Is eToro Free?
When it comes to the cost of the eToro platform, it depends on where you live. However, the platform also doesn’t charge a separate fee for copy trading.
On the other hand, eToro does provide access to Forex trading, cryptocurrencies, and CFDs (currencies, commodity futures, and shares). However, these services are not free. Therefore, you can use the platform for free, up until the point in which you want to use the services mentioned.
What are eToro Fees?
When compared to other brokers, eToro’s fees are considered to be quite enticing. These fees are relatively low and there is also not much to worry about in terms of hidden fees. Moreover, there are also special accounts available for those who invest heavily in the platform. These special tiers are also free of charge and given to those with account balances over $5000 but under $250,000.
US Stocks (direct)
There are presently no fees associated with the direct investment into US stocks. However, there are typically fees to pay when it comes to trading them.
Cryptocurrencies
On the other hand, eToro does charge fees for the trading of cryptocurrencies. In particular, eToro charges a percentage per spread, which are the fees that constitute the difference between the bid and the offered price. Also, when volatility is high, the amount of these fees can vastly fluctuate. Nevertheless, the percentage is still typically relatively low; the spread percentage can vary, usually between 1-4%.
CFDs
Lastly, when it comes to CFDs, there are also fees to be aware of. The platform does charge a fee for CFDs. In particular, the platform is known to charge for CFDs and currency conversion in pips.
Is eToro A Cheap Broker?
As mentioned, there is a wide variety of trading platforms to choose from. Overall, eToro is considered to be a relatively cheap/free broker. In terms of CFD trading, eToro offers competitive fees that are average when compared to similar platforms. Also, when speaking in terms of trading cryptocurrencies, the commissions are actually above average.
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.
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 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.
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.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.