Yes, eToro is good for beginners. eToro is an easy-to-use mobile app and investment platform for trading shares, ETFs, and other investment products. The platform also has a variety of instruments, educational content and unique offerings that make it ideal for beginners.
On eToro, beginners can invest in more than 3,000 assets, including 0% commission stocks, ETFs, cryptocurrencies, crypto-trading pairs, indices, commodities, currencies (forex) and CFDs.
Beginners can also choose from a variety of ways to invest, such as smart portfolios, social trading and copy trading.
Smart portfolios are a ready-made basket of investments and are ideal for those who do not want to deal with the hassle of choosing individual stocks and other assets.
Social trading enables over 20+ million users around the world to communicate and share thoughts, knowledge and ideas about the financial markets on the eToro platform.
Copy trading or CopyTrader allows beginners and other investors to copy the trades of top-performing traders on the eToro platform.
As always, please remember that when you invest, your capital is at risk.
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Yes, eToro is safe for beginners. eToro is as safe for beginners as any other regulated stock trading platform in the UK. It is authorised and regulated by the UK’s financial watchdog, the Financial Conduct Authority (FCA). Have a look at its permissions on the FCA register.
The authorities put these regulations in place to protect everyday investors from investment scams and abuse. However, you should keep in mind that regardless of these regulations, all investments still carry an element of risk, and you could lose some or all the money you invest.
According to eToro, your funds with them are kept secured in tier-one banks, and all personal information is protected under SSL encryption.
Your money is also protected by the Financial Services Compensation Scheme (FSCS) up to a maximum of £85,000. This means you might be able to get your money back from the FSCS up to £85,000 if eToro goes bust. Please note that the FSCS does not cover losses arising from the performance of any of your investments.
eToro does have some risky investment products, such as Contracts for Difference (CFDs), which are not necessarily the best trading instruments for beginner investors. However, eToro does tell users if the product they are about to trade is a CFD before they commit to it.
Beginners should be wary of CFDs and instead look to invest in the underlying assets of each investment they purchase. When you invest in the underlying stocks on eToro, for example, you do not pay a trading commission.
CFDs, on the other hand, are very risky trading instruments that involve taking a loan from the trading platform with just one click of a button.
If you must invest in CFDs, we are duty-bound to let you know that 80 - 90% of retail investors lose money when trading CFDs on eToro. You should consider whether you can afford to take the high risk of losing your money before going ahead.
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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. 80 - 90% 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.
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, 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 utilising publicly available non-entity-specific information about eToro.
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