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eToro Fees Details

eToro Fees Details

Welcome to our detailed eToro fees review. We’re diving into eToro’s fees to help you understand how much it costs to use the platform. Instead of charging commissions on trades, eToro makes money from spreads in many CFD markets. But there are other fees you should know about too. This guide will explain the main fees for different assets and transactions on eToro. Knowing all the fees will help you figure out how much it’ll cost you to invest or trade on the platform.

Understanding eToro Fees

eToro doesn’t charge a lot for its services. Some, like stock trading, don’t cost anything at all. For other services, the fees are quite low. This means you won’t spend much money, even if you trade often.

eToro, like many other online brokers, keeps its fees low compared to traditional brokers. This is because online brokers can handle a lot of customers without it costing them much more.

Whether they serve 200 clients or 10,000, it doesn’t make a big difference in their expenses.

But eToro still has fees. It makes money by charging you in different ways, at different times. To understand how eToro charges, you need to know about two main types of fees:

  1. Trading fees 
  2. Non-trading fees

eToro Trading Fees

eToro doesn’t charge much for trading, so it’s good for people who trade a lot. Let’s look at the fees for trading different things on eToro.

Stocks and ETFs

eToro isn’t just for forex and crypto, you can also trade real stocks and ETFs.

Most stocks can be traded without paying a commission fee. But if you’re in Australia, only US stocks can be traded without a fee.

If you trade stocks in a currency that’s not US dollars (like UK or European stocks), eToro will change the currency for you at the current rate, with no extra cost. They’ll also handle any taxes you owe for trading on the UK market.

etoro broker fees

CFD Trading

eToro’s fees for trading CFDs are low. It’s hard to compare fees for CFD brokers, but at BrokerChooser, we do it by looking at the fees for three popular things: Apple stocks, Vodafone stocks, and EURUSD currency pairs. We include all the fees, like spreads and commissions, when we compare brokers. Our conclusion is that eToro’s fees are low.

Currency Conversion Fee

eToro charges a fee if you deposit or withdraw money in a different currency from your account’s currency. The fee depends on how you deposit or withdraw and what currency you’re using. For popular currencies like GBP, EUR, CHF, or AUD, the fee is between 50 and 150 pips.

eToro Charges for Non-Trading Fees

When you use eToro for things other than trading, it can end up costing you more compared to similar services. These extra costs, known as non-trading fees, cover different charges unrelated to buying or selling assets. They might include fees for withdrawing money, depositing money, or maintaining your account.

Deposit Fees at eToro

When you transfer money from your bank account to your eToro trading account, you might expect to pay a fee. However, eToro doesn’t charge anything for deposits. Whatever amount you send to your eToro account is what you’ll see credited, without any deductions.

Withdrawal fee$5
Deposit fee$0
Inactivity fee$10 per month (After 1 year of inactivity)
Account feeNo

Withdrawal Fees at eToro

When you want to take money out of your eToro account, you’ll face a withdrawal fee. Unlike some brokers who have varying fees, eToro keeps it simple with a flat $5 charge for every withdrawal. It doesn’t matter how much you’re withdrawing or where you’re located. However, remember that there could be additional costs from third-party services, beyond eToro’s control. 

While $5 might seem fair, other brokers typically don’t charge such fees, except for bank wires, which usually cost between $20 and $30. This makes eToro’s withdrawal fees relatively high.

(The Withdrawal methords at eToro are Bank Transfer, Credit/ Debit Card and Electronic wallets)

eToro also has a minimum withdrawal requirement of $30, and you need a verified account to make a withdrawal. If your account balance is below $30, you can’t withdraw funds unless you close your account, which requires a minimum of $35 ($30 for withdrawal plus $5 for the eToro withdrawal fee).

Some experts advise against making small withdrawals because of these fees. This is especially true at eToro, where internal fees can add up. Additionally, if your payment account’s currency is different from your trading account’s base currency, you could face a currency conversion fee.

eToro Inactivity Fees

If you don’t use your eToro trading account for twelve months, eToro will charge you $10 each month until you log in or your account balance becomes $0. Most traders don’t leave their accounts inactive for that long to avoid this fee. Your trades won’t be closed to pay this fee.

eToro Spread Fees

A spread is the difference between the selling and buying price in a quote. For example, in the EUR/USD quote 1.1785 / 1.1786, the spread is 0.0001. Brokers like eToro make money from spreads, which can affect your portfolio over time. When you start trading, you automatically face a loss because the selling price is always higher than the buying price. Spreads can be fixed or variable. eToro, as a market maker, sets its own spreads. For the EUR/USD pair, eToro sets a spread of 1.0 pips. Other brokers may offer lower spreads for assets like stocks, commodities, and cryptocurrencies.

eToro Commissions

eToro offers commission-free trades for buying stocks without using leverage. But even though there’s no commission, the spreads can make trading more expensive. For leveraged trades, eToro charges a commission of 0.09%. Compared to other brokers, eToro’s trading costs can be high because of the spreads they charge.

Conclusion

eToro stands out as one of the expensive brokers but you should not just think about its trading cost. It clearly shows that it excels in social trading. If signal providers meet specific standards, they can make extra money with the Popular Investor Program. But most traders, more than 75%, lose money. There are tools to help find good traders to follow. eToro always enhances its offerings, obtaining relevant companies and expanding into new markets. If you like social trading, eToro is a great option. But if you’re not into copy trading and all, look for cheaper alternatives.

You can reach to eToro review page.

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