Opening an account on eToro is free. The broker also offers free stock trading. On the downside, the fees for forex trading are high, and unlike other brokers, eToro charges fees for withdrawal and an inactivity fee.
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Trading Fees explained
Online brokerages generally make money by charging you different fees for various rates. Usually, there are 2 types of fees:
- Non-trading fees. These fees occur when you do various different operations in your account, i.e. deposting/withdrawing money to/from your account, or not trading for a certain time.
- Trading fees. You pay when you actually trade, i.e. buying stocks or options. In this category, you have to distinguish between 3 different fees that the broker charges you:
- Commission (a commission is based on the volume traded or fixed)
- Spread (the difference between the buy price and the sell price)
- Financing Rate (which is charged when you hold leveraged positions for longer than a day)
Non-Trading Fees
When you look at the non-trading fees, you can see that eToro charges no account fee or deposit fee at all. But the broker charges an inactivity fee, which amounts 10$ per month after 12 months of inactivity. Although the inactivity fee is really low compared to other brokers, you still want to be strategic about your trades and how often you want to trade, since you don’t want to get charged this fee. If you are a buy and hold investor, this broker may be less ideal for you. But on the upside, simply logging in into your account counts as activity.
| Description | eToro |
|---|---|
| Account fee | No |
| Deposit fee | $0 |
| Withdrawal fee | $5 |
| Inactivity fee | Yes ($10 per month after 12 months of inactivity) |
eToro Deposit Fee
Deposit fees occur when you send money from your bank account to your trading account. eToro does not charge deposit fees, no matter which option you choose to send money from.
| Deposit Method | Available |
|---|---|
| VISA / Mastercard |  |
| Credit/Debit Cards | |
| Paypal | |
| Bank Transfer | |
| Skrill | |
| Neteller | |
| Yandex | |
| Giropay | |
| Webmoney | |
| China Union Pay | |
| Deposit fee | $0 |
eToro Withdrawal Fee
Unlike many other online brokers, eToro does charge a withdrawal fee for bank transfer, which amounts $5 for every withdrawal. Although this fee may seem very low, you should still consider if you want to make withdrawals via bank transfer or use another method. You can find a list of withdrawal methods down below.
| Deposit Method | Available |
|---|---|
| VISA / Mastercard | |
| Credit/Debit Cards | |
| Paypal | |
| Bank Transfer | |
| Skrill | |
| Neteller | |
| Yandex | |
| Giropay | |
| Webmoney | |
| China Union Pay | |
| Withdrawal fee | $5 |
Trading Fees
CFD Fees
eToro has low CFD trading fees. The broker charges no commission, only spreads and overnight fees. The spread is the difference between the buy and sell price of a certain asset.
| Ticker | Minimal Spread |
|---|---|
| EUR/USD | 1 Pips |
| GBP/USD | 2 Pips |
| USD/CHF | 1.5 Pips |
| AUD/USD | 1 Pips |
| EUR/GBP | 1.5 Pips |
| OIL | 5 Pips |
| Gold | 45 Pips |
| Silver | 5 Pips |
| S&P500 Index CFD | 75 Pips |
| NASDAQ100 Index CFD | 240 Pips |
Crypto Fees
When trading cryptocurrency, eToro only charges spreads, as detailed in the table below.
| Cryptocurrency | Minimal Spread |
|---|---|
| Bitcoin | 0.75% |
| Ethereum | 1.90% |
| Ripple | 2.45% |
| Dash | 2.90% |
| Litecoin | 1.90% |
Stock & ETF Fees
When buying stocks or ETFs on eToro, you gain ownership and the asset is held in your name (real stocks, no CFDs here!). There are no commissions on eToro, and also no additional broker fees.
Financing rates
Financing rates will be charged when you trade on margin or hold positions for a longer period. eToro financing rates are average.