It is essential that you understand all commissions, spreads and costs on eToro comprehensively before opening a new account. For a complete overview of all eToro fees on eToro, read the article below:
1. Trading fees
When you trade on eToro, you will benefit from zero commissions. This is a good point in favor of this world broker over others. Instead, eToro’s prices are made entirely with overnight spreads and commissions.
Like any best trading platform, eToro charges spreads. This is a commission that eToro collects based on the difference between buy and sell prices, which can fluctuate in times of high volatility.
While most other brokers charge a spread on both buying and selling an asset, eToro only charges a spread, first charged when you buy the asset and adjusted when you sell it.
In other words, it is a small percentage added to your transaction and may vary slightly depending on market conditions and between different instruments.
And the spread will be charged when closing a position.
To learn more about the detailed spreads for each type of instrument, go to eToro’s commissions page.
– Rates for overnight stay
An overnight fee, also called a rollover fee – is a payment that applies if you hold a position overnight. The overnight commission is charged when using open short (SELL) and leveraged BUY positions.
And the exact commission will be shown at the bottom of the confirmation window that opens before making the operation.
2. Deposit and withdrawal fees
In most cases, these eToro deposit methods are completely free and do not present any fees, at least for deposits.
While eToro doesn’t charge a deposit fee, there is a $5 withdrawal fee for almost all transaction methods. The broker uses this to cover some of the expenses involved in international money transfers.
By using bank transfer, however, you may also incur fees from your financial institution. This depends solely on your bank’s policy, so you should double check it before planning to deposit this method.
To waive such eToro withdrawal fees, consider becoming a member of the third tier within the eToro club.
3. Other taxes
There are some other fees such as withdrawal fees, foreign currency conversion fees as follows:
Withdrawals and deposits are conducted in USD. Any other currency will need to be converted and, therefore, will incur a conversion fee.
The conversion fees for bank transfers, iDEAL, Sofort and Trustly are as follows:
Conversion fees for other payment methods (credit cards, PayPal, Skrill, Neteller, RapidTransfer and local Online Banking):
You can also see the USD amount and conversion rate on the Deposit Funds page before submitting your payment.
If you don’t log into your account within 12 months, you’ll be charged a maintenance fee of $10 per month, deducting directly from the available balance in your account.
eToro only charges this inactivity fee if there are sufficient funds in your account and no open position will be closed to serve the inactivity fee.
To avoid charges, be sure to log in to your eToro account at least once in any 12-month period.
In conclusion, it is important that you have an overview of all commissions and costs before signing up for new accounts on any broker. Since commissions can seriously erode investment returns, selecting the right broker can make a huge difference in the long run.