Etoro Fees Explained: Complete Guide + Calculator

etoro fees explained

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Hello Internet people, in this article I’ll explain all the different Etoro fees and I’ll show you an example of what happens when you invest 1000 pounds and how the fees can eat up your profit, so invest with care!

Below is a video about that will explain to you the Etoro fees. And you can click on this link to get to eToro.

I want to thank Reviver for suggesting this topic. If you have video ideas let me know, it’s always great to get these for inspiration.

youtube request

I just want to mention that all this information and calculations are just for reference and based on my opinion. you should always check eToro’s fees page as these change from time to time.

CONTENTS

Etoro Withdrawal Fee

The easiest fee to grasp is the withdrawal fee of $5, which is charged every time you withdraw your money. So it just makes sense to withdraw large sums of money at once.

Currency Conversion Fee

Etoro operates with dollars only, so when you deposit money from other currencies, they take a conversion fee.

Just to confuse all the newbies, the conversion fee is calculated in pips. mini pip

And the amounts depend on the currency, but in general there is no separate credit card.

For example:

Let’s say you’ve just found 1000 pounds laying on the ground – yeah cause that could happen to anyone.

you found 1000 pounds

Now you deposit that money at 1.3294 GBP/USD conversion rate.

So for 1 pound, you get 1.3294 dollars.

If there was no fees on while converting your 1000 pounds, you would have about $1329.

On Etoro the fee for GBP/USD is 50 pips or in other words 0.0050 or 0.5%.

If you want to learn more about what pip is check it out on investopedia. But all you have to know is that one pip for GBP/USD or EUR/USD is 0.0001

We take the conversion rate and subtract the 50 pips

1.3294 – 0.0050 = 1.3244

This means after the fees you would have $1324 which means there is a $5 fee.

If you would do the same with Euros you would also pay $5 dollars in conversions fees.

Okay to make things a bit more complicated, there are different conversion fees depending on your deposit method. So the cheapest will be to choose wire transfer.

Etoro stock conversion fees 2020 April

So just click on the “Deposit Funds” button, and choose wire transfer in the dropdown. Make sure you select the currency your money is in. Just know that wire transfers take from 4-7 days to appear on your account.

As you can see, for pounds it doesn’t matter if you use wire transfer or other methods, but for most other currencies, it might be good to wait extra days to get it cheaper.

What’s important to realize is that this will also apply when you withdraw money.

Please note! You don’t need to worry about the fees below if you are just copy trading because copy traders will handle everything for you. Meaning when you see profits on your account, that’s what you are going to get. (Minus withdrawal & currency conversion fees.)

copy trading

Spread Fees

Since late 2019, eToro doesn’t have spread fees anymore, however, this only applies when you are buying unleveraged stocks.

In summary, Spread fees are charged when you buy anything on eToro, stocks, cryptos, and so on, however, they are included in the buying price that you see in eToro.

etoro spread fee

And it’s really specific to what you want to trade.

Commodities and currencies are in pips. Whereas stock and crypto coins are in percentage.

Let’s assume you are buying Apple stock, the spread fee for stocks is 0.09%.

apple stock

So let’s say, to buy one Apple stock you need $191,77.

And to sell at $191,41.

This means that the real price is somewhere in the middle, roughly 191.60.

If you are selling (shorting) you get this by $191.41*0.0009 = $0.1723.

And if you are buying $191.77*0.0009 = $0.1726.

So it’s the stock price times 0.09% and you get the spread fee.

So if you would buy 1 apple share, you would pay about $0.17 in spread fees. If you buy 5 shares, you pay almost a dollar. I think you get the point.

Overnight Fees

Like most other trading platforms, eToro charges also overnight fees, which is basically a small fee for them to lend you the money to hold the item overnight.

etoro overnight fees

This again really depends on what you are trading, for example if you trade stocks and you don’t leverage them then there are no overnight fees. If you do leverage, it means eToro is lending you money so they are collecting an interest rate on it.

Here is the list of the overnight fees for stocks. By the way this is only for leveraged and short positions.

Example of overnight fees:

$1,000 investment in a US stock
USD LIBOR 1 month = 1.55%

Daily fee for BUY position =
(6.4%+1.55%)/365 * $1,000 = $0.22

Daily fee for SELL position =
(2.9%+1.55%)/365 * $1,000 = $0.12

So the overnight fee for US stock is 22 cents per day on Buy and 12 cents per day on SELL.

Let’s break down the BUY position. So you can understand what’s going on.

  • 6.4% is the Etoro fee.
  • 1.55% is USD Libor for 1 month

You are probably wondering what the heck is Libor?

Well it stands for London InterBank Offered Rate.

This is the interest rate at which banks borrow money to each other internationally.  And it’s one of the benchmark rates that indicates how much it costs to banks to borrow money.

And it is constantly changing so you have to look it up when you do the calculation

  • 365 is the number of days in a year.
  • And $1000 is the investment.

So in this case you end up paying $22 cents for a day.

And keep in mind that overnight fees are applied to the borrowed amount. So if you have 1000$ and you leverage that by x3, which means you have $3000. The fee is applied to the $2000 you borrowed.

Inactivity Fees

If you don’t log in for 12 months to your account, you will be charged a monthly inactivity fee of $10 per month. Until you ran out of balance or your login.

So don’t forget to login from time to time.

Etoro Fees Calculator

Okay, let’s take a look at an example with the most common fees put together.

You can download the Etoro fee excel calculator.

Here are the conditions I’ve set for this example.

  • The conversion rate from pound to US dollar is just over 82 cents.
  • The opposite conversion rate is just over 1 dollar and 22 cents.
  • The conversion fee is 50 pips or 0.005
  • Stock will go up by 10%
  • The spread fee is 0.09%
  • No leverage applied

For simplicity, I won’t include overnight fees as these are mostly in place when you leverage your trade and for most people it won’t apply.

Etoro fees calculator screenshot

Alright, at the top you can see we have invested 1000 pounds.

When we convert it to dollars, we end up with $1219.41.

Right, from the start we are going to have $5 dollars in conversion fees.

So we are left with $1213.41, which we take and buy stocks with the whole amount.

Now we’ve waited for a month and it happens to be that we’ve chosen the right stock and it goes up by 10%. In this case, we’ve just made a bit more than $121 and which means we have now $1335 in total. And we’ve decided to cash in.

Just before the money is sent to your account, there will be a withdrawal fee of $5.

And another conversion fee when we convert from dollars to pounds which is just under 7 dollars.

Conclusion to calculation

When we convert the $1324 back to pounds, you can see that we are left with 1086 pounds. However without fees, we would have 1100 pounds. That means there were almost 14 pounds of fees. Which is 14% of our profits.

Fees really depend on the initial amount and stock gains.

Now the fees get smaller in proportion when you invest more money or your stocks go higher up in price.

but with 5000 pounds it would be 11% out of profits. So it really depends on how much you invest.

Or if the stock went up by 20% even with 1000 pounds, the fees would be 7% out of profits.

You can download this excel calculator, so you can play around with it. Just keep in mind it’s just for indication and based on my opinion. You should not base your investing decisions on the calculator.

The conclusion to Etoro fees

I personally think eToro is definitely not the cheapest platform. But they have heavily reduced their fee structure in late 2019 and I’m a big fan of the social aspect of the platform. Also it’s super easy to use (compared to some other options.)

If you choose to go with eToro, I would appreciate if you could use this link to eToro, as they will pay me a commission if you sign up through me. Thanks!

Besides eToro, I’m using other platforms to trade stocks and are a bit cheaper. However, the biggest advantage I see with eToro is copy trading. It’s so easy to set up and you start making a bit extra money.

If you like to be more hands-on and control all the trades then you should check out other platforms, where you have more control and fewer fees such as Degiro or Lynx Broker.

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20 thoughts on “Etoro Fees Explained: Complete Guide + Calculator

    1. Robert

      Hi Novan,
      Glad to hear this was useful. This really depends on your country, but I would go for the providers that charge a fixed fee per transaction. I think it’s easier to calculate and keep track of. I use Lynx, but there is a cheaper provider called Degiro. I think they charge 3 or 4 eur per transaction.

      I hope this helps.
      Robert

  1. deni

    Hi Robert,

    Wonderful article. You’ve helped me understand it better through the examples. 🙂
    I have a couple of questions: (i) are ETFs also subjected to the same fees as in this article? I’ve read that they do not incur fees, but unsure if it means all fees; and (ii) I’m from Philippines moving to Germany and interested in investing in ETFs. Which platform do you recommend to use (w/ minimal fees)? I am thinking of buy and hold for the long run. Primarily buying stock market etfs. Thank you so much. 🙂

    1. Robert

      Hi Deni,

      I think most fees do affect the ETFs, they might have slightly different fee amount, but fees apply to them too.

      If you want it easy then use etoro (but expensive), cheaper platforms.. you can try: https://www.degiro.eu/ but it’s a bit more complicated to use it. Also buying ETFs is a bit more tricky. They charge flat fee for a trade.

      I hope this helps you get started and enjoy Germany!
      Robert

  2. Michael Le

    Hey.

    Seems to me that using “leverage” would make most people lose money or get even at best.. With LIBOR of 1,55%+6,4%interest fee (annual) + the Exchange rate from EU currency to USD.. We talking about close to 8-9% in cost of the “borrowed” amount. So you only start to make money after that stock shows +9% in annual profit. Stupid leverage option and a way for etoro to steal your money.

    Degiro charge 1.5% for leverage amount.

    1. Robert

      Hi Michael, etoro is definitely more expensive, especially when leveraging.

      Also personally I’m really cautious with using leverage.
      I’ve seen some companies offering x100 on cryptos etc, which is just madness.

      I’m also considering to try out DeGiro, I’m with Lynx right now (besides etoro)

  3. Tem Cornickle

    Thanks for this super helpful overview. I’m looking into Etoro and Degiro (UK-based) and don’t mind a more complicated workflow. Are you aware of a similar overview for Degiro? That would help a lot. I’m trying to find out all their fees but haven’t been able to find all the same details as you have here from Etoro.

  4. Biser

    Hello Robert, thanks for the efforts. As you said the advantage of etoro is the copy trading where youmentioned these fees does not apply. Do you have or is there any good gyude how it works and the fees explained? Also are there other platforms with a copy trading options?
    Thanks a lot.

    1. Robert

      Hi Biser,

      My pleasure! I think I wasn’t clear, but the fees do apply to copy trading, it’s just the spreads & overnight fees etc. you don’t need to think about that. Because the trader who you copy will take care of that.

      I’m not aware of any other copy trading platform, I’m sure there are some but I haven’t tried.

  5. leo

    Thanks for this super helpful overview. Very good article!

    Could you please explain what calculation you made to get 25 euros commission Conversion fee?

    Degiro It is excellent, I recommend it 100%
    Did anyone have experience with Tradestation?

    1. Robert

      Hey Leo,

      I’m happy this helped you!

      For the conversion fee you can see more here, but essentially you have different “Pip” amounts for each currency. 100pips = 1%, so since the example has 1000 x 250 pips (2.5%) = 25e.
      I have no why they are called Pips and not just %, but I guess finance sector needs to stay different 🙂

  6. [email protected]

    Hi Robert
    May sound a stupid question but on etoro eg..
    I had a stop loss closed too early, the stop loss was supposed to close at 2647.02
    But while I’m watching it it never hit and even on the charts it shows the highest it hit was 2646.4 max , my leverage was x5 . Is there a leverage fee that makes it close early or why does it show 2647.02 if it doesn’t actually close at this. It shows in my history it closed at this when it actually didn’t. any help would be super. Thanks
    Baz

  7. Pedro

    Hi Robert,

    Really nice your explanation. However, I am still a little bit confused with copy trading. So if I copy a trader that buys and sells each day does this mean that I will be charged with fees each time he/she buys a stock and sell it?

    Sorry for the noobie question but I am still learning.

    Thank you.

    1. Robert

      Hi Pedro,

      No worries, I’ll be honest I don’t know how exactly it works. But what you see on your dashboard, will be what you will receive. So the copy traders take care of the rest. If the copy trader gets charged (for example spread fee) you will be too.

      But again, I wouldn’t worry about that too much, you just see that the copy trader has had success in long term and you should be good 🙂

      Robert

  8. Gonçalo

    Hey Robert,

    Very good article. Good job!

    My question is about Commodities like Oil. Do i get charged if I invest in Oil with no leverage? I mean, highly daily charge? How that works? The explanation in etoro is a bit confusing.

    Thanks a lot!
    Gonçalo

  9. Mark

    From what I understand, eToro first charges Currency Conversion Fee when I deposit funds to my account, then when I want to take the profit out they charge Withdrawal Fee and Currency Conversion Fee again. So basically they charge at the beginning of investing and at the end when withdrawing the money, yes? What about fees when moving money between different assets and products? For example, there is no fee when I buy stocks. So if I move my money between different stocks they will not charge me any fee until I decide to withdraw my money?

  10. Carol Testote

    Bastards is being way to polite. I also was told by all my friends and family NOT to do this But I was a DUMB ASS and did it anyone. You know I am always right (NOT). They got 50k out of my pocket and when the account was over 115k.My account went down 111k in less than 30 minutes leaving $8,400. They knew this was my retirement money and didn’t give a damn. I guess they were done with me then because no one would take my calls.If it sounds to good to be true, it is. Luckily for me I was introduced to [email protected] he helped me get all of my funds back.

  11. Charles Aylard

    Hi Robert,

    I am currently looking at trying to trade some oil stock. If I select X1 leverage is still shows daily and weekend fees, do these apply to me if I am using X1?

    Also, oil is currently at $19, however Etorro will not let me trade unless i use a minimum of $2000….do you know why this is?

    Great website BTW and I look forward to your response.

    Charlie

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