Is eToro Good For Beginners?
Is etoro good for beginners pioneering social investment platforms. It was a first to offer copy trading, and has since expanded into crypto with its CopyTrader and Smart Portfolios features. It’s easy to use and punches above its weight when it comes to charting.
However, it doesn’t give the same level of access to markets as some other brokers such as IG for example. IG offers far more markets to trade in comparison, with over 17,000 stocks, indices and commodities to choose from. It also allows you to short shares via CFDs, which can be a more risky option than just buying or selling physical stock.
The good news is that eToro’s market access is free, though there are FX conversion fees and overnight financing costs for CFD positions. Those fees can eat into your returns over time.
Is eToro Good for Beginners? A Beginner’s Guide to Trading
In terms of investment choices, eToro is very good for beginners with around 2,000 stocks and 270 ETFs to invest in, plus a strong crypto presence and basic options trading. However, it does not allow you to go short or borrow on margin and experienced traders may be frustrated by the skinny tools and capabilities available here.
Another issue is that eToro only lets you trade in USD, which means that when you buy UK shares like Lloyds you will be investing in USD not GBP. This can erode your returns if the USD depreciates against the GBP. The good news is that eToro does allow you to reduce your leverage so this can help you manage risk.