eToro Commission or Brokerage Charges – Review, Plans, FAQs & more
Check out all details about eToro Commission or Brokerage charges here.
eToro is an online marketplace that allows its user base to invest in assets. These assets include currencies, commodities, indices, and stocks.
The company originates from Israel. The company’s primary focus is on providing financial and copy trading services.
eToro has been operational for around 13 years now. It has approximately 17 million customers from 100 different countries.
The main focuses of the platform are on Cryptocurrencies and Forex. CFDs and stocks are only available for non-US customers.
The broker mainly targets traders who follow risk-control rules and want to be copied.
eToro Commission or Brokerage Charges
eToro prides itself on not charging any management fees. There is no deposit fee. However, there is a withdrawal fee that amounts to around $5 per withdrawal.
More importantly, eToro charges no brokerage. You don’t have to pay anything to open a position.
Besides, there are no ticket fees, no rollover fees, and no added broker charges.
eToro earns its money by charging various spreads for some trades and withdrawals. Different types of spreads differ depending upon the currency.
There are a couple of additional charges too if you avail of their services. First, there is a withdrawal charge, as mentioned above.
Apart from that, you’d have to pay a conversion fee if you trade in any currency other than USD. It is about 50 pips.
Also, there are overnight and weekend charges for holding positions overnight or over-weekend. Finally, there is an inactivity charge.
An inactivity charge is applicable after 12 months of activity. After that, you’re charged with 10% of the remaining balance as an inactivity charge.
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Types of eToro Commission Plans
|Types of Commission Plans|
eToro commission plans differ from each other in four major factors. These factors are initial deposit, spread, commission, and leverage.
Since eToro does not charge any commission, they’d be better described as account types. There are four tiers to account types: Bronze, Silver, Gold, and VIP.
These are structured so that the more money you deposit, the better would be your account type. For example, a typical account is your Bronze account.
The bronze account requires a measly $50 to open. In comparison, the silver, gold, and VIP accounts require $1000, $5000, and $20,000 as initial deposits.
In addition, all of them have fixed spreads for an instrument. Also, all of them offer fixed leverage which is 1:400.
It’s important to note that none of them charge any commissions for trading. Furthermore, all the account types differ on different perks and benefits only, and the base offerings remain the same.
eToro Account Opening Process
eToro has multiple platforms designated for trading. They include web clients as well as mobile apps. They are pretty user-friendly and easy to navigate.
The following steps will show you how to open an account on eToro.
Go to eToro’s website. Then, click on “Join Now” or “Trade Now.”
A digital form will pop asking for your information. Fill the said form. Most of it will be personal information. You can also sign in with a Google or Facebook account.
Read the terms and conditions of usage. Then, when you’re familiar with them, click on the ‘I Accept Terms and Conditions’ checkmark.
Also agree with the ‘I understand the financial risk’ option. Now click on sign-up.
Now, the KYC process will start. So for the KYC, you’d have to submit a permanent address proof and a proof of identity (photo ID). You’d have to upload scanned copies of both.
Also, for KYC, you have to fill a questionnaire. It contains standard questions about your goals and aspirations regarding trading.
Also, you’d have to answer about your level of financial knowledge and liquidity.
Now your account is all set up. You can now start trading using your dummy account. To deal with actual cash, you’d have to deposit some amount into your account.
The minimum deposit amount would depend on your account type.
eToro Payment or Withdrawal Methods
|Deposit Options||Credit Card, Moneybookers, Neteller, PayPal, Skrill, Webmoney, Wire Transfer|
|Withdrawal Options||Credit Card, Moneybookers, Neteller, PayPal, Skrill, Webmoney, Wire Transfer|
eToro accepts several payment options for deposits and withdrawals. Here is a list of those options in detail.
Credit Cards/Debit Cards: The supported credit cards/debit cards are
- Visa Electron
- Rapid Transfer
- Klarna/Sofort Banking
- Bank Transfer
- Local Online Banking
- Online Banking
Most of the payment methods support both deposits and withdrawals. Rapid and Online Banking are the only ones that do not allow withdrawals.
The primary payment methods support the significant currencies, i.e., USD, EUR, GBP, and AUD. However, some payment methods differ on the supported currencies.
For example, the payment modes may be available internationally or localized to a region. In a similar vein, there may be your regional payment methods available.
Each payment method has a cap on the maximum deposit amount. The minimum deposit amount across the payment methods is $50.
Finally, eToro ensures the safety and security of your transactions. Each transaction is communicated using Secure Socket Layer (SSL) technology.
eToro Investment Assets
|Supported Cryptocoins||bitcoin, bitcoin cash, Cardano, Dash, eos, ethereum, ethereum-classic, iota, litecoin, neo, ripple, stellar, Tron, zcash|
|Total Tradable Assets||NA|
|Number Of Currency Pairs||NA|
|Number Of Cryptocurrencies||NA|
|Number Of Stocks||NA|
|Number Of Indices||NA|
|Number Of Commodities||NA|
|Number Of Futures||NA|
|Number Of Options||NA|
|Number Of Bonds||NA|
|Number Of ETFs||NA|
eToro allows trading on a diversified set of assets. Most of the significant and widespread assets are present on eToro. Here is a broad segmentation of the types of assets currently on eToro.
Conventionally, eToro allows you to open long, non-leveraged positions in various stock exchanges. From eToro, you can buy shares from 17 different stock exchanges all across the world, including
- Many More
Cryptocurrencies are traded with pretty much the same regulations as stocks. eToro offers the following popular cryptocurrencies for trading from its catalog of 97 cryptocurrencies.
- Bitcoin Cash
Commodities are only traded as CFDs on eToro, i.e., you don’t need to purchase the underlying asset. The popular entities include:
- Natural Gas
eToro also works as a forex broker, providing enticing leverages and spreads. You have around 49 currency pairs to choose from.
All of them feature strong and popular currency choices. Popular ones include:
- Many more
eToro also hosts around 250 Exchange Traded Funds (ETF). The popular ones are:
Indices of stock markets are also popular trading entities. You have around 13 choices in this section, including:
eToro Commission – Conclusion
eToro hosts several lucrative assets which are sure to catch your attention. Their lucrative offers on copy trading and copy portfolios are enticing for every class of traders.
They charge very nominal fees and reasonable spreads. Their platform has excellent functionality and an easy-access interface.
They have a diversified international base and presence. They allow trading on any market from any part of the world.
Proper financial authorities regulate them from across the globe. Finally, they have a safe and transparent user policy that encourages you to come forth and trade.
eToro Brokerage Charges or Fees – FAQs
Here are the major FAQs on eToro Brokerage Charges & Fees –
Do eToro charge commission?
No, eToro does not charge commission on trades. They work on a system of spreads. So you won’t have to pay any money to open a long position on eToro.
You also would have to spend on several other fees and commissions. This is uniform across all assets.
How much does eToro charge brokerage?
eToro does not charge any brokerage. They pride themselves as brokers free of any management costs. So you won’t have to pay any amount for opening a position.
However, they do have spreads and leverages across the assets. So you might want to compare assets based on their spreads and percentages.
What is the Minimum Deposit required in eToro?
This varies from place to place. For users residing in the USA, the minimum deposit amount is $50. For the USA, the first minimum deposit amount is also $50.
However, this all changes geographically. Some countries require a minimum first deposit of $1,000, or even $5,000. Professional accounts require a first-time deposit of a minimum of $10,000.
How much leverage does eToro provide?
eToro provides up to five times the leverage on stocks. However, it is essential to note that all leveraged positions are traded as CFDs.
So if you own a CFD, you do not own the stock or hold any right shareholders have. Besides, each instrument has its leverage ratio.
Also, you get better leverage as the holder of a professional account.
How much is spread at eToro?
Spreads are different for different assets on eToro. Each instrument carries a different spread. The amount you have to pay to the broker when you close a position depends upon the instrument’s spread.
The spread is generally around 1% for cryptocurrencies and varies more for other assets. Also, note that spreads are only applied when you close a position.
What type of Commission Plans available in eToro?
There are 3-4 different account types available in eToro. However, since none of them charge a commission, they can’t be called commission plans.
However, you might want to take note of spreads on different instruments. The different spreads combined with different charges form the commission plans available in eToro.
Do eToro provide Cryptocurrency for Investment?
Yes, eToro provides cryptocurrency for investment. eToro has an ever-growing selection of cryptocurrencies available on its platform.
They also offer unique Crypto Portfolio investment strategies. Among their assets, Bitcoin and Ethereum prove to be the most popular.
eToro provides unleveraged cryptocurrency trades but can also be traded as CFDs.
Is eToro a legit Forex Broker?
Yes, eToro is a legit forex broker. International financial bodies regulate all the trades brokered by eToro. Forex also comes under the same regulations. eToro offers a wide variety of forex pairs to trade with.
You can open both long and short positions on forex trades. Also, you can do both leveraged and unleveraged transactions with forex.
Can I invest in eToro for $5?
No, you cannot invest $5 in eToro in an unleveraged position. This is because the minimum trade amounts vary from instrument to instrument.
However, for most instruments, it is $25-$50. So if you want, you can open a position with $5, which is five times leveraged. This is the only way you can invest $5 in eToro.
Are there any hidden charges available with eToro?
No, there aren’t any hidden charges available with eToro. All the expenses and commissions associated with eToro are well declared in advance.
Hence, you should read the rules and regulations of eToro very carefully. However, there are a couple of slightly hidden fees such as inactivity charges and currency exchange fees that you must pay heed to.
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