fiat Currencies: Users can trade major fiat currencies like USD, EUR, GBP, and JPY — an advantage for forex traders.
Indices: eToro offers trading in stock market indices like the S&P 500, NASDAQ, and more, allowing users to speculate on the performance of entire markets.
Fractional Shares: eToro offers the option to buy fractional shares of stocks, making it accessible to investors with smaller budgets.
Copy Trading: eToro's unique feature, CopyTrader, lets users follow and automatically replicate the trades of experienced investors. This is a valuable tool for beginners looking to learn from experts.
Coinbase
Coinbase, on the other hand, focuses primarily on cryptocurrency trading, making it straightforward for users interested solely in digital assets.
Here's what you can trade on Coinbase:
Cryptocurrencies: Coinbase offers a wide selection of cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, Litecoin and others. While its primary focus is on well-established coins, it also occasionally adds new cryptocurrencies to its platform.
Coinbase Pro: Coinbase Pro is a separate platform designed for professional traders. It provides advanced trading features, including limit and stop orders, as well as more in-depth charting tools. This platform caters to users looking for a more robust trading experience.
Staking: Coinbase allows users to participate in staking for select cryptocurrencies. Staking involves holding cryptocurrencies in a wallet to support network operations and, in return, earning rewards.
Key Differences
Asset Variety: eToro offers diverse trading options, including stocks, ETFs, commodities, and fiat currencies. Coinbase primarily focuses on cryptocurrencies.
Fractional Shares: eToro allows the purchase of fractional shares of stocks, which is not available on Coinbase.
Copy Trading: eToro's unique copy trading feature is not available on Coinbase. It provides a social trading aspect that can be beneficial for beginners.
Advanced Trading: While Coinbase Pro offers advanced trading features, it might be too complex for novice traders, whereas eToro offers a more user-friendly experience for traders of all levels.
Winner: eToro
eToro stands out for its extensive range of assets, including cryptocurrencies, stocks, ETFs, and more, making it a versatile choice for traders interested in diversifying their portfolios.
On the other hand, Coinbase excels as a dedicated cryptocurrency exchange, providing a straightforward platform for those solely focused on digital assets.
eToro or Coinbase: Ease of Use
Ease of use is critical when choosing a cryptocurrency trading platform. Both eToro and Coinbase offer user-friendly interfaces, but there are some differences.
eToro
Account Creation: Creating an account on eToro is straightforward. Users are required to provide standard personal information, including name, email address and phone number. Verification can take from a few minutes to a few hours.
User Interface (UI): eToro's UI is designed with simplicity in mind. The platform's clean and intuitive layout makes it easy for both beginners and experienced traders to navigate. Users can easily find essential features such as trading pairs, charts and portfolio information.
Mobile Accessibility: eToro offers a mobile app available for both iOS and Android devices. The mobile app mirrors the web platform's user-friendly design, allowing traders to manage their portfolios, execute trades and engage in social trading on the go.
App Availability: eToro's app is available for download on both the Apple App Store and Google Play Store, ensuring compatibility with a wide range of devices and operating systems.
Social Trading Integration: eToro's social trading feature, which allows users to follow and copy the trades of experienced investors, is seamlessly integrated into the platform. This feature can be particularly useful for newcomers looking to learn from successful traders.
Coinbase
Account Creation: Setting up an account on Coinbase is a relatively quick process. Users need to provide personal information, verify their identity and link a payment method. The verification process typically takes a few minutes to a few hours, ensuring that users can start trading relatively swiftly.
User Interface (UI): Coinbase offers a clean and user-friendly interface, emphasising ease of use. Navigating the platform is straightforward, with clear sections for buying, selling and managing cryptocurrencies.
Mobile Accessibility: Coinbase provides a mobile app compatible with both iOS and Android devices. The mobile app offers a seamless trading experience, allowing users to buy, sell and manage their smartphone cryptocurrency holdings. It maintains the same user-friendly design as the web platform.
App Availability: The Coinbase app is readily available on the Apple App Store and Google Play Store, ensuring accessibility for users across various mobile devices and operating systems.
Key Differences
Range of Features: While both platforms offer user-friendly interfaces, eToro distinguishes itself with its social trading integration, allowing users to follow and replicate the trades of experienced traders. This feature can be valuable for beginners seeking guidance.
Asset Diversity: eToro's ease of use extends to its user-friendly access to a broader range of assets, including stocks, ETFs and commodities, making it a more versatile platform for traders looking to diversify their portfolios.
Mobile Apps: Both eToro and Coinbase provide mobile apps, but eToro's app is celebrated for its responsiveness and design, catering to traders who prefer mobile trading.
Winner: eToro
When it comes to the winner of eToro or Coinbase ease of use, eToro sets itself apart with its unique social trading feature and broader asset diversity, making it an attractive choice for traders seeking a well-rounded and easy-to-use platform.
Coinbase, while highly user-friendly, primarily focuses on cryptocurrency trading.
Coinbase or eToro: Customer Service
Reliable customer service is crucial for resolving issues and concerns promptly. Let's compare the customer service aspects of eToro and Coinbase.
eToro
Customer Support Channels: eToro offers multiple customer support channels, including email and an online chat feature.
Response Time: Response times may vary, but eToro generally strives to address customer inquiries promptly. Emails are typically returned within 24 hours.
Customer Reviews: eToro boasts a Trustpilot rating of 4.4 out of 5, based on over 17,000 reviews. The majority of reviews highlight a positive platform experience and the benefits of social trading.
Coinbase
Customer Support Channels: Coinbase provides customer support through email and online chat.
Response Time: Response times on Coinbase may vary, and customers may not always receive immediate assistance.
Customer Reviews: Coinbase has received mixed reviews, with a Trustpilot rating of just 1.5 out of 5 from over 7,000 reviews. Some customers have reported issues with customer support, expensive fees, and difficulties with ID verification and account closures.
Winner: eToro
eToro takes the lead in customer service, boasting a higher Trustpilot rating and generally more positive customer reviews.
The Major Pros and Cons of eToro and Coinbase
Let's summarise the major pros and cons of both platforms if you’re still deciding between eToro or Coinbase:
eToro
Pros:
No commission on unleveraged purchases
Offers various methods for making deposits
Diversified investment options
User-friendly interface
Social trading
Cons:
Minimum deposit requirement
Fluctuating and variable eToro fees
Coinbase
Pros:
Allows PayPal withdrawals
Provides a broader selection of cryptocurrencies
User-friendly interface
Variety of payment options
Cons:
Complex fee structure
Lack of telephone customer support
Higher credit/debit card fees
How to Pick Between Coinbase or eToro?
Choosing between Coinbase and eToro depends on various factors tailored to your specific needs:
Consider your investor profile, whether you are a beginner or an experienced trader, your investment size and your risk tolerance.
Determine what you want to trade if you are solely interested in cryptocurrencies or wish to explore other trading options like stocks and commodities.
Evaluate the importance of customer service to you based on your likelihood of needing support.
Assess which platform offers a more intuitive and user-friendly interface for your preferences and needs.
Ultimately, the choice between eToro and Coinbase should align with your individual trading goals and preferences.
Frequently Asked Questions
What is eToro?
eToro is a versatile trading platform founded in 2006, catering to both beginners and professional traders. It offers many investment options, making it a one-stop platform for various trading needs. Besides cryptocurrencies, users can explore opportunities in stocks, ETFs, commodities, and fiat currencies, allowing for diversified portfolios and trading strategies.
How does eToro make money?
eToro generates revenue primarily through trading fees, spread fees, withdrawal fees and additional fees for certain services and features. For example, there is a 2% fee for transferring crypto from the eToro trading app to your eToro wallet, capped at $100.
How does Coinbase make money?
Coinbase earns revenue through trading fees, spread fees, fees for specific payment methods and other premium services, including Coinbase Custody and Coinbase Commerce, for which it charges fees. Coinbase also offers Coinbase Pro, a version tailored for professional traders. While it provides advanced features, it charges fees for trading activities on this platform.
How do you sell stock on eToro?
To sell stocks on eToro, follow these steps:
Log in to your eToro account
Navigate to the 'Portfolio' section
Locate the stock you wish to sell
Select 'Sell'
Specify the amount or number of shares
Confirm the trade details and complete the sale
How to withdraw from Coinbase?
Withdrawing funds from Coinbase involves a few straightforward steps:
Log in to your Coinbase account
Click on 'Portfolio
Select the cryptocurrency or asset you want to withdraw
Click 'Send' or 'Withdraw'
Enter the recipient's wallet address and the amount you wish to withdraw
Confirm the transaction details and complete the withdrawal
How do you use Coinbase?
Using Coinbase is a straightforward process:
Create an account
Complete identity verification
Deposit funds into your Coinbase account
Browse available cryptocurrencies
Select one to buy
Specify the amount and complete the purchase
Manage your portfolio and explore additional features
How long does Coinbase verification take?
In many cases, verification can be completed within minutes to a few hours. However, during periods of high demand or if additional documentation is required, verification may take longer. It could extend to several hours or even days.
Final Thoughts
In the eToro vs. Coinbase battle, each platform offers unique advantages and caters to different traders. eToro stands out for its cost-effectiveness and positive customer reviews.
On the other hand, Coinbase boasts a wider range of cryptocurrencies and user-friendly interfaces.
Ultimately, your choice should align with your specific trading goals, preferences, comfort level with fees and customer service.
Take the time to assess your needs, and you'll find the platform that suits you best in the exciting world of cryptocurrency trading.
eToro is a multi-asset platform which offers both investing in stocks and crypto assets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. The trading history presented is less than five complete years and may not suffice as a basis for investment decisions.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two mins to learn more.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity-specific information about eToro.