is eToro good for beginners

Is eToro Good For Beginners?

This article was last updated on August 24, 2022

*This content is not intended for US users. eToro USA LLC does not offer CFDs, only real crypto currencies are available on the eToro platform.

Etoro is one of the most popular and widely used trading platforms on the internet. With over 20 million users, the service is an industry leader in many countries, providing access to stock, crypto, forex, and various other markets. Thanks to its extensive copy trading system, eToro also heavily focuses on the social aspects of investing and trading. Naturally, as such a popular choice, eToro attracts investors of all skill levels. This has raised the question of whether eToro is good for beginners or not. In our article, we examine the popular trading service and aim to answer that question.

What Is eToro?

Etoro is one of the world’s leading online trading platforms. The service is available in over 140 countries and has amassed a user base of over 20 million investors. On it, they are able to trade in stocks, commodities, ETFs, cryptos, forex pairs, and more. All of this is available either as an underlying asset or as a contract for difference (CFD).

The platform has two main selling points- its low fees on trades and its extensive copy trading system. Both of these are highly attractive for casual traders who are looking for a less involved approach to investing.

Additionally, eToro hosts all sorts of educational material on its website. From this, users can learn about investing in various markets, how different financial instruments work, the economy at large, and more.

Key eToro Features For Beginners

Etoro is a very popular online trading platform used by investors of all skill levels. This is in no small part thanks to the numerous features and perks that the website offers to its users. Here are some of the main features that make eToro particularly good for beginners:

Financial Instruments

As a trading platform, eToro’s main feature is the various markets that it provides access to. On the website, users can trade stocks, commodities, ETFs, cryptos, forex pairs, and more. There are over 2,500 available stocks, including corporations of varying sizes and popularity from all over the world. 17 different exchanges in total can be found on eToro, including the NASDAQ, NYSE, London, Paris, Milan, and Hong Kong stock exchanges.

Meanwhile, crypto enthusiasts can trade in more than 120 cryptocurrencies. These range from popular coins like Bitcoin, Ethereum, Binance Coin, Ripple, Litecoin, and Dogecoin, to far more obscure ones. One popular crypto among eToro users has been Shiba Inu, which many enthusiasts are expecting to reach 1 cent.

Lastly, various other markets are also available, enabling users to invest in currency pairs, indices, ETFs, and commodities. There are 49 currency pairs in total, allowing for adequate access to the forex market. It is important to note here that not all of these markets are available in all countries. Users from the United States, for example, currently only have access to crypto assets on eToro.

Copy Trading System

Etoro’s most advertised feature is the platform’s social copy trading system. This allows users to copy the moves of other traders on the website and apply them to their own portfolios. The feature is particularly handy for less experienced investors or those who are looking to take a less involved approach.

It also gives seasoned traders the opportunity to establish themselves on the platform and create an additional source of income when they gather a significant following. Other than monthly payments, popular traders also receive various perks on the platform, like a rebate on the spread.

Fees And Payment Methods

Another integral aspect of the trading platform are its low fees. These are particularly attractive for new users and beginners in the world of trading. Since lower fees also mean a lower barrier to entry, new users are much more likely to deposit on eToro as opposed to older online brokers, where they will need to pay various fees from the get-go.

This is further helped along by the convenient and easy-to-use payment methods that eToro accepts. While most brokers will only accept bank transfers, an eToro account can be funded via a bank card or eWallet.

Etoro also has varying minimum requirements and limits for the various countries it operates in. The minimum amount you can deposit is $50, except for the UK and US, where it is $10. However, your first deposit will need to be at least $10 in the US and UK, $50 in Europe, and $200 in most other countries. There are also several notable exceptions where the minimum is $1,000. Meanwhile, for withdrawals, the process is a bit more simple, with a flat $30 minimum for all.

Mobile-Friendly Platform

Etoro is built to be accessible regardless of the device you are using. This means that it has native mobile integration and dedicated apps for both iOS and Android. Both the app and web-based versions of the website have an intuitive and simple design that will not overwhelm beginners with excessive charts and stats.

This platform-agnostic approach also means that you will be able to trade while on the go and not have to miss out on any market movements, regardless of where you are.

Educational Resources

Etoro also offers a variety of educational resources on its platform. These can be found on the Academy section of the website, which is dedicated to teaching users how to invest. In the Academy, you can find information on how to use the eToro platform, financial basics, and more. While it is great for beginners, the eToro Academy also has plenty of advanced material for seasoned traders who are looking to up their game.

All of this is provided in easily digestible articles and videos that you can learn from for free and on-demand. Additionally, the website also hosts a number of podcasts and webinars.

The internet at large is also a great place where you can learn about finance and investing for free. There are countless courses and videos out there that will teach you everything you need to know. Make sure to check out our own beginner’s guide to investing to get off on the right foot.

Are There Hidden Fees On eToro?

While eToro advertises non-existent or minimal fees, in the end, it is a business. As such, it needs to make money in order to stay afloat. The main source of income for the platform is the spread on trades. This is the difference between the price that users pay when buying assets and the actual market price. While a spread is present on all brokerage services, eToro’s is a bit higher than standard.

Meanwhile, users who deposit in currencies different than USD will be charged a conversion fee. This is clearly indicated on the platform, and you will be shown a full statement of the conversion, including the rate, prior to finalizing the deposit. While this is handy, the conversion fees can still be a hassle for many users as eToro is available all over the world.

When it comes to withdrawing your funds, eToro has a fee for that too. Each withdrawal comes with a fixed $5 fee. This remains the same, regardless of the amount you are withdrawing. Additionally, if you have deposited with a currency different than USD, your withdrawal request will automatically be exchanged for that currency which also applies conversion fees.

Finally, eToro also has overnight and inactivity fees. The former applies to CFDs that you hold overnight. You can see a projection of the amount when you are opening a CFD position. Both of these types of fees are standard for the industry, and you will see them on most platforms.

Related: Best Cryptocurrencies To Invest In As A Beginner

Is eToro Safe For Beginners?

Etoro is completely safe to use for all users. The platform is available worldwide and holds licenses from a number of highly-respected regulators. As such, eToro is highly scrutinized by a number of jurisdictions. Each one of these makes sure that everything on the platform operates above board. Should you run into any trouble, you can always look to these regulators for legal support.

However, as a trading platform, eToro does come with a certain degree of risk. Monetary loss is always a possibility when investing, and this is especially true for beginners. In order to avoid financial troubles, we recommend investing only as much money as you are willing to lose.

Additionally, CFD trades that use leverage can end up costing more money than you have put in. As such, these should be avoided by newcomers who are not yet acquainted with how trading works.

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68% 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. 
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. 

How Is eToro Regulated?

As we mentioned, eToro is a high-profile platform with an international presence. As such, it operates in multiple territories and under the jurisdiction of several regulatory bodies. These all ensure the proper conduct of the service and make certain that all systems operate as intended.

Each regulator has its own stringent guidelines, which it enforces vigorously. The fact that eToro is regulated by several of these bodies only speaks to the legitimacy of the platform.

In total, eToro is regulated by 4 different authorities, each one overseeing a different jurisdiction. European customers fall under the Cyprus Securities and Exchange Commission (CySEC), while UK citizens can rely on the Financial Conduct Authority (FCA). Meanwhile, for the US, there is the Financial Industry Regulatory Authority (FINRA), while Australians have the Australian Securities & Investments Commission (ASIC).

All of these authorities rank as some of the most reliable and strictest regulatory bodies in the financial sector. As a result, you can have absolute peace of mind when it comes to your assets. All of these organizations have long and proven track records of holding brokers accountable and protecting customers.

How Does eToro Compare With Other Platforms

Etoro is a great all-around platform that offers access to all sorts of markets. As a kind of jack of all trades, eToro does it all, albeit on a more average level. While most other platforms will specialize in one market or cater to professional-grade users, eToro opts for a more retail customer-oriented approach.

This can have both its pros and cons. Because eToro is not as specialized, it does offer fewer options when it comes to available markets and instruments. Additionally, the service has less detailed graphs and charts. This means that professional users can’t get all of the information they might need.

However, as a less complex platform, eToro is perfect for beginners. Its simplicity makes it easily understandable, and newcomers can quickly get the hang of things. Moreover, while limited, eToro’s offerings include all of the most popular stocks, cryptos, and FX pairs and should be enough to satisfy the needs of most users.

  • Easy-To-Use Design
  • Low Fees
  • Educational Material
  • Variety Of Markets And Instruments
  • Globally Available
  • Limited Functionality For Advanced Users
  • Wide Spreads
  • Limited Market Availability In The USA
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How Can Beginners Sign Up For eToro

Time needed: 15 minutes.

How To Sign Up For eToro

  1. Go To The eToro Website

    Go to, which is the main website of the platform. This will automatically redirect you to the right version for your country. Language options should be available in the top-right.

  2. Click On Join Now Or Trade Now

    Find The Green Button That Either Says “Join Now” or “Trade Now”. This will take you to the sign-up page on eToro.

  3. Fill Out The Form

    You will be asked to fill out a short form with your full name, email, and phone number. You will also need to set a username and password for your profile. Alternatively, you can sign up with either your Facebook or Google account.

  4. Verify Your Email

    A verification email will be sent to the address you have provided. Click on the link in that email in order to verify your account. Make sure to check your junk folder if you cannot find the email.

  5. Complete The KYC Verification

    Like all online brokers, eToro requires you to verify your identity. This is done through a second form where you will need to fill out additional information like your address. You will also need to provide pictures of a photo ID and proof of address documents.

  6. Fill Out The Questionnaire

    New users are also required to fill out a questionnaire. This involves topics such as the source of your income, your investment plans, and more. This is another step of the KYC process.

Closing Thoughts On eToro For Beginners

All in all, eToro is one of the best places where you can start off your trading career. The platform offers access to a wide variety of markets and financial instruments that are sure to be more than enough for any beginner investor. Additionally, the low fees and simple user interface make signing up and getting started a hassle-free process.

eToro also hosts a large educational section where beginners can learn about finances, investing, trading strategies, and the platform itself. This is available for free and to everyone, regardless of whether they have an account or not.

Etoro For Beginners FAQ

Is Etoro Good For Beginners?

Etoro is one of the best online trading platforms for beginners. The service has a wide variety of features, markets, and financial instruments, available in a simple and easy-to-use user interface. Etoro also encourages beginners to try out investing by eliminating certain fees and providing free educational material.

What Payment Methods Does eToro Accept?

eToro accepts a number of different payment methods. These include credit or debit cards, bank transfers, PayPal, Neteller, Skrill, Rapid Transfer, iDeal, Sofort, Klarna, Trustly, and Poli. However, the availability of each one will vary depending on your location.

What Information Does eToro Require To Verify My Identity?

Like most online trading platforms, eToro has a KYC verification process. For this, the website will request your full name, email address, date of birth, home address, and phone number. Additionally, you will have to provide copies of a photo ID, utility bill, and bank statement. All of this is standard practice and required by all regulated online brokers.

Can I Trade Cryptocurrencies On eToro?

Yes, eToro does allow customers to trade with over 120 cryptocurrencies. These include popular tokens like Bitcoin, Ethereum, Litecoin, Ripple, Binance Coin, Dogecoin, and much more. Many less-known altcoins are also available on the platform. Additionally, the service constantly updates its offering by adding more cryptos to this list.

Is eToro Safe To Use?

eToro is governed by a number of highly-regarded regulatory bodies. The Cyprus Securities and Exchange Commission (CySEC), Financial Conduct Authority (FCA), Regulatory Authority (FINRA), Australian Securities & Investments Commission (ASIC) all oversee eToro and its actions. As such, eToro is one of the most trustworthy and reliable online trading platforms out there. Should you run into any issues, you can always turn to one of these regulators for legal backing.


eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and 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.
Cryptoassets are highly volatile and unregulated in the UK. 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.

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