Kraken vs. eToro

Kraken vs eToro? Kraken offers a wide range of crypto options for all investor levels, while eToro is a multi-asset platform focused on creating a community for trading and idea exchange.

Choosing where to trade crypto can be a daunting task due to the wide variety of trading platforms, interfaces and product offerings available in the market. Each platform, such as Kraken and eToro, brings unique features designed to cater to differing needs. Kraken's recent launch of an institutional unit in 2024 aims to attract institutional investors, while eToro offers innovative products like Bitcoin ETFs and has started providing cash interest through eToro Options.

With constant changes and enhancements in these platforms, traders must carefully evaluate their priorities. Benzinga explore both trading platforms based features, fees, security and more in this Kraken vs eToro comparison guide.

Kraken vs. eToro: At a Glance

Kraken is a crypto-focused, well-established U.S.-based exchange catering to beginners and advanced users. eToro boasts a reputable social copy trading feature on a comprehensive trading platform that includes not only crypto but stocks, commodities and more.

Kraken vs. eToro: Overview

Here's a quick overview of the two trading platforms.

Kraken

Kraken is a cryptocurrency exchange platform that supports cryptocurrency trading. Founded in 2011 by Jesse Powell, Kraken has grown to become one of the largest and most respected cryptocurrency exchanges globally. It offers a diverse range of cryptocurrencies from Bitcoin, Ethereum and Litecoin to niche tokens and meme coins.

Over the years, Kraken has expanded its offerings and global presence, serving customers in over 190 countries and regions. In addition to its primary exchange services, Kraken provides a suite of advanced trading tools and features, including customizable order types, advanced charting tools and API access for algorithmic trading. 

eToro

eToro is a social trading and multi-asset brokerage platform that allows users to invest in various financial instruments, including stocks, cryptocurrencies, commodities, currencies (forex) and more.

Launched in 2007, eToro pioneered the concept of social trading, enabling users to follow and automatically copy the trades of top-performing traders. This feature, known as CopyTrader, allows novice traders to learn from experienced investors and potentially replicate their success. 

eToro's innovative approach to trading and investing, which focuses on social participation, has made the platform a strong choice for both beginner traders and investors who want to learn how to trade cryptocurrencies.

Kraken vs. eToro: Key Features

This section takes a look at the key features of each platform to understand what sets them apart.

Kraken Features

• Crypto-focused platform: Kraken caters specifically to the crypto enthusiast. Unlike eToro, which offers a wider range of assets, Kraken focuses solely on digital assets like cryptocurrencies and non-fungible tokens (NFTs). 
• Institutional offering: Kraken’s newly launched institutional offering provides dedicated staking along with spot and over-the-counter (OTC) trading services for institutions. 
• Dual-trading platform: Kraken has two trading platforms, Kraken and Kraken Pro. Kraken Pro is for active traders and offers lower pricing than the main Kraken platform.
• Extensive list of crypto offerings: You can buy or sell over 200 cryptocurrencies on Kraken, ranging from cryptocurrencies like Bitcoin, Ethereum and Litecoin, to lesser-known altcoins and meme coins.
• Personalized service: Advanced traders who use the platform often can take advantage of Kraken's personalized account management program, where they are assigned a dedicated representative to handle their inquiries and requests. 
• Fiat transfer: Kraken supports transfer methods like card payments, Paypal and USD international wire transfers. You can fund your account using fiat currencies like the dollar, euro and pound. Corporate-level clients can make USD international wire transfers into their accounts. It also supports different payment methods, like card payments and PayPal. If you have digital assets that the platform supports, you can use those to fund your account.
• Rewards program: Kraken's opt-in rewards program incentivizes users to hold Bitcoin (BTC) and USD Coin (USDC) by offering rewards on balances.

eToro Features

• Multi-asset platform: You can trade a wide range of assets on eToro, from digital assets like cryptocurrencies and NFTs to more traditional assets like stocks, commodities and forex.
• Account types: eToro has four account types — personal (retail) account, professional account, corporate account and Islamic account.
• Limited crypto offerings: While eToro is a multi-asset platform, its number of crypto offerings is limited. While it supports cryptocurrencies like Bitcoin and Ethereum, the range of altcoins on the platform is limited when compared to Kraken.
• Social trading: eToro's social trading feature lets you watch and automatically replicate the transactions of high-performing traders. With the use of this tool, you can pick up tips from more experienced ones and possibly replicate their success.
• CopyTrader: The difference between this feature and social trading is time. With eToro's CopyTrader feature, you can replicate the trades of chosen traders in real time. This hands-off approach to investing allows you to benefit from the expertise of seasoned traders without actively managing your portfolio.
• Smart portfolio: With eToro's Smart Portfolio, investing in a diverse portfolio of assets is easy and quick. Your account holdings are rebalanced automatically and regularly by eToro's investment professionals.
• eToro Club: Based on your trading activity and account level, you can gain access to the eToro Club. This membership program offers enhanced benefits and privileges like a debit card, lower fees and rewards on crypto staking. The club has different tier levels, such as Silver, Gold, Platinum, Platinum+ and Diamond, with each tier offering progressively greater benefits and rewards. The lowest club tier membership is silver for clients with a $5,000 balance, while the highest is diamond for clients with a $250,000 balance. 

Kraken vs. eToro: Supported Cryptocurrencies

Kraken offers a broader and more diverse selection of 240+ cryptocurrencies on its platform. This platform caters to both mainstream and niche markets. Its crypto offerings range from cryptocurrencies like Bitcoin and Ethereum to other altcoins.

eToro has a more limited cryptos available, 21 in the US. However, unlike Kraken, the platform supports other asset types, like stocks and ETFs. If you are seeking access to a wider variety of cryptocurrencies, including altcoins and newer tokens, you would prefer Kraken. If you want to trade only mainstream cryptocurrencies or traditional assets, eToro's selection should be enough for your needs. 

Kraken vs. eToro: Wallets

The Kraken Wallet is a secure digital wallet provided by the reputable Kraken exchange for storing, sending and receiving various cryptocurrencies. It offers strong security features, is user-friendly for both beginners and experienced traders, and provides 24/7 customer support along with access to trading tools and market insights.

eToro's digital wallet, the eToro Money Crypto Wallet, integrates with the eToro trading platform for easy transactions. It employs advanced security measures such as encryption and two-factor authentication. The cryptocurrency wallet is accessible on both desktop and mobile platforms, making it suitable for both novice and experienced traders.

Kraken vs. eToro: Fees

Kraken uses a maker-taker fee model, which acts like a reward system for traders who add liquidity to the market. Makers who provide liquidity to the order book pay lower fees than takers, who use liquidity from the order book. Fee tiers apply depending on the trading volume and trading pair, ranging between 0% for makers and 0.1% for takers. Kraken also charges fees for deposits and withdrawals, margin trading and staking.

Instead of paying a flat fee on eToro, you pay a spread, which is the difference between the price you can buy and the price you can sell. As a percentage of the asset, this spread maxes out at 0.5% and changes according to the trading pair, market conditions and liquidity. You'll also pay transfer fees when you transfer cryptocurrencies to and from the platform. 

eToro charges fees for deposits, withdrawals, currency conversion and account inactivity. Other non-trading fees that you may be charged include rollover fees for leveraged positions that are held overnight, CopyTrader fees and dividend fees for stocks kept on the platform.

Kraken vs. eToro: User Interface

While both platforms offer functional user interfaces, Kraken's interface may be more suitable for experienced traders. The platform provides customization options, detailed price charts and precision analytics to help with technical analysis.

The platform's tone and language assume that whoever is accessing the platform has some knowledge of crypto. For a beginner, this could be overwhelming. Regardless, the interface is easy to use because of its simple layout. 

In contrast, eToro's platform is pretty straightforward. The information, from researching assets to placing trades, is laid out in a way that makes it easy for users to follow. The platform has a social feed feature (similar to X) that allows you to share ideas, follow discussions or get trading updates from more experienced traders.

Kraken vs. eToro: Security

Kraken's interface is more complex and offers a wider range of features and customization options, making it suitable for novice and experienced traders who require advanced trading tools and functionality.

eToro's interface is more user-friendly and streamlined, catering to beginners and offering a simple and intuitive trading experience. The platform's simplicity and social trading features make it an attractive option for users seeking accessibility and engagement.

Kraken vs. eToro: Customer Support

Kraken supports its users in different ways. You can contact the support center via live chat, emails or phone calls to get assistance in resolving issues. There's also an FAQ section, which addresses common questions and issues. If you need personalized assistance, you can submit a support ticket.

eToro operates a similar customer support system. The platform's help center has a FAQ section to address common questions that users may have. There is a live chat function, and you can create a support ticket. 

The absence of a phone-in service may be inconvenient for those who would like to speak with a representative. Speaking directly to a customer support agent could help resolve issues faster. 

Go It Alone or Go With the Crowd

More experienced traders tend to go it alone because they have enough conviction in their strategies. This is what Kraken provides. The interface, information layout and customization options make it obvious that the platform is targeting experienced traders.

However, if you are a beginner, you might to follow other investors, which is what eToro provides. Being able to copy trading strategies or having ready-made portfolios to choose from may give you a head start. eToro's social trading feature also provides a form of mentorship because you'll learn from the successes and mistakes of people who have more experience. 

So depending on where you are on your investing journey, you can choose to use Kraken and go alone or sign up for eToro and go with the crowd.