Practical Guide To eToro Hidden Fees

When you decide to join the trading world, you'll quickly learn about hidden fees. All brokers charge fees to use their platforms, but some brokers have fee structures that are difficult to understand or hard to find. These are hidden fees. 

You can't choose a trading platform without researching it. So, you'll need a more precise idea concerning the fee structure to organize your capital accordingly. 

The Basics Of eToro Hidden Fees 

Researching trading platforms is key to your success. It is best to select a platform that provides at least 2000 CFD trading instruments. Also, this platform should get you access to stocks and cryptocurrency assets. 

After extensive research, you can move forward to discover the fee structure of the platform. Remember that you'll come across distinct types of fees, depending on the broker and portfolio. 

To understand trading fees, we need to discuss the subcategories you'll have with brokers, such as eToro. 

Deposit Fees 

Most professional trading platforms don't have a deposit fee. This lack of a deposit fee means you can directly deposit into your trading account without paying a financial processing charge. (However, if you prefer a currency that's not supported, you'll have to pay a conversion fee). 

Leading platforms offer several deposit methods, such as online banking, debit cards, and bank transfers. Some might allow you to transfer funds via credit cards. 

Almost all platforms aim to offer a user-friendly deposit process with simple steps to follow. 

Commission Charges 

Trading platforms can charge a commission based on the financial instruments you use. For example, many trading platforms don't have a commission for trading stocks. But others may charge one for trading CFDs. 

We recommend you check the platform's insights on commission and fees before joining. 

Overnight Charges 

Trading CFDs comes with an overnight fee for open positions, and many platforms offer a fee schedule. For example, you may have to cover for a weekend fee for stocks and CFDs on a Friday. 

Spread Fees 

Spread fees represent a significant part of your trading costs, and distinct financial instruments come with different bid-ask prices. Some CFD brokers will include the fractional pip in the spread cost, while others won't. As such, the bid-ask difference will be higher for those brokers. Trustworthy platforms make sure they keep this aspect transparent. 

Cryptocurrency Fees 

Some cryptocurrencies come with additional fees. For example, your transaction and transfer fee will vary from broker to broker. 

Non-trading Fees 

There are two types of non-trading fees: withdrawal and inactivity fees. 

Some brokers don't have a deposit fee but charge a withdrawal fee. Luckily, this is usually a small cost of around $5. 

Trustworthy brokers won't close your open position to pay the inactivity costs. But most of them will charge you this extra fee. For example, if you don't log in for 12 months, you'll have to cover this inactivity fee before using your account. 

It is best to work out the non-trading fees before signing up with a broker. Knowing all the costs is the only approach that will enable you to make profitable trading decisions. Check the fee structure before settling upon a broker's platform. 

Key Aspects For Hidden Fees At eToro  

There are many key aspects to keep in mind when choosing a trading platform, such as eToro:    

• the experience a broker has with day trading    
• the customer support available    
• the regulations in case of disputes or losses    
• the timeframe for deposits and withdrawals    
• the international presence in several counties    
• the access to a multi-cultural customer support staff    

Based on these features, we shared a comparison table to help you decide which the best trading broker is. We analyzed eToro compared to the top brokers that offer the best features and platforms for traders.    

eToro Markets: Essential Factors To Consider    

eToro can be a volatile market that can pose serious challenges, even for experienced traders. Besides the online educational resources, you can use several other tools to understand the unique benefits of eToro markets better.    

Overall, eToro is considered an industry leader, thanks to its focus on innovation.    

#1 Track Record    

The first thing you want to study when selecting a trading broker is its longevity or track record in the market. It is a crucial element in your trading strategy that can help you avoid significant financial loss. eToro is the leading copy trading broker with 12 years of experience on the market and headquarters in Cyprus and the United Kingdom.    

eToro has several regulations, being supervised by the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA), the Financial Instruments Directive (MiFID), and the Australian Securities and Investments Commission (ASIC).    

The main competitor of eToro is IC Markets. This broker was established in 2007, having a long track record and its main headquarters in Australia. IC Markets is monitored by the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA), and the Australian Securities and Investments Commission (ASIC).    

#2 Industry    

Another factor to consider when choosing a trading broker is whether it is at the forefront of innovation. eToro offers more than 1000 trading instruments, an online and mobile platform, and a user-friendly interface for all their services.    

Beyond that, eToro supports several third-party trading platforms, allowing its clients to use distinct markets worldwide. Thanks to its innovation and ability to seek ways to keep their competitive advantage, it is a world-leader broker.    

IC Markets, the main competitor of eToro, provides only 232 instruments and segregates clients' funds according to law.    

#3 Fees And Commissions    

Trading fees and commissions must be transparent. The top-rated trading broker is eToro due to the competitive offers for commodities, stocks, CFDs, forex, indices, social trading, and cryptocurrency. This broker has a minimum deposit of $200.    

Another leading trading broker is IC Markets because it offers CFDs, spread betting, forex, share dealing, and cryptocurrencies. IC Markets has a minimum deposit of $200.    

#4 Withdrawal And Funding    

Convenient withdrawal and funding methods are fundamental for the best trading experience.  

#5 Customer Support    

Customer support is essential when it comes to trading. Dealing with brokers and investing can often require several interactions with customer service. These interactions may take the form of training, installation, upgrading, troubleshooting, or even cancelation of service.    

eToro offers reliable customer assistance via email, and live chat. This service is also available in several languages like English, Spanish, German, Italian, and French.    

IC Markets is well recommended for its reliable customer support, available in English, Chinese, Japanese, Afrikaans, Polish, Dutch, Danish, German, and several other languages.  You reach support by phone, email, or chat.    

#6 Resources    

Educational resources can help you gain in-depth knowledge about trading and hidden fees. Both eToro and IC Markets do their best to provide top insights and news to their clients.    

So, before choosing a trading broker, you should check to see whether it offers access to comprehensive trading resources. These might include education, analysis, and risk-management tools.  

#7 Regulations    

A broker regulated by leading authorities comes with a lower risk. These regulations will protect clients and ensure the broker offers qualitative services. Also, the broker regulation will minimize fraud and financial harm.    

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. 79% 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. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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.

eToro compared to other brokers:

• eToro review

Methodology 

The mission of Business24-7 is to provide comprehensive, unbiased ratings and reviews of online providers. User experience, the mobile experience, customer service, costs and fees, security, the quality of trade executions, the products available on their platforms are all part of our six-month evaluation of a providers’s platform. The rating scale was based on thousands of data points that have been weighted into the scoring system.

Providers were also required to fill out a multi-point survey regarding every aspect of their platform. In-person demonstrations and evaluations were provided by the majority of the online providers we reviewed.

Stefan Grasic, along with our team of industry experts, conducted our reviews and developed this methodology for ranking what form is used in online investing.

Business24-7 maintains high editorial standards and provides the best advice and recommendations. The products and companies that we review may compensate us when you click on the links on this website. Click below to find out more about our review process and methodology.

Disclosure

All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.