eToro is one of the most well-known brokers in the forex trading world.
If you do decide to open your forex trading account with them, you will experience some spreads.
With these eToro spreads, the brokers are enabled to earn some marginal profit on your trades, yet they still stay really competitive in terms of cost.
Here we will help you take a deeper look at all the broker spreads and what they mean for you when trading with eToro.
You can also see our eToro review for a full in depth look at the broker.
Type of Spreads with eToro
There are of course a variety of spreads when you start trading with eToro, although the broker only facilitates a variable spread, we will show you how this applies to all the areas of trading offered by eToro.
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.
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.
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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.
Comparison with other major brokers
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 you are considering trading these markets, or even hedging which is also allowed, then eToro represent a good and likely choice. The only thing which the broker does not currently allow is scalping, although they remain competitive in many other areas.