Things to consider

eToro USA LCC does not offer CFDs, only real Crypto assets available.

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

Legitimacy is also very important, but since we recommend only legit brokers regulated by top-tier financial 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.

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Disclaimer: 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Is eToro good for beginners
eToro is a CFD broker

Just a quick heads up: eToro focuses mainly on CFDs. Usually we don’t recommend CFD products for beginners because it can be quite risky.

On the other hand, eToro provides real stock / cash equities / underlying stocks besides CFDs. When you invest into real stocks, you can buy the actual shares of a company instead of a CFD contract for the stock

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: Two-step (safer) login. Good search function. Touch/Face ID login. This may be helpful for the first steps in your trading journey.
  • 🕖 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.
  • 📚 eToro's education materials are a great place to start: Demo account. Trading platform tutorial. Educational videos. This makes eToro's material worthy reading.
  • 📞 Relevant answers. However, there is some room for improvement in eToro's customer service: No phone support. No 24/7 support. Live chat only for Club members.
  • 💰 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. 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.

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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 Trading 212 XTB
Web platform score 4.4 stars 4.4 stars 4.4 stars
Mobile platform score 4.9 stars 4.9 stars 4.4 stars
Fees Low Low Low
Account opening score 5.0 stars 4.5 stars 5.0 stars
Education score 5.0 stars 4.0 stars 5.0 stars
Customer service score 4.0 stars 5.0 stars 5.0 stars
Deposit and withdrawal score 3.8 stars 4.3 stars 4.5 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 legit?

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 financial regulators. As such, eToro is a legit and trusted broker.

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

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 2023 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 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!

Risk disclaimer

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Disclaimer: 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

Author of this article

Gyula Lencsés, CFA

Author of this article

Gyula has more than 10 years of experience in the financial industry. He spent most of his career in the wealth management business as a portfolio manager of mutual funds. He has trading experience in a wide range of asset classes, including stocks, ETFs, bonds, commodities, forex and derivatives markets.

Gyula Lencsés, CFA

Head of Content

Gyula has more than 10 years of experience in the financial industry. He spent most of his career in the wealth management business as a portfolio manager of mutual funds. He has trading experience in a wide range of asset classes, including stocks, ETFs, bonds, commodities, forex and derivatives markets.

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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