Investing in the FTSE 100 on eToro involves fees such as spreads, which are the differences between the buy and sell prices of the index. Additionally, if you hold a position overnight or over the weekend, you'll incur overnight or weekend fees, respectively. These fees are standard for CFD trading on eToro and vary based on market conditions.
76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
My years of experience trading the FTSE 100 index (UK100) with this broker has provided me with a deep understanding of the fees and commissions involved. This article aims to impart these insights, helping you recognize the potential costs associated with trading the eToro FTSE 100 index asset.
It's important to note that when you trade the UK100 on eToro, you're engaging in FTSE 100 index CFDs (Contracts for Difference). This method allows for leveraged trading and short selling without owning the actual assets, but it does come with associated costs like spreads and overnight fees.
On eToro, spreads - the difference between the Buy and Sell prices of the FTSE 100 index - are a key cost factor. These fees are applied when you close your position. It's vital to be aware that spreads can fluctuate based on market conditions.
For this specific index, the minimum spread is 1.4 points, where "points" denote price changes to the left of the decimal point. As an example, a shift from 7496 to 7539 in the UK100 is a 43-point movement. Keep in mind that these spreads are not fixed and can vary with market trends.
Maintaining a CFD position on this index overnight triggers a fee relative to your position’s value, akin to an interest charge for leveraging. Weekend Fees are also applied for positions held over the weekend, typically triple the overnight fee amount.
Rollover fees can fluctuate with changing global market conditions. As per my last visit on the fees page of eToro, the rollover fee for UK100 was $0.32461507 for Sell (Short) positions and $-2.17527112 for Buy (Long) positions, charged nightly per unit. These rates are dynamic, so it's wise to consult eToro's current fee schedules for accuracy. You can also locate these fees in the trading window on the UK100 asset page, below the "Open Trade" or "Set Order" button. This is the faster method that I use.
Trading the FTSE 100 CFD index with this broker involves primarily spreads and overnight/weekend fees for positions held beyond a single trading day. This guide has been crafted to clarify the various fees you may face when investing in this index on this platform, hoping to enhance your understanding and aid in your trading decisions.
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. 76% 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.
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