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eToro Fees
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eToro Fees - See How Much You Pay When Using eToro

There are certain trading fees you should know about when using an online brokerage like eToro. These include— deposit fees, spread cost, transaction and commission fees, overnight funding, currency conversion fees, and crypto fees. This article gives an overview of the eToro fees and commissions.

eToro Fees and Commissions

  1. Deposit Fees
    You don’t need to pay any charge for deposits you make on eToro as long as the deposits are in US dollars. However, for deposits you make in other currencies, you will pay a conversion fee. 
    You can fund your eToro account through online banking, bank wire, debit and credit cards, PayPal, Skrill, RapidTransfer, and Neteller. You can easily access the deposit options on the eToro platform. All you need to do is to select “Deposit Funds” and choose your preferred method. 
  2. Spread Cost
    The total trading costs are largely influenced by the spread. “Spread” refers to the difference between the ask and bid of any asset. eToro doesn’t charge extra fees when it comes to company shares and ETFs. For cryptocurrencies, there is no direct commission whenever you buy them, though there is a spread fee. 
    The spread is calculated once you close the position and it is adjusted according to the closing price at that exact moment. For Contracts for Difference, the spread fee will be based on a certain number of percentages in points, also known as pips. Pips refer to the smallest possible change in the price of an asset. 
  3. Swap Fee (with Leverage)
    If you trade CFDs on a leverage basis on eToro, there are other fees you may need to pay, such as swap fees, also known as overnight or rollover fees. If you hold an open position overnight or after the trading session closes, these fees will become active. 
    The fees are influenced by the supply and demand that drive the market. This also includes the costs involved with your position. The swap rate is calculated with this formula: eToro fee + LIBOR (London Interbank Offered Rate) / 365 x Units x Price($). On eToro, the one-month LIBOR rate is used for calculating overnight commissions. 
  4. Currency Conversion/Exchange Rate Fees
    All deposits into your eToro accounts will be made in US dollars i.e. the funds in your account can only be in USD. Deposits made in USD do not have conversion fees. However, if you fund your account or withdraw with a different currency, you will be faced with exchange rate fees.  The exchange rate fees vary depending on the payment method and the currency pair. 
    It is important to note that eToro charges conversion fees for both deposits and withdrawals in other currencies apart from USD. For example, changing AUD to USD will have a different conversion fee when compared to changing EUR to USD. 
    Exchanging a currency pair using a bank transfer will attract different fees if you exchange the same currency pair using a bank transfer. For instance, if you deposit GBP/USD (£2,000), with the quote at 1.3800/1.3802 and the swap cost at 50 pips (0.0050), the conversion fee will be calculated thus: Quote – Swap cost i.e. 1.3800 – 0.0050= 1.350. Then converted to USD: £2,000 x 1.3750= $2,750. The conversion cost will be (£2,000 x 1.38) - $2,750= $10. 
    If you deposit or withdraw GBP, Eur, or AUD through bank wire transfer, iDEAL, or Sofort, the conversion fee will be 50 pips. However, members of the Diamond Club will not pay conversion fees, while Platinum and Platinum Plus members get a 50% discount on transactions. It is important to note that these discounts do not apply in Credit card payments, GBP, EUR, and AUD transactions through PayPal.
  5. Withdrawal Fees
    eToro charges a withdrawal fee of $5.00 per withdrawal. It is advisable to combine as many withdrawals as possible instead of making several withdrawals. There is also a fee for crypto transfers. eToro charges 5% brokerage for cryptocurrency transactions. 
  6. Inactivity
    If your account remains inactive for 12 months, a $10 fee will be deducted from your balance.

Are eToro Fees High?

Compared to other competitors, eToro’s trading fees are relatively low. The platform charges $0 brokerage fees for US-listed stocks. Also, the deposit fee is $0, provided you deposit in USD. Deposits and withdrawals made in other currencies will attract a fee that depends on the currency pair and payment method. 

eToro allows for deposits in 10 currencies, though they will be converted to USD. eToro does not charge management fees for stocks and no additional broker fees. Compared to other brokers, eToro’s financing rates are average. Lastly, the CFD trading fees are also low on eToro.

If you want to earn rewards instead of paying fees, you should check out the eToro staking feature - it allows you to earn money for keeping certain cryptocurrencies.

Conclusion

eToro charges certain trading and non-trading fees which every user should know about. The fees are affordable when compared to most brokerages. The platform's simple design also allows you to view your transactions and associated fees easily, making it great for beginners.

If you want to learn more about the platform you can read our eToro review.

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