eToro is one of the world’s leading Forex and CFD brokers and they have over 9 million clients worldwide. This broker is mostly renowned for their social trading feature CopyTrader that allows anyone to copy the trades of another trader. Meanwhile, Kraken is also a standout exchange that primarily provides cryptocurrency. It is one of the oldest exchanges in the world and is currently ranked 34th in the world by trade volume. Both of these are excellent in what they do, but which one is the best broker for you?
eToro is licensed and regulated by 3 separate regulators under different names. eToro Europe is licensed by CySEC under license number 109/10 while eToro UK and eToro AUS are licensed by the FCA and ASIC respectively. Because of these licenses, eToro is free to operate in most countries around the world except the US and Japan.
Kraken is not licensed by any regulator whatsoever, as it is common among cryptocurrency exchanges. In New York, the company denied a request by the New York AG that would have granted then a BitLicense to operate. Add to that, they do not have offices in Japan where they would have been granted a license by the FSA.
Winner is eToro.
There are many deposit options on eToro ranging from wire transfer to credit/debit card, China Union Pay, Giropay, Neteller, Skrill, Paypal, Webmoney, Yandex, Wire and Local Onlne Banking. To make a deposit on Kraken, one can either use cryptocurrency such as Bitcoin, Ripple, Litecoin, etc. or fiat currency by wire transfer in either euro, US Dollar, Japanese yen or Canadian dollar.
Winner is eToro
Although eToro was created to provide Forex and CFDs trading, it has since expanded to include more financial instruments. Some of the additional markets accessible through eToro include cryptocurrencies (15), ETFs (145), stocks (600), indices (13) and commodities (6). When one buys either stocks, ETFs or cryptocurrency without leverage, they are buying the actual asset. Therefore, they are entitled to all the benefits of owning an asset such as dividends, etc. However, buying any of the aforementioned assets offered on eToro using leverage automatically means the trader is dealing in CFDs. On the other hand, Kraken is only a cryptocurrency exchange, of which there are 74 coins.
Winner is eToro for general investors and Kraken for crypto only investors.
Fees charged by eToro are quite reasonable, although not the least in the industry. Trading non-leveraged positions where the trader buys the real asset incurs no commission from the broker, but a fee will be applied when making sell orders. On trading CFDs, eToro uses spreads to make money, but eToro is not the best broker in this regard. Other than trading fees, eToro will also charge a trader $25 for withdrawals, with the minimum amount being $50.
To trade on Kraken, though, fees are incurred for every transaction on a sliding scale. Trade volume under 50,000 will incur maker fees of 0.16% and taker fees of 0.26%. These fees drop to 0.14% and 0.24% when more than 50,000 is traded all the way up to 0% and 0.10% for trade volume above 10 million. The trade volume is calculated over a 30-day period. There are charges on both deposits and withdrawals.
Winner is eToro
eToro has multiple trading platforms that can be downloaded on desktop (PC and Mac) and mobile (Android and iOS). Kraken currently don’t have any downloadable apps for either desktop or mobile after their mobile apps were delisted from the App Store.
Winner is definitely eToro