Is eToro Good for Beginners in the UK? A Comprehensive Review
Adam Woodhead
Co-Founder
Adam is a passionate investor who created The Investors Centre (TIC) to combine his professional skills with his love for investment. His goal is to offer a platform filled with valuable resources, practical advice, and effective strategies for anyone looking to make their mark in the investment world.
“Investment is about more than just numbers; it’s about strategy, research, and the willingness to adapt. At TIC, we’re here to provide the tools and knowledge you need to succeed on your investment journey.”
Thomas Drury
Co-Founder
Thomas is an experienced financial trader in leverage instruments, crypto and general investing. He has over a decade experience in finance and holds Chartered Status in the financial industry, Thomas’s speciality is trading CFDs, Forex and Day Trading. His crypto portfolio is heavily weighted towards BTC and Eth, but enjoys trading low cap crypto’s with higher volatility. Thomas’s favourite trading strategy is break out Trading.
“Our commitment at The Investors Centre is unwavering. We strive to provide clear, actionable advice that empowers you to achieve financial success. Our vision is a future where anyone can invest confidently and wisely.”
Table of Contents
Disclaimer
How We Test
Quick Answer - Is eToro Good For Beginners
Yes, eToro is great for beginners, offering an easy-to-use platform, FCA regulation, features like CopyTrader and a demo account to help users learn and invest confidently without risking real money.
- Minimum Deposit: $50 (via UK bank transfer)
- Copy top-performing traders across a wide range of assets
- FCA regulated and compliant with UK crypto marketing rules
- User-friendly platform with social trading and mobile app support
- Perfect for beginners and casual investors looking to follow expert strategies with ease
CFDs are complex instruments with a high risk of losing money rapidly due to leverage. 61% of retail CFD accounts lose money when trading CFD’s 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.
What Is eToro? A Beginner’s Introduction
eToro is a globally recognised trading platform founded in 2007. Designed to make investing accessible, it combines innovative tools with a social trading feature that encourages learning. Currently, eToro boasts over 25 million users worldwide, regulated in multiple regions, including the UK under the Financial Conduct Authority (FCA).
Some of its standout features include:
- Social Trading: Follow and copy successful traders in real time.
- Diverse Asset Classes: Access to stocks, ETFs, cryptocurrencies, commodities, and forex.
- Zero Commission on Stock Trades: A cost-saving option for new investors.
What Makes eToro Beginner-Friendly?
1. A Simple and Intuitive Interface
Navigating the eToro platform is seamless. The layout offers clear insights into markets, portfolio performance, and trading activities, making it ideal for users with no prior experience.
2. CopyTrader: A Unique Social Trading Feature
eToro’s CopyTrader™ allows beginners to replicate the portfolios of seasoned investors. By allocating funds to copy traders, users can see how experienced professionals manage their investments while learning about trading strategies.
3. Demo Account for Practising Without Risks
The platform provides a free demo account with $100,000 in virtual funds, giving beginners a risk-free way to practice trading and refine their skills before committing real money.
4. Educational Resources for Learning
eToro offers a range of free educational materials, including video tutorials, articles, and webinars, designed to help new traders understand the basics of investing and market analysis.
What Are the Pros and Cons of Using eToro as a Beginner?
Commission-Free Stock Trading: Beginners can invest without worrying about trading fees, helping them keep more of their profits.
CopyTrader™ Tool: This standout feature lets new users follow and copy experienced traders, making it easier to learn strategies in real time.
FCA Regulated: eToro is authorised by the Financial Conduct Authority (FCA), offering a secure and compliant environment for UK beginners.
Inactivity Fees: A £10 monthly fee applies if your account is inactive for over 12 months, which can catch out casual investors.
Withdrawal Fee: There’s a $5 charge every time you withdraw funds, which can add up if you’re moving money frequently.
Basic Tools for Advanced Users: While beginners will appreciate the simplicity, more experienced traders might find the charting and analysis tools limited.
How Does eToro Compare to Other Platforms?
If you’re considering eToro, it’s helpful to see how it stacks up against other trading platforms in the UK:
| Platform | Best For | Fees | Ease of Use | Key Feature |
|---|---|---|---|---|
| eToro | Social Trading | Low (1% crypto spread) | ⭐⭐⭐⭐⭐ | CopyTrader™ |
| Coinbase | Cryptocurrency Focus | High transaction fees | ⭐⭐⭐⭐ | Extensive learning tools |
| Trading 212 | Stock Trading | Zero-commission trading | ⭐⭐⭐⭐⭐ | Easy-to-use mobile app |
| Revolut | Mobile Investors | Low fees | ⭐⭐⭐⭐ | Simplified crypto access |
Step-by-Step Guide to Getting Started with eToro in the UK
1. Registering on eToro
Visit www.etoro.com and click the “Sign Up” button. Fill in your details, including your name, email address, and a secure password. Alternatively, you can sign up using your Google or Facebook account for added convenience.
2. Verifying Your Account
To comply with UK regulations, eToro requires identity verification. Upload a photo ID (such as a passport or driver’s licence) and proof of address (utility bill or bank statement). Verification typically takes 1–2 days.
3. Depositing Funds
The minimum deposit for UK users is $50. Deposit options include bank transfer, debit/credit cards, PayPal, and e-wallets like Skrill. eToro supports GBP deposits, which eliminates conversion fees when using your local currency.
4. Exploring the Platform
Start with the demo account to familiarise yourself with the platform. When ready, switch to live trading by selecting assets such as stocks, ETFs, or cryptocurrencies from the intuitive dashboard.
Common Beginner Mistakes to Avoid on eToro
1. Investing Without Research
Many beginners make the mistake of investing based on trends or hype without understanding the market. Always research assets before trading to minimise risks.
2. Over-Leveraging Trades
While leverage can amplify profits, it also increases risks. Beginners should stick to lower leverage options or avoid using leverage until they’ve gained confidence.
3. Ignoring Fees
Although eToro offers commission-free stock trading, other fees like spreads, withdrawal fees, and inactivity charges can add up. Familiarise yourself with these costs to avoid surprises.
eToro for Different Types of Investors
1. For Beginners
- CopyTrader and the demo account are standout features for new investors.
- Educational tools help users understand trading strategies and market dynamics.
2. For Cryptocurrency Enthusiasts
eToro offers over 70 cryptocurrencies, including Bitcoin, Ethereum, and Cardano. The platform also provides insights into price movements, making it ideal for tracking crypto trends.
3. For Long-Term Investors
Zero commission on stocks and ETFs makes eToro an attractive option for those looking to build a long-term portfolio. Dividend stocks and diversification tools are also available.
Costs and Fees on eToro
Deposit and Withdrawal Fees
- Deposits: Free for GBP via bank transfer, credit/debit cards, or PayPal.
- Withdrawals: $5 per transaction.
Inactivity Fees
- Accounts with no activity for 12 months incur a £10/month fee.
Trading Fees
- Cryptocurrencies: 1% spread.
- Stocks/ETFs: Commission-free.
Personal Insights: Why I Recommend eToro for Beginners
When I first started trading, the idea of analysing charts and understanding market trends felt overwhelming. eToro’s CopyTrader feature was a game-changer—it allowed me to follow seasoned traders and understand their strategies. I also found the demo account invaluable, as it helped me practice without fear of losing money.
The thing that I really like about eToro is how much they have lowered the bar for entry with beginners. This was the first Platform I ever used and I still use now. They are top of the pile for beginner Investors, Traders and the Crypto Curious.
Key tips:
- Leverage the Demo Account: Practice with virtual funds before trading with real money.
- Choose Traders Wisely: When using CopyTrader, review a trader’s history, portfolio diversity, and risk level.
- Diversify Investments: Don’t put all your funds into one asset or trader. Spread your investments to minimise risks.
- Keep Learning: Use eToro’s educational resources to stay updated on market trends and trading strategies.
Conclusion
eToro is undeniably one of the best platforms for UK beginners, thanks to its user-friendly interface, innovative CopyTrader feature, and comprehensive educational resources. Whether you’re a complete novice or looking to start trading cryptocurrencies, stocks, or ETFs, eToro offers the tools to make the journey smooth and rewarding.
While there are minor fees and some limitations for advanced users, the overall package is well-suited for anyone entering the investing world. If you’re looking for a secure, easy-to-navigate platform to kick-start your trading journey, eToro is an excellent choice.
CFDs are complex instruments with a high risk of losing money rapidly due to leverage. 61% of retail CFD accounts lose money when trading CFD’s 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.
Trade Smarter, not Harder
- Copy Trading
- Competitive Fees
- Multi-Asset Platform
61% of retail CFD accounts lose money when trading CFD’s with this provider.
FAQs
Is eToro Safe for UK Users?
Yes, eToro is regulated by the Financial Conduct Authority (FCA) in the UK, ensuring high standards of security and compliance. Funds are also protected in segregated accounts for added safety.
How Does eToro’s CopyTrader Feature Work?
The CopyTrader tool allows users to replicate the trades of experienced investors. Simply choose a trader based on their performance, risk score, and portfolio, and allocate funds to start copying their trades automatically.
Does eToro Support Cryptocurrencies?
Absolutely! eToro supports over 70 cryptocurrencies, including Bitcoin, Ethereum, and Solana, making it an excellent choice for crypto enthusiasts.
Is eToro safe and legit?
Yes, eToro is a regulated broker licensed by the FCA (UK), ASIC (Australia), and CySEC (EU). It has security measures like two-factor authentication (2FA) and SSL encryption, but users should be aware of trading risks.
How long do eToro withdrawals take?
Withdrawals typically take 1–8 business days, depending on the payment method. Bank transfers take longer than PayPal or credit/debit cards. To avoid delays, ensure your account is fully verified before requesting a withdrawal.
References
eToro Regulation and User Statistics (Statista):
https://www.statista.com/statistics/972272/etoro-total-users-worldwide/eToro FCA Compliance (BBC News):
https://www.bbc.co.uk/newsBenefits of Social Trading (The Guardian):
https://www.theguardian.com/moneyCryptocurrency Market Insights (CoinDesk):
https://www.coindesk.com/
