Are you interested in the eToro trading platform? or you are trading on eToro but don’t know what kind of commissions eToro has. Please refer to this article for more detailed information.
Types of transaction fees on Etoro
When you open an account on eToro, you won’t have to pay any fees. Get free account management, free commission. But you will have to pay the following taxes:
+ Commission for the difference between buy and sell price (Spread)
+ Rate for overnight stay
+ Currency conversion fee if the currency you deposit and withdraw is not USD.
+ Withdrawal fee
+ Stay the active fee
1. Spread (Commission for the difference between buy and sell price)
The spread is the difference between bid and ask prices. With eToro, any asset class such as stocks, currencies, CFDs, etc. It will have different spread commissions. The details for each asset class are as follows:
Stocks & ETFs
The spread for shares and ETFs is 0.09%
2. Overnight rate
eToro only charges overnight for CFDs and margin trading. Currently, eToro does not charge an overnight fee for leverageless BUY positions in stocks, cryptoassets and ETFs.
The essence of using leverage is that you have little capital, but the exchange lends you more money to invest to increase profits. Exchanges lend you money, so they charge a fee to offset interest on this loan. This fee is deducted daily and is also known as the nightly rate.
When trading on eToro, you don’t need to remember the formula for calculating transaction fees. Instead, eToro provides you with an expected commission when you are about to open an order.
In the order window, you can see the specific commission for each order in the Popup window in the Swap Fees section (daily and weekend).
For purchase orders without leverage, there is absolutely no commission. Plus, you don’t have to pay additional fees or management charges. This is a big plus for eToro investors.
3. Currency conversion fee
In fact, eToro does not charge a deposit fee to the account. However, since deposits and withdrawals on eToro are made in USD, if users deposit/withdraw in other currencies, there will be a conversion fee.
For deposit/withdrawal channels such as iDEAL, Sofort, bank transfer, the conversion fee is as follows:
The conversion fees for other deposit/withdrawal channels (Credit Card, PayPal, Skrill, Neteller, RapidTransfer, UnionPay and Local Bank) are as follows:
4. Withdrawal fee
When you fund your eToro account, there are no fees. However, when withdrawing funds from the account, all withdrawal requests have a fee of $5. This is a very reasonable fee compared to today’s exchanges. By default you will withdraw USD, withdrawals from the account in any currency other than USD are subject to a conversion fee.
5. Stay active
If you do not log into your account within 12 months, you will be charged a maintenance fee of $10/month which will be deducted directly from the available balance in your account.
Above we have briefly presented you with some of the fees when trading on eToro. In general, commissions when trading on eToro are quite convenient compared to what eToro brings to investors.