Contributor, Benzinga
November 29, 2023

Want to jump straight to the answer? eToro is better for new traders, and SoFi is better for general investing services.

Between all the different cryptocurrency brokerages offered to investors, it may be difficult to determine what features each of them provides. Two specific brokerages offer a unique twist on traditional trading platforms.

eToro is a social trading, multi-asset brokerage company that focuses on providing financial and copy trading services for its users. SoFi Technologies Inc. (NASDAQ: SOFI), a brokerage that offers a variety of cryptocurrencies, takes a modern approach to personal finance by incorporating a social aspect where you can see users' investment allocations.

***As of November 2023, SoFi decided to end its crypto services by the end of that calendar year. However, this review offers a wealth of unique information about both platforms that could still be useful to you.

Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts

What is a Cryptocurrency Brokerage?

A cryptocurrency brokerage is a platform where you can buy and sell crypto. A major difference between a crypto brokerage and a stock brokerage is that investors are able to purchase assets on a crypto brokerage at any time of the day, and a stock brokerage is only open during market hours.

Another important difference is the actual type of assets on the exchange. When you purchase a stock, you acquire shares of that company. When you purchase crypto, you buy ownership of that asset but not necessarily a stake in a company. 

Important Cryptocurrency Brokerage Features

When finding what brokerage works best for you, always make sure to consider the security of the platform, supported coins and trading features. Security should be most important to fully protect your assets. Take a look at what coins are supported on the brokerage to make sure it has the crypto you want to invest in. It is also nice to look at different trading features, as some platforms offer different screeners and chart intervals. 

These small variables make a huge difference when it comes to the trading experience. Most brokerages like to focus on a specific feature and make it their selling point. Make sure to consider all the options out there before picking what exchange works best for you. 

Best For
  • Demo Accounts
securely through eToro's website

Features on eToro

eToro offers a virtual trading feature where users can practice their trading strategy before they open a position. It also provides a CopyTrader feature which allows users to “copy” the buy orders placed by professional investors. eToro also provides a mobile trading app that is great for investors wishing to trade on-the-go.

***Disclaimer: This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

SoFi Crypto
Best For
  • Beginners
securely through SoFi Crypto's website

Features on SoFi

SoFi offers a great social investing aspect where you can see popular investors' portfolios to help make educated trades. It also offers a mobile app, as well as a market comparison section and a learning page, to educate new traders. The variety of altcoins could also be considered a nice feature for the trading platform. 

Plus, SoFi is an all-in-one platform for all of your finances. You can invest in many other investment vehicles other than cryptocurrency, such as exchange traded funds (ETFs), stocks and initial public offerings (IPOs).

eToro Fees vs. SoFi Fees

eToro does not have a fee for sending and receiving transactions, although it charges a spread when buying or selling crypto, which varies depending on what coin you want to buy. A spread is a difference between the bid and offer price and sits at 1% on eToro.

SoFi offers lower fees than most of its competitors, with a fixed 1.25% fee on all transactions. Fees on other exchanges may approach 4%, so SoFi certainly offers competitive rates. 

Security Features on eToro vs. SoFi

eToro protects user information with firewalls and data encryption. It also provides the option to activate 2-factor authentication, where your device can be remembered for up to 30 days. 

SoFi uses tools such as SSL encryption and 2-factor authentication to ensure user security. 

SoFi also has a partnership with Coinbase Global Inc. (NASDAQ: COIN), known for its security, to facilitate crypto transactions. Partnering with Coinbase adds to the security measures SoFi has already put in place.

Altcoins Supported on eToro vs. SoFi

When deciding what exchange works best for you, it’s important to take a look at the supported altcoins on the platform. Each exchange offers a different variety of altcoins. and you’ll want to make sure that you can purchase the crypto you are looking for. 

Altcoins on eToro

  • Dash (DASH)
  • Neo (NEO)
  • EOS (EOS)
  • ZCash (ZEC)

Altcoins on SoFi

  • Solana (SOL)
  • Algorand (ALGO)
  • Cosmos (COSM)
  • Filecoin (FIL)
  • Polkadot (DOT)
  • The Graph (GRT)
  • Polygon (MATIC)
  • Aave (AAVE)
  • Sushiswap (SUSHI)
  • Decentraland (MANA)
  • Basic Attention Token (BAT)
  • Synthetic (SNX)
  • Compound (COMP)
  • Maker (MKR)
  • Enjin Coin (ENJ)
  • Yearn. Finance (YFI)
  • Bancor (BNT)

Which is Best: eToro or SoFi?

If you are a novice or beginner trader and want to buy blue-chip cryptos, then eToro may be a great platform for you. If you would like more altcoin options, as well as a slightly more intuitive interface, then SoFi may be a great brokerage for you. 

Both platforms offer great services and security, so you really can’t go wrong. Take the time to assess your personal needs and do your research to understand what each brokerage offers.

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