Are eToro Fees High?

Written by Mike Druttman

Reviewed by Nadav Zelver

eToro's fee structure varies depending on the type of asset and trading activity. For long-term investors focusing on stocks and ETFs, the platform offers cost-effective options. However, if you're frequently trading or dealing with leveraged products, fees can accumulate and may affect your profits.​

Stock Trading

eToro provides commission-free trading for real stocks (US residents only), which makes it appealing for buy-and-hold investors. This means you can purchase and sell these assets without incurring direct trading fees, which is advantageous for those looking to invest over the long term. ​

Cryptocurrency Trading

When trading cryptocurrencies on eToro, a 1% fee is applied to both buying and selling transactions. This results in a total round-trip cost of 2%, which is higher compared to some other platforms like Binance or Coinbase. This fee structure is acceptable for occasional traders or those prioritizing security and user experience. ​

CFD and Leveraged Trading

For Contracts for Difference (CFDs) and leveraged positions, eToro charges a 0.09% commission on both buying and selling. In addition, overnight fees apply for positions held beyond a single day. These costs can vary and may become significant over time, especially for traders who maintain positions for extended periods. ​

Non-Trading Fees

eToro also has several non-trading fees that you should be aware of:​

• Withdrawal Fee: A flat fee of $5 is charged for each withdrawal, with a minimum withdrawal amount of $30.​
• Inactivity Fee: If your account remains inactive for 12 months, a monthly fee of $10 is applied until activity resumes.​
• Currency Conversion Fee: For users dealing with currencies other than USD, this broker charges a conversion fee, which can be up to 1.5% depending on the currency and payment method used. ​

My personal take:

eToro offers competitive fees for certain investment strategies, particularly for those investing in stocks and ETFs without leverage. Now, for those involved in frequent crypto transactions, leveraged positions, or those dealing with multiple currency conversions, the associated fees can be higher (which I think is still reasonable in general) compared to some other platforms. 

I suggest that you assess your trading habits and investment goals to determine if this broker's fee structure matches with your financial strategy.