eToro Costs and Fees
Joining eToro is free and they do not charge any commissions or fees on trades. Their revenues come solely from the spreads (the difference between the Ask and the Bid prices of the symbol you’re trading). Also, some special fees might apply depending on the instrument and the time of trading (e.g., out of the market hours.) When picking a broker, fees are a crucial factor to make a decision. In this article, we review the costs of the eToro services and we give our honest opinion about it.
eToro Fees: Updated table of spreads on eToro
Here’s a representative list of some of their spreads (as of January of 2019) – click here for the current eToro fees:
|Assets||Ticker||Minimal Spread||Overnight Fee|
|Euro/US Dollar||EUR/USD||3 Pips||0.65||-1.29|
|British Pound/US Dollar||GBP/USD||4 Pips||0.29||-1.01|
|New Zealand Dollar/US Dollar||NZD/USD||5 Pips||-0.09||-0.38|
|US Dollar/Canadian Dollar||USD/CAD||3 Pips||0.03||-0.49|
|US Dollar/Japanese Yen||USD/JPY||2 Pips||-1.06||0.47|
|US Dollar/Swiss Franc||USD/CHF||3 Pips||-1.23||0.65|
|Australian Dollar/US Dollar||AUD/USD||1 Pips||-0.11||-0.43|
|Euro/British Pound||EUR/GBP||4 Pips||0.03||-0.74|
|Euro/Swiss Franc||EUR/CHF||5 Pips||-0.44||0.24|
|Euro/Japanese Yen||EUR/JPY||4 Pips||-0.28||-0.47|
|British Pound/Japanese Yen||GBP/JPY||6 Pips||-0-72||0.07|
|Euro/Australian Dollar||EUR/AUD||7 Pips||0.31||-1.12|
|Euro/Canadian Dollar||EUR/CAD||7 Pips||0.21||-0.97|
|Australian Dollar/Japanese Yen||AUD/JPY||5 Pips||-0.64||0.12|
|Canadian Dollar/Japanese Yen||CAD/JPY||6 Pips||-0.56||0.08|
|Swiss Franc/Japanese Yen||CHF/JPY||6 Pips||-0.15||-0.49|
|US Dollar/Hong Kong Dollar||USD/HKD||5 Pips||-0.66||0.05|
|US Dollar/Ruble||USD/RUB||3 Pips||1.35||-1.49|
|US Dollar/Yuan||USD/CNH||10 Pips||-0.55||-0.29|
Updated on January 2019.
eToro: spreads and fees on stocks
eToro has a special scheme for their fees on stocks. Unlike other assets, stocks have unified spreads, as explained on their official site:
“With the addition of share dealing on eToro, all spreads for stocks have been unified.”
A fixed 0.09 % spread is applied per side. There are no management, ticket or rollover fees. But there are some additional costs when you operate short and leverage positions on CFD stocks:
- Buy position: 6.4% + 1 Month LIBOR
- Sell position: 2.9% + 1 Month LIBOR
LIBOR is the benchmark rate most international banks use for short-term loans, you can check the current rate here.
eToro Market Hours
Whenever you open a position on eToro, you’ll get an overview of the fees that apply to your position. Sometimes, you’ll see a message on your operations details specifying the “overnight fees”. That’s crucial and it changes depending on the selected asset. Check it before placing any order:
eToro Fees Explained
As stated above, eToro started charging overnight rollover fees/credits since June 15th 2014. Before this date, they only charged a Carry Over the Weekend fee. You’ll always find the full up-to-date list of all the spreads and overnight rollover fees & credits at the eToro website (see link above).
Higher Fees But Less Slippage
While the spreads charged by eToro are slightly higher than what you would pay at other brokers, it’s worth noting that the slippage is extremely low (i.e. the difference between the price a “Popular Investor” you copy traded at and the price you got when the trade was copied in your account). From our experience, more than 90% of the trades were executed at the same price as the “Popular Investor”. If slippage occurred it would be maximum 1 pip.
Overnight Rollover Fees
With regards to the overnight rollover fees, they’re on average a bit higher than those charged by most other brokers as well. This is certainly something you need to take into consideration, especially since many of the traders you can copy on eToro have the tendency to leave their trades open over long periods of time (i.e. weeks and months). Hence open trades should be monitored over time to avoid overnight rollover fees to start adding up.
Other Fees on eToro
In addition to the trading fees, every client should know about any additional cost for withdrawing money or converting contracts to crypto (a new feature introduced in 2018). You’ll find a summary below:
- Withdrawal costs with eToro: this is one of the biggest disadvantages of eToro. The withdrawal fee is higher when compared to similar brokers. You’ll pay $25 to eToro on each withdrawal. The minimum withdrawal amount is $50. That being said, it is not advisable to withdraw small amounts of money.
- Conversion fee on wire transfer: your local currency will also affect when you deposit funds into your account. There’s a fee of 50 Pips for wire transfers in AUD (Australian Dollar), CAD (Canadian Dollar), EUR (Euro), GBP (Great Britain Pound), JPY (Japanese Yen), RMB (Chinese Yuan), RUB (Russian Ruble).
- Conversion fee on other payment methods: the fee is higher if you use another payment method, e.g., credit card.
- AUD: 100 Pips.
- CAD: 250 Pips.
- EUR: 250 Pips.
- GBP: 50 Pips.
- JPY: 250 Pips.
- RMB: 50 Pips.
- RUB: 50 Pips.
- Crypto Transfer Fee: as we previously explained, now you’re able to use a crypto wallet and transfer funds to an external wallet. Here are the fees for the supported crypto coins as of January 2019:
- Bitcoin (min. withdrawal is 0.008 BTC): 0.0005 units.
- Ethereum (min. withdrawal is 0.26 ETH): 0.006 units.
- Bitcoin Cash (min. withdrawal is 0.52 BCH): 0.0001 units.
- Ripple (min. withdrawal is 133 XRP): 0.25 units.
- Ripple (XRP) fees on eToro Wallet: fees are waived for first 25,000 customers to open XRP wallet until Jan 31 2019. Starting in February, users have to pay a 45 XRP for the wallet creation of this particular crypto (this mandatory on their network and not up to eToro).
Final Thoughts on eToro Costs
The operational costs and fees at eToro—excluding the withdrawal fee that, in our opinion, is fairly high—are very competitive. Considering the professional services and the regulated service they provide, we think that the fees on eToro are fair and users won’t be significantly affected when trading any of the instruments available.