eToro versus Coinbase

Cryptocurrency traders in the US who prefer dealing with a broker may consider eToro, which launched in the US in 2019. Coinbase, operational since 2012, became one of the first exchanges and market leaders in its category by trading volume as of March 2021.

Both offer traders their proprietary cryptocurrency wallets but cater to different styles. eToro is a leader in copy trading and home to one of the largest trading communities with more than 20+ million. Coinbase is an exchange with a broad asset selection and is better suited for active traders seeking exposure to lesser-known assets.

eToro and Coinbase are popular among millennials and GenZ traders, especially those favoring mobile trading, as both offer a user-friendly mobile app.

We have conducted an in-depth review of eToro and Coinbase to determine which one presents the better overall choice and which traders will benefit the most at either broker.

Features and Platforms

Features & PlatformseToro (visit site)Coinbase (visit site)
etorocoinbase
Headquarter:USUS
Established :
20192012
Retail Loss Rate:
UndisclosedUndisclosed
Regulation:
Minimum Deposit:
$50$0
Demo Account:
Managed Account:
Islamic Account:
Inactivity Fee
Deposit Fee:
Withdrawal Fee
Third-PartyThird-Party
Funding Methods:
23
MT4:
MT5:
cTrader:
Proprietary Platform:
Automated Trading:
Social / Copy Trading:
MT4/MT5 Add-ons:
Guaranteed Stop Loss:
Negative Balance Protection:
Bonuses and Promotions:
Unique Feature One:
Large trading communityBroad asset selection
Unique Feature Two:
Leading cryptocurrency brokerPassive income generation
Broker Offers:

Noteworthy:

Coinbase places cryptocurrency assets in secure offline storage but has a history of theft in its online wallets. Users also complain about the lack of customer support. eToro presents a better technical analysis platform.

Available Markets

Available MarketseToroCoinbase
Currency Pairs:
Cryptocurrency Pairs:
Commodities and Metals:
Indices:
Equities:
Bonds:
ETFs:
Options, Futures, and Synthetics:
Maximum Retail Leverage:
1:11:1
Maximum Pro Leverage:
1:11:3

Traders at eToro get a choice of 40 cryptocurrencies, while Coinbase lists 5,890. Retail traders have no access to leverage at either and derivative contracts are unavailable. eToro presently has a closed beta to test its planned equity and ETF offering, which will create a more balanced asset selection for its core trader base interested in trending assets.

Typical Spreads and Fees

Typical Spreads & FeeseToroCoinbase
Minimum Raw Spreads:
Not applicableNot applicable
Minimum Standard Spreads:
Not applicableNot applicable
Minimum Commission for Forex:
Not applicableNot applicable
Commission for CFDs/DMA:
Not applicableNot applicable
Commission Rebates:
Not applicableNot applicable
Execution Type:
Market MakerMarket Maker

Cryptocurrency spreads at eToro range from 0.75% on Bitcoin or 1.90% on Ethereum up to 5.00% on Tezos. There are no additional commissions, but eToro levies a 0.10% crypto-to-crypto conversion and 0.50% cryptocurrency transfer fee. Coinbase lacks pricing transparency and merely notes it adds spreads unless using Advanced Trade.

Security and Trust

eToro

Country of the RegulatorName of the RegulatorLicense Number
US
Financial Crimes Enforcement Network (FinCEN)Not applicable

Coinbase

Country of the RegulatorName of the RegulatorLicense Number
US
Financial Crimes Enforcement Network (FinCEN)Undisclosed

eToro and Coinbase are duly registered as a Money Service Business with the Financial Crimes Enforcement Network (FinCEN) and have the necessary licenses to carry out their business. Neither one operates under the oversight of a regulatory body, is a member of the Financial Industry Regulatory Authority (FINRA), or the Securities Investor Protection Corporation (SIPC), offering protection up to $500,000 per net equity or $250,000 for cash claims.

eToro vs Coinbase – Verdict

eToro

ProsCons
Copy-trading with a community numbering 20+ million tradersLimited deposit and withdrawal options
User-friendly web-based trading platform and mobile appLow asset selection
Quality educational offering for beginner traders via videos
Acceptable cryptocurrency spreads and proprietary cryptocurrency wallet

Coinbase

ProsCons
Excellent choice of cryptocurrency assets, and US market leader by trading volume Limited deposit and withdrawal options
Coinbase debit card for swift financial transactionsLack of overall transparency, history of vulnerability to theft, and poor customer support
Educational content allows beginner traders to earn crypto assets
Publicly listed company

eToro shines with its active trading community and delivers its well-known copy trading service. Coinbase, as the name suggests, is a cryptocurrency exchange with one of the best overall asset selections. Both companies provide beginner traders with quality education, where eToro has more content, but Coinbase allows traders to earn crypto as they complete each lesson.

Read full eToro Review
Read full Coinbase Review

FAQs

Can I transfer eToro to Coinbase?

It is possible to transfer physical crypto assets from wallet to wallet, but users may rely on an intermediary if a direct transfer is unavailable.

Is Coinbase cheaper than eToro?

Trading costs depend on numerous factors at Coinbase versus a percentage-based approach at eToro, but traders can usually achieve lower fees at Coinbase.

Is eToro a good place to buy Bitcoin?

eToro offers hassle-free Bitcoin purchases, making it ideal for beginner traders.

Is there a better platform than Coinbase?

Coinbase ranks among the leaders featuring 5,800+ cryptocurrency assets and direct order book transactions.

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