Is eToro Free?
The content provided may be translated and may not be specifically tailored for users in a certain country. Products and services may be restricted or adapted to comply with local regulatory requirements and jurisdictions.
When it comes to costs, eToro’s fee structure varies depending on your country of residence and the assets you trade. The platform does not charge a separate fee for using its CopyTrader feature, allowing users to copy other investors without additional copy trading charges.
However, trading certain instruments on eToro is not free. The platform offers access to Forex, cryptocurrencies, stocks, ETFs, and CFDs, with trading costs typically incorporated through spreads, conversion fees, or other applicable charges. As a result, while some platform features can be accessed without direct fees, trading activity may involve costs depending on the asset and market.
What are eToro fees?
Compared with many online brokers, eToro’s fees are relatively straightforward. While costs vary depending on the assets traded and the investor's location, the platform is generally considered competitively priced for stock investing and social trading. Investors should still review applicable spreads, currency conversion fees, withdrawal charges, and other costs before trading.
In addition to its standard account, eToro offers the eToro Club, a loyalty program for clients with higher account balances. The program consists of five tiers: Silver ($5,000), Gold ($10,000), Platinum ($25,000), Platinum+ ($50,000), and Diamond ($250,000). As clients move up the tiers, they may receive benefits such as access to premium market analysis, dedicated customer support, exclusive webinars and events, fee discounts, and other account-related perks. The exact benefits vary by tier and jurisdiction. Let’s review eToro’s charges on key instruments.
U.S. stocks (direct)
eToro offers commission-free stock investing in some jurisdictions and for certain products, while commission charges may apply in others. Investors should review the fee schedule applicable to their country of residence and the market they intend to trade.
Cryptocurrencies
eToro charges fees for cryptocurrency trading. In many regions, a standard 1% fee applies to crypto purchases and sales, although reduced rates may be available through certain account tiers. Market spreads can also vary depending on liquidity and market conditions.
CFDs
CFD trading on eToro generally involves spreads and, for positions held overnight, financing charges. Additional currency conversion fees may apply when deposits, withdrawals, or investments involve currencies different from the account's base currency.
Is eToro a cheap broker?
Overall, eToro is generally considered a competitively priced broker, although the total cost depends on the assets traded and the investor's location. Costs associated with spreads, crypto trading, currency conversion, and withdrawals should be considered when evaluating the platform.
FAQs
Will I need a tax document for trading on eToro?
All citizens and legal residents of the United States receive a Consolidated 1099, as long as they have reportable tax activity. In terms of dividends and interest, de minimis is $10; when it comes to fraction shares, it’s $20, and for miscellaneous income, the minimum is $600.
What is a W9 Form?
The W-9, is known as a Request for Taxpayer Identification Number and Certification. It is an IRS form that is used to get the information required to accurately report the payments you’ve received and show whether you should be subject to backup withholding.
How will I get my tax information for my cryptocurrency trades?
In order to generate your 1099-B and 1099-K informational reports, you can login to your account directly and find your reports in Account Settings under Cryptocurrency.
Will I need a 1099 Form?
If you are investing funds on eToro, you will most likely receive a 1099 form. The United States division of eToro issues only Form 1099-MISC to the IRS for all users; This form is specifically used to report miscellaneous income. As of 2021, eToro USA no longer issues the 1099-K form to the IRS and our customers. Rather, the company now provides informational 1099-K’s and 1099-B’s, which may be helpful for tax filing.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
52% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
"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.
Related Articles
Team that worked on the article
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.
He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.
Also, Andrey is a member of the National Union of Journalists of Ukraine (membership card No. 4574, international certificate UKR4492).
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
