eToro vs Coinbase – Which Crypto Exchange is the Best?

Many investors struggle to find the best crypto exchange for them.

Most of the time, this is down to the countless names in the market, confusing anyone who aspires to trade their favourite financial instruments.

Every investment platform has unique offerings, presenting specific pros and cons that traders must be aware of before making their decision.

For UK investors willing to access the cryptocurrency markets on the go, eToro and Coinbase are among the most popular names you will come across in this industry. Both are fully regulated and licenced by the relevant bodies.

But even then, the biggest question will be, who wins in the battle of eToro vs Coinbase? How do the two platforms compare? Is there a better option based on trading strategies?

In this guide, we explore the two investment platforms, comparing them by focusing on specific metrics like tradable assets, user experience, standard fees and commissions, safety, regulation, and account types, among the rest.

eToro vs Coinbase – Quick Comparison

Before we get into the detail of this guide, here’s a quick summary of how eToro and Coinbase compare in tabulated format;

 CoinbaseeToro
Our Rating4.55.0
Mobile App Rating8/1010/10
Features  
Mobile AppYesYes
WalletYesYes
Number of Coins100134
Fees  
Trading FeesCommission1% fee + market spread
Deposit FeesFree to 3.99%£0
Withdrawal Fees1%£5
Extras  
RegulatedYesYes
Min. Deposit$25$10
Leverage TradingNoYes
Payment Methods  
Credit CardYesNo
Sepa TransferYesNo
SofortYesYes
NetellerNoYes
PayPalNoYes
SkrillNoYes

What are eToro & Coinbase?

eToro and Coinbase are among the best crypto exchanges, allowing investors to purchase, sell, and store their favourite digital assets on the web or mobile applications.

While every platform can help you achieve your investment goals, each has unique features and may target specific users.

For example, eToro allows investors to trade assets via its online platform, tailored to suit beginner-level and seasoned traders, as well as active day traders.

That makes eToro one of the best investment platforms, boasting a user-friendly interface. CFD cryptos aren’t available on the platform, following FCA’s recent direction. However, traders can invest in real assets easily on the go.

Notably, eToro is fully compliant with the FCA regulations in the UK and is also licenced by Australia’s ASIC and Cyprus’ CySEC.

Over at Coinbase, their trading platform is an excellent option for purchasing digital assets and storing them on the inbuilt Bitcoin wallet. It has a web-based platform and mobile app to support all kinds of traders willing to buy, sell, or store digital assets.

Regarding security, Coinbase is fully registered by the FinCEN. Also, it adheres to the Bank Secrecy Act, which stipulates that all brokerage firms must verify client identity, maintain transaction records over five years and report unclear transactions.

eToro vs Coinbase – Head-to-Head Comparison

Tradable Cryptocurrencies

Coinbase has a limited range of cryptocurrencies compared to eToro, but it still covers some of the most sought-after pairs like Bitcoin, Litecoin, Bitcoin Cash, and Ethereum.

On the other hand, eToro has a vast selection of over 120 cryptocurrencies to choose from.

Account Types

Now, let’s focus on the account types.

Here, eToro provides just one account to cover all types of trades. This is more than convenient, allowing you to complete multiple trades without switching between different account types.

Crucially, Coinbase adopts an almost similar approach to the supported account types. It provides a basic account with similar terms and fees for all investors.

Besides, it also provides the Coinbase Pro account, targeting more active crypto investors.

As the name suggests, the Pro account type is designed for seasoned traders, providing useful charting tools, real-time order books and quotes, and a trading terminal.

Fees & Commissions

As expected, both eToro and Coinbase have varying pricing structures built around the trading and non-trading fees. This is summarized in the table below.

Here’s a general comparison of the two platforms:

 Crypto Dealing FeeDeposit and Withdrawal FeesInactivity FeeMargin FeeStamp Duty Tax on UK Shares
eToro1%0%$10 per month after 1 yearNoneNone
CoinbaseA spread of about 0.5%Between 1.49%-3.99%NoneA flat fee of 2% of the total transactionN/A

Generally speaking, many traders find eToro more convenient and affordable, thanks to its clear pricing structure. This starts with its simple 1% trading fee on cryptoassets and commission-free trading on other asset types.

Over at Coinbase, everything’s slightly different. It allows investors to purchase cryptocurrencies straight from the exchange. Also, traders can convert the cryptos and fiat money into the desired cryptocurrencies at a fee.

Overall, we found Coinbase’s pricing structure a little complicated, considering it varies by region and payment option.

Here’s a summary of the standard fees charged on this platform;

Transaction AmountFlat Fee
Above $10$0.99
$10-$25$1.49
$25-$50$1.99
$50-$200$2.99

From the table, it’s clear that transactions falling between $50 and $200 attract a fixed fee of $2.99. However, it’s worth noting that a flexible percentage of 1.49% applies to larger transactions.

Non-Trading Fees

Also, both eToro and Coinbase have additional charges, sometimes called the non-trading fees you must be aware of before choosing a platform. These are highlighted below;

For eToro, these include the following;

  • Inactivity Fee – $10 per month after one year
  • Withdrawal Fees – $5
  • Conversion currency fee of 0.5% to USD
  • Overnight fee – Varies depending on the instrument
  • No management fees

On the other hand, Coinbase has the following non-trading fees;

  • Withdrawal Fees – Up to 3%
  • Margin trading – A flat fee of 2% of the total transaction
  • Cryptocurrency conversion – Up to 2%
  • Staking services commission – N/A
  • Free cryptocurrency wallet
  • No inactivity fee

User Experience

Both platforms are well-suited to novice investors in terms of the end-to-end user experience. However, eToro just appears to stand out in this regard, considering it also has enough tools to support seasoned investors.

Coinbase has a smooth functionality, boasting an impressive site speed that should be great for beginner investors who aren’t looking for anything technical.

As you navigate the Coinbase dashboard, you will find five tabs, including Home, portfolio, notifications, prices, and for you (guides and market news).

If it’s changing account settings or viewing reports, simply start by clicking on the profile logo, appearing at the top right corner of the dashboard. Coinbase has only become better and better in recent years, giving an amazing platform to trade digital assets.

Over at eToro, the platform is even better, targeting beginner investors and experienced individuals at the same time. A quick comparison showed a clear contrast between the two trading platforms.

While eToro exposes traders to the right markets, Coinbase was purely a platform for purchasing and selling cryptocurrencies with little to no focus on the market sentiment.

Overall, eToro has a simple and intuitive user interface that streamlines everything about trading digital assets. For example, to get started with cryptocurrencies, all you have to do is click on the ‘Trade Markets’ and ‘Crypto’.

Order placement is pretty straightforward, allowing you to complete everything in minutes.

In summary, both eToro and Coinbase have an amazing user experience. However, eToro just seems to outshine Coinbase by giving an actual trading feeling, which you may never experience at Coinbase.

Mobile App

With digital trading becoming more and more popular, the demand for mobile trading apps is there for everyone to see. So, we aren’t surprised that the most reliable investment platforms these days will also provide excellent mobile trading apps.

For instance, eToro has a handy investment app easily accessible on the go. It is ready for free download from the Apple Store or Google Play and instantly lets you invest in desired assets. You can place an order and execute your strategies from the comfort of your home.

When it comes to the trading options on eToro’s mobile app, it’s identical to the desktop trading platform. You can analyse cryptocurrencies and trade from the charting screen like you would with the desktop version.

With Coinbase, the mobile trading app is also useful and compatible with all smartphone devices. The app is designed to address the needs of an average trader, providing real-time quotes of up to 50 coins, top movers, a watchlist, and the latest market news.

However, we have to point out that despite being one of the most reliable options for beginner investors, the Coinbase trading app isn’t necessarily the best option out there.

For instance, we had an issue with the ID verification process via the mobile app. So, you may need to do some research before settling for this provider.

Also, the vague trading activity on the app was a slight concern to us, which, again, requires careful evaluation before making your decision.

In general, we found the eToro mobile app to outshine the Coinbase app.

Trading Tools, Education, Research & Analysis

Looking at the trading and research tools, eToro once again proved that it’s one of the most reliable names in the market. It has useful resources to cater to the needs of novice investors and more experienced traders.

If you trade via this platform, you can access an all-important education section featuring daily and weekly podcasts, market reviews, guides, video tutorials, news and analysis, and the eToro Academy.

On top of that, eToro also provides plenty of analysis on every instrument page. So, every time you visit a page, you get free access to stats and data, a research tab, interactive charting, and Twitter feeds.

The best part? eToro also provides two useful tools in the CopyPortfolios and CopyTrader features.

CopyPortfolios refers to a collection of ETFs built around a specific region, industry, or sector, allowing traders to invest in popular portfolios such as Driverless, Big Banks, ChinaTech, FoodTech, and CyberSecurity, among the rest.

The CopyTrader tool is all about following in the footsteps of the best-performing investors by copying their trading strategies and activity.

On the other hand, Coinbase doesn’t have any remarkable trading tools to mention. Even its educational materials on its basic account aren’t the best.

For that reason, traders who choose Coinbase are only exposed to the education section on the official website, featuring guides and market updates.

Demo Account

A demo account is a useful platform that simulates the activities within a real trading environment. It is a useful tool for learning how a platform operates without risking real money.

However, it can also be useful to help professional traders assess the performance of their trading strategies before making an investment decision.

Our comparison found that both eToro and Coinbase have useful demo accounts. With eToro, the account balance for these accounts is $100,000 with no time limitation, something you won’t find with many trading platforms.

Furthermore, eToro’s demonstration account helps you explore all tools and features, including the CopyTrader and CopyPortfolio.

Conversely, Coinbase didn’t provide any demo account at the time of compiling this guide. So, traders must use real money accounts to access important tools and features from the start.

Payment Methods

The supported payment methods will influence your decision when choosing an investment platform. And in the case of our comparison, we found that both eToro and Coinbase have a good selection of payment options you can pick depending on your preferences.

Starting with eToro, you can complete your transactions with a UK credit/debit card, iDeal, Neteller, PayPal, Klarna/Sofort Banking, Local Online Banking, Trusty, and Bank Transfer.

Apart from bank transfers that take between 4 and 7 days, the remaining payment methods are credited instantly.

On the other hand, Coinbase prioritises the most common payment methods, including PayPal, wire transfer, debit card, and Bank account (ACH).

While debit card payments and PayPal will be credited instantly, wire transfers can take up to 3 days, with bank accounts (ACH) requiring between 4 and 5 days for the funds to reflect on your account.

Below is a summary of the supported payment methods;

 Minimum DepositDeposit FeeProcessing TimeWithdrawal Fee
eToro$500.5%Instant, apart from bank transfers$5 (About £4)
Coinbase£2ACH-Free Wire Transfer-$10 (About £7)Instant, apart from bank transfers1% fee to convert and withdraw your crypto to fiat in addition to standard network fees

Customer Service

As you might have anticipated, both eToro and Coinbase have fantastic customer support service centered on the all-important live chat feature.

While both platforms offer live chat, it took a little longer to get a response from Coinbase’s agent, perhaps because of the large client base they serve.

That aside, you can also contact the two platforms via email or ticket. Coinbase doesn’t support phone communication through a live agent.

Regarding the operational hours, eToro’s customer support team is ready to help for 24 hours within the normal working days (Monday to Friday), while Coinbase’s support team is only available for limited hours throughout the day.

Safety & Regulation

Regarding safety, we were impressed with both platforms’ strict compliance with regulatory requirements.

With eToro, this begins with the FCA regulation. On top of that, it also keeps the client’s funds in segregated accounts to guarantee safety.

In conclusion, eToro guarantees information security using the SSL encryption systems besides adopting the 2-factor authentication system for additional protection.

Coinbase has its strategies for ensuring client safety. Even though the big names in the industry don’t regulate it, Coinbase adheres to all the applicable laws in this field while storing clients’ valuable assets in offline cold storage for guaranteed safety.

eToro vs Coinbase – The Verdict

In conclusion, eToro and Coinbase have a diversified approach to cryptocurrency trading. But the good news is that both platforms are fully regulated and regarded as safe options to trade digital assets.

Furthermore, both eToro and Coinbase feature a large number of tradeable cryptocurrencies, even though eToro wins this race.

While Coinbase is an excellent cryptocurrency and Bitcoin exchange for physically purchasing digital assets and storing them in its built-in digital wallet, it lacks a top-class trading platform for active day traders.

Due to its 1% trading fee, eToro is the most affordable option. Also, eToro offers a demo account and a broader range of accepted payment options.

Lastly, eToro is the broker of choice if you want to construct a trading method using valuable features and tools. This is due to the availability of an advanced charting package, the market sentiment tool and its all-important CopyPortfolio and CopyTrader tools.

With all things considered, we believe eToro is an excellent trading platform and the best alternative to Coinbase.

For more information on eToro, read our complete eToro review.

Team

Our UK-based team writes articles to help beginners understand the world of cryptocurrency. We are firm believers that Blockchain technology has great application in our future.

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