To effectively minimize the fees on eToro, it's important to understand the brokers's fee structure and use different strategies to lessen the costs.
Let me breakdown these common fees and also some useful tips to help you keep them low:
eToro operates in U.S. dollars (USD). If you deposit or withdraw in another currency, you’ll pay a conversion fee.
For instance, depositing euros (EUR) into your account means eToro will convert them to USD—at a cost of around 50 pips (roughly 0.4% of the transaction).
If your local currency isn’t USD, consider using a bank account that supports USD transactions.
Some traders open USD accounts with their banks to convert their money at better rates before transferring to eToro.
Each withdrawal from eToro costs a flat $5 fee, with a minimum withdrawal amount of $30. While this may not seem like much, frequent small withdrawals can add up fast.
Instead of withdrawing small amounts often, combine your withdrawals into larger, less frequent transactions.
If you don’t log into your eToro account for 12 months straight, you’ll be charged a $10 monthly inactivity fee. But here’s the catch: simply logging in prevents the fee.
Even if you’re not actively trading, log in periodically to avoid unnecessary charges.
eToro makes money through spreads—the difference between buy and sell prices. Example: The EUR/USD currency pair typically has a 1-pip spread.
Then there are overnight fees (also called rollover fees), which apply to leveraged positions held overnight. These vary based on the asset and position size.
Trade assets with low spreads to minimize costs and be mindful of leverage—holding leveraged positions overnight can rack up significant fees.
eToro’s Club membership program offers benefits at higher tiers, like Platinum ($25,000 equity and up). Perks include reduced or waived withdrawal and conversion fees.
If you’re investing at a high level, upgrading to a premium membership could make sense. But for smaller traders, sticking to the other cost-saving strategies is a better bet.
Some takeaways to keep those fees in check
Every little fee adds up, but now you know how to work around them.
- Use a USD account to avoid currency conversion charges.
- Withdraw less often to minimize withdrawal fees.
- Log in regularly to dodge inactivity charges.
- Trade wisely by picking assets with lower spreads and avoiding overnight leveraged positions.
Remember these, and you’ll keep more of your money where it belongs—in your trading account, not in fees.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which hasbeen prepared by our partner utilizing publicly available non-entity specific information about eToro.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
