The online forex broker eToro avis 2020 was founded with the aim of making trading interesting and easy even for inexperienced investors. Meanwhile eToro has become the leading provider in the field of social trading with over 4.5 million customers. This gives investors the opportunity to connect with other traders and adopt their strategies. As with other brokers, eToro charges fees for trading. The following guide provides an overview of fees for shares and other financial instruments. It also covers other aspects where the provider differs from other brokers.
Etoro FEES IN THE FORM OF SPREADS
Before examining eToro’s specific terms and conditions, customers need to be aware that the provider charges fees in the form of spreads. The spread is the difference between the buy and sell price or between the bid and ask price. The provider therefore acts as a so-called market maker. A spread fee is charged for each closing of a position, the amount of which depends on the product traded in each case. These fees are usually expressed in so-called pips.
Etoro CONDITIONS FOR TRADING
The exact terms and conditions are clearly listed on eToro’s website for each financial product. The online broker offers a very simple fee model for trading shares. For each trade there is a flat spread fee of 0.09 percent per page, no matter what the trading volume is. In contrast, the fees are significantly higher for trading foreign exchange. Here the spreads of the most important foreign exchange start at 3 pips, which is relatively expensive compared to other Forex brokers. When trading crypto currencies, the fees are also quite high. For example, a trade with the most popular crypto currency Bitcoin is subject to 1.5 percent spread fees.
Etoro OVER-NIGHT FEES
If a trader trades CFDs and holds these financial derivatives overnight, he must expect additional fees. The provider charges 6.4 percent for a buy position and 2.9 percent for a sell position in CFDs on shares. The so-called LIBOR is added in each case. This is a benchmark interest rate that is charged by many banks for granting short-term loans. The respective LIBOR rates are published daily in five different currencies. The daily fees are tripled if a position is held over a weekend. On the positive side, there are no roll-over fees. This makes eToro different from most other brokers in this respect. The provider points out that the fees can change at any time, so customers should check the fees page from time to time.
FEES FOR DEPOSITS AND WITHDRAWALS
Opening an account and managing your account with eToro is completely free. However, the minimum deposit is 200 USD. Deposits can be made using different payment methods. You can choose between bank transfer, credit card, PayPal, Skrill or Neteller. While deposits via credit card and one of the digital payment providers are processed very quickly, transfers via wire transfer take 1-3 business days. Generally eToro does not charge any fees on deposits. However, some banks may charge fees for credit card payments.