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 in 2020. We analyzed eToro compared to the top brokers in 2020 that offer the best features and platforms for traders.
| Cell | eToro | IC Markets | Pepperstone | FxPrimus | AxiTrader | Swissquote | AvaTrade | ForexMart | Phoenix Markets | EZInvest | ETX Capital |
| Regulation | FCA, CySEC, ASIC, MiFID | ASIC, FSA, CySEC | ASIC, DFSA, FCA, SCB | CySEC, MiFID | FCA, ASIC, DFSA | FCA | FSA, FSB, BVI, ASIC | CySEC | CySEC | CySEC | FCA |
| Min. Deposit | 200 | 200 | 200 | 100 | No | 1000 | 250 | 1 | 500 | 500 | 100 |
| Funding | Bank Transfer Credit Card PayPal | Bank Transfer Credit Card PayPal | Bank Transfer Credit Card PayPal | Bank Transfer Credit Card | Bank Transfer Credit Card | Bank Transfer Credit Card | Bank Transfer Credit Card PayPal | Bank Transfer Credit Card | Bank Transfer Credit Card | Credit Card | Bank Transfer Credit Card |
| Used By | 12,000,000+ | 60,000+ | 10,000+ | 10,000+ | 10,000+ | 300,000+ | 200,000+ | 10,000+ | 10,000+ | 10,000+ | 10,000+ |
| Advantages | STP available Low Min. Deposit Negative Balance Protection | Scalping & Hedging Available Low Min. Deposit Negative Balance Protection | Scalping & Hedging Available STP Low Min. Deposit Negative Balance Protection | Scalping & Hedging Available STP Low Min. Deposit | Scalping & Hedging Available STP Low Min. Deposit | Scalping & Hedging Available | Scalping & Hedging Available Low Min. Deposit | Scalping & Hedging Available STP Low Min. Deposit Negative Balance Protection | Scalping Available STP | Scalping Available STP | Hedging Available Low Min. Deposit Guaranteed Stop Loss |
| Accounts | Demo Account Standard Account Islamic Account | Demo Account Mini Account Standard Account Zero Spread Account Raw Spread Account Islamic Account | Demo Account Mini Account Standard Account ECN Account Islamic Account | Demo Account Micro Account Mini Account Standard Account ECN Account Managed Account | Demo Account Micro Account Mini Account Standard Account ECN Account Islamic Account | Demo Account Mini Account Standard Account | Demo Account Micro Account Mini Account Standard Account Islamic Account | Demo Account Standard Account ECN Account Islamic Account | Demo Account Standard Account ECN Account Islamic Account | Demo Account Standard Account ECN Account Islamic Account | Demo Account Mini Account Micro Account Standard Account |
| Spreads | Var. Spreads | Var. Spreads | Var. Spreads | Var. Spreads | Var. Spreads | Fixed Spreads | Fixed & Var. Spreads | Var. Spreads | Fixed Spreads | Fixed Spreads | Fixed & Var. Spreads |
| Platforms | Mobile Apps Web Trader | MT5 MT4 ZuluTrade Web Trader Mirror Trader cTrader MAC | MT5 MT4 Web Trader ZuluTrade Mac Mobile Apps | MT4 Mac Mirror Trader Web Trader Mobile Apps | MT4 MAC ZuluTrade Web Trader Mobile Apps | MT5 MT4 Web Trader ZuluTrade | MT4 Mirror Trader Mac ZuluTrade Web Trader Mobile Apps | Web Desktop MT4 | Mac Android iPhone iPad MT4 | Mac Android iPhone iPad MT4 | MT4 Mirror Trader Max Binary Tablet Mobile Apps |
| Support | Live Chat Email Support | Email Support | Live Chat Email Support Phone Support | Live Chat Email Support Phone Support | Phone Support Email Support | Live Chat Email Support Phone Support | Live Chat Email Support Phone Support | Live Chat Email Support Phone Support | Live Chat Email Support Phone Support | Live Chat Email Support Phone Support | Phone Support Email Support |
| Risk | Up to 75% of retail investor accounts lose money when trading CFDs | Losses can be higher than deposits | Up to 79.3% of retail investor accounts lose money when trading CFDs | Losses can be higher than deposits | Losses can be higher than deposits | Losses can be higher than deposits | Up to 79% of retail investor accounts lose money when trading CFDs | Your capital is at risk | Your capital is at risk | Your capital is at risk | Losses can be higher than deposits |
| Excluded Countries | AN, VG, NI, PR, GT, HN, PY, US, SV, LB, AW, AI, AG, BS, BM, BB, FJ, GD, KZ, MV, MH, BT, MM, HT, TT, LK, UZ, TJ, TM, VI, SG, NP, WS, TW, BN, PK, CI, DJ, GM, LR, SL, TG, NA, SO, TN, RW, BW, ZM, UG, LY, TZ, GH, ET, ZW, SD, CD, GN, RS, MK, MD, AL, BY, IL, TR, SY, JP, CA, BE, KP, IR | NA, SN, GN, KG, KR, GH, AG, NG, GM, AO, NE, LR, BO, ML, CG, TZ, LY, CU, ZW, LR, CI, YE, LS, KH, TG, IQ, MM, SY, IR, BW, SL, GN, AF | US, JP, SY, IQ, IR, KR, BR | EC, JP, DZ, SY, AU, US, PR, SD, KR, MM, LY, IR, IQ, CU, CI, AF | JP, US | US | SG, CA, US, TR, NZ, KP, BR, BE | Cell | IL, SY, TR, LA, AF, YE, VU, UG, IQ, ET, BA, US, KP, JP, IR, CA, BE | IL, SY, TR, LA, AF, YE, VU, UG, IQ, ET, BA, US, KP, JP, IR, CA, BE | BE, SG, CA, US |
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).
| Cell | eToro | IC Markets | Pepperstone | FxPrimus | AxiTrader | Swissquote |
| Regulation | FCA, CySEC, ASIC, MiFID | ASIC, FSA, CySEC | ASIC, DFSA, FCA, SCB | CySEC, MiFID | FCA, ASIC, DFSA | FCA |
| Used By | 12,000,000+ | 60,000+ | 10,000+ | 10,000+ | 10,000+ | 300,000+ |
| Risk | Up to 75% of retail investor accounts lose money when trading CFDs | Losses can be higher than deposits | Up to 79.3% of retail investor accounts lose money when trading CFDs | Losses can be higher than deposits | Losses can be higher than deposits | Losses can be higher than deposits |
| Negative Balance Protection | Yes | Yes | Yes | No | No | No |
| Guaranteed Stop Los | No | No | No | No | No | No |
| Headquarters | Cyprus UK | Australia | Australia | Cyprus | Australia | Switzerland |
| Year Founded | 2006 | 2007 | 2010 | 2009 | 2007 | 1999 |
#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.
| Cell | eToro | IC Markets | Pepperstone | FxPrimus | AxiTrader | Swissquote |
| Instruments | 2000 | 232 | 100 | 130 | 100 | 100 |
| Platforms | Web Trader Mobile Apps | MT4 MT5 ZuluTrade MirrorTrade Web Trader cTrader Mac | MT4 MT5 ZuluTrade WebTrader cTrader Mac Mobile Apps | MT4 Mac Mirror Trader Web Trader Mobile Apps | MT4 ZuluTrade Mac WebTrader Mobile Apps | MT4 MT5 ZuluTrade WebTrader cTrader Mobile Apps |
| Excluded Countries | AN, VG, NI, PR, GT, HN, PY, US, SV, LB, AW, AI, AG, BS, BM, BB, FJ, GD, KZ, MV, MH, BT, MM, HT, TT, LK, UZ, TJ, TM, VI, SG, NP, WS, TW, BN, PK, CI, DJ, GM, LR, SL, TG, NA, SO, TN, RW, BW, ZM, UG, LY, TZ, GH, ET, ZW, SD, CD, GN, RS, MK, MD, AL, BY, IL, TR, SY, JP, CA, BE, KP, IR | NA, SN, GN, KG, KR, GH, AG, NG, GM, AO, NE, LR, BO, ML, CG, TZ, LY, CU, ZW, LR, CI, YE, LS, KH, TG, IQ, MM, SY, IR, BW, SL, GN, AF | US, JP, SY, IQ, IR, KR, BR | EC, JP, DZ, SY, AU, US, PR, SD, KR, MM, LY, IR, IQ, CU, CI, AF | JP, US | US |
| Forex Pairs | 50 | 65 | 70 | 45 | 100 | 150 |
| Major Forex Pairs | Yes | Yes | Yes | Yes | Yes | Yes |
| Exotic Forex Pairs | Yes | Yes | Yes | Yes | Yes | Yes |
| Cryptocurrencies | Yes | Yes | Yes | No | Yes | No |
| Commodities | 0 | 19 | 16 | 0 | 20 | 7 |
| Metals | Yes | Yes | Yes | Yes | Yes | Yes |
| Energies | Yes | Yes | Yes | Yes | Yes | Yes |
| Agricultural | Yes | Yes | No | No | Yes | No |
| Stocks | 957 | 100 | 60 | 60 | 1000 | 0 |
| UK Shares | Yes | No | No | Yes | Yes | Yes |
| US Shares | Yes | Yes | No | Yes | Yes | Yes |
| German Shares | Yes | Yes | Yes | No | Yes | Yes |
| Japanese Shares | Yes | Yes | No | No | Yes | Yes |
#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.
| Cell | eToro | IC Markets | Pepperstone | FxPrimus | AxiTrader | Swissquote |
| Min. Deposit | 200 | 200 | 200 | 100 | 0 | 1000 |
| Withdrawal Fee | Yes | No | No | Varies | Varies | No |
| Inactivity Fee | Yes | No | Yes | No | No | No |
| Deposit Fee | No | Varies | No | Varies | Varies | No |
| CFD Commission | No | Yes | Yes | No | Yes | No |
#4 Withdrawal And Funding
Convenient withdrawal and funding methods are fundamental for the best trading experience.
| Cell | eToro | IC Markets | Pepperstone | FxPrimus | AxiTrader | Swissquote |
| Bank Transfer | Yes | Yes | Yes | Yes | Yes | Yes |
| Credit Cards | Yes | Yes | Yes | Yes | Yes | Yes |
| PayPal | Yes | Yes | Yes | No | No | No |
| Skrill | Yes | Yes | Yes | No | No | No |
| Payoneer | No | No | Yes | Yes | Yes | Yes |
| Neteller | Yes | Yes | Yes | Yes | Yes | No |
#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 phone, 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.
Both trading brokers let you reach support by phone, email, or chat.
| Cell | eToro | IC Markets | Pepperstone | FxPrimus | AxiTrader | Swissquote |
| Support | Live Chat Email Support | Email Support | Live Chat Email Support Phone Support | Live Chat Email Support Phone Support | Email Support Phone Support | Live Chat Email Support Phone Support |
| Languages | English German Spanish French Italian | English Japanese Chinese Polish Danish Dutch Afrikans German etc. | English Spanish Chinese Polish Japanese Vietnamese Korean Arabic | English Spanish Indonesian Vietnamese Thai Chinese Malaysian Hungarian | English Spanish German Chinese Japanese Russian Romanian Arabic | English Italian German French Spanish Russian Arabic Chinese |
| Risk | Up to 75% of retail investor accounts lose money when trading CFDs | Losses can be higher than deposits | Up to 79.3% of retail investor accounts lose money when trading CFDs | Losses can be higher than deposits | Losses can be higher than deposits | Losses can be higher than deposits |
#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.
| eToro | |
|---|---|
| Funding | Bank Transfer Credit Card PayPal |
| Customer Support | Live Chat Email Support |
| Platforms | Web Trader Mobile Apps |
| Accounts | Standard Account VIP Account Islamic Account |
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. 75% 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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