What Are the eToro Trading Platform Fees?
eToro is an online brokerage firm that was established in 2007 to offer an intuitive trading platform to its traders. Its subsidiaries are spread throughout the world which is registered and licensed. eToro offers trading in CFDs which allows the traders for margin trade and take the benefit from the movements of the price for an instrument without actually having to own it.
eToro also offers trading in cryptocurrencies where traders can get a chance to invest in CFDs of major cryptocurrencies like Ethereum and Bitcoin. Besides, eToro also allows investment opportunities in forex and stocks.
Here Are the Fees That the Broker Charges on Traders:
- Withdrawal Fees: eToro charges a flat fee of $25 per withdrawal. Since the fees charged don’t depend on the size of withdrawal, it is advisable to wait & withdraw a large sum of money at a time instead of frequently withdrawing in smaller lots. eToro supports 3 main withdrawal methods which are Credit or Debit cards, Wire Transfer, and PayPal.
- Currency Conversion Fees: eToro charges a currency conversion fees if you adding money to your account other than USD. The fees depend on your currency types. For example, the broker charges are 50 pips for the conversion of GBP to USD. For some currencies, it’s better to convert USD at the source to save conversion fees at eToro. eToro also charges a conversion fee to the withdrawals.
- Spread Fees: eToro is not charging any commission fees. eToro’s spread fees are part of the buying price for any of the market which varies according to the market. Cryptocurrency spreads are calculated in percentage while commodity spread fees are calculated in pips.
- Overnight Fees: eToro charges overnight fees, which depends on the investment’s types. For the cryptocurrency market, the fee is applied whenever you maintain an open position from one trading day to the next. The overnight fee should not trouble day traders. However, if you are copying other traders and are buying long, these fees can add up quickly.
- Inactivity Fees: eToro platform charges inactivity fees of $10 per month if a trader hasn’t logged in for 1 consecutive year. The fees are charged until the account balance runs out. To avoid inactivity fees, it’s advisable to log in to your account now and then even if you don’t want to invest with eToro.
eToro is one of the largest online brokers today which offers comprehensive lists of assets. The broker has become popular among all types of traders not only because of its no commission but also because of the impressive features that it offers like social trading platform and mobile app. Advanced traders can use eToro to hedge their funds, although the broker doesn’t allow scalping.
eToro also allows margin trading, however, it offers low leverage for trading in cryptocurrencies and significantly high leverages on other markets like forex.