Guide of Races in Elder Scrolls Online

In the Elder Scrolls Online, there are 10 total playable races. Note that the Imperial race is only available as a special bonus for those who pre-order the Imperial version of the game. The Imperial race can choose any of the three existing allegiances and will start in the same starting areas as other players of those factions.
Races are generally bound to their respective faction. However, those who pre-ordered the digital edition or the digital imperial edition of the game are able to choose any faction with any race that they prefer. Those picking up the game through other sources do not get to pick their faction and instead must stick to the default allegiance for their race.                     

The races belonging to each of the game’s three alliances are:
•Aldmeri Dominion: Altmer, Bosmer and Khajiit.
•Daggerfall Covenant: Breton, Orsimer and Redguard.
•Ebonheart Pact: Argonian, Dunmer and Nord.
Every race has 4 passive abilities which give them unique flavor and abilities. Some of these passives are shared between races. The first passive bonus for each race is automatically available at level one without requiring a skill point to be spent. It grants a 15% experience bonus when training a specific weapon or armor skill line. The specific skill line each race earns a bonus towards is in-line with the lore, background, and cultural preferences of each race. The subsequent three passives in each racial tree each have three ranks, which increase in power as you invest additional skill points into them. Not all racial passives can be unlocked right away.
Altmer (High Elf)
Altmer are a race of High Elves. They look similar to humans but with slightly Elven features. Their abilities focus on magicka and bonuses related to the Destruction staff, making them natural caste.
•Destruction Talent-Increases experience gain with the Destruction Staff Skill Line by 15%.
•Spellcharge-Increases Magicka Recovery while in combat by 3/6/9%.
•Gift of Magnus-Increases Maximum Magicka by 4/7/10%.
•Elemental Talent-Increases damage with Cold, Fire or Shock effects by 2/3/4%.
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Elder Scrolls Online: Guide of Races

Races determine your character's allegiance and starting area in Elder Scrolls Online. Before venturing into Tamriel you will need to make many important choices. At the top of the list is character choice, which of the 10 unique Elder Scrolls Online Races you will choose. Each of the ESO races has their own special passive abilities, unique appearance, personality, etc. Every race receives the same number of possible racial passives, the first of which is given to every new character for free. This first ability is a 15% bonus to experience gained while leveling a specific weapon or armor skill line. This ability is in-line with the lore and background of the race and cultural preferences, however it should not be a big factor in determining the “best” race for you. Everyone will end up with 50 in their weapon and armor skills in the long run, so while this is a useful benefit to have while leveling, these first-tier passives offer no big long-run benefits. Here's a breakdown of the races, their racial skills, and what classes benefit from those skills.

The Daggerfall Covenant
Daggerfall Covenant is a Faction in Elder Scrolls Online. The Daggerfall Covenant is a compact between the peoples of northwest Tamriel—Bretons, Redguards, and Orcs—that forms an alliance of mutual defense, with a vision of establishing peace and order across Tamriel. Indeed, the kings of the Covenant take the Remans as their model, claiming to be the spiritual heirs of the Second Empire.
So this is the modern Daggerfall Covenant, an alliance of the Redguards of northern Hammerfell, under King Fahara'jad; the Orcs of the mountainous northeast, under King Kurog of Orsinium; with the Breton King Emeric of High Rock presiding from his palace in Wayrest. At its best, it is a noble alliance of honorable and chivalrous peoples, representing all the best aspects of the First and Second Empires. And from this solid foundation, perhaps a third, even mightier Empire shall arise, providing all the peoples of Tamriel the benefits of mutual respect, vigorous trade, and reverence for the Divines.

Breton  
•Light Armor Affinity - Increases experience gain with Light Armor by 15%.
•Gift of Magnus - Increases maximum Magicka by 4/7/10%.
•Spell Resistance - Increases spell resistance by 2/4/6.
•Magicka Mastery - Reduces the Magicka cost of spells by 1/2/3%.
Breton's magicka-themed skills make the race good for a Sorceror or Templar.
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