Easy
Does eToro have hidden fees?
Are you wondering if eToro applies hidden fees when you invest on its trading platform ? The short answer is that there are no completely hidden costs, but some expenses aren't always clearly displayed. One example is the spread , which can affect your results in ways that are more or less obvious. In this article, you'll discover why some users talk about "hidden fees," how to identify the real expenses, and what strategies to use to avoid unpleasant surprises.
Table of contents
eToro hidden fees: A transparent pricing structure… but incomplete?
To begin with, eToro presents itself as an online broker simplifying access to financial markets . It offers, in particular, the purchase of stocks, ETFs , cryptocurrencies, and leveraged CFD positions . The platform often advertises the absence of commissions for cash stock purchases, but this doesn't cover all the costs you might encounter.
Focus on the spread : the element that raises most questions about potential hidden fees . The spread is the difference between the price at which you can buy an instrument and the price at which you can sell it at a given moment. This margin can vary depending on market conditions and, even if it is not billed as a separate item, it effectively represents an transaction cost .
The various fees at eToro
To determine if a broker applies "hidden" costs, you need to examine each category of fees:
- Withdrawal fees : fixed at $5, regardless of the amount you decide to repatriate.
- Conversion fees : applied if you deposit or withdraw in a currency other than USD. Often, it's a percentage (e.g., 0.5%) of the converted amount.
- Inactivity fee : charged after 12 months without login, at a rate of $10 per month until your balance reaches zero.
- Overnight fees : also known as swap fees , these apply when you hold CFD positions open from one day to the next.
- Spread : This is where the issue of "hidden fees" really arises. For some instruments, eToro increases the difference between the buy and sell price, which can inflate your total bill without being clearly itemized.
The main point to remember is that, although all these costs are listed on the official website, the spread is not always clearly quantified. It depends on supply and demand for the financial instrument , as well as the platform's trading policy.
eToro hidden fees: A closer look at the spread, why is it sometimes seen as a hidden fee?
Definition and role of the spread
The spread refers to the difference between the bid (sell) price and the ask (buy) price. In a traditional stock market environment, traders typically pay the commission plus a price difference that reflects the asset's liquidity. While eToro highlights the absence of commissions on certain instruments (such as stocks ), the platform generates revenue from other aspects, including this price spread.
When you buy a cryptocurrency for $100 but can only sell it for $99 at the same time, there's a $1 difference called the spread . On traditional platforms, this spread is usually very small for popular assets. But some platforms, like eToro, may intentionally widen this spread: this is called a spread markup . This additional fee acts like a hidden transaction fee, as you pay it without it being clearly displayed.
Less liquid markets
On less liquid assets, such as certain cryptocurrencies or lightly traded currency pairs, the bid/ask spread can be quite large. eToro may add its own margin to this as a profit. As a result, the risk of loss , if you decide to sell immediately, is sometimes higher than it seems. Unlike a conversion fee or a withdrawal fee , this additional charge doesn't appear explicitly on your statement, but it does directly impact your profitability.
How to identify the impact of the spread on your positions?
To determine if the spread actually increases your costs more than expected:
- Compare the price of an asset on eToro with other sources in real time.
- Check the exact difference between the price at which you can buy and the price at which you could resell immediately.
- Make a quick estimate: if the difference costs you more than the commission of a traditional broker, you will know where the extra cost lies.
Fees often perceived as “hidden”: how to understand and avoid them
Inactivity fees: the small charge that costs passive users dearly
If you leave your eToro account inactive for more than 12 months (without logging in), the platform will charge you $10 per month. This only applies to accounts with an available balance, but it can gradually erode your earnings if you forget about your account or stop actively investing.
Leverage and overnight fees: costs to watch out for
When you use leverage on eToro (e.g., x2, x5, etc.), your positions are opened as CFDs. This incurs overnight fees, meaning interest is charged each night to keep your position open.
These fees are common on all CFD trading platforms, but many beginners only discover them after noticing an unexplained drop in their balance. It is therefore essential to fully understand the type of product you are buying.
Conversion fees: a classic trap for European users
eToro operates exclusively in US dollars (USD). If you deposit euros or another currency, an automatic conversion is applied, with fees of up to 1.5% depending on the deposit method. This may surprise users who expected to invest in their own currency without additional costs.
Cryptocurrency spreads: a discreet but impactful fee
The spread is the difference between the buy (ask) and sell (bid) price of an asset. On eToro, this fee isn't clearly displayed in a table or on your transaction receipt. It's included in the final price, making it less transparent for beginners.
For example, when you buy $1,000 worth of Bitcoin, you will pay a visible 1% commission… but you could lose more due to a high spread.
How to avoid high spreads on cryptocurrencies?
Choose a platform that offers a fully advanced interface, such as Gemini.
The platform offers:
- Top-tier security, with "cold" storage of the majority of funds
- A dual interface: a simplified application for beginners and ActiveTrader , an advanced platform offering volume-dependent fees and a competitive order book.
- Access to over 60 cryptocurrencies, but also to a rare offering on the market: tokenized shares (Nvidia, Apple, etc.). These products replicate the price of real shares via tokens issued directly on the Gemini platform, allowing them to be bought and traded 24/7 like cryptocurrencies, without going through a traditional stockbroker.
- Strict regulatory compliance, with Gemini being one of the first platforms approved in the United States and holding the European license ( MiCA ).
- Additional services such as staking to generate returns on these cryptocurrencies.
Gemini therefore allows you to invest in both cryptocurrencies and tokenized shares, all within a secure and regulated environment.
- price offered live with the market price, via a data aggregator like CoinMarketCap or CoinGecko, to see if the price offered is competitive.
For a complete overview, you can consult our comparison of fees from the main cryptocurrency platforms .
What if you prefer simplicity?
For a beginner who does not wish to manipulate an order book, a platform like Bitvavo can be a good compromise: simple interface, visible and very competitive fixed fees, with a clear user experience from the first deposit.
However, if you choose eToro for its ease of use and all-in-one interface, keep in mind that:
- The spread in crypto is not explicitly stated but can be significant, especially during periods of high volatility.
- The visible 1% commission is only a part of the actual cost of your transaction.
eToro hidden fees: better understand the fees before investing
These aren't so much hidden fees as fees that are difficult to see or understand. In fact, eToro displays most of its fees on a dedicated page , but their presentation isn't always clear for newcomers. The spread, in particular, is an element that often goes unnoticed.
But this is not an isolated practice: many simplified buying platforms (Coinbase, Revolut, etc.) also apply high spreads.
Cryptocurrency investments are risky. Crypternon cannot be held liable, directly or indirectly, for any damage or loss resulting from the use of any product or service mentioned in this article. Readers should conduct their own research before taking any action and only invest within their financial means. Past performance is not indicative of future results. This article does not constitute investment advice.
Certain links of this article are sponsorship links, which means that if you buy a product or you register via these links, we will collect a commission on the part of the sponsored company. These commissions do not train any additional cost for you as a user and certain sponsorships allow you to access promotions.
AMF recommendations. There is no guaranteed high yield, a product with high performance potential implies a high risk. This risk taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital .
To go further, read our pages legal notices , privacy policy and general conditions of use .
Yoann
Training engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I participate in its democratization by developing Crypternon.
