Quick Summary
eToro offers lower fees and a user-friendly interface, ideal for beginners. Its standout feature, copy trading, lets users mimic successful traders easily. While eToro excels in ease and cost, Coinbase remains a reliable choice for those seeking a well-established cryptocurrency trading platform.
Page Contents
- Introduction
- Head to head Comparison Table
- Supported Cryptocurrencies and Investment Options
- Fees
- User Reviews
- Platform Features & Usability
- Key Considerations for UK Investors
- Verdict: Who Should Choose eToro or Coinbase?
- Key Takeaways
- Frequently Asked Questions
Introduction
The cryptocurrency market has exploded in popularity, attracting a new wave of investors. But for beginners, navigating the world of digital assets can be overwhelming. Choosing the right platform to buy and sell crypto is crucial, especially in the UK where regulations and tax implications differ slightly from other regions. This Etoro vs Coinbase guide will compare the two leading crypto exchanges, focusing on which platform best suits the needs of beginner investors in the UK.
eToro Pros and Cons
- User-friendly interface with clear instructions.
- Extensive educational resources (webinars, guides, glossaries) for beginners.
- Innovative social trading features (copy experienced traders).
- Generally good customer support.
- Spread-based fee structure can be less transparent for beginners.
- Limited customer support options compared to some competitors.
- Crypto holdings not stored in user wallets (held by eToro).
- Fees associated with non-crypto investments.
Coinbase Pros and Cons
- Over 250 tradable Cryptocurrencies
- Clean and straightforward interface, ideal for beginners.
- FCA regulated platform with a strong reputation.
- Easier buying and selling process for cryptocurrencies.
- Free deposits via bank transfers.
- Lower fees for larger transactions (percentage-based structure).
- Potentially higher fees for smaller transactions and debit/credit card purchases.
- No social or copy trading functionalities.
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.
Head to Head Comparison Table
 |
| |
Investing Options | Spread Betting, CFDs, Stocks, ETFs, Crypto | Buy, sell, and trade Cryptocurrencies |
FCA Regulated | ||
Founded | 2007 | 2012 |
Cryptocurrencies | 80+ | 250+ |
Crypto Staking | ||
Beginner Friendly | ||
 | 4.2/5 | 4.1/5 |
ISA Account | ||
Mobile App | ||
Inactivity Fee | 12 Months | |
Monthly Fee | ||
Base Fiat | £ $ € | £ $ € |
Min Deposit | £10 | Relative to method |
Fractional Shares | ||
Demo Account | ||
Active Users | 20,000,000+ | 1,000,000+ |
Investor Protection | FSCS (up to £85,000) | SIPC insurance protects USD cash holdings up to $250,000 |
Available in UK | ||
Supported Cryptocurrencies and Investment Options
Understanding the available cryptocurrencies and investment options on each platform is crucial for UK beginner investors. Here’s a breakdown:
Number of Supported Cryptocurrencies
Coinbase: Offers a comprehensive selection exceeding 250 cryptocurrencies, providing in-depth exploration of higher and low cap crypto for investors. You can explore the full list of supported cryptocurrencies on Coinbase here.
eToro: Provides a curated selection of approximately 80 popular cryptocurrencies. While seemingly limited compared to Coinbase, this selection offers a more manageable starting point for beginners. Focusing on established tokens helps mitigate potential risks associated with lesser-known cryptocurrencies. Explore the full list of supported cryptocurrencies on eToro here
Availability of Stocks, ETFs, and Commodities
Diversifying your portfolio beyond cryptocurrencies can be a prudent strategy. Here’s a comparison of investment options:
Coinbase: Primarily focuses on cryptocurrencies, with limited access to stock trading features in some regions.
eToro: Expands your investment horizons by offering stocks, ETFs, and even commodities alongside cryptocurrencies. This diversification can be beneficial for building a balanced portfolio, particularly for those seeking a holistic investment approach. However, if your sole focus is on pure cryptocurrency investing, Coinbase’s narrower selection might be sufficient.
Fees Comparison
Trading Fees Explained:
eToro: Employs a spread fee for buying and selling cryptocurrencies. The spread represents the difference between the buy and sell price offered by eToro. This fee structure can be more transparent for beginners compared to percentage-based fees.
Coinbase: Uses a percentage-based fee structure for trading cryptocurrencies. The exact fee may vary depending on your transaction size and chosen payment method (higher fees for debit/credit cards). While potentially lower for large transactions, this structure can be less transparent for beginners.
Deposit and Withdrawal Fees:
eToro: Deposits are generally free, although fees may apply for certain payment methods (check their website for current details). Withdrawals typically incur a $5 flat fee.
Coinbase: Offers free deposits via bank transfers. However, using other payment methods may incur fees. Withdrawal fees vary depending on the chosen cryptocurrency and withdrawal method (typically a flat fee + network fee).
| Feature | eToro | Coinbase |
|---|---|---|
| Trading Fees | Spread-based (variable) | Percentage-based (variable) |
| Deposit Fees | Generally free (may vary depending on method) | Free for bank transfers (fees for other methods) |
| Withdrawal Fees | Variable (typically $5 flat fee) | Variable (typically a flat fee + network fee) |
| Inactive Account Fee | $10 per month after 1 year of inactivity | None |
| Margin Trading Fees (if applicable) | Variable spreads and overnight fees | Variable interest rates |
| Conversion Fees (for non-USD deposits/withdrawals) | 0.50% | 1-4% (depending on payment method) |
| Crypto Transfer Fees (for transferring crypto out of the platform) | Blockchain network fees + 2% minimum fee (capped at $25) | Network fees only |
Remember: This table provides a general overview. For the most up-to- date fee information, consult the platform’s official websites.
User Reviews
Understanding user experiences can be invaluable when choosing a crypto exchange platform. Here’s a breakdown of what users are saying about eToro and Coinbase:
Positive Reviews: Many users praise eToro’s user-friendly interface, strong educational resources, and innovative features like social trading. Beginners appreciate the platform’s guidance and clear explanations.
Negative Reviews: Some users express concerns about eToro’s limited customer support options and the fact that crypto holdings are not directly stored in user wallets. Additionally, fees associated with non-crypto investments might be a deterrent for some.
Positive Reviews: Coinbase is often lauded for its clean interface, ease of use, and strong reputation. Beginners appreciate the straightforward buying and selling process.
Negative Reviews: Some users criticize Coinbase’s higher fees compared to some competitors. Additionally, limited customer support options and occasional technical issues have been reported.
Platform Features & Usability
User experience is crucial, especially for beginner investors. Let’s compare how eToro and Coinbase fare in terms of user-friendliness for UK crypto beginners:
User Interface Design and Navigation
Coinbase: Known for its clean and user-friendly interface, perfect for beginners. The buying and selling process is straightforward, with clear menus and easy navigation.
eToro: While still user-friendly, eToro offers a slightly more complex interface with additional features like social trading. However, its intuitive design caters well to beginners, with clear instructions and guidance throughout the platform.
Mobile App Functionality
Coinbase: Offers a well-designed mobile app that mirrors the functionality of the web platform. This allows for convenient crypto management on the go.
eToro: Also provides a user-friendly mobile app with all the core functionalities of the web platform, ensuring seamless crypto management from your smartphone.
Educational Resources and Support
Coinbase: Offers a decent library of educational resources, including articles, videos, and FAQs, to help beginners understand cryptocurrencies and the platform. However, in-depth educational resources might be limited.
eToro: Provides a range of educational resources, including webinars, guides, and glossaries, to equip beginners with a solid foundation in cryptocurrencies and trading strategies. Their customer support is also known for being responsive and helpful.
Key Takeaways
Both eToro and Coinbase offer user-friendly platforms. Coinbase excels in its clean and straightforward interface, while eToro provides a more comprehensive educational suite for beginners.
Remember: Consider your preferred learning style when choosing a platform. If you value clear visuals and easy navigation, Coinbase might be a good fit. If you prefer in-depth educational resources and guidance, eToro could be a better option.
Key Considerations for UK Investors
Before diving deeper into user experience, let’s revisit two crucial factors specifically relevant to UK crypto investors:
Regulations and Licensing
The Financial Conduct Authority (FCA) regulates cryptocurrency activities in the UK. It’s essential to choose a platform registered with the FCA for added security and peace of mind. Both eToro and Coinbase are registered with the FCA, ensuring they adhere to strict anti-money laundering (AML) and know-your-customer (KYC) regulations.
Tax Implications for Crypto Trading in the UK
Profits from crypto trading in the UK may be subject to Capital Gains Tax (CGT) if they exceed your annual allowance. Unlike some countries, the UK doesn’t have a specific tax for crypto holdings. However, it’s important to be aware of potential tax liabilities when making investment decisions.
Remember: Consulting with a qualified tax advisor is recommended for personalized tax advice regarding crypto investments in the UK.
Verdict: Who Should Choose eToro or Coinbase?
Now that we’ve comprehensively compared eToro and Coinbase, it’s time to help you pick the platform that best aligns with your crypto investment goals in the UK:
Best for Beginners
Both platforms offer user-friendly interfaces, but for beginners, Coinbase might have a slight edge. Its clean and straightforward design makes buying and selling cryptocurrencies a breeze. Additionally, Coinbase’s reputation and FCA regulation can provide peace of mind for new investors.
However, if you value in-depth educational resources and guidance, eToro could be a compelling option. Their extensive library of tutorials, webinars, and glossaries can equip you with a solid foundation in cryptocurrencies before you start investing.
Best for Experienced Traders
While both platforms cater to beginners, Coinbase might be less suitable for experienced traders. Its limited selection of cryptocurrencies and lack of advanced trading features could be restrictive for seasoned investors.
eToro, on the other hand, offers a wider range of cryptocurrencies and features like margin trading (use with caution) that might appeal to experienced traders. However, their fee structure might not be the most cost-effective for frequent trading.
Best for Social Trading and Copy Trading
eToro shines in this category. Their innovative social trading features allow you to observe and potentially copy the investment strategies of experienced traders. This can be a valuable learning tool, particularly for beginners venturing into the crypto market.
Coinbase does not currently offer social or copy trading functionalities.
Best for Low-Cost Crypto Investing
Transaction fees can significantly impact your returns. Here’s a breakdown:
Coinbase: May have higher fees, especially for smaller transactions and those using debit/credit cards. Using the Coinbase Pro version will significantly lower fees but increase the complexity of the trading interface.
eToro: Employs a spread-based fee structure, which can be more transparent but might not always be the most cost-effective option.
For frequent, low-volume trading, Coinbase might incur higher fees. However, for larger transactions, eToro’s spread could be less favorable.
Key Takeaways for UK Investors
Best for Beginners:
- Coinbase (slight edge): Clean interface, easy buying/selling, FCA regulation.
- eToro (strong contender): Educational resources, guidance, user-friendly platform.
Best for Experienced Traders:
- Coinbase (less suitable): Limited crypto selection, basic features.
- eToro (better option): Wider crypto range, features like margin trading (use with caution).
Best for Social Trading and Copy Trading:
- eToro: Dedicated social trading features, copy experienced traders.
- Coinbase: No social/copy trading functionalities.
Best for Low-Cost Crypto Investing:
- Coinbase (for larger transactions): Percentage-based fees might be lower.
- eToro (for infrequent trading): Spread-based fees can be less transparent.
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.
Frequently Asked Questions
Both eToro (FCA) and Coinbase (FCA) are registered with the Financial Conduct Authority (FCA), the regulatory body overseeing crypto activities in the UK. This provides a level of security and ensures adherence to anti-money laundering (AML) and know-your-customer (KYC) regulations.
Coinbase might have a slight edge for beginners due to its clean and straightforward interface. However, eToro’s extensive educational resources and user-friendly platform can also be very beginner-friendly.
Coinbase boasts a vast library of over 250 cryptocurrencies, while eToro offers a curated selection of around 80 popular options. If you prioritize a wider range, Coinbase might be the better choice.
Social and copy trading features are not currently available on Coinbase. However, eToro excels in this area, allowing you to observe and potentially copy the trades of experienced investors, which can be a valuable learning tool for beginners.
There’s no one-size-fits-all answer. Coinbase might be more cost-effective for larger transactions due to its percentage-based fees. However, eToro’s spread-based fees can be more transparent and potentially favorable for infrequent trading. Always consider the total fees associated with your investment activity before making a decision.
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References
About eToro: https://www.etoro.com/about/
Commission & Fees: https://www.etoro.com/trading/fees/
Coinbase:
Coinbase Fees, https://help.coinbase.com/en/coinbase/trading-and-funding/pricing-and-fees/fees
Additional Resources:
Financial Conduct Authority (FCA): https://www.fca.org.uk/
Trustpilot: Coinbase User Reviews [https://www.trustpilot.com/review/coinbase.com]
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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.