eToro doesn’t charge any broker fees when opening or closing positions. However, they do have other miscellaneous fee structures that traders must be aware of.
For example, if you deposit funds on eToro in a currency unsupported by eToro, you will incur a conversion fee. These fees are measured with percentage points (PIPs) and vary depending on the converted currency.
eToro’s Overnight Fees
eToro’s overnight fees are applied to positions left open overnight. These fees range for long (buying) and short (selling) positions and CDFs, currencies, and commodities.
Overnight fees are calculated using the London Interbank Offered Rate (LIBOR). LIBOR is the interest rate at which banks borrow from other international banks.
The fee is calculated by adding a fixed percentage to the difference between a financial instrument’s BUY and SELL prices. It is important to note that this rate fluctuates based on market conditions.
When you sign up with eToro, you must verify your account by providing photo identification and proof of address. It can take up to 3 working days to verify your account.
eToro’s Weekend Fees
eToro is an online trading platform that allows you to trade stocks, exchange-traded funds (ETFs), indices, and currencies. It also has advanced trading features such as stop-loss, take-profit orders, and leverage trading.
Unlike other brokers, eToro does not charge commission fees on CFD trades. However, eToro does have additional fees that can impact your trading costs.
One of these is called a spread, and it’s an essential part of your overall trading costs. The spread is the difference between what you pay to buy an asset and what you pay to sell it.
Another is a rollover fee, which can apply to long positions in equities, exchange-traded funds, and cryptocurrencies on the platform. Depending on the underlying asset, this fee is deducted either on Wednesday or Friday.
eToro also charges a weekend fee multiplied by three for all underlying assets, including stocks, currencies, and commodities. This charge does not apply to non-leveraged long equities, ETFs, or cryptocurrency positions.
eToro’s Inactivity Fee
eToro is an online social trading platform that lets you trade stocks, ETFs, cryptocurrencies, and other financial assets. The platform has more than 10 million users from over 140 countries.
Among its many features, eToro offers a variety of instruments and opportunities that are ideal for beginners. These include 0% commission stocks, ETFs, crypto-trading pairs, indices, commodities, and currencies.
The platform is free to join, but you must deposit a minimum of US$10 (PS8). Once you have deposited, you can start trading on the eToro app or website.
eToro is a popular online broker with a low trading fee of 1% for buying or selling cryptos. However, the platform has several other fees that may affect your overall trades. These fees include currency conversion costs for non-USD deposits and withdrawals, overnight rates, and inactivity fees.
eToro’s Currency Conversion Fee
eToro charges a currency conversion fee when deposits and withdrawals are made to or from an account denominated in a non-USD currency. This conversion fee is calculated based on PIPs (percentage in points) and can range from 50 to 150 pips, depending on the exchange rate at the time of deposit.
Traders can use eToro to invest in crypto assets, trade shares, and CFDs. The trading platform also offers a copy portfolio feature that allows investors to follow and replicate successful traders.
However, despite offering commission-free trading, eToro has other fees that are not immediately obvious. These include a currency conversion fee, withdrawal fee, and inactivity fee.
Traders can deposit and withdraw funds in various currencies, including USD, EUR, AUD, GBP, SGD, and JPY. While eToro currently supports several currencies, it plans to introduce more shortly.
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