I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.
See all posts Frank GogoleToro Fees: What You Need to Know
Updated on January 7, 2024
Written by
Written by
Reviewed by
Rohit Mittal
Reviewed by
Rohit Mittal
Rohit Mittal is the co-founder and CEO of Stilt. Rohit has extensive experience in credit risk analytics and data science. He spent years building credit risk and fraud models for top U.S. banks. In his current role, he defines the overall business strategy, leads debt and capital fundraising efforts, leads product development, and leads other customer-related aspects for the company. Stilt is backed by Y Combinator and has raised a total of $275M in debt and equity funding to date.
See all posts Rohit MittalAt a Glance
- eToro is a popular cryptocurrency exchange offering a wide range of financial instruments.
- It charges a spread fee, which is the difference between buying and selling prices, and an overnight fee for holding CFD positions.
- There is no deposit fee, but a fixed fee and a minimum withdrawal amount apply.
- An inactivity fee is charged if the account remains inactive for over a year.
Cryptocurrency has been gaining traction in the financial world for the past few years. With cryptocurrency becoming increasingly popular, several platforms have emerged to provide services related to trading and investing in cryptocurrency. Among the most popular services and cryptocurrency exchanges in the world include Binance, Kraken, and eToro. Out of all these options, eToro has emerged as one of the most transparent and low-cost options for trading.
If you are planning to trade using eToro, this guide is for you. This article covers everything there is to know about the eToro cryptocurrency exchange, along with its services and fee structure.
What Is eToro?
Before we talk about eToro’s fee structure, let’s take a brief look at the service itself. eToro is a popular cryptocurrency exchange, trusted and well-loved by crypto enthusiasts and investors across the world. It provides its users with a wide range of tools and financial instruments, from stocks to currency pairs to CFDs to cryptocurrency. (Note: eToro is currently only available in the U.S. for cryptocurrency trading in most states as well as stocks trading on a beta invite-only basis.)
They also have a well-rounded system for copy training, where novice traders can copy trade moves used and performed by professional traders in the stock market.
eToro Fees
It is important to note that eToro does not levy any fee on U.S. stocks or ETFs, nor do they have any hidden commissions or limitations. While eToro does not charge fees for opening an account or account management, they have other miscellaneous fee structures in their ecosystem. Read on to understand more about these fees.
eToro Spread Fee
The spread is one of the few fees levied by eToro. Each financial instrument has a buying and selling price, and the difference between the two is known as the spread. Investors are required to pay the spread when they make a new trade.
When investors make a new trade, they will notice a loss in the position due to the spread phenomenon. Spreads are variable due to the volatility of the market. Some instruments are more dynamic than others and have higher spreads than other more stable currencies and financial instruments.
The final calculation of the spread includes the commission charged by eToro along with recommendations made by the best financial advisors in the market.
eToro Deposit Fee
eToro does not charge its customers a deposit fee. That means when customers decide to deposit money or invest using eToro, the service will not charge them for it.
eToro Overnight Fee
The overnight or CFD fee refers to a payment made if the investor holds a CFD position overnight. This is an industry standard used across cryptocurrency exchanges. eToro charges this fee only on CFD positions and not on any non-leveraged BUY positions for ETFs, stocks, or crypto-assets.
The overnight fee depends on the amount and size of the trade and whether it is a buy or sell trade. In some instances, investors can get their money back as well. Overnight fees are only billed for the working days of the week, which means it is not billed on Saturday and Sunday.
The Weekend Fee
eToro does levy a weekend fee, where the regular payment is multiplied by three. This is applied to positions, currencies, and commodities on the platform held on Wednesday. It is applicable for indices, ETFs, and natural gas assets held on Friday. Therefore, the weekend fee is charged on Wednesday or Friday.
eToro Withdrawal Fee
According to the eToro website, they charge a low fixed fee for withdrawals to cover expenses related to international money transfers. Their minimum withdrawal amount is $30.
They also have a fixed $5 fee for each withdrawal request. Therefore, it is best to make all your withdrawals in one go instead of making smaller withdrawal requests.
Inactivity Fee
The inactivity fee is levied when the investor does not log into their account for over a year. A monthly $10 inactivity fee is charged in such cases from the remaining balance. The fee is charged only when there is money in the account. No remaining positions are disturbed to reclaim the fee. As soon as the user logs in, the inactivity fee stops.
Overall, the fee system offered by eToro is transparent and easy to understand. In comparison to other cryptocurrency exchanges, eToro offers its services at a meager price.
How Does eToro Calculate Its Fees?
While eToro does not charge extra in hidden commissions, they do have a structure that calculates their fees. Here is how eToro calculates its fees:
Spread fee:
Spread * price in USD * number of units acquired
Overnight fees (per night):
Fee * amount of units
Frequently Asked Questions (FAQ)
What are the trading fees on eToro?
eToro charges spread fees for trading, which is the difference between the buy and sell prices of an asset. The spread varies depending on the asset being traded and market conditions.
Does eToro charge commission fees?
eToro does not charge traditional commission fees for opening or closing trades. However, they do charge spread fees and other potential fees, such as withdrawal and inactivity fees.
Are there withdrawal fees on eToro?
Yes, eToro charges a withdrawal fee. The fee amount can vary, so it’s important to check the most current fee structure on eToro’s website or within their platform.
What are the fees for converting currency on eToro?
eToro applies conversion fees when you deposit or withdraw funds in a currency different from the USD. This fee is charged for converting the currency into or out of USD.
Does eToro charge an inactivity fee?
Yes, eToro charges an inactivity fee. If an account is inactive for a certain period, typically 12 months, eToro will charge a monthly inactivity fee as long as there are funds in the account.
Are there any fees for depositing funds into an eToro account?
eToro does not generally charge fees for depositing funds. However, remember that if you’re depositing in a currency other than USD, a conversion fee may apply.
What are the overnight/weekend fees on eToro?
eToro charges overnight or weekend fees, also known as rollover fees, on CFD positions. These fees are applied when a CFD position is held open overnight or over the weekend.
Are there any account management fees on eToro?
eToro does not charge account management fees. Users are free from any fees related to account maintenance or management.
What are the fees associated with the CopyTrader feature on eToro?
eToro does not charge separate fees for using the CopyTrader feature. However, the usual spread fees and any other applicable fees like overnight fees will still apply to trades made via CopyTrader.
Does eToro charge fees for closing an account?
eToro does not typically charge a fee for closing an account. However, if you have any remaining funds in your account, you should be aware of the withdrawal fee when transferring these funds out.
Read More
- How to Make Money with Cryptocurrency
- How to Withdraw from Binance
- How to Transfer From Coinbase to Coinbase Pro
- How to Transfer from Coinbase to Binance
- How Does Cryptocurrency Gain Value?
- How to Read Crypto Charts
Conclusion
Overall, eToro is a good platform for those interested in investing in cryptocurrency. With no additional fees attached to primary banking functions, eToro is an excellent platform for people new to cryptocurrency.
Frank Gogol
I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.