There are more ways to trade crypto than ever before, as new trading platforms emerge every year with enticing investment opportunities. However, trading crypto doesn’t come without a price, and that includes extra fees.
Some platforms are more appealing than others in terms of extra costs — but what about eToro? How does this platform compare to other online brokers when it comes to fees? Below, we’ll explain everything you need to know about how this broker charges its users.
eToro Fees Explained
Many new investors flock to online brokers because of their notoriously low fees compared to traditional brokers. Online brokers can scale their operations much more effectively, meaning they can cater to more users without charging excessive amounts.
eToro is one of these popular brokers. This broker is also a cryptocurrency exchange where investors can buy crypto assets.
Even though eToro is a more recent platform, it doesn’t come without a few fees. We can break these extra charges down into two types: trading and non-trading. Trading charges occur when you actually execute a trade. Non-trading charges relate to the broker’s operations but don’t relate to an active trade.
Read on to discover more information on this broker’s fees so that you can buy and sell digital currencies responsibly.
eToro Trading Fees
There are investor fees to trade cryptocurrency on eToro. The costs will differ based on a variable spread, typically from 0.75% to 5.0%. Current market conditions and the specific cryptocurrency you’re trading will determine the exact percentage you pay.
eToro Deposit Fees
You’ll need to deposit money of your own before you can use a broker. Most platforms don’t charge you any money to do so, and eToro is no different. This platform won’t charge you anything to deposit funds.
eToro Withdrawal Fees
This broker charges a withdrawal fee of $5 per transaction. Note: The minimum amount you can withdraw at one time is $30.
But we don’t recommend you bother moving small amounts at different times. No matter if you take out $100 or $1,000 in assets, you’ll have to pay an extra $5. So it’s in your best interest to send large amounts at a time — you’ll avoid some pretty hefty fees this way, especially over a long period.
If you’re simply moving your assets to a hot or cold storage wallet, you won’t have to pay extra money.
eToro Credit Card Fees
Do you want to put money into your eToro account using a credit card? You’re in luck — this platform doesn’t charge any credit card fees. If you want to deposit $100 via a credit card, you’ll see exactly $100 show up in your account.
eToro Overnight Fees
As a new investor, you may not have access to enough funds to meet your trading goals. eToro can lend you the money you need. But margin trading doesn’t come without some interest. The overnight rate (also called the financing rate) occurs when you hold your leveraged positions for more than one day.
eToro Bitcoin Fees
eToro is a popular Bitcoin exchange even though you have to pay a small fee to sell or buy Bitcoin. The spread for Bitcoin is 0.75%, which is much cheaper than the spreads of some other cryptos on this platform (i.e., 2.90% for Dash and Cardano).
eToro Fees Calculator
You can calculate the commission that the platform charges per trade by using a formula.
Simply multiply the pip (price interest point) value by the spread on position closure. The number you come to is the commission that the platform will charge.
Summary
eToro is an affordable broker that any newer investor can take advantage of. One of the most important things to remember as you start trading on this platform is the withdrawal fee.
Other similar platforms often don’t charge users money to take their funds out. So you’ll have to think about this drawback of eToro and determine if it’s enough to make you look elsewhere. But if you won’t need to make small, frequent withdrawals, the rest of the platform’s fees are standard and reasonable.
FAQ
What are overnight fees?
Overnight fees are charges you incur when you hold a position overnight. For example, if you keep a crypto position open overnight using any money you borrowed, eToro will charge a small fee. The interest you’ll pay is based on the cost of the leverage you use for an extended period.
How do eToro fees work?
This platform charges users for certain transactions they make. For example, you’ll incur a charge when you withdraw money, purchase Bitcoin, or leverage money overnight. But some activities, like depositing money, are completely free.
What are eToro’s transaction fees?
eToro charges fees for cryptocurrency transactions. But the exact fee will depend on the asset you buy or sell. In general, you can expect to pay a 0.75%-5.0% fee per transaction.
Is eToro really free?
This brokerage is free to join for any user. But like many other online brokers, it charges different prices and spreads for specific transactions.
Is my money safe on eToro?
Yes. This platform keeps all its clients’ funds in tier 1 banks and guards all their personal information using SSL encryption. Plus, it operates under the guidelines of FINCEN in the U.S. and the ASIC, CySEC, and FCA in other countries.
Is eToro a pyramid scheme?
A pyramid scheme is a scam that early investors use to profit off hopeful investors who join later.
So, we can safely say that eToro is not a pyramid scheme. Instead, it’s a legitimate broker that millions of crypto investors use successfully.
Some people may jump to call eToro a “scam” because of its “hidden” costs. But the broker is very transparent about the charges it places on users.
As long as you understand all relevant fees before using the trading platform, you should have a positive experience.