* This content is not intended for USusers. eToro USA LLC does not offer CFDs, only real Crypto assets available.
When you think about using a certain broker to trade, one of the first things that you investigate is its fees. Are they high or low? Does this broker have hidden fees or not? Read on to find out all you need to know about both eToro‘s trading fees and its non-trading fees.
eToro Fees
Compared to traditional brokerages, online brokerages charge low fees, and this is due to the fact that online brokerages are much more scalable and require much lower costs to operate. Online brokers make money by charging their customers different fees at different events. We wrote an extensive guide on how eToro makes money.
As a trader, you should be attentive to the following fee types:
- Trading fees, which are the fees traders pay when they make their trade, like when you buy an ETF for example. A spread, commission, or financing rate is what you pay. A commission can be either fixed or based on the traded volume, while the spread is the difference between the purchase and sell prices. Finally, when traders hold their leveraged positions for more than 24 hours, they will be charged a financing rate or overnight rate.
- Fees that are not related to trading, or non-trading fees, occur as a result of certain actions you do in your account, such as depositing money, withdrawing money, or not trading for a long period.
eToro Trading Fees
Comparing CFD brokers’ trading fees is never an easy thing. And to save you the headache of reviewing their long individual fee tables, we’ve compared fees for a typical trade of 3 assets from each broker.
Here are our selected assets for this comparison:
- Vodafone (VOD), a popular stock based in the UK
- Apple (AAPL), a popular US stock
- And the popular Euro-USD (EURUSD) currency pair
A typical trade is a position that you hold for a week after buying and then sell at the end of the week. We chose a volume of $2,000 for stocks and $20,000 for the currency pair, EURUSD.
Our comprehensive benchmark for broker fees includes commissions, spreads, and financing fees for each broker
The following is our comparison.
| Vodafone benchmark fee | - |
|---|---|
| Apple benchmark fee | $6.3 |
| EURUSD benchmark fee | $8.7 |
Financing rates
eToro financing rates are low. If you want to trade on margin and prefer to hold your positions long, though, financing costs can be significant.
| Vodafone CFD financing rate | - |
|---|---|
| Apple CFD financing rate | 6.5% |
| EURUSD financing rate | 1.8% |
| EURGBP financing rate | 2.4% |
eToro Non-Trading Fees
eToro has costly non-trading fees, meaning that you will be charged a high fee for non-trading activity on your account, such as withdrawal fees.
Non-trading fees on eToro include a variety of brokerage fees and charges that are not associated with the purchasing and selling of assets. Deposit fees, withdrawal fees, account fees, and inactivity fees are all forms of non-trading fees.
| Deposit Fee | $0 |
|---|---|
| Withdrawal Fee | $5 |
| Inactivity Fee | $10 per month after 1 year of inactivity |
| Account Fee | No |
eToro Deposit Fee
Most brokers don’t charge a deposit fee, and eToro is one of those. A deposit fee is typically applied when you transfer money from your bank account to the trading account. So, the exact amount that you send via any of eToro's deposit options will be sent to your trading account.
eToro offers the following deposit methods:
- Credit\debit card
- Bank transfer
- Electronic wallets
eToro Withdrawal Fee
eToro charges a $5 bank transfer withdrawal fee. This means that when you transfer your money back to your bank account, you have to pay a $5 fee. This, for some, may be too expensive, but it all depends on the amount of money transferred. Make sure you read our guide on how to withdraw money from eToro.
eToro offers the following withdrawal methods:
- Credit\debit card
- Bank transfer
- Electronic wallets
eToro Inactivity Fee
Inactivity implies you haven't logged into your account in a while. After one year of inactivity, eToro charges a $10 monthly inactivity fee.
To avoid being charged after this long period of no trading, you need to think smart and make a plan about your trading activities. If you're a buy-and-hold investor, the fact that eToro imposes an inactivity fee might be a deal breaker for you.
Hidden Fees?
Trading fees on eToro are bundled into a single fee, meaning that the entire cost of the trade is the percentage of the spread for buy and sell, so there are no hidden fees.
* Disclaimer
eToro is a multi-asset platform which offers both
investing in stocks and cryptoassets, as well as trading
CFDs.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% 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.
Past performance is not an indication of future results.
Trading history presented is less than 5 complete
years and may not suffice as
basis for investment decision.
Copy trading is a portfolio management service, provided
by eToro (Europe) Ltd., which is authorised and
regulated by the Cyprus
Securities and Exchange Commission.
Cryptoasset investing is highly volatile and unregulated
in some EU countries. No consumer protection.
Tax on profits may apply.
eToro USA LLC does not offer CFDs and makes no
representation and assumes no liability as to the
accuracy or completeness of the
content of this publication, which has been prepared by our partner
utilizing
publicly available non-entity specific information about eToro.
