The fact that you have decided to begin trading with eToro is excellent.
The good news is that eToro fees and spreads are very competitive.
Nonetheless, there are still a few areas to consider when it comes to the cost of your trading. It is best to know about these in advance, therefore we have taken the opportunity to completely outline these eToro costs and fees as comprehensively as possible.
This should mean that you are completely aware of every aspect once you start trading at eToro (discover even more with our eToro review if you like).
Here are the related fees and costs which we have noted:
eToro Spread on accounts
As you would expect with a top and popular broker like eToro, each account type varies slightly in the spread it provides. Here is a rundown of precisely what to expect from each different type as you trade with eToro:
The eToro retail account is the standard basic account which the broker usually offers around the world. This applies in the various regulatory areas where they operate. These areas include CySEC, ASIC, and FCA.
As usual, the accounts offer a variable spread which is very competitive and these accounts always operate on a commission-free basis too.
There is a rollover on this account type for overnight positions, although depending on your situation this can be somewhat flexible also.
The eToro professional account type is an upgrade from the standard retail account. This can be accessed if you meet certain requirements such as volume and frequency.
Although the professional account does house many additional benefits for you as a trader, when it comes to spreads and other fees, they will remain the same.
eToro Deposit and Withdrawal fees
When trading with eToro you will be able to benefit from the extensive range of deposit and withdrawal methods that are made available. eToro offers you access to such methods as Bank transfers, Visa, Paypal, Skrill, and Neteller depending upon where you are based. More alternatives are also available depending on your location.
In most cases, these methods are completely free and do not feature any fees at least for deposits.
In the case of making a withdrawal from eToro, everyone is subject to a $25 fee. For this reason, a $50 minimum withdrawal is levied. This is something that can only be avoided if you were to join eToro club which waives those eToro withdrawal fees.
Using Wire transfer, in addition to the fees charged by the platform, you may also incur fees from your financial institution. This solely depends on the policy of your bank and you should double-check this with them if you are planning a deposit through this method.
eToro Club benefits
There are a variety of benefits you can access if you choose to join the eToro Club. The tiered system allows for you to increase the number of benefits you receive the further you advance and more you trade. Access to free withdrawals begins from the third tier of the system. Click here to learn more about the eToro club!
eToro Conversion fee
Touching on the conversion fee, this applies only when you fund or withdraw money in currencies other than US Dollar. This is due to the fact that eToro deposit methods and withdrawals are only facilitated in USD currency.
The same conversion fee will also apply if you withdraw your funds in the form of cryptocurrency.
How does a conversion fee work?
The eToro conversion fee is calculated based on the current exchange rate, though a commission is also factored in.
The commission charged on deposits is generally 50pips. This amount is negligible on smaller deposits, though if you are considering a larger deposit volume it is certainly something you may wish to think about.
Taking an example case of a 100 EUR deposit, the commission charged on this is around 50 cents (0.50 EUR).
Here we have compiled a more detailed chart noting the general picture of eToro conversion fees and what you can expect to pay:
|||Bank Transfer (deposits only)||Other methods|
|EUR USD||50 pips||250 pips|
|GBP USD||50 pips||50 pips|
|CAD USD||50 pips||250 pips|
|JPY USD||50 pips||250 pips|
|AUD USD||50 pips||100 pips|
|RUB USD||50 pips||50 pips|
|RMB USD||50 pips||50 pips|
|MYR USD||N/A||100 pips|
|THB USD||N/A||100 pips|
|||Minimum withdrawal||Commission per unit|
|Bitcoin (BTC)||0.0086 BTC||0.0005 BTC|
|Ethereum (ETH)||0.3 ETH||0.006 ETH|
|Ripple (XRP)||133 XRP||0.25 XRP|
|Litecoin (LTC)||0.68 LTC||0.001 LTC|
|Bitcoin Cash (BCH)||0.18 BCH||0.001 BCH|
|Stellar (XLM)||534 XLM||0.01 XLM|
The inactivity fee is something which many major forex brokers implement in the event that you are not active in trading on your account.
The eToro inactivity fee applies only to live accounts where there has been no activity or login on the account for a 12-month period. This eToro inactivity fee is charged at $10 per month.
eToro charges this inactivity fee only if there are sufficient funds in the account to do so, and no open positions will be closed in order to service the inactivity fee. To ensure this does not become an issue you have to contend with, simply be sure to login to your eToro account at least once in each 12-month period.
eToro Trading fees
Trading at eToro will also bring certain associated fees. As with any broker, these fees can be variable, but typically are not too much to put you off trading with the broker. Here is our overview of the eToro trading related fees.
Variable and Fixed Spread
The first point to note is that spreads through eToro are variable only. This means there are no fixed spread options available, but there is still room for plenty of value.
The only potential downside with the variable spread is that from time to time with more volatile assets, there could exist a wide variance between the spreads with some other assets.
This is not something which occurs too often though, and eToro is always committed to providing the best possible spread.
You will be glad to know that no eToro commission fees apply to the opening or closing of your positions. This is a good plus point of the worldwide broker and should encourage you to close positions only when it is the best for your trading strategy.
Like every top forex broker out there, eToro does charge overnight, or rollover fee. This is something you really need to consider when it comes to keeping your positions open overnight as it will be charged everyday in the majority of cases. Stocks trading at 1:1 leverage is one of the only situations where you can avoid such charges.
To monitor these fees, you should keep a close eye on the eToro trading hours which are available from the trading platform or broker website at all times. The best and effectively only way in which you can avoid these fees is to close out your open positions before the stated deadline.
If you close a position when the market has already closed then this position will not be immediately closed. Instead, it will be held in a state of pending close until the market reopens.
eToro Spread review on various assets
Now that we have taken the time to examine the eToro spread which you can expect on your particular account type, let’s take a detailed look at the spread on each asset type. This includes a chart of the current spread to help you compare.
As with any of the best forex brokers, eToro provides access to a very wide range of forex trading pairs. These number 47 in all and they include a variety of major, minor, and exotic pairs. Below you can note the all-around competitive spread which is also commission-free.
There are a total of 6 commodities available for commission-free trading with eToro. Again, these are detailed below and you can easily compare them to another broker of your choice.
eToro cryptocurrency CFDs are among the most popular and largest markets which the broker provides. This is a much larger offering than you would typically find with any other broker and features more than 90 commission-free pairs.
To that end, every major currency is available to pair up with a crypto for trading, and the spread does not change on the currency, but instead on the crypto.
Indices from around the globe are traded as commission-free CFDs on eToro. The USD index and many more markets are available for competitive trading which adds to the growing catalogue of eToro CFDs trading available.
The eToro shares and stocks trading market is another huge success and draw for the broker. Here you can access trading on a multitude of top companies from around the world with no commissions and very competitive spreads.
This competitiveness is particularly highlighted when going long with 1:1 leverage. In this case, you can benefit from no eToro markup or rollover at all.
Finally, eToro ETFs trading carries on the commission-free trading baton, and with more than 140 markets, it is another of the brokers largest. eToro spreads on all ETFs are an impressive 0.09% on the value across the board. As with eToro stock trading, rollover is absent when trading 1:1 leverage.
Final overview on spread and costs on eToro
eToro is already one of the largest brokers in the world. added to this the fact that every asset traded is commission-free, and you can see how they have reached this position.
The broker can be highlighted particularly for the efforts they make in the crypto, stock, and ETFs market where they offer so many options and in the case of ETFs have standardized the spreads cost with no markups or rollovers in some cases.
If hedging is something that you wish to engage in you will also be glad to note that this is permitted at eToro. Scalping, on the other hand, is not.
Looking at the overall spreads and costs of eToro, we can conclude that they are suitably competitive in all areas as would be expected of a top-quality forex broker. The only thing to be mindful of is that the withdrawal fee of $25 can be high if you are dealing in smaller withdrawal amounts. Not so much if your numbers are bigger. This is a fee which can also be avoided via the eToro club.
Both conversion fees and inactivity fees although present, are kept minimal and overall, a healthy and positive environment is preserved where traders can conduct their business without too much concern in the cost and fee regard.