eToro: review of brokerage and account fees for traders in Singapore

eToro¹ is a social trading and multi-asset investment company, which offers opportunities to invest in a range of asset classes through a mobile app. If you’re considering investing with eToro Singapore, you’ll want to know about the eToro fees you might run into along the way. This guide is for you, with details of the eToro withdrawal fees, commission fees and minimum deposits to help you make the most of your money.

Investing in international markets? We’ll also touch on a great way to save on deposit and withdrawal fees with the Wise multi-currency account.

Table of contents
Overview of commission fees Withdrawal and conversion fees Avoid pricey conversion fees with Wise Stocks & ETFs Crypto CFDs Other fees and minimum deposits Summary

NB: Information about eToro's fees could be out of date in this article. Please visit eToro's website for updated information

Is eToro legal in Singapore and is it safe?

Before we dive into our eToro review, two key questions: Is eToro safe? and Is eToro legal in Singapore?

You may remember a couple of years ago, the Monetary Authority of Singapore (MAS) called out some online and mobile investment brokers offering services in Singapore², as they didn’t necessarily have the full licences a local brokerage would hold. eToro was named at the time, as one of the earliest online and mobile brokers offering commission free trading options in Singapore.

Safety is always important when money is at risk - and with investments it is important to realise that values may go down as well as up. eToro holds licences in jurisdictions including the UK, EU, US and Australia. The eToro site is not blocked for use in Singapore³. However, the way they’re licensed may not be exactly the same as some other brokers in Singapore.

Before you start trading with eToro you’ll want to check out the full regulatory information which is available online⁴, based on the entity your account is held with (for example, eToro Australia). It’s good common sense to ensure you’re comfortable with the risks involved with investing, and getting to grips with the legislation covering your broker is a good way to start.

eToro commission fees in Singapore

eToro is famous for its 0% commission fee marketing headline. This makes them a popular choice with people starting out in investing, as well as more experienced traders. However, while there is no upfront commission on some eToro services, that doesn’t mean you won’t pay any fees when you invest, trade or withdraw⁵.

We’ll cover the fee categories in more detail in a moment, but it’s well worth looking carefully at the eToro online fee schedule before you open an account, paying particular attention to fees for depositing, withdrawing and converting funds. More on that - and ways you may be able to save money on currency conversions, in just a moment.

eToro withdrawal fee and conversion fee

All eToro deposits and withdrawals are managed in USD. This means that as a Singaporean you’ll need to convert your funds to USD when you add money to your eToro account. You can convert your funds yourself, or deposit a different currency and have eToro convert to USD for you. Fees apply when eToro carries out the currency conversion. We’ll look at a smart way to cut these costs next - first, here are the eToro withdrawal fee and eToro conversion overall costs:

eToro service	eToro fee (Bronze, Silver and Gold account tiers)
Deposit USD funds	No fee
Currency conversion fee if depositing or withdrawing any currency other than USD	Currency conversion fees apply, based on the currency involved and the deposit and withdrawal method. The fee used is the equivalent to 0 to 150 PIPs on the mid-market exchange rate Conversion fees may be reduced or waived if you hold a Platinum or Diamond tier account
Withdrawal of funds	5 USD

eToro’s currency conversion fees vary depending on your account tier, the way you’re paying, and the currency you use. They’re based on PIPs, which are the smallest possible movement of an exchange rate in FX market conventions. One PIP is calculated to be 0.0001 of the exchange rate in question. If it sounds complicated, that’s because it is. It’s also an extra fee which you may not be expecting, and which you’ll need to pay every time you deposit any currency other than USD.

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Avoid eToro’s complex conversion fees - and cut your costs, with Wise

To avoid paying eToro’s currency conversion fees you’ll need to deposit USD. While you could convert funds with your regular bank, the chances are you’ll be hit by steep fees and a bad exchange rate. Instead, check out the Wise multi-currency account as a simple way to receive, hold, convert and send payments in USD and a whole range of currencies, for less.

Wise customers can get local bank details in 9 currencies for free (including USD and SGD) and then convert their funds to SGD or any of the other 50+ available currencies with the mid-market rate. That can save you up to 6x on fees compared to banks. Wise accounts are free to open, with no ongoing costs, and no minimum balance, making them the perfect way to keep more of your money when investing in foreign currencies.

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Stocks & ETFs

When trading stocks and ETFs there are pretty much no fees to worry about, but you’ll still need to bear in mind any costs you incur when you withdraw the funds later.

eToro service	eToro fee
Management fee	No fee
Rollover fee	No fee
Ticket fee	No fee
Additional broker fee	No fee

It’s worth noting that the fee free trading offer may be limited or unavailable depending on the markets you’re looking to invest in and the eToro entity your account is based with. If you’re signed up to eToro Australia, for example, the no fee position only holds for US traded stocks. It’s also not an option for short or leveraged positions.

Crypto

You can also buy or sell a range of cryptocurrencies with eToro, although it’s worth noting that eToro highlights the risks involved, which could mean you lose all your capital due to the speculative nature of these assets. Here are the crypto fees you should know about:

eToro service	eToro fee
Buy crypto	1%
Sell crypto	1%
Transfer crypto to eToro wallet	0.5% for most currencies, with minimum cost of 1 USD, maximum of 50 USD⁶
Other fees	When transferring funds there are also blockchain fees which can only be estimated prior to the transaction completing

CFDs

CFDs allow customers to trade assets without actually owning them. Options include short selling and leveraged purchasing, for example. If this is how you choose to invest with eToro there are a couple of important fees - one is the spread added to the costs of the purchase, and the other is the overnight fee. In both cases, these fees vary based on the specific asset in question, so you’ll need to look carefully at the eToro fee information to make informed choices about your options.

eToro service	eToro fee
Currency CFD spread	From 1 PIP
Commodities CFD spread	From 2 PIPs
Indices CFD spread	From 0.75 points
Stocks and ETFs CFD spread	0.09%
Crypto CFD spread	1%
Overnight fees	Any position left open overnight is also subject to overnight fees which vary based on the specific CFD

Other fees and minimum deposits

Finally, a few more potential costs and limits to think about when you weigh up whether or not to use eToro:

eToro service	eToro fee/requirement
Minimum first deposit	200 USD (500 USD minimum deposit if you use a bank transfer)⁷
Minimum subsequent deposits	50 USD (500 USD minimum deposit if you use a bank transfer)
Minimum withdrawal amount	30 USD
Inactivity fee	After 12 months of inactivity you’ll pay a 10 USD/month charge

Summary

eToro is one of several popular investment platforms available to Singaporeans. Part of the appeal of these services is that you’re able to buy and sell assets easily, often using your smartphone. That means you can manage your investment portfolio wherever you are in just a few clicks.

However, as with any sort of investing, there are risks involved, including the risk of losing some or all of your money. There are also fees to consider, including the eToro conversion fees which will apply whenever you deposit any currency other than USD. If you choose to open an eToro account, you could cut or avoid this cost entirely with a Wise multi-currency account. Get your Wise account for free, online or through the Wise app, top up in SGD, and convert to USD using the real exchange rate with no markups. You’ll only ever pay low, transparent fees for the services you require, which can work out 6x cheaper than using your normal bank for cross currency transactions.

See how much you can save with Wise today!

Get a free Wise account

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Sources:

1. eToro
2. Business Times, August 2020 - MAS warns of unlicensed brokers
3. eToro - is eToro blocked in my country?
4. eToro - regulations and license
5. eToro fees
6. eToro crypto transfer fees
7. eToro minimum deposit

Sources checked on 27.05.2022