When trading online, fees can quickly add up and reduce your profits. While eToro charges lower overall trading fees than most competitors, it still pays to know which charges to expect when you trade on the platform. This article will cover the key trading fees and other costs associated with eToro, including spreads, overnight fees, and currency conversion fees. To minimise these expenses, be sure to only trade real stocks and use USD deposits and withdrawals when possible.

Breaking Down eToro Trading Fees: What Will It Cost You

eToro trading fees are based on the type of asset traded and the account type. The platform earns through spreads, which are the difference between the buying and selling prices, so higher buy prices mean higher spreads, while lower sell prices mean lower spreads. While eToro’s advertised commission-free equity trades apply to unleveraged buy orders only, excessive spreads can make the platform more expensive than other brokers in practice.

Forex trades incur a variable spread, depending on the pair and liquidity. For example, EUR/USD tends to have a tighter spread than other pairs. eToro also charges a flat fee of $5 per withdrawal, which is applied when you withdraw in a different currency than the one which your deposit was made in.

CopyTrader, the platform’s flagship social-trading service, is free to use, but traders are charged a monthly $10 fee after 12 months of inactivity. While this doesn’t necessarily make the service bad, it does feel a little misleading to be advertising that it is not financial advice and to charge for it in addition to the platform’s standard fees.