Another Friday and another Reader’s Question post.
Today we’re going to take a closer look at eToro and specifically – their FEES, and most importantly I will show you how to reduce your fees to an absolute minimum. This means that you take home more money from your social trading!
For people who are new to social trading and eToro’s revolutionary platform, then I suggest you first check out my definitive eToro Trading Guide here. But if you’re already familiar with eToro, are already trading and hopefully making a good profit on your investment, then you know how important it is to pay as little in fees as possible – obviously the fees come out of your profit, so more fees equals less money for you at the end of the day!
And this is exactly what Ryan asked about in his recent email:
I love your blog and appreciate all the free advice you have published here.
I have followed your eToro trading guide as financial trading is something I have always been interested in but general Forex trading seems way too risky to me. eToro on the other hand makes much more sense to me, especially the Copy Trader function.
I have started with an initial investment of just £500 but am already seeing good progress by following just a few traders.
The question I wanted to ask you is about fees – when and what fees does eToro charge for trading? Is it a monthly invoice like with eBay? Or does it work in a different way? I couldn’t find any trading fees table on the website so not sure how and what they do charge.
Thank you in advance!
Best of luck,
Thanks for your question Ryan. I have actually received a few emails about this from my blog readers who are confused about what fees eToro charge and how exactly they make money…
And I can see why there’s some confusion as eToro don’t charge direct fees, at least not in the way you’re thinking – how eBay and Amazon do with a straight percentage fee for using their service.
On eToro and on trading platforms in general, it doesn’t work like that! Instead these companies generally make their money from spreads and overnight fees…
Now don’t worry if those two terms mean nothing to you because I’m going to go through them now. [Read more…]