eToro claims to offer some hugely competitive trading fees. Not only can you invest in shares, ETFs, and cryptocurrencies without paying any commission – but there is no monthly or annual maintenance fee.
Moreover, if buying UK stocks listed on the London Stock Exchange – eToro waves the 0.5% stamp duty fee that you would ordinarily need to pay. All in all, this broker allows you to invest in a super cost-effective manner.
But, before signing up with eToro, we would suggest reading this review. We explore each and every fee that you need to consider when investing at eToro and ultimately, whether or not this broker is as competitively priced as it likes to make out.
- 1 eToro Overview
- 2 eToro Trading Fees
- 3 eToro ETF Fees
- 4 eToro Forex Fees
- 5 eToro Commodities Fees
- 6 eToro Crypto Fees
- 7 eToro Overnight Fees
- 8 eToro Deposit & Withdrawal Fees
- 9 eToro Inactivity Fee
- 10 eToro Account Management Fee
- 11 eToro Fees vs Other Brokers
- 12 The Verdict
- 13 eToro – Cheapest Broker in the UK with 0% Commission
- 14 FAQs
Before we get to the nitty-gritty, let us first explain what eToro actually is. In a nutshell, eToro is an online broker that allows you to invest in a range of asset classes. This includes over 1,700+ shares from 17 different stock exchanges. Not only does this includes companies listed in the UK, but the US, Canada, France, Germany, Hong Kong, and more.
You can also invest in over 150+ ETFs and 16 different cryptocurrencies. eToro is also popular with day traders, as you’ll have access to heaps of CFD instruments. On top of stocks, ETFs, and cryptocurrencies – you can also trade CFDs in the form of indices, government bonds, gold, oil, and forex. All in all, if there’s a financial market you are interested in, eToro likely offers it.
The process of investing and trading at eToro is simple. In fact, by quickly opening a share dealing account and depositing funds with a UK debit/credit card or e-wallet – you can place your first-ever investment in less than 10 minutes. Crucially, eToro is specifically ‘marketed to the ‘average Joe’ who may or not have previously invested.
Although there are many features and tools that can assist you in your trading endeavours, eToro ensures that newbies are not imitated by investing online. We should also note that this broker is involved in social trading and copy trading. Not only does this mean that you can communicate with over 13 million eToro users to share investment ideas, but you also copy the portfolio of an experienced trader via eToro’s famous CopyTrader tool. This allows you to trade in a 100% passive manner. There’s also professionally managed CopyPortfolios which combine human management with machine learning.
eToro offers a mobile trading app for iOS and Android. The broker is regulated by the Financial Conduct Authority (FCA) in the UK, by CySEC in Cyprus, and by ASIC in Australia. If you want to learn more about eToro’s overall platform, check out our eToro review.
eToro Trading Fees
Put simply, eToro does not charge any commissions – irrespective of whether you invest or trade. But, this doesn’t mean that you are investing in a 100% fee-free environment. After all, eToro is in the business of making money.
With this in mind, we have decided to break down each and every fee that you will need to pay at eToro – starting on an asset-by-asset basis.
eToro Stocks and Shares Fees – 0% Commission
The most popular asset department at eToro is that of its stocks and shares offering. In a nutshell, you can buy shares without paying a single penny in commission. To put this into perspective, we should look at what other popular UK stock brokers charge to invest in stocks.
- For example, Hargreaves Lansdown charges £11.95 per trade.
- So, whether you invested £10, £100, or £500 – you would need to pay £11.95 to buy your chosen shares.
- Then, when it comes around to selling the shares, you would again pay £11.95.
- To understand just how expensive this is, think about a mere £100 investment into BT shares.
- In percentage terms, you would be paying 11.95% to place your buy order!
Hargreaves Lansdown isn’t alone in charging exorbitant share dealing fees to everyday UK investors. For example, you’ll pay £10.50 per trade at HSBC and £12.50 with Halifax. Barclays is more competitive, but this still works out at £6 per trade. At eToro – the share dealing fee to buy stocks is truly zero.
It is also important to note that the vast majority of UK brokers – including those mentioned above, charge an additional fee to invest in foreign companies. For example, if you wanted to buy shares in Facebook, Amazon, or Apple – you would likely need to pay a premium.
At eToro, all shares – no matter which market they are listed on, can be bought commission-free. As we cover in more detail later on, eToro does not charge any monthly account fees, either.
Stock Spreads at eToro
So that begs the question – just how does eToro make any money if you can buy shares commission-free? Well, there are several non-trading fees that might come into play – but we’ll cover that later. But, in terms of direct investment fees – the only charge that you need to take into account is the ‘spread’.
This is something charged by all online stock brokers and it is simply the difference between the ‘buy’ and ‘sell’ price of your chosen share. In some circles, this is known as the ‘bid’ and ‘ask’ price – but it refers to the same thing nonetheless. Although the spread at eToro isn’t a direct fee per-say, it will influence how much you make or lose on your trade.
This is because, in order to break even on your investment, you first need to cover the spread. For example, if the spread amounts to 1%, then you need to see your shares increase in value by 1%. Anything after this is pure profit. In terms of what spreads you will need to pay when buying shares at eToro, this will ultimately vary depending on the specific stock you are looking to buy and how volatile the markets are at the time of the trade.
But, to give you a ballpark figure, we have listed some major UK and US stocks below alongside the spread that you will be charged at the time of writing.
- BP – London Stock Exchange – 0.25%
- Royal Mail – London Stock Exchange – 0.22%
- Amazon – NASDAQ – 0.21%
- Disney – New York Stock Exchange – 0.20%
As you can see from the above, some of the largest stocks globally come with a spread of between 0.20% and 0.25%. This is actually super competitive when you factor in the commission-free offering you are getting at eToro.
If you’re a newbie investor, it can be quite complex to understand how commissions and spreads work in pounds and pence – so check out the example below.
- You are interested in buying £500 worth of Disney shares
- You pay £0.00 in share dealing fees
- You are paying an indirect fee of 0.20% via the spread
- This means that as soon as your position is open, you are instantly 0.20% in the red
- In simple terms, once your Disney share purchase is executed by eToro, the ‘real-time’ value of your investment is £499
Crucially, the above example illustrates that you paid an indirect fee of £1 through the spread to buy £500 worth of Disney shares.
eToro Zero Stamp Duty
A lot of newbie investors in the UK don’t know this – but when you buy shares listed on the London Stock Exchange you need to pay stamp duty.
This amounts to 0.5% of the share purchase amount. So, by buying £1,000 worth of BP shares you will need to pay stamp duty of £5. This will be collected by your chosen UK stock broker and subsequently forwarded on the HMRC.
The good news is that eToro is one of the only online brokers we know of that waivers the stamp duty fee. This means that you can invest in top-rated FTSE 100 shares without needing to lose 0.5% before you’ve even had a chance to get started.
We have discussed quite a lot in the sections above on eToro stocks and shares fee, so check out the table below to recap.
|Share Dealing Fee||Spread||Stamp Duty||Foreign Stock Fee|
|£0||0.2% to 0.25% (average)||£0||£0|
This makes eToro far more affordable than virtually every other stock investing platform in the UK.
While eToro is hugely popular with long-term investors, people also use the platform for stock trading via stock CFDs. This allows you to place more sophisticated trades – such as being able to short-sell a stock and even apply leverage of up to 1:5. On the one hand, the commission-free offering that we discussed above remains constant.
That is to say – you go long or short on your chosen stock CFD and still do not pay any commission. You will also benefit from the same tight spreads that we discussed above. However, as you are trading CFDs you will incur overnight financing fees (swap fees).
If you are an experienced trader then you will know first-hand that this is something charged by all online CFD platforms. Nevertheless, we have a dedicated section on the overnight financing fees that you will pay at eToro further down in this review.
Remember that CFDs are complex instruments that carry a high amount of risk, particularly if you’re trading with leverage, so make sure you have a sound understanding of how CFDs work.
eToro ETF Fees
So now that we have covered the ins and outs of shares and stocks CFDs, we now need to explore how much eToro charges to invest in ETFs. As we briefly noted earlier, there are over 150+ ETFs hosted by eToro.
These are backed from some of the most recognized ETF providers in the sector – such as iShares and Vanguard. Some of the ETFs are UK-listed, albeit, most are located in the US.
So, how much will you pay? Well, first and foremost, you won’t pay any dealing fees when investing in ETFs – much the same as stocks and shares. Spreads on ETFs are also super-competitive. For example, the Vanguard Total Bond Market ETF comes with a spread of just 0.19%.
eToro Forex Fees
If you’re looking to use the forex trading department at eToro, you will have access to approximately 45 pairs. This covers the majors, minors, and several exotics. Fee-wise, you won’t pay any commissions when you place buy or sell orders on your chosen pair. Instead, everything is built into the spread.
As you might know as an experienced currency trader, the spread can and will vary depending on several factors – such as trading volumes, liquidity, and market conditions.
We have hand-picked a selection of eToro forex spreads so that you have an idea of what you will pay.
- EUR/USD: 0.008%
- GBP/USD: 0.014%
- NZD/USD: 0.036%
- USD/CAD: 0.009%
The spreads outlined above – alongside the commission-free offering, shows that you can day trade at eToro without getting hammered on fees.
eToro Commodities Fees
If you’re looking to use eToro to trade commodities, you will have access to 31 different markets. This includes everything from gold, silver, copper, oil, natural gas, sugar, and cotton. Once again, you won’t pay any commissions other than the spread.
Some examples of commodity trading spreads at eToro are as follows:
- Oil: 0.132%
- Gold: 0.024%
- Natural Gas: 0.249%
As always, the above spreads are based on what eToro is offering at the time of writing this review.
eToro Crypto Fees
Although many would agree that the stocks and shares department stands out at eToro in terms of tradable markets and low fees, cryptocurrencies are not far behind. This is because you can both invest in and trade digital currencies at the platform.
If you simply want to buy some cryptoassets with the view of holding them for several months or years – you will have access to 16 different digital currencies. This does, of course, include Bitcoin. But you can also buy the likes of Ethereum, Ripple, EOS, Bitcoin Cash, Binance Coin, Dash, Litecoin, Tron, IOTA Cardano and more. eToro allows you to both trade crypto CFDs and buy crypoassets and store them in the eToro wallet.
Now, investing in a cryptocurrency without applying leverage will allow you to benefit from a 100% fee-free experience. This means no commissions to buy the cryptocurrencies and no overnight financing fees. After all, you are purchasing the coins as opposed to trading CFDs.
To put this low-cost offering into perspective – we should compare these fees charge against super-popular cryptocurrency broker Coinbase. For example, Coinbase charges an average trading fee of 1.5% – which is huge.
This means that buying £1,000 worth of Bitcoin would end up costing you £15 in fees. Furthermore, you then need to factor in the 3.99% transaction fee that is charged on debit card deposits. However, these eToro Bitcoin fees are still quite competitive in terms of other brokers. As we cover in more detail later, deposits at eToro cost just 0.5% in the form of an FX fee.
If you’re planning to trade cryptocurrencies in the form of CFDs – you have two options. Firstly, you can trade crypto-to-fiat pairs – such as BTC/USD or ETH/EUR. Or, you can trade crypto cross-pairs like BTC/ETH or ETH/EOS.
Either way, the fees that you pay fall inline with all other CFD markets at eToro. That is to say, while you won’t pay any commissions, you will need to factor in the spread. You also need to take into account overnight financing fees if you plan to keep your cryptocurrency trading position open for more than one day.
eToro Indices Fees
eToro gives you access to 15 stock market indices. This includes the FTSE 100, NASDAQ 100, Dow Jones, Hong Kong 50, and Australia 200. Indices are actually leveraged CFD products – so the same commission-free, spread, and overnight financing pricing structure discussed above remain constant.
As a side tip, if you are looking to invest in one of the aforementioned indices in a long-term manner, then you should opt for an ETF. For example, there are plenty of ETFs run by the likes of iShares and Vanguard that track major indices – meaning that you invest at eToro commission-free. In taking the ETF route, you will also be entitled to your share of dividends.
eToro Overnight Fees
As we have noted throughout this eToro fees review, all CFD products come with overnight finance fees. This is just the nature of the game when you trade CFDs and something that will be incurred at all trading platforms. So, how much does eToro charge in overnight financing fees? Well, once again, this will ultimately depend on the specific asset.
For example, major stocks such as Apple, Amazon, and HSBC will come with the lowest fees. This is also the case for other liquid assets like gold, oil, and the FTSE 100. At the other end of the spectrum, more volatile markets like cryptocurrencies will come with the highest overnight finance fees.
Although this can make it confusing to know whether or not you are getting a good deal – eToro always lists the overnight financing cost in dollars and cents when you set up your order. This shows you how much you will pay each day – during the week and over the weekend. This is because, with some assets, you need to pay a premium to keep your CFDs position open over the weekend.
Let’s look at a couple of examples to clear the mist.
Example 1: Short-Selling Apple Shares
As you can see from the screenshot below, we are placing a short-selling order on Apple shares. This means that we are predicting that the value of Apple shares will decrease. Although we are not applying any leverage to this position, this is a CFD order as we are opting to go short. In turn, this attracts overnight financing fees.
At the bottom of the order box, you will see that we are being quoted a daily overnight financing fee of $0.04. There is no surcharge for keeping the position open over the weekend as this also stands at $0.04 per day.
This eToro fee is based on the fact that we are risking $500, short-selling, and not applying leverage. If we were to change any of the aforementioned variables, the daily/weekend will charge.
Example 2: Trading HSBC Shares With Leverage
In this example of our eToro fees review, we are going long on HSBC shares. We are also applying leverage of 1:5 to our position, meaning that this turns our share investment into a stock CFD trade. Nevertheless, the value of the short-selling position is $500.
In turn, this means that we are being quoted a fee of $0.21. But, this is only the fee between Monday to Friday. If we were to keep our short-selling position open over the weekend, this would cost $0.63. As such, applying this much leverage to your stock CFD trade is only suitable for short-term trading.
In terms of the actual eToro fees calculation on overnight finance – the social trading broker does give an example on its website. But, it is hugely complex – even for those with a firm understanding of how the financial works.
For example, you need to take into account the annual interest rate of the specific asset, and then subtract the 1 month LIBOR fee by 365. You then need to multiply this figure by the asset’s buy or sell price – depending on which way you are going! As such, it is good that eToro lists its overnight financing fees in dollars and cents – which is something that few brokers offer.
eToro Deposit & Withdrawal Fees
eToro is hugely popular with everyday UK investors because it allows you to easily deposit and withdraw funds with a variety of payment methods. This includes UK debit/credit cards (Visa, MasterCard, Visa Electron, Maestro) and e-wallets like Paypal, Skrill, and Neteller. You can also fund your account by performing bank transfer.
eToro fees in the deposit department are based on a currency conversion charge. This is because the eToro platform utilizes US dollars as its primary currency. As such, any deposit made with a UK payment method in British pounds will incur a small FX fee of 0.5%. This means that by meeting the $200 minimum deposit amount, the FX fee would amount to just $1.
Although it can be frustrating to have to pay a deposit fee, it is important to remember that you will not need to pay any currency conversion charges when you buy foreign stocks. In addition to this, you will also benefit from eToro’s commitment to waving stamp duty fees – which in itself amounts to 0.5%.
When it comes to withdrawals, eToro’s fees amount to just $5. This is the case irrespective of the amount that you cash out and the payment method you send the funds to.
eToro Inactivity Fee
Inactivity fees are charged by a lot of UK brokers and eToro is no different. As the name implies, this is a fee that kicks in when your account is marked as dormant.
This will happen if you do not place a trade/order within a 12-month rolling period. After this, you will pay $10 for each month that your account remains inactive.
Take now, you won’t need to pay anything if your account balance is zero or you have outstanding positions. In other words, you can buy shares at eToro and hold on to the stocks for as long as you wish without needing to worry about the inactivity fee.
eToro Account Management Fee
Unlike a lot of low-cost brokers active in the online space, eToro does not charge any account management fees at all. This means that you will not need to pay any monthly or annual maintenance fees, which is especially crucial if you are more of a passive investor that only plans to buy a few shares per year.
eToro Fees vs Other Brokers
So now that we have covered each and every possible eToro fee that you will be exposed to at the multi-asset platform platform, we now need to explore how this compares to other popular UK brokers.
The stand out point is, of course, eToro’s 100% commission-free share and ETF dealing service. As we covered earlier, the likes of Hargreaves Lansdown will charge you £11.95 per trade.
With this in mind, a lot of UK investors turn to Barclays to buy shares, not least because the social trading platform offers a stock dealing charge of £6. But, when you factor in the monthly fee of between £4 and £125, this no longer sounds so attractive.
For example, let’s look at what you would pay by buying £500 worth of GlaxoSmithKline shares at both eToro and Barclays.
- At Barclays, you would pay £6 to buy your GlaxoSmithKline shares
- You would also incur a 0.5% stamp duty fee of £2.50 as GlaxoSmithKline is listed on the London Stock Exchange
- Based on the minimum monthly fee of £4, by the end end of year one, you would have paid £48
- You then decide to sell your GlaxoSmithKline shares – paying another £6 commission along the way
As per the above, you paid two sets of commission at £6 to buy and sell GlaxoSmithKline shares, £2.50 in stamp duty, and then £48 fees across 12 months. As such, you paid a total of £62.50 at Barclays.
Now let’s look at what the same investment would cost you at eToro.
- To keep things fair, we will include the 0.5% FX fee that is charged on your £500 deposit. This amounts to £2.50
- At eToro, you buy £500 worth of GlaxoSmithKline shares at a commission of £0
- You pay £0 in monthly fees
- At the end of the year, you sell your GlaxoSmithKline shares at a commission of £0
As you can see from the above, the same investment at eToro cost you just £2.50 – in commission to the £62.50 you would have paid at Barclays.
While the above section compared eToro fees in terms of buying UK stocks, it is crucial to also look at what’s on offer if you want to purchase foreign shares. Not all UK stock brokers give you access to markets in the US, Canada, Australia, etc. – but those that do will almost always charge a premium.
In the case of Hargreaves Lansdown, you need to pay a 1% foreign exchange fee in addition to the £11.95 share dealing fee. To show how this is completely unviable for small-time investors, check out the comparison below.
- You want to buy £250 worth of Apple shares – which are listed on the NASDAQ exchange in the US
- You pay a 1% foreign exchange fee – which amounts to £2.50
- You also pay a £11.95 share dealing fee
- When you sell the shares, you again pay 1%. Hypothesizing that your Apple shares are now worth £500, this amounts to £5
- You also need to pay an additional £11.95 share dealing fee when you sell the share
All in all, you initially invested £250 into Apple and sold the shares at £500 – resulting in a £250 profit. But, we then need to subtract the two sets of £11.95 commission that you paid, and the FX charges of £2.50 and £5. As such, you paid £31.40 in total – leaving you will a profit of £218.60.
Now let’s see what eToro fees would apply when making the exact same Apple investment.
- At eToro, you pay a 0.5% FX fee when you deposit £250 – which amounts to £1.25
- You don’t pay any share dealing fees when you buy Apple shares
- When you sell your Apple shares – they are worth £500.
All in all, you made £250 on your Apple investment – much like in our Hargreaves Lansdown example. However, instead of paying £31.40 in fees, you only paid £1.25 at eToro in the form of a 0.5% FX charge on your initial deposit. As such, you were left with an all in profit of £248.75. In other words, by investing at eToro instead of Hargreaves Lansdown, our hypothetical example left you with an additional £30.15 in profit!
If you are planning to use the platform to trade CFDs, eToro fees in comparison to other brokers are very competitive. For example, while IG allows you to trade forex, commodities, cryptocurrencies, and more commission-free, it does charge commissions on stock CFDs. This varies depending on the specific marketplace.
For example, IG charges 0.1% when you trade UK stocks in the form of CFDs. While this might not sound like a lot, there is a minimum charge of £10 in place. As such, this wouldn’t be suitable if you are looking to trade with small stakes. US-listed share CFDs at IG cost 2 cents per stock, at a minimum of $15.
Once again, this won’t be feasible if you want to trade with small volumes. On the other hand, eToro allows you to trade all of its supported asset classes in the form of CFDs commission-free. Instead, your fees are built into the spread. As we discussed earlier, this rarely sits outside of the 0.2% to 0.25% range, which is very competitive.
For example, let’s suppose you want to trade £500 worth of UK stocks in the form of CFDs
- At IG, a 0.1% commission would ordinarily cost you just 50p. However, this is under the minimum commission charge meaning that you will actually need to pay £10. In percentage terms, this translates into a commission of 2%
- If you were to exit your position when say, the stock CFDs were worth £600, you would again need to pay a commission of 0.10%. However, as this again falls well below the minimum, you’d need to pay an additional £10.
All in all, your UK CFD stock trade at IG cost you £20 in commission on an initial stake of £500. Now let’s see what this would have cost you at eToro.
- At eToro, you won’t pay any commission to place your £500 stock CFD order
- You will, however, need to factor in the spread
- We’ll say that you are trading Royal Mail stock CFDs which at the time of writing, comes with a spread of 0.22%
- On a stake of £500, this amounts to £1.10
- When you sell your stock CFDs, you don’t pay any commission at eToro
- However, you again need to consider the spread
- Much like the IG example above, your Royal Mail share CFD position is now worth £600, so a 0.22% spread would cost you £1.32
By placing your stock CFD order at eToro, you paid just £2.42 via the spread and nothing in commissions. As you paid £20 at IG, the same trade at eToro saved you £17.58!
Comparison Table: eToro Fees vs Other Brokers and Trading Platforms
|Share Dealing Fee||Share CFD Commission||Inactivity Fee||Deposit Fee||Withdrawal Fee|
|eToro||FREE||0%||$10 after 12 months||0.5% FX fee||$5|
|Plus500||N/A||0%||$10 after 3 months||None||None|
|IG||£8||0.10% (Minimum £10)||£24 per quarter, less commissions paid. Waved if 3+ trade made in the quarter.||0.5%-1% on credit cards||0.5%-1% on credit cards|
|Libertex||N/A||Variable (No Spread)||€10 per month after 180 days||None||£10 if less than £100|
In summary, our in-depth review of eToro fees explored each and every possible charge that you will ever become accustomed to by using the platform. Our verdict is that across the board – eToro is by far the most cost-effective stock broker and CFD trading platform in the UK arena.
Sure, you need to pay a small 0.5% currency conversion fee when you make a deposit. But, after that, you will be able to invest in 17 different UK and international markets without paying a single penny in commission. Even if you factor in the spread, eToro fees win hands down in comparison to other UK brokers.
Ultimately, this is why more than 13 million people have since joined eToro to buy shares, ETFs, cryptocurrencies and a variety of other financial assets. If you’re keen to get started with this top-rated FCA broker right now – the process of opening a trading account, depositing funds, and start trading takes less than 10 minutes!
eToro – Cheapest Broker in the UK with 0% Commission
Disclaimer: 75% of retail investor accounts lose money when trading CFDs with this provider.
Does eToro charge copy trading fees?
No, eToro does not charge any additional fees to utilize the copy trading feature. All you need to do is meet a $200 minimum investment into your chosen trader and that's it - you will still benefit from the platform's commission-free offering!
Is eToro really commission-free?
Yes, eToro offers 0% commissions when you buy shares, ETFs, and cryptocurrencies. You hold these assets for as long as you wish without paying any fees whatsoever!
What are the eToro fees on deposits?
eToro charges a 0.5% currency conversion fee on all non-USD deposits. Once you pay this fee, you can access 17 UK and foreign markets without needing to worry about exchange rates!
What is the eToro withdrawal fee?
eToro charges a flat withdrawal fee of $5 - which is about £4. This is the case irrespective of how much you decide to cash out.
Does eToro charge stamp duty?
No, eToro is one of the only, if not the only UK stock broker that allows you to buy FTSE 100 shares without paying any stamp duty. Although stamp duty is still required on your position, eToro waivers it.
Does eToro charge fees to buy foreign shares?
No, it doesn't matter if you are buying UK and non-UK shares - the commission-free offering remains in place.