If you’re thinking of using a trading or investing app, one of the first things you’ll need to know is how much it costs.
In this guide, we’ll look at the fees and other costs involved with using eToro - a popular trading platform. We’ll cover eToro fees for deposits and withdrawals, plus any extra charges related to Stocks, ETF, CFDs and crypto asset trading.
Before we get started, a really important thing to note about using eToro from the UK. The platform operates in USD only, which means currency conversion fees when topping up and withdrawing from your account in GBP.
You can get round this and save some cash with a Wise multi-currency account, which lets you deposit and withdraw in USD¹ - so don’t have to convert everytime you top-up and withdraw money from the platform.
We’ll look at how this works later. Let’s begin with a few essential facts about eToro that you need to know.
eToro started life back in 2007, but its popular mobile app was only launched in 2012².
The Israeli-based Fintech company specialises in cryptocurrency trading, and even has its own eToro Money wallet app where you can securely buy, transfer and store 120+ cryptocurrencies³.
But you can also use eToro for CFD trading, and investing in Stocks and ETFs with zero commission charges.
The platform has a great virtual trading ‘demo’ mode, where you can practice trades with virtual money to see how your trades would have panned out. This is an excellent feature for beginners. eToro is also known for its ‘social trading’ model, where you can copy the trading portfolio of a high-performing platform user.
eToro is regulated by the Financial Conduct Authority (FCA) and prides itself on using industry-leading security technology⁴.
While eToro may proudly boast of zero commission trading, this doesn’t mean there aren’t any fees at all. Here are the main charges you need to know about:
|Withdrawal fee||$5 (approx £3.63) per withdrawal|
|Currency conversion||From 50 Pips (percentage in point, used to measure the change in price between currencies)|
|Inactivity fee||$10 (approx £7.26) a month after 12 months with no login activity|
When you trade in crypto assets with eToro, the only trading fees you’ll pay are spreads. These are the difference between the ‘buy’ and ‘sell’ price of each asset - it’s commonly used by trading platforms when it comes to charging fees. The spreads on eToro vary depending on the specific cryptocurrency, starting from around 0.75% (for Bitcoin)⁶.
It’s a good idea to check the spread percentage fee of the cryptocurrency you want to trade before going ahead.
You’ll also pay spread fees when trading CFDs on eToro. These vary depending on what you’re trading, and are priced in percentages or PIPS. A PIP is a ‘percentage in point’ - where one pip is the smallest price change a given exchange can make.
Here are the main CFD spread fees you need to know about:⁷
- Currencies - from 1 PIP
- Commodities - from 2 PIPS
- Indices - from 100 PIPS
- Cryptocurrencies (CFDs) - from 0.75%
- Stocks and ETFs (CFDs) - 0.09%
As we mentioned at the start of this guide, eToro does everything in USD. It will still accept deposits and withdrawal requests in GBP, so there’s no issue with UK traders using the platform.
If you don’t want to pay a currency conversion fee every time you top-up and withdraw from your eToro account to trade in stocks, ETFs and CFD, here’s a handy solution.
Open a multi-currency account with Wise and you can deposit and withdraw in USD, the currency eToro uses. You can do this just like a US local, thanks to the US account details you get when you open your Wise account. Simply use these for deposits and withdrawals to reduce the conversion costs.
When the money hits your Wise account, you can withdraw, spend or hang onto it for future trading top-ups - it’s completely up to you.
So, that’s pretty much everything you need to know about eToro fees, including how much it costs to deposit, withdraw and trade. Plus, watch out for that inactive account fee.
Before using eToro or any trading platform, just make sure you understand and are 100% comfortable with the risks involved. Good luck!
Sources used for this article:
- etoro customer service page- conversion fee
- etoro about page
- etoro crypto
- etoro website
- etoro trading fees
- etoro trading fees - crypto
- etoro trading fees - CFDs
Sources checked on 31-March-2021.
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
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