eToro Trading Fees, Assets and Platform – Analysis

If you’re based in the UK and thinking about trading online – you might want to consider the merits of eToro. This FCA-regulated platform is now home to over 12 million investors.

You’ll be able to invest in and trade a full selection of asset classes – all on a commission-free basis. Best of all, the platform is super-easy to use – making it perfect for first-time traders.

In this guide, we explore what the eToro trading platform offers for UK investors. We’ll discuss what assets you can trade, what fees and commissions to expect, how the Copy Trading feature works, and how safe your money is.

What is eToro Trading?

Launched in 2007, eToro is an online broker that offers a full selection of assets. This includes traditional shares from over 17 UK and international markets – as well as ETFs.

You can also invest in cryptocurrencies like Bitcoin, Ethereum, and Ripple. On top of its core investment products, eToro also allows you to trade CFDs. This includes everything from hard metals and energies, to indices and forex. If you do utilise the eToro trading platform for its CFD offering, you’ll be able to short-sell assets and even apply leverage.

What is eToro Trading

Irrespective of what you decide to invest in or trade, eToro does not charge a single penny in commission. This is in stark contrast to established brokers in the UK share dealing scene – with the likes of Hargreaves Lansdown and HSBC charging £11.95 and £10.50 – respectively.

Additionally, eToro does not charge any maintenance fees – meaning that you can keep your long-term investments open in a truly cost-effective manner. The eToro platform is also known for its Social Trading features. At the forefront of this is the ability to copy the portfolio of other investors like-for-like. Crucially, eToro is fully regulated, with UK investors also protected by the FSCS scheme.

eToro Trading Assets

The eToro trading suite should be split into two key categories – assets that you can invest in and assets that you can trade. Understanding the difference between the two is important – as it will determine factors like ownership, fees, and whether or not you’ll have access to leverage.

Investment Assets

eToro offers a traditional share dealing platform that allows you to invest in the following:

  • Shares: You can buy shares in over 1,700+ companies at eToro. On top of the firms listed on the London Stock Exchange, this also covers 16 international markets. In the US, you’ll have access to hundreds of heavyweight stocks like Apple, Amazon, IBM, Ford Motors, and Disney. Other marketplaces include Germany, Spain, Canada, and Saudi Arabia.
  • ETFs: The eToro trading platform offers UK investors over 150+ ETFs. This includes a range of iShares and Vanguard funds, meaning that you can invest on a passive basis. ETFs at eToro are also great for diversification purposes, as some providers give you access to thousands of stocks or bonds through a single investment.
  • Cryptocurrencies: If you’re looking to gain exposure to the ever-growing cryptocurrency scene, eToro offers 16 digital coins. This includes eToro Bitcoin trading, Ethereum, Bitcoin Cash, Ripple, Litecoin, and more.

To clarify, the above three asset classes can be invested in at eToro, meaning that you will retain full ownership of the respective instrument until you cash out. This means that dividend payments from your stock or ETF investments will be paid into your eToro account as and when they are distributed.

eToro Trading Assets

It is also important to note that eToro allows you to take advantage of fractional ownership. In simple terms, this means that you are no longer required to purchase a stock, ETF, or cryptocurrency in full. Instead, as long as you meet the minimum investment amount ($50 on stocks and ETFs, $25 on cryptocurrencies), you can purchase as little as you like.

For example:

  • Let’s suppose that you are interested in buying some Bitcoin for the first time
  • At the time of writing, a single Bitcoin would cost you about $10,800 – or £8,400
  • Most of us wouldn’t dream of investing that much into Bitcoin
  • But, at eToro, you can invest just $25
  • In doing so, you would own just over 0.2% of a single Bitcoin

Fractional ownership is not only great for those of you that want to invest smaller amounts, but it also allows you to easily create a diversified portfolio of assets.

Tradable Assets

Outside of its core stock, ETF, and cryptocurrency investment suite – eToro also offers fully-fledged trading facilities. This means that you will be trading the short-term price movement of an asset. You might keep a position open for a number of minutes, days, or weeks – but rarely more than a couple of months.

As such, you will be looking to make smaller margins on your trades – but on a much more frequent basis.  If you do decide to take up trading on eToro, it’s likely that you will be trading CFDs. This means that you will not own the underlying asset, as CFDs merely track the real-time price of the respective market. For example, if the price of gold increased by 3%, as would the CFD.

You can trade the following CFD instruments at eToro:

  • eToro Stocks and ETFs Trading: All 1,700+ stocks and 150+ ETFs at eToro can also be traded via CFDs. This will be the case if you decide to short-sell the asset or you apply leverage. If you simply ‘go long’ on stock trading without leverage, then you will be investing in the underlying asset.
  • eToro Crypto Trading: The same concept outlined above applies to eToro crypto trading. That is to say, you will be investing in the cryptocurrencies if you go long without leverage. Anything other than this and you will be trading CFDs. You can also trade crypto-cross pairs at eToro via CFDs. These are trading pairs that contain two competing digital currencies – like Bitcoin and Ethereum (BTC/ETH).
  • eToro Indices Trading: If you’re looking to trade the wider markets, eToro offers a good selection of indices. This includes major markets like the Dow Jones, FTSE 100, and S&P 500. Other indices include the China 50, France 40, and Australia 200. Take note, if you wish to invest in these stock market indices, then you will be better suited for an ETF. In doing so, you can buy each and every share that makes up the indices without paying any commission or ongoing fees.
  • eToro Forex Trading:  If you a keen currency trader, eToro offers 47 forex trading pairs. This covers most majors and minors, and a selection of exotics. Regarding the latter, this includes pairs that contain the Mexican peso, South African rand, Polish zloty.
  • eToro Commodity Trading: eToro is also strong when it comes to commodity trading. Hard metals include gold, silver, and copper. Energies include oil and natural gas. Agricultural commodities are also supported – including but not limited to cocoa, wheat, and sugar.

When trading CFDs via eToro, you will always have access to short-selling facilities. This means that by placing a sell order, you are speculating on the value of the respective asset going down. Additionally, all CFDs at the UK eToro trading platform can be accessed with leverage.

eToro CFD trading

If you are a UK retail trader, then you will be bound by the leverage limits imposed by ESMA.

This stands at:

  • 1:30 – Major forex pairs like GBP/USD and EUR/USD
  • 1:20 – Minor and exotic forex pairs, gold, and major indices
  • 1:10 – Non-major indices and non-gold commodities
  • 1:5   – Stocks
  • 1:2   – Cryptocurrencies

The only way that you will get higher limits than this is if you:

  • Are deemed a professional trader (documentation required)
  • Are resident outside of the UK or Europe

Note: Applying leverage at eToro is fraught with risk. If your trade goes against you by a certain amount, you could be liquidated by the broker. If this does happen, you will lose your entire stake. 

eToro Trading Times

Much like any other UK brokerage site, eToro has various trading hours that vary depending on the asset or market. The only exception to this rule is cryptocurrencies – which can be traded 24/7.

While listing each and every trading session at eToro is beyond the remit of this guide, below you will find some examples of opening and closing times on major markets (all based on UK time)

  • You can buy UK shares listed on the London Stock Exchange Monday to Friday between 8 am and 4.30 pm.
  • You can buy US shares listed on the NYSE and NASDAQ Monday to Friday between 4.30 pm and 9 pm.
  • Most currencies can be traded from 10.05 pm Sunday to 9.30 pm Friday
  • Major commodities like oil, gold, and silver can be traded from 11 pm Sunday to 9 pm Friday

If you have a specific asset class in mind that isn’t listed above, you can check the opening and closing periods at the UK eToro trading platform. With that said, you can still place an order on your chosen asset even if the respective market is closed.

You simply need to opt for a ‘limit order’, which allows you to specify the price that you want your traded executed at when the markets open. The order will remain pending until your desired price-point is matched.

eToro Trading Account Types

Other than a professional and corporate account, eToro offers just one account type for the everyday trader. If you’re from the UK, this means that you will have access to thousands of shares, ETFs, and cryptocurrencies – and heaps of CFD instruments. You’ll also have access to short-selling and leverage facilities. The minimum deposit on all standard accounts is $200 – or about £160.

We should also note that eToro does offer Islamic trading accounts. This ensures that you are able to trade without incurring swap fees and thus – remain true to Islamic laws surrounding paying or receiving interest. You will need to open a standard account first, and then contact eToro requesting an Islamic account. Take note, minimum deposits on the eToro Islamic account is $1,000.

eToro Trading Spreads

In a similar nature to other UK trading sites, the spreads at eToro will fluctuate throughout the day. This will mirror real trading conditions, insofar that the more volatile a particular market is, the wider the spread will likely be.

With that being said, spreads on the UK eToro trading platform are typically very competitive during standard market hours. Once again, there are simply too many financial instruments hosted at the platform, so we can’t list each and every marketplace. However, below you will find some example spreads available to UK traders on major assets.

  • British American Tobacco stocks come with a spread of 0.35%
  • Barclays stocks come with a spread of 0.2%
  • Apple stocks come with a spread of 0.18%
  • Amazon stocks come with a spread of 0.19%
  • EUR/USD can be traded with a spread of 0.0094%
  • GBP/USD can be traded with a spread of 0.01566%

As you can see from the above, spreads at eToro can be extremely tight. This is especially the case when you consider that eToro is a commission-free platform – both in terms of investing and trading.

eToro Trading Fees

It is important that you have a full grasp of what fees you will be required to pay when investing online. While some brokers are somewhat opaque with that they charge, we find the UK eToro trading platform to be very transparent.

Here’s the low down on all the eToro trading fees hat you need to consider:

Commissions/Dealing Fees – 0%

The headline offering at eToro is that you can invest and trade without paying any commission. On the one hand, it is true that there are plenty of UK CFD platforms that allow you to trade on a commission-free basis. This covers the likes of Plus500, Capital.com, and even IG (non-stock CFDs). In this sense, eToro is no different.

However, it is crucial to note that eToro also allows you to invest in shares, ETFs, and cryptocurrencies without paying any commission or dealing fees. This is an industry-leading pricing structure that arguably – is why eToro now has over 12 million investors under its belt.

To put this fee-free investment policy into perspective, let’s compare the costs involved when buying shares at eToro and Hargreaves Lansdown.

  • Hargreaves Lansdown: If you were to buy £250 worth of BT shares and £250 worth of Royal Mail shares, you would pay £11.95 on both orders. When it comes to selling your BT and Royal Mail shares, you will once again pay £11.95. In total, this means that buying and selling two different stocks at Hargreaves will cost you £47.80 (£11.95 x 4).
  • eToro: Using the same example as above, you purchase £250 worth of BT and Royal Mail shares. At eToro, the purchase would have cost you nothing. When it comes to selling your shares, again this would cost you nothing. As such, the end-to-end investment process in this example would have saved you £47.80 – compared to using Hargreaves Lansdown.

Note: All UK brokers – including that of eToro, are required to charge a 0.5% stamp duty fee when you buy stocks. 

Overnight Financing

When buying shares, ETFs, or cryptocurrencies at eToro, you will own the underlying asset. This means that you can keep hold of the asset for as long as you wish without incurring any ongoing fees. However, this won’t be the case when it comes to CFDs.

After all, CFDs are leverage financial products – so you need to pay a small daily fee in the form of ‘overnight financing’. This will be charged for each day that you keep the position open after the markets have closed. Some, but not all, CFD assets at eToro come with an enhanced charge for positions held over the weekend.

Much like this spread, the specific overnight financing fee will vary depending on the asset or market.  With that said, you can view how much you will be required to pay in overnight financing fees when you load up your order. The amount will be clearly displayed as a ‘per-day’ charge, so there are no surprises.

eToro Payments

When it comes to payments, eToro makes the deposit and withdrawal process a breeze. This is because it supports most UK payment methods.

For example, you can deposit funds with a:

  • Debit Card
  • Credit Card
  • Paypal
  • Skrill
  • Neteller
  • UK Bank Transfer

All of the above payment methods will result in an instant deposit – meaning that you can invest or trade straight away. The one exception to this is if you decide to deposit funds from your UK bank account. This will take 2-3 working days.

In terms of funding fees, eToro doesn’t charge a fixed deposit fee per-say. You will, however, incur a 0.5% currency conversion when depositing with pounds. This is because the eToro trading platform is denominated in US dollars. As such, a £500 deposit would effectively cost you £2.50. In terms of withdrawals, this is charged at $5 per cash out, which amounts to about £4.

eToro Trading Platform

The UK eToro trading platform is as simple as it gets in the online arena. In other words, the platform is suitable even if you are a complete novice. There are no bells and whistles so to speak, so setting up an order or cashing out a position can be achieved with ease.

eToro Trading Platform

The trading suite itself is split by the respective category – for example, stocks, ETFs, or commodities. You can also use the search bar function. For example, if you know that you want to buy Apple stocks., simply enter the name of the firm into the search box and you will be taken straight to the respective trading page.

eToro Trading Platform

The eToro trading platform can be accessed online without you needing to download or install any software. You can, however, also make use of the eToro trading app – which is available on iOS and Android devices. If you have a smartphone that is backed by a different operating system, you can still access eToro via your standard mobile web browser.

eToro Trading MT4

Our eToro trading review found that eToro does not offer support for either MetaTrader (MT4/5) product. Instead, the broker has built its own trading platform that can be accessed online or via your mobile. If MT4/5 is what you are after, we should point you in the direction of FCA broker IG.

With that said, if you’re looking to obtain MT4/5 because of its support for automated forex robots, the eToro Copy Trading feature works in a similar way. As we cover shortly, this feature allows you to select an experienced trader and then elect to mirror their buy and sell orders like-for-like.

eToro Trading Tools

Trading tools are a must if you plan to stay ahead of the curve when investing online. This is especially the case if you plan to trade on a short-term basis – with the view of opening and closing several positions throughout the day. However, it should be noted that eToro is relatively weak in this department – at least in comparison to other trading sites in the UK.

eToro trading tools

For example, while the eToro ProCharts feature allows you to view price movements on an asset over a set period of time, it’s very basic. There is also a lack of technical indicators such as the RSI or MACD. This is surprising, as eToro offers a number of user-friendly guides on how to use technical indicators even though it doesn’t offer any itself.

eToro trading tools

The UK eToro trading platform is also somewhat weak in the fundamental analysis department. This is because you won’t have access to real-time news developments. As such, you’ll need to get this from a third-party platform. You will, however, have access to market insights on most asset classes. You’ll also get to read analyst price predictions and view the current market sentiment from major hedge funds.

eToro Social Trading

Perhaps the lack of advanced technical indicators and real-time news features is countered by the eToro Social Trading phenomenon. In a nutshell, this operates much like a social media platform – buy for investing and trading. For example, traders at eToro can and will post regular updates on where they see the markets going.

eToro Social Trading

This will be posted within the news feed of the respective asset. In turn, you and your fellow eToro traders can ‘like’ or reply to posts. The main concept here is that eToro is trying to create a global trading community that allows investors from all walks of life to interact with one another. After all, we all have the same objective and that’s to make consistent long-term gains.

eToro Copy Trading

We would argue that the Copy Trading feature at eToro is what sets the platform apart from other FCA brokers in the UK investment scene. For those unaware, this allows you to select an experienced trader that is personally using eToro to trade.

Then, you can copy their portfolio like-for-like. You can also elect to copy their ongoing buy and sell positions – subsequently allowing you to invest or trade in a 100% passive manner.

eToro Copy Trading

Of course, you are required to perform some homework on your chosen Copy Trader before taking the plunge. This is relatively easy though, as eToro offers an abundance of statistics that will allow you to make an informed decision.

This includes:

  • The average monthly return since the trader joined eToro
  • Overal profit and loss of the trader
  • What assets the trader likes to invest in
  • The average duration of each trade in days
  • The risk level associated with the trader
  • How many eToro users are copying the trader
  • How much the Copy Trader currently has under management

Once you have chosen a Copy Trading, you will need to invest at least $200. In doing so, your portfolio will be mirrored like-for-like. However, the amount that you allocate to each asset will be dependent on the weighting utilised by the Copy Trader.

For example:

  • Let’s suppose that your chosen trader has £15,000 worth of Facebook stocks and £5,000 in gold
  • This means that the Copy Trader has £20,000 allocated – 75% in Facebook and 25% in gold
  • You decide to invest the £2,000 into the Copy Trader
  • As such, £1,500 (75%) of your portfolio will be allocated to Facebook
  • And £500 (25%) will be allocated into gold

As you can see from the above, it doesn’t matter how much the trader has in their portfolio in pounds and pence. On the contrary, the weighting is based on the percentage allocated to each asset.

eToro Copy Trading

Note: Just remember – everything on the UK eToro trading platform is denominated in US dollars and not pounds

eToro Trading Education

On top of innovative the eToro Social Trading and Copy Trading features, the eToro platform is very strong in the education department. This does make sense when you consider that the broker is tailored to newbie investors and traders. For example, there are heaps of guides on key investing principles, as well as step-by-step explainers on how to use the eToro trading suite.

Additionally, eToro runs a number of podcasts and webinars throughout the month. These are typically led by one of the in-house analysts, so you’ll be exposed to some highly thought-provoking content. The webinars are particularly valuable as you can ask the host questions.

Is eToro Trading Legit?

It’s good to sceptical when joining a new online broker. After all, you will be entrusting your hard-earned money with the respective company – so you’ll want to ensure that everything is legit before taking the plunge. With that said, you should have no concerns about eToro – as the platform is heavily regulated and all fees and commissions are transparent.

  • eToro is licensed by the Financial Conduct Authorty (FCA).
  • The platform is also partnered with the Financial Services Compensation Scheme (FSCS). This means that your money is protected up to the first £85,000 in the event eToro collapsed.
  • eToro is also licensed by ASIC (Australia) and CySEC (Cyprus) – which adds an extra set of eyes on the broker.

In terms of its commission-free offering, this is 100% legit. You won’t pay any fees whatsoever when you buy stocks, ETFs, or cryptocurrencies – so long as you don’t apply leverage. If you do apply leverage or short-sell an asset – this means that you will be trading CFDs and thus – you’ll be exposed to overnight financing fees.

Ultimately – the proof is in the pudding with eToro, insofar that it is home to over 12 million investors. This number is only expected to grow over the coming years – especially owning to its active marketing campaigns on British TV and at Premier League stadiums.

How to Use eToro Trading

In terms of using the eToro trading platform, the process is very straight forward. This is the case even if you are a complete newbie. Nevertheless, below we show you what you need to do to trade at eToro today. This includes the process of opening an account, making a deposit, and placing your first trade.

Step 1: Open a Trading Account

Before you can trade at eToro – or any FCA-regulated broker for that matter, you’ll need to open an account. Head over to the eToro website to get the ball rolling.

eToro open a share dealing account

This will require some personal information from you – such as your full name, home address, and date of birth. Make sure the information is entered correctly as you’ll need to verify it in the next step. Additionally, you’ll need to provide your national insurance number and some contact details.

Step 2: Identity Verification

As an FCA broker, eToro is also required to ask you for some ID. This needs to be a valid passport or driver’s license. You also need to upload a copy of a bank account statement or utility bill that was issued within the prior three months. Once you upload the documents, eToro can usually validate them within a couple of minutes.

You can upload the above documents at a later date as long as you do not plan on depositing more than $2,250.

Step 3: Deposit Funds

You’ll need to deposit some funds if you wish to trade at eToro. This stands at a minimum of $200 – or about £160. You can do this instantly with a UK debit/credit card, Paypal, Skrill, or Neteller. If you elect to transfer funds from your UK bank account, this will take a couple of days to process.

Step 4: Search for an Asset to Trade

As soon as your eToro account has been funded, you can proceed to trade. If you know which stock, ETF, cryptocurrency, or CFD you wish to access – enter it into the search box and click on the result that pops up. As you can see from our example below, we are looking to trade Royal Mail stocks.

Trade Royal Mail shares at eToro

We then need to click on the ‘Trade’ button. In doing so, an order box will load up.

Trade Royal Mail shares at eToro

Step 5: Place a Trade

As soon as your eToro account has been funded, you can proceed to trade. If you know which stock, ETF, cryptocurrency, or CFD you

We now need to set the parameters for our Royal Mail trade. We think that at 240.38p per share, the stocks are overvalued. As such, we opt for a sell order. This means that we think the value of the shares will go down. You’ll need to enter your stake in the ‘amount’ box – which refers to the amount that you wish to risk on the trade. In our example – that’s $500.

Trade Royal Mail shares at eToro

Before placing the trade, scroll down to review the overnight financing fee associated with your trade. In our example, that’s just $0.04 per day without surcharge over the weekend. If you are going long your chosen stocks, ETF, or cryptocurrency without leverage – there will be no overnight finance fee to contend with.

Finally, confirm the order. And that’s it – you’ve just placed a commission-free trade at eToro!

eToro Trading Pros and Cons

Pros

  • Invest in over 1,700 stocks, 150+ ETFs, and 16 cryptocurrencies
  • Trade thousands of CFDs from several asset classes
  • 0% commission and zero share dealing fees
  • Tight spreads on most assets
  • Leverage of up to 1:30 available for UK traders
  • Perfect for newbies and first-time traders
  • Social and Copy Trading features
  • Deposit and withdraw funds with a UK debit/credit card, bank account, or e-wallet

Cons

  • 0.5% currency conversion fee on UK deposits
  • All accounts are denominated in US dollars
  • Somewhat weak in the technical analysis department

Conclusion

All in all, eToro is as good as it gets in the UK trading scene. Not only can you invest in stocks, ETFs, and cryptocurrencies without paying any dealing fees – but all CFD trades are commission-free, too. You can get started with a minimum investment of just $25 on cryptocurrencies and $50 on stocks and ETFs. This is perfect for those of you that wish to start small.

We also like the Social and Copy Trading features offered by eToro. The latter allows you to copy other traders using the site – subsequently resulting in a passive investment experience. You then have the ease in which you can deposit funds with a UK debit/credit card, e-wallet, or bank account.

The final icing on the cake is that the UK eToro trading platform is licensed by the FCA and partnered by the FSCS. Of course – no platform is 100% perfect. In the case of eToro, it is weak when it comes to technical analysis and you do need to factor in a small 0.5% currency conversion when making a deposit. Apart from that, there’s little else to fault the platform.

eToro – Trade Online With 0% Commission

 

75% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

Is eToro really commission-free?

Yes, if you invest in shares, ETFs, or cryptocurrencies without applying leverage - you will be purchasing the underlying asset 100% commission-free. However, if you decide to short-sell an asset or apply leverage, although there are no commissions to pay - overnight financing fees will apply. This is industry standard anyway and something implemented by all platforms offering CFDs.

Is eToro safe?

Yes - eToro is licensed by the FCA and partnered with the FSCS. This means that were the worst to happen and the broker collapsed - your money would be protected up to the first £85,000.

What shares can you buy on eToro?

eToro offers over 1,700 shares from 17 UK and international markets - all on a commission-free basis.

What is the eToro minimum deposit?

The minimum deposit at eToro is $200.

Does eToro offer Islamic accounts?

Yes, eToro offers Islamic accounts that require a minimum deposit of $1,000. You will first need to open a standard account and then contact eToro to make the transition.

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Kane Pepi

About Kane Pepi

Kane Pepi is a British researcher and writer that specializes in finance, financial crime, and blockchain technology. Now based in Malta, Kane writes for a number of platforms in the online domain. In particular, Kane is skilled at explaining complex financial subjects in a user-friendly manner. Academically, Kane holds a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and he is currently engaged in a Doctorate Degree researching the money laundering threats of the blockchain economy. Kane is also behind peer-reviewed publications - which includes an in-depth study into the relationship between money laundering and UK bookmakers. You will also find Kane’s material at websites such as MoneyCheck, the Motley Fool, InsideBitcoins, Blockonomi, Learnbonds, and the Malta Association of Compliance Officers.