eToro and Kraken are two of the most well-known cryptocurrency trading platforms in the United States. The best exchange may be identified by evaluating their fees, security, features, assets, and customer service. Since crypto assets are the link between Kraken and eToro, we will be discussing cryptocurrencies primarily in this comparison
The eToro platform has been active for many years. eToro is a pioneer trading website with over 17 million members and is available in over 100 countries. The firm behind the network was formed long before Bitcoin came into the market.
Through staking, they let their users make money. Kraken is a far more comprehensive cryptocurrency exchange that facilitates NFT trading, futures, and derivatives.
However, eToro allows users to trade cryptocurrencies, equities, and commodities from a single interface. Unlike Kraken, it offers a Visa debit card. eToro also has a feature called Copy Trading, which allows users to mimic the actions of great traders by replicating their portfolios and transaction history.
Kraken, on the other hand, was created as a cryptocurrency exchange only two years after Bitcoin’s creation. Kraken’s security is a significant selling factor because the platform has never been compromised. When comparing trading platforms, eToro’s social trading functionality stands out.
If you are trying to decide between eToro and Kraken as a cryptocurrency trading platform, then this review should help.
After the infamous collapse of MtGox in 2014, Kraken stepped in as the following major cryptocurrency exchange to meet demand.
Kraken was established by Jesse Powel in 2011, barely two years after the introduction of Bitcoin, as a cryptocurrency trading company situated in San Francisco. The company did not launch its platform until September 2013, after its development was complete but before MtGox collapsed, ending the competition.
Kraken is now one of the most popular cryptocurrency trading services, particularly among its American customers. It is well used for several reasons, including its elevated level of safety, the sophistication of its trading tools, and the range of fiat currencies that can be used to buy and sell cryptocurrency.
Following the DeFi movement’s lead, Kraken gives you the option of receiving incentives based on the coins you save in your wallet. While not every currency may be staked for rewards on the site, this feature is a significant selling point for many users.
eToro was established in 2007 and is headquartered in Israel. Since then, it has become widely recognized as an industry leader in social trading and investment. Traders on eToro can network and learn from one another’s trades and techniques through simple communication and observation.
To that end, eToro has designed a user interface that is especially friendly to inexperienced crypto traders, along with a wide selection of trading tools and financial instruments.
Cryptocurrency, foreign exchange, a stock exchange platform, and commodities trading are some features available on this robust multi-asset brokerage platform.
eToro is a social trading software and brokerage that lets users trade on various financial assets (including CFD trading) while learning and replicating trading tactics from experienced traders via the app’s Copy Trade function. Currency, stock, currency pair, FX, commodity, index, and cryptocurrency trading are just some options for eToro users.
eToro is a regulated trading platform with a license to operate in the United Kingdom, European nations, and the United States. They have 17 million clients.
While eToro’s platform allows users to trade various financial instruments, including a contract for difference (CFD) based on cryptocurrencies, the site nevertheless takes a custodial stance on users’ assets. Read the full eToro Review.
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Kraken vs. eToro Service & Feature Comparison
eToro’s fees are assessed as a percentage spread and can go as high as 4.9 percent. The fees you incur for trading a cryptocurrency will vary depending on the cryptocurrency you choose to trade. Bitcoin, for instance, has a spread of 0.75 percent on eToro.
Also, a coin transfer charge is levied when moving cryptocurrency from the platform to the eToro wallet. The maximum cost that may be charged for transferring coins is $50, which is 0.5 percent of each transaction.
Kraken charges different fees on each of its two platforms. On the Pro version, fees are lower but still noticeable. The trading charge for stable currencies is 0.9 percent, while the fee for crypto coins is 1.5 percent. Additional costs for using a credit card or electronic wallet to make a purchase amount to 3.75 percent plus $/€0.25 (or it is equivalent in other currencies). Meanwhile, it is 0.5 percent for ACH and internet banking transactions.
The pricing structure of Kraken Pro is a traditional “maker-taker” system. The magnitude of the charge is proportional to your trading volume in the prior month. Your trading charge will be cheaper the longer you have been a member. Making and taking costs are between 0% and 0.26%. When dealing with Kraken, you never know if you will be the maker or the taker until after your request has been carried out.
Range of Investments
Be aware that we are contrasting two very distinct systems. Kraken is a cryptocurrency exchange that only deals with digital currency. However, eToro is a broker for many other types of assets. Although cryptocurrency trading is possible on eToro, other markets are also available.
Kraken’s crypto order mechanism and trading tools are cutting edge. Market, limit orders, stop loss, stop limit, and take profit orders are all available. These are included on the eToro platform, among many others.
Margin trading and asset staking are two more features shared by both systems. Bitcoin futures trading is possible on both platforms, with Kraken offering a more extensive selection. Users in the United States, as with several other nations, are discouraged from holding out hope since their region’s futures are not yet accessible. US customers face the same restrictions regarding eToro’s non-cryptocurrency offerings.
More than 110 digital currencies may be traded on Kraken. In addition to the many cryptocurrencies, the site also supports many stablecoins.
As of January 2022, the assets can be purchased in all but two states in the United States and more than 200 other nations.
Only eToro’s premium eToro X platform accepts stablecoins. However, just a little more than 50 cryptocurrencies are in circulation. However, not all of them are sold in the United States. Although the eToro cryptocurrency exchange is accessible in 43 US states, this is not the only drawback for US consumers. More than 60 nations get its services.
Clients of eToro can choose from a variety of categorization options. The eToro Club is a membership program for retail accounts that provides exceptional benefits and privileges based on the value of the client’s equities portfolio.
The three distinct Kraken account types are as follows:
The Kraken Pro account is the highest tier and grants access to the over-the-counter trading desk, more significant API limitations, and larger margin allowances, among other benefits.
Users can set up a demo account to trade for Kraken futures. Still, there are no virtual money or cryptocurrency test accounts available.
Clients may test the eToro trading platform and make simulated deals with $100,000 in virtual currency in a risk-free demo account.
Education and Research
Kraken’s lack of built-in analytics is a significant drawback. In fact, it does not even provide newsfeeds. Everything is done differently at eToroX because everything is OK with analytical materials. In particular, a news section and extensive data for fundamental analysis are included. eToro’s status as the largest social network of traders is another crucial facet of the platform. As a result, you may benefit from the trading insights of the subscribers you have chosen.
eToro’s extensive educational resources make it a solid choice for newcomers. Inexperienced users can benefit from a sample account and a comprehensive video tutorial. There is also further information available. Kraken imparts instruction as well; however, its focus is more all-encompassing.
You may contact eToro’s support team by email or through the client site by submitting a ticket. Though a Live Chat feature is provided, it is restricted to eToro Club members exclusively. Users having equity of $5,000 or less are considered “basic” members. Live chat is unavailable to inexperienced users, and no phone nor email assistance is provided for the platform. A comprehensive knowledge base might assist address difficulties before contacting an agent.
Kraken’s conversation is open to the public, unlike eToro’s exclusive Live Chat. The Kraken ticket form and phone support are both viable options. Phone assistance is offered on weekdays between 8 AM and 12 PM UTC.
The ability to provide superior customer service is a privilege reserved for Kraken’s most experienced traders. You will be appointed a professional account manager. You can contact your representative with any questions or concerns via the messaging app of your choice, and they will promptly attend to you.
Both services permit the transfer of fiat currencies. eToro accepts payments by bank wire, Skrill, Neteller, Visa, MasterCard, and PayPal. Kraken allows users to send and receive money in various currencies, including Canadian, Australian, US, British Pound, Euro, Swiss Franc, and Japanese Yen.
If you want to move some cryptocurrency out of eToro, you may use the platform’s built-in crypto wallet. Unfortunately, you cannot move assets from your eToro wallet to your account. It just lets air out, not in. It is also peculiar that it takes a full day for assets to show up in your eToro crypto wallet and an extra day or two for transfers out of your wallet to be processed. Not very blockchain-like of you.
Kraken is an actual cryptocurrency exchange, so you can quickly deposit and withdraw funds. No physical currency is required, in contrast to eToro’s strict requirement that only virtual currency be used. This is significant because costs and tax issues are associated with exchanging fiat for cryptocurrency. Kraken’s withdrawals of cryptocurrency are subject to typical network fees.
With eToro, there are fees for deposits and withdrawals made in currencies other than US dollars. There is a $30 minimum withdrawal and a $5 withdrawal charge. The more money you take out of eToro, the more attractive the withdrawal costs become because there is no withdrawal cap.
Kraken and eToro, two popular trading platforms, share many similarities. Mobile and online trading platforms are supported by both brands. Dual-factor authentication can be used to further secure user accounts. Using the filters and search box, you may narrow the available assets to those that meet your needs. You may select from several charts and indicators for technical analysis in both.
eToro calls itself a “Social Trading Platform” because of its copy-trading functionality.
Both systems have an intuitive and user-friendly interface. Both allow their customers to use cutting-edge trading tools and develop into knowledgeable professionals. An iOS and Android app are available for both services.
The signup procedure on eToro is quick and painless. It does not take long to start using the service after you have made an account. eToro’s interface is quite similar to those of popular social networking sites. You may read the opinions of other investors on crypto options trading. A feeling meter is also available. However, eToro’s social features are not for everyone. Some investors are just interested in generating money and have no time for socializing.
When we compare the two platforms head-to-head, eToro emerges as the superior option.
For inexperienced traders, eToro’s cleaner design may make it seem like there is less of a learning curve to using the platform.
Kraken provides not one but two applications, one for Android and one for iOS. The standard Kraken app provides users access to Kraken’s cryptocurrency trading platform, where they may engage in fundamentals like checking their portfolio and keeping tabs on market prices. It also has an easier-to-use interface, making it ideal for newcomers.
Those looking for a more advanced solution can download Kraken Pro. The trading experience on this one is more sophisticated and businesslike. Kraken Futures, a third app, was retired in January 2022.
The app for eToro shares the same capabilities and eToro crypto costs as the website version. The software may be downloaded on both iOS and Android mobile devices. The well-known social trading options are, of course, also accessible from your mobile device.
My Preference: Different but the same
While both exchanges make it possible to trade cryptocurrencies, they cater to a distinct clientele. Kraken is a cryptocurrency exchange, whereas eToro is a broker for several asset classes. Kraken is a superior option if all you care about is trading cryptocurrencies.
Kraken offers several benefits to the cryptocurrency investing and trading community, including solid Bitcoin to EUR liquidity, a secure platform with no reported breaches yet, standard fees in the industry, and superior charting provided by TradingView.
Kraken supports a wider variety of cryptocurrencies and markets than eToro. Still, the latter is preferred by most traders because it gives them access to a broader range of financial assets, allowing them to spread their bets and minimize their exposure to loss as they gain experience in the social trading space. If this is the case, eToro is where you need to be.