Is eToro a good broker for beginners?
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In our comprehensive eToro review we take a look at what makes the platform a good choice for all types of investor. On this page we investigate the features that novice traders will find useful. Continue reading to learn more about eToro and discover if it’s a good broker for beginners.
Is eToro good for beginners?
Yes, eToro is an excellent option for beginners. The platform has many features and tools designed with beginners in mind. It has a range of available assets, and beginners can also choose from various investing methods. Below are ten features that make eToro good for beginners.
Easy to use platform
The eToro platform is among the most user-friendly trading terminals around. Beginners can access all of its features quickly and easily. The platform can be customised to suit your requirements. For example, it is possible to create portfolios and watchlists where you can track specific assets. You can also use the search function to find any instrument available.
Wide selection of assets
On eToro, beginners can choose to trade over 3000 assets. Stocks, ETFs, forex, commodities, cryptocurrencies, and crypto pairs are all available. Most of these can be traded using CFDs; however it is also possible to directly invest in stocks and buy Bitcoin on eToro. Its vast selection means there is always something to trade or invest in.
Free demo account
One of eToro’s key features aimed at beginners is its free demo account. You can switch to simulation mode when you sign up with the platform. Its demo account allows you to access all its features and make trades using virtual funds. Unlike other platforms that offer time-limited demo trading, eToro does not impose limits, so you can practice for as long as you want.
Ready made smart portfolios
Beginners who may not know how to choose investments can use eToro’s smart portfolios. Smart portfolios are baskets of ready-made investments and take the hassle out of choosing stocks and other assets. There is a wide range of smart portfolios to choose from, including different types of assets.
Social trading network
As mentioned earlier on this page, eToro is also the largest social trading network in the world. Social trading allows all 25+ million users worldwide to communicate and share trading ideas and strategies. When logged into eToro, you can choose to follow specific traders on the network and keep track of your very own social feed.
eToro is a copy trading platform as well as a social trading one. Copy trading is free for all users and allows you to copy the trades of top-performing traders on the network. It’s an easy way to start earning passive income while perfecting your trading skills.
When you are a new trader, it is key to keep costs down, and on eToro, you’ll benefit from zero commission on all of its assets. You can invest in stocks without an extra fee or buy and sell other assets, knowing you won’t have additional charges. While zero commissions, it charges 1% each time you buy and sell crypto. It also charges a spread (the difference between the buy and sell price), although this is competitively low.
Regulated in multiple jurisdictions
eToro is well regulated in multiple jurisdictions, including the UK, USA, Cyprus, Netherlands, Australia, and Seychelles. Beginners are often targeted by unregulated brokers and end up losing a lot of money. eToro’s strong regulation in many regions makes it a safe broker for beginners. Some regulatory bodies also provide compensation if eToro were ever to go bust.
Easy signup process
You can open an eToro account in a matter of minutes. It is an online brokerage so the sign-up process can be completed on a computer or mobile device. When you create an account, you just need to provide your basic information, identification, and proof of address. Once they are verified, your account will be ready to go.
Low minimum deposit
You can open an eToro account with as little as $10. Although it operates worldwide, each region has its own minimum requirements. The platform also allows you to deposit using various methods, including Credit/Debit Card, PayPal, Neteller, Skrill, Rapid transfer, iDEAL, Klarna/Sofort banking, and bank transfers.
Should I use eToro if I am a beginner?
eToro is one of the best options to use if you are a beginner and should be considered. Other brokers offer similar services, although eToro’s reputation puts it ahead of many different platforms. eToro is designed with beginners in mind and its platform is one of the easiest to use.
The social trading aspect of the eToro network is a perfect solution for novice investors or traders still learning the ropes. Copy trading makes it easy to earn income by copying top-performing traders using eToro. While it is overall a top choice for beginners, there are a couple of features that are not ideal.
Each time you withdraw funds for eToro, you’ll be hit with a $5 fee. This can quickly eat into your profits if you make lots of withdrawals. Its customer support is also not in operation 24/7, so it can be difficult to find an answer if you ever need help on the weekend. However, on Invezz, we have lots of guides and helpful tutorials explaining how to use the eToro platform that you can access anytime.
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