eToro Fees broken down, everything you need to know!

eToro Fees, are they fair? everything you need to know! image shows Thanos snapping eToro fees and your moeny being protected!

If you care about your money then the eToro fees should be a top consideration. If you are not aware of all the eToro fees your hard earned profits could be taken away in a Thanos snap!

In this article I will breakdown in simple terms all of the eToro fees with loads of example calculations!

If at any point you find this article helpful and you decide to join eToro I would appreciate if you went through one of my links. It costs you nothing and means I get a small commission! Link to eToro Here

The information on this page is only for reference and guidance. You should check the eToro’s fees page as they do change the fees (usually monthly) and I would hate for you to make a decision without first checking for any changes!

Now one last point this is a more in depth section from my eToro Review: Disgusting Secrets Reveal What Its Really Like so make sure you check that out if you are yet to decide whether eToro is right for you!

Now lets get into the lovely detail

eToro Conversion Fees

So I am going over conversion fees first because they will almost certainty affect your deposit and withdrawals. Unless you deposit directly to eToro in USD.

Why is USD exempt?

eToro only has one base currency which is USD and the whole platform works in USD.

Meaning that for Deposits and withdrawals not in USD you will need to convert your deniro!

so everyone on the same page lets go over some of the basics.

First off currencies use pips for conversion rather than %.

A pip is usually last decimal place on a quoted price.

Almost all currency pairs are to 4 decimals places so one pip is usually 0.0001 (except for Japanese Yen Pairs that go to 2 decimals points in which case a pip is 0.01!)

sometimes a company will include an additional decimal place beyond a pip called a pipette! (just to make things more confusing)

Now some people go around saying pips and % are interchangeable, if you see someone say 50 pip = 0.50% they are correct (assuming its to 4 decimals). But if they advise you that the eToro fee you will pay is 0.5% they are kinda wrong.

But why are they wrong?

Becasue of maths!

Lets do a quick calculation .

For ease lets assume a fake currency pair! CA/CB

Lets say CA/CB exchange rate is 1.0000

It increase by 50 pips to 1.0050,

((1.0050-1.0000)/1.0000) x 100 = 0.50% increase

So the statement is true?

Well kinda

Now lets use the same pair and increase it again by 50 pips.

((1.0100-1.0050)/1.0050) x 100 = 0.497512% increase which is pretty close to 0.5% but as you can see its not the same. As the numbers vary further from 1.000 the more wrong the calculation becomes.

And if you get this maths wrong on a large number it can lose you a LOT of money!

So yes 0.005 as a percentage is 0.5% but no that does not mean that’s the fee you will end up paying. (trust me after a few examples it’ll all make sense!)

But also for certain pairs Pips only go to two decimal places so again you need to take it on a case by case example!

So the lesson is simple avoid interchanging pips and percent or you might end up making a mistake and hurting your wallet!

Now we have covered that lets go onto how the maths works with eToro!

eToro Deposit Fees

eToro states its deposit fees are free!

Screaming yay!

Except it’s only half true.

If you deposit using USD it is free but everyone else has to convert to USD.

You only have to pay a conversion fee if you are converting to USD and they do accept USD directly so it might be worth looking at some other sources to save yourself some money.

For most people you will transfer to eToro using a Bank transfer, Paypal or some form of online banking.

In which case eToro will accept the 8 currencies on the left hand side which are in the below table for ease.

InstrumentFee in Pips
AUD (Australian Dollar)50
EUR (Euro)50
GBP (Great British Pound)50
SEK (Swedish Krona)50
DKK (Danish Krone)50
NOK (Norwegian Krone)50
PLN (Poland złoty)50
CZK (Czech koruna)50

As these offer the cheapest fees for most people I will run through a few of these as an example to show you how it works and in percentage terms how much it will actually cost you to deposit on eToro!

Important eToro uses its own internal rates for conversion (NOTE still waiting on a reply and confirmation but below the pair it notes Prices by eToro).

Pounds to Dollars GBP/USD Deposit example

Lets say we are going to deposit £1,000 on to eToro so that we can start copy trading exactly like I am eventually going to do on my Passive Trading System Journey!

Step 1 is go on to eToro and find the GBP/USD pair.

eToro shows five decimal places on the GBP/USD pair, the last decimal is considered a Pipette (which is the 5th decimal place whereas a pip is the 4th decimal)

So without eToro fees

£1000*1.38377=$1,383.77

With eToro fees (50 Pip charge)

£1000*(1.38377-0.0050)=$1,378.77

Change= ($1,378.77-$1,383.77)/$1,383.77

=-0.00361*100

=0.36133%

Now remember forex rates change and so will the cost!

When the GBP/USD rate is lower the fee cost as percentage will be higher!

DKK to USD USD/DKK Deposit example

I had a call from a client asking about depositing to eToro in Danish Krona and suggesting a 3% fee on deposit, this to me seemed really high!

So lets do the maths and see if we can make sense of it

Step 1 is to go to eToro and find the appropriate currency pair which in this case is USD/DKK as you can see below.

Now this is a little more complicated as the currency conversion is the wrong way round.

1 USD = 6.2407 DKK, Where 1 pip = 0.0001

1 USD/6.2407 = 1 DKK

So 1 DKK = 0.16024

Lets assume 1000 DKK

So without eToro fees

1000*0.16024 = 160.23843

With eToro fees (50 Pip charge)

1000*(0.16024-0.0050)= 155.24

Change=(155.24-160.24)/160.24

=-0.03012*100

=-3.12032%

So you pay 3.12% to eToro when you deposit in DKK.

Again it may be worth looking elsewhere to try and get lower fees particularly if you have a currency that is weaker against the dollar.

eToro Withdrawal Fees

The minimum you can withdraw from eToro is $30

Now there are two fees to consider when withdrawing money from eToro

1.The fixed$5 withdrawal fee

2.Conversion Fee

Most other brokers do not charge a withdrawal fee so eToro doing this is more expensive than the competition.

Then there is the Conversion fees on top of the $5 withdrawal fee (unless you accept USD)

lets do a few examples to see how the fees can affect withdrawls.

USD to GBP using the GBP/USD Withdrawal example

For this example we will assume you want to pull out $1000 USD and convert it GBP.

First you will lose $5 for the withdrawal cost.

We are now at $995

GBP/USD rate is 1.38377 (as early example used in depositing)

1 GBP = 1.38377 USD, pips are 0.0001

1 GBP/1.38377 = 1 USD

1 USD = 0.72266

Without eToro Fees

$1000*0.72266= 722.66

Without eToro Conversion Fees with $5 withdrawal fee

$995*0.72266= £719.04670

eToro Conversion fee

With eToro Fees (we will assume Bank Transfer so 50 pips)

$995*(0.72266-0.005) = £714.0717

However the overall cost is more due the fixed $5 withdrawal fee.

Therefore the total cost to you is:

Change= (714.0717-722.66)/722.66

=-0.01188*100

=-1.18843% lost from withdrawing $1000 USD.

USD to DKK (Danish Krone) USD/DKK Withdrawal example

We will assume again that we will withdraw $1000 USD.

The rate for USD/DKK as seen earlier is 6.2407, pip is 0.0001

So without any eToro fees

1000 USD*6.2407 = 6240.70 DKK

Without eToro Conversion Fees with $5 withdrawal fee

First you will pay $5 from the $1000 for the withdrawal cost.

$995*6.2407= 6209.4965 DKK

eToro Conversion fee 50 pips

$995*(6.2407-0.005)=6159.7465 DKK

However the overall cost includes the fixed $5 withdrawal fee.

Change = (6159.7465-6240.70)/6240.70DKK

=-0.01297*100

=1.29719% paid for the conversion from USD to DKK.

eToro Spread Fees

lets start off with what is the spread fee.

The spread is simply the difference between the buy and the ask price.

Now its really important to note that if the market shifts dramatically the bid-ask spread can increase massively! As eToro is a market maker it can change the bid/ask price according to the demand changes for a specific security.

E.g. there was massive demand for GameStop and not many people selling so the spreads increased, as a market maker eToro has to find a seller for the buyer, if it can’t prices will increase till someone is willing to sell (simple terms).

eToro Stocks and ETFs Fees

Good news when you buy the underlying asset on stocks or ETFs (i.e. no leverage) you don’t pay any additional fees. Its actually FREE!

So if you are long term investor this is good!

eToro Crypto Spread Fees

Now the crypto fees are charged on a % basis.

Super simple maths using bitcoin

The spread is usually about 0.75% (it can change!)

you buy $1000 of Bitcoin

So the fee is $1000 x 0.075 = $7.5

If you from the UK you can only buy the underlying asset, so you own the coin.

However, other countries such as Australia can only buy crypto on eToro as a CFD (Contract for Difference I’ll explain this in the next section!) meaning do not own the underlying asset.

Compared to the Pro versions on Coinbase and Kraken eToro fees are high!

But it is not to far from equal on the non professional versions

For example on Kraken Instant buy you get charged 1.5% for all cryptos purchases and 3.75% for card transactions.

But on Kraken pro the typical cost buyer cost is 0.26% (under $50k) which is significantly cheaper.

So if you are looking to invest solely in crypto you may be better off putting in the extra effort and signing up to a pro crypto exchange (which despite the name you don’t need to be a pro to access)!

eToro CFD Spread Fees

So what’s a CFD?

A CFD AKA Contract for Difference is a contract with the broker, meaning you don’t own the underlying security (stocks, ETF Crypto). But you still benefit from price movements, it allows for fractional shares and also leveraged positions ( e.g. you stake 100 but use 10X leverage meaning you trade with 1000).

As discussed earlier the spread cost is applied when you open the trade.

This usually means you start a position in the red but don’t worry that’s just your payment to eToro!

eToro CFD Currency Spread Fees

So lets start off with the Forex market (AKA currencies).

So if we use GBP/USD as an example, assume the buy rate is 1.38397

Lets say we invest $1000 x 10 leverage = $10,000 invested

10,000/1.38397 = 7225.59 units

Lets us the the typical spread of 2 pips which is 0.0002.

The spread = 7225.59 x 0.0002 = $1.45 spread.

Now remember the Spread can change so you should be on the ball with this!

eToro CFD Commodities Fees

lets take a quick look at Commodities fees

Now at first glance you’ll think holy crap 20,000 pips for palladium that a lot! Only Palladium is priced to 4 decimals on eToro whereas almost all the others are 2 decimals.

The maths is exactly the same as for Currencies so lets just do a quick example

So if we use an Oil CFD as an example, assume a buy price on eToro of 66.20.

Lets say we invest $1000 x 10 leverage = $10,000 invested

10,000/66.20 = 151.06 units

Lets us the the typical spread of 5 pips which is 0.05

The spread fee = 151.06 x 0.05 = $7.55.

eToro CFD Indices Fees

lets take a quick look at Indices fees

Again the the maths is super simple.

So if we use purchase NDSAQ 100 CFD as an example, assume a buy price on eToro of 12660.90

Lets say we invest $1000 x 10 leverage = $10,000 invested

10,000/12660.90 = 0.78983units

Lets us the the typical spread of 240 pips which equals 2.40

The spread fee = 0.78983 x 2.40 = $1.90.

eToro CFD Stocks and ETF Fees

So here the pricing is a little different so keep this knowledge handy!

Luckily the maths is super simple!

So for example lets use Amazon, as an example, eToro price is 3000.85 for unleveraged position (commission free). If you switch it to a leverage position with x2 leverage the price to buy an amazon share increases to 3003.55. as per the images below.

The difference in price without leverage price and with leverage is the spread that you will pay.

Change = (3003.55-3000.85)/3000.85

= 0.00090*100

=0.09%

So in this case its right on the nose but remember spreads can change!

eToro Overnight Fees and Refunds?!

what are overnight fees? and what are these refunds?

An overnight fee (Sometimes called rollover fees) is incurred on CFD positions as part of the eToro fee structure. It is essential a small interest payment for keeping the position open. These are industry standard for leveraged positions.

If you are incurring fees then you pay eToro but sometimes eToro will offer refunds in which you get paid to hold positions overnight.

Remember when you use leverage you don’t own the underlying asset and are essential given a loan.

So we know now what the overnight fees are and that we can also receive refunds lets look into fees.

Overnight fees are also tripled over the weekend for stocks. Overnight fees are tripled on Wednesdays for most commodities and Currencies.

So bare that in mind!

First thing to note is that you can spot overnights fees really easily before you purchase an asset.

Overnight fees are calculated differently for each asset!

Now lets look at a few examples!

eToro CFD Overnight Currency Fees

First a currency example!

The formula eToro currently use is

Overnight fees formula = Fee * Number of units

Note the Fees are updated on a monthly Basis! so check back regularly! Also there are triple fees for currencies on Wednesdays.

Typical spreads for CFDs on eToro.

To calculate the overnight Fees is very simple.

Lets look at GBP/USD and assume we go long with $1000 for one day (Not a Wednesday) at 10x leverage.

$1000 x 10 leverage = $10,000 invested

10,000/1.38397 = 7225.59 units

And look if we go to buy GBP/USD there it is!

Now the weekend Fee is the exact same process only we multiply the fee by 3.

The overnight fee is (-0.000046 X 7225.59)*3 = -$1.00 USD (rounded)

eToro CFD Overnight Commodities Fees

Next up is Oil!

The formula eToro currently use for commodities is:

Overnight fees formula = Fee * Number of units

Note the fees are updated on a monthly Basis! so check back regularly!

So if we use an Oil as an example, assume a buy price on eToro of 66.20.

Lets say we invest (long) $1000 x 10 leverage = $10,000 invested

10,000/66.20 = 151.06 units

So the overnight fee should be

0.002398*151.06 = 0.36

You will get paid $0.36 USD for holding your position overnight.

And there we have it Proof is in the pudding!

But why is the below oil Refund a fee?

Well first good question.

The eToro Future Contracts for oil are little different.

Now some of you may not be familiar with futures, so ill do a brief explanation!

A future contract is an agreement between two parties to buy a specific amount of an asset at a specific time in the future.

Now as there is a finite deadline to contract expiration the way eToro calculates its fees are slightly different!

But its the same formula just a different fee rate!

So as an example the Crude Oil Future April 21 the fee for going long is $ -0.001381. Assume a buy price on eToro of 66.33.

Lets say we invest (long) $1000 x 10 leverage = $10,000 invested

10,000/66.33 = 150.76 units

So the overnight fee should be

-0.001381*150.76 = -0.21

Again exactly as the eToro amount.

eToro CFD Overnight Indices Fees

Okay lets do a quick Indices example as they are same as Commodities and Currencies

So if we use purchase NDSAQ 100 as an example, assume a buy price on eToro of 12660.90

Lets say we invest $1000 x 10 leverage = $10,000 invested

10,000/12660.90 = 0.78983units

so the overnight fee is

-1.103826*0.78983 = -0.87

A fee of $0.87 per day.

lets check:

eToro CFD Overnight Stock and ETF Fees

The Formula for stocks and ETF is a little different!

Overnight fees formula = ((eToro fee + Libor rate) / 365) * Units * Price in USD

The Fees are also a little different as below eToro charges 6.4% above LIBOR for the annual fee.

LIBOR is the London Interbank offered Rate and its the standard amount that banks lend to each other for short term loans.

eToro uses the 1-month USD LIBOR rate for overnight fees.

So with that info in mind lets check out Amazon at x2 leverage.

lets assume we go long with $1000 with 2x leverage = $2000 invested.

$2000/3003.55 = 0.66588 units

Fee from eToro is 6.4% plus 1-month USD LIBOR

Overnight fees formula = ((6.4% + Libor rate) / 365) * Units * Price in USD

A quick check

0.36= ((6.4% + Libor rate) / 365) * 0.66588 * 2000

0.36/2000= ((6.4% + Libor rate) / 365) * 0.66588

0.00018/0.66588=((6.4% + Libor rate) / 365)

0.00027*365=6.4% + Libor rate

0.09867-0.064=Libor rate

LIBOR rate = 0.03467 or 3.467%

However, I couldn’t find a corresponding LIBOR rate to confirm this amount (NOTE I have asked eToro to clarify and will update upon their response!)

eToro Inactivity Fees

eToro have fairly industry standard inactivity charges of $10 per month after 12 months of no login activity.

Typical spreads for CFDs on eToro.

eToro CopyTrading and CopyPortfolio Fees

What is CopyTrading?

CopyTrading is a feature that allows you to directly benefit from someone else’s experience. just like a stock you can invest some money into someone else’s trading Strategy.

I believe its one of the most powerful features on the eToro. In theory its really simple but don’t be fooled by its simplicity there are loads of pitfalls so make sure you check out my Ultimate eToro Beginners Guide! Dirty Secrets to a huge ROI!

When using the CopyTrade function, there are no extra fees or hidden costs. Spreads and overnights fees are applied as explained earlier in the article but this cost stays within the copy amount.

CopyPortfolios are themed portfolios created by eToro and Institutional investors.

They have no management fees but their may be fees from the assets inside the portfolios, depending on which portfolio.

Conclusions are eToro Fees Fair?

eToro fees are higher than average on leveraged positions and on the surface this would make most people turn away.

However, eToro does offer some really great features that you can’t get anywhere else at the moment (well at least to the same standard).

That is the ability to CopyTrade and benefit from trading while someone else does all the hard work.

And eToro’s CopyPortfolios which again are really awesome portfolios of stocks that can provide broader exposure to niche markets.

And when you think that eToro pays CopyTraders millions (possibly 100s of millions) per year and rewards people who create CopyPortfolio which is also likely in the million then are these fees justified?

Even with all its drawbacks I personally do believe they are worth the extra cost.

But with one big DISCLAIMER.

eToro is only worth the extra cost if you take advantage of the additional functions.

If at any point you found this article helpful and you decide to join eToro I would appreciate if you went through one of my links. It costs you nothing and means I get a small commission which allows me to spend more time diving into the nitty gritty of eToro! Link to eToro Here

Happy Trading

Joe “The eToro master” Moricca

Thinking of Investing or Trading? Skip years of trial and error and just copy the best!

My name is Joseph Moricca and I run Velox Investments and I have been investing on eToro for over 5 years so I know it like the inside of my own home.

When I started trading I followed the gurus on Youtube and Facebook.

What a MISTAKE to make…

Trading is hard, you have to put in the time to learn it just like any skill!

But what if you could skip the learning and just get those juicy rock-solid results?

Just like the Gurus you could swim in liquid gold jacuzzies with lambos for each day of the week!

Well it still not that easy…

But with Copy Trading on eToro you can get a fantastic education in trading or just copy other people with rock solid performance.

Now this may not be for everyone, but I personally have paid for Michelin star dinners and fantastic holidays to the Algarve from my eToro account.

So use this website as a guide and get started on eToro today!

eToro Disclaimer

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as
well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing
money rapidly due to leverage. 67% of retail investor accounts lose money when trading
CFDs with this provider. You should consider whether you understand how CFDs work,
and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe
and therefore are not appropriate for all investors. Other than via CFDs, trading
cryptoassets is unregulated and therefore is not supervised by any EU regulatory
framework.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability
as to the accuracy or completeness of the content of this publication, which has been
prepared by our partner utilizing publicly available non-entity specific information about
eToro.

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