Things to consider

There are many aspects to assessing a broker’s services in general, maybe even too many to list. Below, we’ll focus on the most important criteria that should be taken into account when determining whether a broker is good for beginners.

A beginner-friendly broker should have:

  • an excellent web and mobile trading platform
  • low fees
  • great educational tools
  • good customer service
  • an easy account opening process
  • low minimum deposit

Safety is also very important, but since we recommend only safe brokers regulated by top-tier authorities, this is one thing you don’t have to worry about.

More and more people are looking to become a player on financial markets either as traders or investors. However, when researching the basics, it can be easy to feel overwhelmed by the sheer amount of information available online.

This is where BrokerChooser offers a helping hand. The reason is simple: choosing the right service, especially when you are taking your first steps in trading, is highly important.

In this article we’ll check whether eToro is the right choice for a starting trader.

Is eToro good for beginners
eToro is a CFD broker

Just a quick heads up: eToro is a CFD broker. Usually we don’t recommend CFD brokers for beginners unless they want to trade currencies. For beginners looking to trade mostly stocks, we recommend choosing a stockbroker where you can buy the actual shares of a company instead of a CFD contract for the stock.

Some CFD brokers offer you the opportunity to place orders on the price movements of some popular stocks; some might even offer company shares as a so-called stock CFD (contract for difference). While this might be a good idea for some short-term traders, there are many drawbacks to it: for starters, you’ll need to pay the broker a so-called financing charge as long as you hold the CFD. This could add up to a significant amount if you hold the CFD for more than a few weeks.

If you’d like to stick with CFDs, you might want to take a look at our article on CFD trading tips.

Is eToro good for beginners
Is eToro good for beginners?

Based on our scoring methodology, eToro is a broker that we can recommend for beginners.

Let's take a look at its services one by one, following the criteria we set above, to get the whole picture.

  • 💻 When it comes to its web platform, eToro might suit the needs of beginners: User-friendly. Clear fee report. Two-step (safer) login. Overall, this platform may be an optimal choice for beginners.
  • 📱 The mobile platform of eToro is reasonably well-designed: User-friendly. Two-step (safer) login. Good search function. This may be helpful for the first steps in your trading journey.
  • 💰 Fees are one of the most important aspects when it comes to trading and eToro does well in some areas: Low trading fees. Free stock and ETF trading. Low forex and CFD fees. However, charges may be higher compared to some competitors. Areas of improvement: High non-trading fees.
  • 🕖 An account opening process is great when it is seamless from the get-go. eToro does an excellent job in this area: Fast. Fully digital. Low minimum deposit.
  • 📚 Demo account. Intro guide to the platform. However, eToro's education materials could be improved.Areas of improvement: Basic educational videos.
  • 📞 Live chat. Fast response time. Relevant answers. However, there is some room for improvement in eToro's customer service: No phone support. No 24/7 support. Live chat is offline quite often.
  • 💰 Low minimum deposits and low-cost transactions are attractive for new traders. eToro's deposit and withdrawal processes have some good things to offer: Credit/Debit card available. No deposit fee. User-friendly. Nevertheless, its services could be improved in other areas: Only one account base currency. $5 withdrawal fee. Conversion fee for non-USD deposits.

Is eToro good for beginners
Overview of eToro's services

Let’s take an overall look at how eToro compares to its peers when it comes to platforms, fees, account opening and education tools. Our scores are on a scale of 1.0 to 5.0, from worst to best.

eToro services vs. similar brokers
eToro XTB Trading 212
Web platform score 4.4 stars 4.4 stars 4.9 stars
Mobile platform score 4.9 stars 4.4 stars 4.9 stars
Fees Low Low Average
Account opening score 5.0 stars 5.0 stars 4.5 stars
Education score 3.5 stars 5.0 stars 4.0 stars
Customer service score 3.3 stars 4.4 stars 1.0 stars
Deposit and withdrawal score 3.5 stars 4.5 stars 4.3 stars

If you wish to read more about eToro, click 'Visit Broker' to go to the broker's website. We also have a detailed review of the broker that you can read by clicking on the 'More' button.

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Is eToro good for beginners
Is eToro safe to use?

We hear more and more stories each day about clients who lost their money to scammers from Telegram or through unregulated services. BrokerChooser only features brokers that have top-tier regulators. As such, eToro is a safe and trusted broker.

If you’d like to know more, check out our deeper dive into eToro's safety.

Is eToro good for beginners
Where can I find more information?

If eToro is not the right broker for you, go ahead and check out our picks for Best Brokers for Beginners in 2021 for some alternatives.

Also, if you feel that some things weren’t clear when it comes to the brokerage world, no worries. We have lots of content to cover your questions. You can find our articles in the Education section of our site.

For example, if you want to know how to buy shares online and how the whole process works, there’s an article about that. If you’d like to learn more about investing in stocks or what short selling is, we have articles about these topics too.

We have also written a few materials that focus on recent events in the news. Like what happens with brokers after Brexit or what a short squeeze is.

We hope you found all of the information above useful. If you have any questions, we’d love to hear from you, just write to us at [email protected]. See you there!

Author of this article

Gergely Korpos

Author of this article

Gergely is the co-founder and CPO of BrokerChooser. His aim is to make personal investing crystal clear for everybody. Gergely has 10 years of experience in the financial markets. He concluded thousands of trades as a commodity trader and equity portfolio manager.

Gergely Korpos

Co-founder, CPO

Gergely is the co-founder and CPO of BrokerChooser. His aim is to make personal investing crystal clear for everybody. Gergely has 10 years of experience in the financial markets. He concluded thousands of trades as a commodity trader and equity portfolio manager.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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