Overview of eToro fees and charges
eToro’s fees are generally low. Some services such as stock trading are free, while others come at a relatively low charge. This means that your trading costs will remain low even if you trade on a daily basis.
|• User-friendly||• Only one account base currency|
Below are some key eToro fees:
|Assets||Fee level||Fee terms|
|S&P 500 CFD||Low||The fees are built into the spread, 0.75 points is the average spread cost during peak trading hours.|
|Europe 50 CFD||Average||The fees are built into the spread, 3 points is the average spread cost during peak trading hours.|
|EURUSD||Low||The fees are built into the spread, 1 pip is the average spread cost during peak trading hours.|
|Inactivity fee||Low||$10 per month after one year inactivity. Inactivity means that you don't log in to your account|
As a lot of people use eToro from the UK, we often get asked what specific fees and charges UK traders have to face at eToro. For this reason let us split this explainer to 3 main parts:
- We explain how eToro`s fees structure in general
- We deal with some eToro UK fees in particular
- In the last part, we give you a more detailed overview of eToro trading and non-trading fees for UK and global customers, including comparisons with close competitors.
eToro fees explained
eToro, like many other online brokers, tends to charge lower fees than traditional brokerages. This is mainly because online brokerages’ businesses can be much better scaled. For them, it doesn’t make much of a difference in terms of costs whether they have to serve 200 clients or 10,000.
This doesn’t mean eToro doesn’t have any fees at all. It makes money by charging you at various points of activity, at various rates. To understand eToro’s fee structure, you need to be aware of two main types of fees:
- Trading fees - you pay these when you actually make a trade. The amount you are charged is either called a commission, a financing rate or a spread. Some brokers apply more than one of these, depending on the type of transaction.
- A commission is either a flat charge per trade, or based on your traded volume.
- A financing rate (also called overnight rate) is charged when you hold your leveraged positions for more than one day.
- The spread is the difference between the buy (‘bid’) price and the sell (‘ask’) price.
- Non-trading fees - These are related to activities in your account other than trading, like withdrawing or depositing money. In some cases, such fees occur when you do not do something: for example, if you don’t trade for more than 12 months at eToro, you are charged an inactivity fee. This is not unique to eToro though; it’s a common practice with online brokers.
eToro fees in the UK
eToro conversion fees in the UK
The only available base currency at eToro is USD. Therefore, if you trade from the UK, you’ll need to convert your GBP to USD (or vice versa) if you want to deposit or withdraw money to/from your GBP account. eToro automatically does this conversion for you at a cost of 50 pips for both deposits and withdrawals via bank transfer - this would be about 0.4% of the total amount, depending on the current exchange rate. Deposits and withdrawals via debit/credit cards or PayPay are converted at a cost of 150 pips.
eToro withdrawal fees in the UK
The withdrawal fee at eToro is a flat $5 per transaction. The minimum amount you can withdraw is $30. Why is this fee not expressed in GBP for UK-bound withdrawals? The reason is that eToro trading accounts are denominated in USD, and this charge is applied when you initiate the withdrawal; at which point your funds are still in USD.
eToro trading fees
eToro’s trading fees are low which makes it suitable for you even if you trade often (i.e. multiple times a week).
Let’s break down eToro’s trading fees according to various asset classes.
Stock and ETF fees
While eToro is primarily known as a CFD, forex and crypto broker, you can also trade real stocks and ETFs.
The good news is that eToro offers commission-free real stock trading for almost all stocks. (In the only exception, for Australian clients, only US stocks can be traded as commission-free real stocks.)
If you trade stocks in currencies other than USD (e.g. UK or European stocks), eToro will make the currency conversion at the current market rate with no additional cost to you. eToro will also assume any tax duty that might be due if you trade on the UK market.
CFD trading fees
eToro’s CFD trading fees are low
It’s not easy to compare trading fees for CFD brokers. So how do we do this at BrokerChooser? We compare brokers by calculating all fees of a typical trade for three popular assets:
- Apple, a large US stock
- Vodafone, a large European stock
- EURUSD, a commonly traded currency pair
Our hypothetical trade involves buying a position, holding it for one week, then selling it. For volume, we chose a $2,000 position for stocks and $20,000 for EURUSD.
This catch-all benchmark includes spreads, commissions and financing costs for all brokers. So here’s our verdict:
|Apple benchmark fee||$6.4||$14.2||$10.1|
|Vodafone benchmark fee||-||$15.3||$10.6|
|EURUSD benchmark fee||$15.6||$15.2||$15.2|
eToro financing rates are considered average when compared with some of its main competitors.
If you trade on margin and want to hold your positions for a longer period, financing costs can add up, so always be mindful of this charge.
|Apple CFD financing rate||10.3%||36.0%||7.6%|
|Vodafone CFD financing rate||-||38.3%||6.8%|
|EURUSD financing rate||3.5%||3.4%||3.5%|
|EURGBP financing rate||3.4%||6.3%||2.1%|
Currency conversion fee
eToro will charge a currency conversion fee for deposits and withdrawals in currencies other than the currency of your account. The fee depends on the deposit/withdrawal method and the currency of the transaction. For major currencies such as GBP, EUR, CHF or AUD, the currency conversion fee is 50-150 pips.
eToro non-trading fees
When it comes to non-trading fees, eToro is more expensive than some of its closest competitors.
Just to recap, non-trading fees include various charges that are not directly related to buying or selling assets. Typical non-trading fees include withdrawal fees, deposit fees, inactivity fees or account fees.
eToro deposit fee
Deposit fees are applied when you send money to your trading account from your bank account. Like almost all brokers, eToro doesn’t charge any money for deposits: you will see the exact same amount credited on your brokerage account that you have sent, regardless of the deposit method.
eToro withdrawal fee
In a distinct disadvantage compared with most other online brokers, eToro charges a $5 withdrawal fee when you transfer funds back to your bank account or credit/debit card.
This amount can feel little more than a rounding error if you’re withdrawing tens of thousands of dollars, but it could be painful when you want to retrieve a smaller amount only. For the record, the minimum amount to withdraw is $30.
eToro inactivity fee
Unlike many of its competitors, eToro applies an inactivity fee of $10 per month after one year of inactivity.
In eToro’s case, inactivity is defined as not logging into your account. So even if you’re a buy-and-hold investor who doesn’t trade frequently, you can easily prevent being charged by simply logging into your account from time to time, without even having to carry out a trade.
|Inactivity fee||$10 per month after one year inactivity. Inactivity means that you don't log in to your account||No inactivity fee||€10 per month after 1 year of trading inactivity and if no deposit was made in the last 90 days|
Does eToro charge deposit fees in the UK?
No, it does not charge deposit fees. But since eTor only offers USD accounts, all deposits and withdrawals are done in USD, meaning that if you deposit in GBP, eToro will convert your GBP to USD, for which they charge a fee. The typical mark-up is 50 pips. This means if you deposit £2,000, you’ll see a conversion cost of roughly $10.
Is eToro free in the UK?
No, it is not completely free in the UK (or anywhere else for that matter). However, eToro’s fees are generally low, especially when it comes to trading fees. In fact, trading of real stocks is commission-free. eToro makes money on forex and CFD spreads, withdrawal fees and some other smaller charges. So at the latest, you will be charged when you withdraw money back to your bank account.
Does eToro have high fees?
No. On the contrary, eToro's fees are about as low as they get, especially when it comes to trading fees. Most other brokerages charge higher amounts (and for more services) than eToro.
Can I withdraw GBP from eToro?
Well, yes and no. At eToro, you can only keep your funds in USD, so you can't technically initiate a withdrawal in GBP. However, it is of course possible to withdraw to a GBP bank account. What happens in such cases is that eToro automatically converts the USD amount to GBP (applying a small mark-up in the process).
Does eToro have a monthly fee?
There is no monthly fee if you use your account regularly. However, if you fail to log in to your account for 12 months, eToro will charge you a $10 inactivity fee per month until you log in again.
Is my money safe in eToro?
eToro is regulated by top-tier financial authorities such as the UK Financial Conduct Authority (FCA), a sign that its operations have passed strict official scrutiny. In the event of eToro going insolvent, UK clients are eligible by law for compensation of up to £85,000, and eToro Europe clients are eligible for up to €20,000. eToro currently also provides additional insurance of up to £/$/€ 1,000,000 for cash, securities and CFDs (but not cryptos).
What are eToro fees in the UK?
eToro trading fees in the UK are the same as those for all eToro clients. The spread for stock/ETF CFDs is 0.15%; currency spreads for most pairs involving GBP range from 1.5 to 4 pips; buying or selling crypto costs 1%; while trading real stocks and ETFs is commission-free.
Does eToro have hidden fees?
eToro trading and non-trading fees are transparently displayed on the company’s platforms. However, especially if you’re new to trading, you should always keep in mind fees that are not directly related to buying/selling assets. At eToro, these include withdrawal fees, currency conversion fees for non-USD deposits/withdrawals, overnight rates (for holding leveraged positions for more than a day), and inactivity fees.
Do I pay tax on eToro in the UK?
Interest, dividends or capital gains are usually subject to tax. eToro does not provide tax advice, but it does generate a Tax Report for you each UK tax year (April 6th-April 5th) based on your trading activity, which you can then use to fill out your tax returns. For more information, consult your personal tax advisor and check eToro’s UK tax informational page.
How do I withdraw from eToro UK?
To withdraw money from eToro, click ‘Withdraw funds’ on the left-hand side of the trading platform. In the pop-up window, enter the amount you’d like to withdraw; select a reason for withdrawal; pick a payment method; then submit your request. Note that the minimum amount to withdraw is $30 and that a $5 fee is applied on all withdrawals; plus a small fee will be charged on withdrawals to non-USD accounts. It usually takes about two business days for your funds to arrive, but it may take up to eight days depending on your bank or card provider.