eToro vs Degiro: Fees
Both platforms are notoriously cheap and known for their low fees. However, there are a few differences between the two. It is crucial to know how much you will be paying for deposits and withdrawals and how big your broker’s cut is when investing long-term.
If you’re interested in stocks and ETFs, you will be happy to know that eToro offers zero fees investing in these types of orders. The platform guarantees that every cent you invest into ETFs and stocks will stay in your account, which is a significant advantage when compared to other brokers that take a cut.
On the other hand, Degiro also has a zero-fee policy, but it only applies to certain instruments like a select few ETFs. For the remaining stocks and ETFs, the fee can vary, but it will still be well below the market average.
While neither platform charges a deposit fee, you should know that eToro only supports USD deposits. That means that eToro will apply its conversion rate to the sum you inject into your account. To avoid this extra expense, you can use a multi-currency bank account to make your deposit. If you have, for instance, a Revolut account, you can make your deposit in USD and avoid the conversion fee.
Withdrawals are free with Degiro but cost $5 with eToro. If you’re making a low-amount withdrawal, be mindful of this fee.
While Degiro doesn’t charge an inactivity fee, eToro has a $10 flat monthly fee if your account shows no activity for 12 months. To avoid paying this hefty amount all you have to do is log in to your account at least once per year.
Finally, you should note that Degiro also charges what’s called an exchange connectivity fee. The platform will charge you €2.50 per year for each exchange you trade in.