eToro Fees Explained: Complete Guide to Spreads, Commissions & Hidden Costs (2025)
When choosing a stock broker, understanding the full fee structure is crucial for protecting your investment returns. eToro remains a popular choice in 2025 for its user-friendly platform and social trading features, but how do its fees truly stack up? This comprehensive guide breaks down everything you need to know about eToro's fee structure, from transparent charges to hidden costs that might surprise you.
Key Takeaways
- eToro offers zero-commission stock trading in most regions, but seven European countries now face new $1-2 per-trade fees
- A 1% fee applies to cryptocurrency trades on both entry and exit, creating a 2% round-trip cost
- Forex spreads start at 1 pip for major pairs, competitive but not industry-leading
- Hidden costs include a $5 withdrawal fee, $10 monthly inactivity fee after one year, and 0.5% currency conversion markup
- CFD trading includes higher spreads than dedicated CFD brokers, ranging from 0.15% to 0.9 points depending on the asset
eToro's Stock and ETF Trading Fees
Commission-Free Stock Trading (With Exceptions)
eToro continues to offer zero-commission stock trading for most users worldwide in 2025. When you buy shares of companies like Apple, Amazon, or Microsoft, you won't pay any commission on these trades. This applies to most markets, including:
- US stocks: $0 commission
- UK stocks: $0 commission
- German stocks: $0 commission
However, it's important to note a recent change: seven countries (Australia, Denmark, Finland, Netherlands, Norway, Spain, and Sweden) now face new $1-2 per-trade fees for stock transactions. ETFs remain commission-free globally, making them an attractive option for portfolio diversification without added costs.
Stock CFDs: The Hidden Cost of Spreads
While real stock trading is generally commission-free, Contract for Difference (CFD) trading comes with costs built into the spread. These spreads can significantly impact your trading profit:
AssetAverage SpreadEquivalent CommissionS&P 500 CFD0.9 points$3.8 per $10,000 tradeEuro Stoxx 503 points$4.2 per $10,000 tradeApple CFD0.15%$10.4 per $10,000 trade
These spreads are typically 2-3 times higher than what you'd find at brokers specializing in CFD trading. For regular traders, these costs can add up quickly and eat into potential profits.
Cryptocurrency Trading Fees
eToro applies a flat 1% fee for buying or selling cryptocurrencies. This fee covers both the commission and spread, making it simple to understand but potentially expensive for active traders. For example:
- Buying $1,000 worth of Bitcoin incurs a $10 fee
- Selling that same Bitcoin later incurs another $10 fee
- Total round-trip cost: $20 (2% of your investment)
This fee structure is significantly higher than dedicated cryptocurrency exchanges.
The higher fees do come with benefits such as regulated custody and insurance up to $1M, which might justify the premium for security-conscious investors.
Forex Trading Costs
For currency traders, eToro offers competitive but not industry-leading spreads.
While these spreads are reasonable for casual forex traders, high-volume or professional traders might find better rates at dedicated forex brokers. eToro doesn't charge additional commissions beyond the spread for forex trading, which keeps the fee structure transparent.
Non-Trading Fees: The Silent Portfolio Drain
Withdrawal Fees
Every withdrawal from eToro costs a flat $5 fee, regardless of the amount or method. This is unusual among modern brokers, many of which offer free withdrawals.
The minimum withdrawal amount is $30, meaning small withdrawals face a proportionally higher fee burden. UK users face an additional 0.5% currency conversion fee when withdrawing in GBP.
Inactivity Fee
If you don't log into your eToro account for 12 consecutive months, you'll incur a $10 monthly inactivity fee. This charge continues until either:
- You log in (resetting the timer)
- Your account balance reaches zero
Compared to other brokers, this inactivity fee is moderate:
BrokerInactivity FeeGrace PeriodeToro$10/month12 monthsIG$18/month2 yearsSaxo Bank$50/month6 months
Simply logging in once a year is enough to avoid this fee, but it's an easy cost to overlook for long-term investors.
Currency Conversion Costs
eToro accounts are denominated in USD. If you deposit or withdraw in another currency, you'll face a 0.5% currency conversion markup (approximately 50 pips). For example:
- Depositing £1,000 → lose approximately £5 in conversion
- Withdrawing €2,000 → lose approximately €10 in conversion
These conversion costs apply each time you move money in or out of your account in a non-USD currency, essentially creating a hidden fee that many users don't factor into their trading costs.
Visual Comparison: Fee Impact on Your Portfolio
To better understand how these fees affect your investments, here's a visual breakdown of the annual fee impact on a $10,000 portfolio:
As you can see, cryptocurrency trading fees and currency conversion costs make up the largest portion of potential fees, with withdrawal charges adding a smaller but consistent drain on returns.
How eToro's Fee Structure Impacts Different Trader Types
Long-Term Stock Investors
For buy-and-hold stock investors, eToro presents an attractive proposition:
- Zero commissions on stock purchases
- No custody or platform fees
- No dividend fees
A simple strategy of buying and holding dividend-paying stocks can be executed with minimal costs. The main concerns would be the withdrawal fee when eventually taking profits and potential currency conversion costs for non-USD users.
Active Traders
Frequent traders face a different cost structure due to spreads and trading fees:
This is why active traders often migrate to specialized platforms with lower spreads and trading costs, even if they come with a less user-friendly interface.
Cryptocurrency Investors
For crypto investors, the 1% fee on both sides creates a 2% round-trip cost that significantly impacts profitability, especially in a market where many coins might only move 5-10% in value over short periods.
However, these fees do include regulated custody with insurance protection, making eToro potentially worthwhile for investors prioritizing security over low fees.
Comparing eToro Fees With Other Popular Brokers
When comparing eToro with other popular brokers in 2025, you can see some clear differences in fee structures:
This comparison shows eToro's strengths in commission-free stock trading, but weaknesses in crypto fees, forex spreads, and non-trading fees compared to specialized alternatives.
The table highlights that while eToro excels with its zero-commission approach for stocks, traders should carefully consider their specific trading habits when evaluating the overall cost structure. For frequent traders or those focused on specific assets like cryptocurrencies, the seemingly small fees can accumulate to significant amounts over time.
How to Minimize Fees When Using eToro
To get the most value from eToro while minimizing fees:
- Focus on commission-free assets like stocks and ETFs
- Make fewer, larger withdrawals to minimize the impact of the $5 fee
- Log in at least once a year to avoid inactivity fees
- Consider using USD as your primary funding currency to avoid conversion fees
- Limit cryptocurrency trading to longer-term positions to justify the 2% round-trip cost
These strategies can help reduce the fee burden while still taking advantage of eToro's user-friendly platform and social trading features.
Real-World Impact of eToro Fees
To understand how these fees affect real-world returns, consider this example:
A trader with a $10,000 portfolio who:
- Makes 25 stock trades per year
- Conducts 10 cryptocurrency trades
- Withdraws funds quarterly
- Uses EUR as their primary currency
Total annual fees:
- Stock trading: $0 (commission-free)
- Cryptocurrency trading: $200 (1% × 10 trades × 2 directions)
- Withdrawal fees: $20 ($5 × 4 withdrawals)
- Currency conversion: $100 (0.5% × $10,000 × 2 conversions)
- Total: $320 (3.2% of portfolio value)
This example shows how even "commission-free" trading can still result in substantial fees for certain user profiles. A 3.2% annual fee drag requires significantly higher investment returns just to break even, making fee awareness crucial for successful investing.
Who Should Use eToro in 2025?
Based on the fee structure, eToro in 2025 is best suited for:
- New investors who value simplicity and social trading features
- Long-term stock and ETF investors who don't make frequent withdrawals
- Casual traders who prioritize user experience over minimizing costs
- USD-based investors who avoid currency conversion fees
eToro may not be ideal for:
- Active traders, especially in forex or CFDs
- Cryptocurrency day traders
- Users making frequent small withdrawals
- Non-USD investors with high deposit/withdrawal activity
Frequently Asked Questions
Are eToro's cryptocurrency fees justified?
While eToro's 1% fee (2% round-trip) is higher than dedicated crypto exchanges, it includes regulated custody, insurance protection up to $1M, and a simpler user experience. For security-conscious investors or beginners, this premium may be worthwhile.
Can I avoid the currency conversion fees?
The only way to completely avoid currency conversion fees is to maintain and fund your eToro account in USD. All non-USD deposits and withdrawals automatically trigger the 0.5% conversion fee.
Is the $10 inactivity fee negotiable?
No, eToro applies this fee consistently after 12 months of inactivity. The easiest solution is to set a calendar reminder to log in at least once a year, which resets the inactivity timer.
How do eToro's fees compare to traditional stockbrokers?
For stock trading, eToro's zero-commission model makes it less expensive than traditional brokers charging $5-15 per trade. However, traditional brokers often offer better execution quality, research tools, and customer service that may justify their higher fees for some investors.
Does eToro charge for dividend payments?
No, eToro does not charge fees for receiving dividends from stocks or ETFs you own on the platform. Dividends are credited to your account according to the company's distribution schedule.
Are there any ways to get reduced fees on eToro?
Unlike some brokers, eToro doesn't currently offer tiered fee structures based on trading volume or account size. The fee structure is standardized across all retail users.
Conclusion: Understanding the True Cost of eToro in 2025
eToro's appeal lies in its user-friendly interface, social trading features, and commission-free stock trading. However, a complete analysis of its fee structure reveals a more nuanced picture that every investor should understand before committing funds.
While the platform excels for long-term stock investors who rarely withdraw funds, active traders face higher costs through spreads, cryptocurrency fees, and non-trading charges that can significantly impact returns.
By understanding these fee dynamics and adjusting your trading strategy accordingly, you can determine whether eToro aligns with your investment goals and financial situation.
Looking for a broker that better matches your specific trading needs? Try our broker matching tool to find the perfect stock broker based on your individual requirements and preferences. You can also read our in-depth eToro review for a complete analysis beyond just the fee structure.
Remember that all investments carry risk, including the potential loss of capital. This article is for informational purposes only and does not constitute investment advice.
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. 51% 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. 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.
