eToro’s Pros and Cons for Beginners
The social trading and multi-asset brokerage company eToro has registered offices in Cyprus, Israel, the United States, Australia, and the United Kingdom. The company provides services to retail and institutional clients worldwide. Also, eToro has been operational since 2007 and is considered to be a pioneer in the field of social trading. The company's innovative platform has made online trading accessible to a global audience.
Because more people choose to invest their money and make money from Forex trading, the Traders Union has created this review of the eToro broker. This exploration will help novice traders determine whether eToro is good for them or not. Discussed below are eToro’s fees, its pros and cons, and how it compares to its competitors.
What is a good broker for Beginners?
The best features of a good broker are examined and include the aspects novice traders should pay attention to when choosing a broker, such as:
Low minimum deposit
Many beginner traders do not want to deposit a lot of money in their trading accounts because they do not want to risk a lot of money upfront. A low minimum deposit is usually associated with better trading conditions.
Low fees
It is not a secret that many novice Forex traders are not as successful as they wish to be, and they either experience losses or have very small profits. The best brokers for beginners have low trading and withdrawal fees to allow their users to minimize their losses and increase profits.
Brokerage Fees And Commissions ExplainedSpecial accounts for beginners
Many beginner traders lack the experience to make successful trades and gain big profits. And so, demo and cent accounts are great ways to trade at no or lower risks and gain trading experience.
Investment programs like copy trading or PAMM accounts can also help beginner traders make profits.
Easy account opening
Certain brokers might decline some registration applications due to their lack of trading experience of the trader or their relatively low income. And so, brokers who accept all applicants and confirm the applications in a short time are better for beginner traders.
How to Open a Forex Trading Account? - Step-by-Step GuideEasy to use trading platform
An easy-to-use trading platform is one of the most important features of a good broker for beginners because it allows traders to do their market research much quicker and makes the trading experience more enjoyable.
Good educational programs
Educational programs are a great way for brokers to attract more users and beginner traders to learn how to place successful trades and improve their trading skills.
Efficient customer support
Whenever traders experience a problem or an inconvenience, there should be a good customer support service to help them fix it. If a broker’s customer support is not helpful enough, most users do not feel comfortable trading with it.
eToro for beginners | A review
eToro minimum deposit
eToro is a social trading and investment platform with a minimum deposit requirement of only $10 in the United States and the United Kingdom. However, in other countries such as Australia, Germany, France, etc., the minimum deposit is $50.
eToro fees
All brokers charge their users trading fees, but some charge higher fees than others. Compared to its competitors, eToro's fees are a little higher. The average EUR/USD spread is one pip, and the average GBP/USD spread is 1.2 pip.
Regardless of how much the withdrawal is, the broker's commission for each transaction is $5. Additional commissions are charged by some payment systems. The minimum withdrawal amount at eToro is $30, while the minimum for bank transfers is $500.
Additionally, eToro offers commission-free stock trading to all of its users in the United States. Investing in the stock market for people in the US will now be easier than ever, with no fees for buying and selling stocks.
eToro investment programs
eToro's CopyTrader enables you to automate your trading based on what other traders are doing and copy their moves based on their strategies. When it comes to trading stocks, eToro does not charge commissions.
Buying and selling ETFs at eToro is straightforward. With eToro, investing in ETFs is easy, and there is a low minimum investment amount and no commissions on ETFs.
eToro account opening
Creating an eToro account is similar to registering with most brokers. There are only a few steps to follow:
Go to the eToro.com website and click on the Create Account button.
Choose a username, enter your email address, and set a password. Alternatively, you can sign up with your Facebook or Google account.
Check your email inbox and verify your email address.
After verifying, click on the Complete Profile button.
Fill out your basic personal information; this needs to match your proof of identity.
Enter your place of birth and country of citizenship. You may be asked to complete the ID number.
Verify your phone number, identity, and address by presenting proof of your identity and address.
Make a deposit and start trading.
Trading platform
eToro offers its clients two main types of trading platforms:
The web-based eToro platform (Webtrader) and the mobile app (Openbook).
With eToro WebTrader 2.0, clients can manage trades directly from the central platform, trade personally by placing orders directly and monitor and manage their positions.
With eToro Openbook, you can find who to follow by the number of copiers and other criteria and get your base stats, like followers, copiers, and monthly gains. Plus, you can stream your latest activity, trades, and discussions on your wall. These tools contribute to simple copying of people and individual trades.
Education
eToro's educational content makes it a great Forex broker for novices. Besides regular articles explaining trading terminology and sharing tips and advice, eToro offers free webinars, FAQs, and videos for beginners to improve their trading skills.
Customer support
eToro also offers decent customer support. Users can contact a representative via email, phone, or virtual assistant when they need assistance. In some cases, you may not receive an answer right away. Users can find most answers to their questions in eToro's FAQs section.
Conclusion
In conclusion, the Traders Union finds that eToro is a good Forex broker for beginners due to its low trading fees, outstanding educational section, and well-known and intuitive trading platform.
It is, however, not without its cons, such as higher spreads, inactivity fees, and a lack of the most popular trading platforms such as MetaTrader 4 and MetaTrader 5 in Europe and the CIS. Despite being a good broker for beginners, it is not perfect. Those looking for alternatives to eToro might find it helpful to read TU’s top ten best forex brokers ranking for beginners in 2023.
FAQ
Is eToro safe to invest money?
Yes. eToro follows FCA, CySEC, and ASIC regulations, meaning investors are protected. Funds and personal information of eToro clients are kept secure in top-tier banks.
What is the downside to eToro?
Non-trading fees are high on eToro, such as withdrawal and inactivity fees. Withdrawals can be slow, and USD is the only currency you can hold. Lastly, customer support is difficult to reach.2
What is the minimum amount to trade on eToro?
A minimum amount of $10 is required to trade stocks, ETFs, and crypto on eToro.
Does eToro have a mobile trading app?
Yes, eToro has a mobile app available for both IOS and Android devices.
Team that worked on the article
Alamin Morshed is a contributor at Traders Union. He specializes in writing articles for businesses who want to improve their Google search rankings to compete with their competition.
Over the past four years, Alamin has been working independently and through online employment platforms such as Upwork and Fiverr, and also contributing to some reputable blogs. His goal is to balance informative content and provide an entertaining read to his readers.
His motto is: I can dream or I can do—I choose action.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.