eToro Spread. Does eToro have tight spreads?

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
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The eToro service was launched in 2007. This is a community trading system that interacts with traders from over 140 countries. With many subsidiaries that operate in different jurisdictions we are licensed by various regulators.

The spread is tight when the gap between the ask and bid prices is less. eToro offers traders tight spreads and low fees for increased profits and investments.

eToro Spread Review

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eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
1

Bid-Ask- This is a quantity by which the asking price exceeds the market asset price. The bid-ask spread is the range of the lowest price a seller can take and the highest bid one can get us.


2

Yield- Yield spread, also called credit spread, differs in the amount in different maturities, debt securities, risk levels, credit ratings or other issues. Subtraction of one instrument's income from other gives a yield spread.


3

Option-Adjusted- This risk-free measures return and fixed-income security rates.


4

Zero-Volatility- if you apply zero volatility at every point of receiving cash flow, the security price will equal the cash flow value. This is a Zero volatility spread.

Spread On Instruments

Instruments have a sell and buy price. Spread is the difference between the two. The sell price is displayed on the current rate when you open any trade. It is the price shown in charts and portfolios.

Immediate loss is always seen in new trades as there is a difference between the two rates.

Spreads can vary. They reach according to market conditions. There exist stable as well as unstable instruments. Volatility is high, so closing and opening a spread cannot be determined thoroughly.

Spread On Accounts

As you may expect from a renowned and popular broker like eToro, the spread provided by each account type differs slightly. Here's a breakdown of what to expect from each category while trading with eToro:

Retail Account

The eToro retail account is the regular basic account that the broker typically offers worldwide. This is true in the many regulatory areas in which they operate. These regions include CySEC, ASIC, and FCA.

The accounts, as usual, have a variable spread that is highly competitive. This account type has a rollover for overnight holdings, although depending on your scenario, this can also be quite flexible.

Professional Account

The eToro professional account is an upgrade from the regular retail account. This is available provided you meet specific requirements such as volume and frequency.

Although the professional account offers numerous additional benefits to you as a trader, spreads and other costs will stay the same.

eToro Fees and Commissions Review

Comparison Of eToro Customer Service With Offers From Other Brokers

Forex Pepperstone eToro ICMarkets
EURUSD 0.9 1 0.6
USDJPY 0.6 1 0.6
GBPUSD 0.4 1.15 0.9

eToro Spreads In Summary

One of the world's largest brokers, eToro marks itself in the field of ETFs Market, stock, crypto etc.

They have a standardised cost if spread and often, in some cases, no rollovers or markups. Compared to the lowest trading brokers, their costs might seem a bit high. This is solely because when you pay eToro, you gain access to advanced trading features.

Fees of inactivity and conversion are there. The fees are minimal. eToro provides a healthy trading environment to traders to help them carry on their business without much concern for prices or other incurred costs.

FAQ

Is eToro's spread large?

Previously, eToro spreads began at three pips. Spreads are now competitive with the rest of the industry. Currently, eToro spreads start at one pip.

What happens to eToro trading accounts that are no longer active?

eToro account becomes inactive after 12 months of unuse. eToro levies a monthly inactivity fee of $10 until your balance reaches zero. If your funds are insufficient to satisfy the inactivity fee, eToro may close your account, and you will not be able to reopen it. Simply log in to reactivate before they deactivate your account.

Does eToro profit on spreads?

eToro, like other brokers, derives money via asset spreads.

What is the spread of eToro?

eToro spreads start at 1 pip. They may differ based on the asset class you are dealing with.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

"Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more"

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

Team that worked on the article

Andrey Mastykin
Author, Financial Expert at Traders Union

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Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.

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Andrey's passion for finance began in 2009, and he has since accumulated extensive experience in trading and investing across various asset classes, including stocks, Forex, and cryptocurrencies.

He has spent over 15 years managing his own capital and working with financial portals, financial institutions, and IT companies, as a financial writer and analyst, further refining his investment expertise.

He is the author of several training courses on investing and trading in financial markets. Led multiple FX/Stocks/Crypto webinar educational presentations. Authored hundreds of articles on the global economy, stock, cryptocurrency, and Forex markets, along with trading strategies. He has also penned hundreds of professional reviews of financial firms.

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