Trading stocks, shares, and other securities can be a lucrative way to invest your money. However, trading also comes with risks. One of the most important things you need to know about trading is that it’s not free.

There are many different fees associated with investing in stocks, like commissions or taxes. So what are etoro fees when you trade on eToro? Here is an overview of what you need to know about fees to make informed decisions in the future.

What are Fees?

A fee is the cost of something we’re paying. It can be something big, like airfare, or small, like your morning cup of coffee. As an investor, you can expect to pay at least one fee to be a part of the investing experience. Every time you purchase a stock or purchase a premium membership on eToro, there is a fee associated with it.

Why are Fees Needed?

Trading on eToro is, like most trading platforms, commission-free. However, there are also other costs for which you will have to pay. Fees are used to cover trading and help fund the investment in the stocks themselves.

If you buy stocks on eToro, then this is not a big problem. All you have to do is check whether the stock you want is available to trade for a fee, and you will avoid paying the commission.

However, if you want to trade on an exchange, like eToro, there will be fees. Some stock will not be available to buy for a fee, but instead, be available for free trading. This means that you will need to pay to get the desired stocks.

Transaction Fees 

Now that you know trading is not free, you may have questions about what are etoro fees and how the fees are charged, and what they’re for.To understand what is happening, you first need to know what fees are being charged. There are two types of transaction fees and their cost varies between eToro and other exchanges. These are listed below.

Subscription Fee: This fee can range between 1,000 and 4,000 yen. This fee is paid to the exchange per month.

Broker Fee: This is the fee that you pay to your broker. Most brokers have a minimum charge associated with it.

Commission Fees 

There are two kinds of fees that are associated with trading on eToro. One is a commission fee, and the other is a trading charge. The first is the so-called ‘fee’, and it’s the total fee that you pay for making a trade. It’s based on the amount you put into the trade, the trading platform you use, the trading frequency, and the time of day you trade.

With some platforms, you will have to pay a fee every time you make a trade. For example, a platform will charge you $4 to $10 for a stock trade with an average percentage of 1.2%. The fee can add up very quickly, and this will be a hidden fee that you may not notice at the time. For stock trades, fees can be roughly 10% or more, which can put a significant dent in your profit.

By Mike H.