eToro Fees Explained
eToro is a world-leading social trading and investment platform with millions of active users worldwide. It is free to join and provides traders and investors access to over 2,000 different financial assets. You can choose from stocks, ETFs (exchange-traded funds), indices, currencies and commodities.
If you’re interested in joining eToro and would like to learn more about how fees are determined and applied then keep on reading.
Zero Commission
Many brokers charge extra dealing, management and ticketing fees when you buy or sell shares through them and any potential gains will be eaten away before you even begin trading. However, when trading with eToro, there are no commission fees whatsoever. This means that if you open or close a trade, you will not be charged a broker fee for doing so and you can keep your well earned profits.
If your account is regulated by CySec/FCA, zero commission will apply to most stocks available on eToro and if your account is regulated by ASIC then zero commission will apply to all US stocks on the trading platform.
Stocks
Zero commission applies when you invest in non-leveraged, BUY stock positions. You can buy stocks in bulk or as fractions from 50 USD.
CFD Spreads
CFDs (contracts for differences) is a trading method where a financial contract is set between a trader and broker where the trader will pay the broker the ‘spread’. The spread is defined as the difference between the BUY and the SELL price of an asset and contains the fee that you pay for opening a trade. When opening a new trade, an immediate loss is always encountered due to the BUY price being set higher than the actual market rate and the SELL price being set lower than the actual market rate. Zero commission does not apply to stock CFDs.
Overnight Fees
As well as spreads, CFD trading also incurs small overnight fees which means that if you hold a CFD trading position overnight then you are essentially required to pay an interest fee to cover the cost of the leverage that you use during this time. These fees can vary depending on the position’s direction and you could potentially be owed an ‘overnight refund’ later on. With the exception of cryptoassets, these fees are not applied on Saturdays and Sundays. If you open a CFD trade on eToro, the overnight fees will be displayed at the bottom of the small ‘Open Trade’ window which you can refer to.
Weekend Fees
A weekend fee is a fee that is charged for keeping a trading position open from Friday to Monday. This fee is applied to positions on currencies and the majority of commodities on Wednesdays and is applied to positions on stocks, indices, ETFs, Oil and Natural Gas on Fridays.
Copy Trading
Copy Trading is the action of instantly copying the trading actions of real traders on the platform. eToro allows its traders to use the CopyTrader feature and invest in CopyPortfolios free of charge. There are absolutely no management or hidden fees apart from spreads or overnight fees which are applied automatically, depending on the copied positions.
Withdrawal Fees
Although eToro does not charge a depositing fee, it charges a very low 5 USD fee for all withdrawals in order to make up for some expenses associated with international money transfers. Also, remember that there is a minimum withdrawal requirement of 30 USD in order for the transaction to be executed.
Conversion Fees
eToro operates using USD: All money transactions including withdrawals and deposits are conducted in USD which means that any other currency will have to be converted and will involve conversion fees. Please refer to the source below to see the different fees for each currency.
Crypto-to-Crypto Conversion Fees
eToro charges a 0.1% fee and conversion rates are set according to its own market rates. You can access further information on eToro’s website here.
Inactivity Fees
For any user accounts with no login activity after 12 months, a 10 USD monthly inactivity fee will be charged on any remaining funds in the account. To ensure that you don’t experience this, remember to stay active on eToro!
If you now feel as though you have a better understanding of how fees work on eToro and think that this social trading platform seems like the right place for you, make sure to click on the link below to join.
https://med.etoro.com/B16720_A96120_TClick_SX1.aspx
Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% 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.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
This guide is intended for educational purposes only and should not be considered as investment advice. The author and publisher are not liable for any losses or damages you may incur as a result of you following the advice given on this page. The etoro.com layout and content may change since this content was published.
