eToro vs Interactive Brokers: Crypto, Fees, KYC Difference

Comparison of popular cryptocurrency exchanges is relevant in many cases when it is difficult for a trader to decide on the choice - it is necessary to analyze all the main parameters of the platforms and highlight the points that are important to you.

In this case, we suggest considering Bitpanda vs Interactive Brokers pair.


interactive brokers

ETORO

Type of exchange

Сentralized

Сentralized

Year founded

1977 (Since 2021 as a cryptocurrency broker)

 2019

Registration country

NY, USA

 Gibraltar

Trust Score (Coingecko)

No score

7

Cryptocurrencies / trading pairs

3

72

Trading types

Spot

Spot

Fees

0.18%

0% - 0.05%

2FA

Yes

Yes

Mobile application

IOS, Android

IOS, Android

Daily trading volume on Spot market

No data

$4 441 107

Advantages and disadvantages of Etoro

Pros:

  • The minimum transaction amount for copying is $1
  • Convenient functionality for passive investing
  • Regulation in reliable jurisdictions
  • It is possible to buy contracts on fractional shares (i.e. to invest amounts smaller than the value of one share)
  • There is an opportunity to buy shares directly (not CFD) on the U.S. stock exchanges

Cons:

  • High spreads
  • Periodic technical failures in order execution

eToro Review Summary 

83% Overall

We have analyzed key features of eToro based on 3 important criteria for choosing crypto exchange:

  • Trustworthy
  • Usability
  • Fees
    Based on researches and our own tests, we have made an independent rating.
84%
Trustworthy
83%
Usability
81%
Fees

Advantages and disadvantages of Interactive Brokers

Pros:

  • Cryptocurrency trade execution and custody are provided by Paxos Trust Company
  • IBKR Rated #1 Best Online Broker – 5 out of 5 stars by Barron’s 2022
  • It's been around for a long time.

Cons:

  • There are very few trading pairs
Interactive Brokers Review Summary
84% Overall

We have analyzed key features of Interactive Brokers based on 3 important criteria for choosing crypto exchange:

  • Trustworthy
  • Usability
  • Fees
    Based on researches and our own tests, we have made an independent rating.
88%
Trustworthy
83%
Usability
81%
Fees

About Etoro Exchange

eToro is a non-standard broker that focuses exclusively on social trading. It is optimal for passive investors.

In fact, it is not a stock broker, it is a trading platform and a social network of traders with a subscription service for copies of transactions of the best traders (social trading). It is possible to trade CFDs: shares, commodities and indices, ETF funds, currency pairs (not for RF citizens), cryptocurrencies.

It is possible to connect to the autotracking service, or to become a trader and create autotracking strategies to connect subscribers to them.

About Interactive Brokers exchange

Interactive Brokers (IBKR) is an American brokerage company, one of the largest in the United States. It provides access to 135 markets and operates in more than 30 countries. It was founded in 1977. The main competitive advantage is low commissions, but the IB's positions have been shaken because of such companies as Robinhood with zero commissions.

Comparative analysis of eToro and Interactive Brokers exchanges

Available features

eToro offers:

  • Copy top investors
  • eToro Staking
  • Demo-account

IBKR offers: 

  • Hold additional tokens offered by Paxos Trust Company
  • Place non-marketable limit orders
  • ETFs

Available countries

eToro and Interactive Brokers exchanges are available in more than 100 countries. These exchanges do not provide trading services in sanctioned countries. 

Payment methods

You can fund your eToro and Interactive Brokers account with a bank card, PayPal or cryptocurrency.

Card Support

All types of bank cards from supported countries are available on eToro and Interactive Brokers.

Available Cryptos and Tokens

eToro currently supports 72 trading pairs.

While Interactive Brokers supports 3 trading pairs.

Verification (KYC)

IBKR asks for mandatory verification at the very beginning of using the platform. The broker is strictly regulated, so KYC is mandatory.

eToro also requires verification (KYC)

Account deposit

Exchanges offer the following options for funding the account:

  • Crediting a fiat account with a card or payment system
  • Purchase from a card
  • Direct transfer of cryptocurrency to the exchange address

Comparison of Trading Fees

eToro:

  • 0% - 0.05%
  • More information: https://etorox.com/fees-exchange

IBKR:

  • 0.12% - 0.18%

Account security

Current SEC regulations require broker-dealers to reconcile client money & securities at least weekly to ensure that they are properly segregated. Interactive Brokers has worked hard to protect our clients' assets and we've recently expanded the number of securities types that can be held in the brokerage firm's reserve holding system. As a result, Interactive Brokers sought and received approval from FINRA (the Financial Industry Regulatory Authority), to perform and report the reserve computation on a daily basis, instead of once per month. IBKR started calculate daily interest rates on December 2011 and has been adjusting the value of money stored in safekeeping for our clients ever since. Interactive Brokers is committed to providing its clients with the best protection and this means adjusting the frequency of account reconciliation.

EToro is regulated by the Cyprus Securities and Exchange Commission under license No.109/10 EToro is also regulated by the following organizations: ASIC, CySEC, FCA, FinCEN (US) and GFSC (Gibraltar) for crypto exchange (eToroX) and eToro Wallet. In addition, Etoro is one of the safest platforms to comply with common financial regulations regulated by CySEC in Europe, FinCEN in the US and the FCA in the UK.

Passive earn on exchanges

IBKR only offers cryptocurrency trading.

eToro users can benefit just from owning cryptoassets. With eToro’s dedicated staking service, users enjoy simple, secure and hassle-free growth on their cryptoasset investment.

Which to choose - eToro or Interactive Brokers

Interactive Brokers has a larger user base compared to eToro, but eToro has a larger token listing, which means a higher chance of finding the token you need there that other platforms have not yet added.

eToro provides very high security, and its clients have not encountered any serious threats to their accounts, but only if the user has activated all the necessary settings. Interactive Brokers has been operating longer, and has not been involved in any major hacking scandals in its history either.

KYC in both cases is required. All in all, it's worth taking the time to get to know each exchange better, especially if you want to delve deeper into the cryptocurrency sphere.

Disclaimer:

NFTs trading entails a high level of risk and is not suited for all investors. You should carefully evaluate your investment objectives, degree of experience, and risk appetite before deciding to trade cryptocurrencies. You should not invest money that you cannot afford to lose because there is a chance that you will lose some or all of your initial investment.

You should be aware of all the dangers connected with cryptocurrency trading and seek counsel from a financial expert who is not affiliated with any cryptocurrency exchange. This website's opinions, news, research, analysis, pricing, and other information are offered as general market commentary and do not represent investment advice.

FAQs

Is Bitpanda a good platform?

Yes, Bitpanda has long-established itself as an excellent trading platform.

What is the minimum deposit for Interactive Brokers?

You can start trading on IBKR from $2.

Is it safe to use Interactive Brokers?

Yes. Interactive Brokers is committed to providing its clients with the best protection and this means adjusting the frequency of account reconciliation.

Does eToro have high fees?

eToro has average market commissions. 0.05% is considered a small commission.

Conclusion

Choosing a cryptocurrency exchange is a responsibility, because that's where your funds will be kept while you use them to trade or invest. In this article, we have touched on all the main indicators by which platforms are compared to each other, so that it is easier for you to decide whether to use eToro or Interactive Brokers for trading. However, there is nothing that prevents you from allocating assets between these projects depending on your specific needs.

Disclaimer:

You should be aware of all the dangers connected with cryptocurrency trading and seek counsel from a financial expert who is not affiliated with any cryptocurrency exchange. This website's opinions, news, research, analysis, pricing, and other information are offered as general market commentary and do not represent investment advice.

Comparison of other exchanges

Jack Evans


I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments.

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