Copy Trading Fees on Etoro

Hey everybody… So, one of the questions I get the most, it’s one of the comments I get the most as well, and it’s understandable…
is about fees when your copy trading. People who are just copy trading – they
don’t want to trade manually, they just want to copy trade… They want to know what all
these fees are about, because, you know trading’s associated with fees, and
exchanges are associated with fees, so what are they? So, basically, if you’re
just copy trading, there are two types of fees, really, you need to know about. You
could put them in two big categories, all right. First category is fees which will apply to you – you need to know about them, because you’re going to have to pay them and you’re going to say ‘what’s that fee about?’ The other set of fees, you
don’t really need to worry about – because they’re part of trading, all right. So
I’ll explain what I mean about that… Now, sporadically – sometimes, throughout this
video, I’m going to point up here, and a little ‘i’ will appear, and that’s because what
I’m about to talk about is a, kind of, lengthy explanation, and I’ve made
another video which explains it in more detail. So if you want to find out more
about it, and what it really means, then click on the link…
Okay, so – first ones you need to know about is the withdrawal fee. It’s the
one most people ask about, that’s why I start with it. When you put money into
eToro, and it’s sitting there for a while, you do what you want – you’re trading, you’ve made money, you’re copy trading, you want to take those profits out… Whenever you take
money out of eToro, there’s a withdrawal processing fee. So, that withdrawal
processing fee – it used to be in different levels, depending on how much
you were taking out, and they changed it to a one-time flat fee of $25. Now, I’m
making this video 1st December 2017 – if you’re watching this in future,
check that it hasn’t changed. The place that you can check all of this stuff – you go to
‘Help’, and you can go to here – the ‘Fees’ page, and this shows you – it’s like your
central hub for everything about fees… There’s all stuff about spread fees, and
overnight fees; which I’ll talk about later… on ‘Other’ – here, you can see… that’s
actually the conversion fees. ‘Withdrawal Fee’ at the top. ‘Withdrawal fee $25 USD,
minimum withdrawal amount is $50.’ so the minimum you can withdraw is $50, and
you’ll get charged a flat $25 withdrawal fee. If you want to find out more about
fees – up here – when that went through, over here, and what the change was – there’s
that little thing. But, it basically says the same thing. When you withdraw money
from eToro as a whole – $25 withdrawal fee, and the minimum you can withdraw is 50.
Now, that obviously makes sense to withdraw larger amounts now, you know,
because it means that that $25 is less of a proportion of the total amount
you’re taking out. When you move money around in eToro, and move it from one
copier to another person you’re copying, and put a manual trade, and do this, there
isn’t a fee – that isn’t withdrawal fee – if you keep it in the system, that doesn’t
apply. This only applies when you take money out of eToro, back into your bank
account. So there’s number one – withdrawal fee. Number two – ‘Conversion Fee’. So, when
you put money into eToro, the only currency that’s dealt with in Etoro is
dollars really… not ‘dealt with’, because we trade currencies – but everything is in
dollars in eToro… So, when you put money in – unless you’re
putting your money into Etoro, directly into dollars… When you put your money in,
it’s going to be transferred from your currency, whatever you use to credit the
system – it’s going to be transferred into dollars, okay. That happens when you put
money into Etoro, and it also happens when you take money out of Etoro. It’s
called the ‘conversion fee’. Now, over here… same page where I was before, you can see the conversion fees ‘charged upon deposit and withdrawal’. So, here they are – here are
the conversion fees. Now, people argue about whether these are good conversion
fees or bad conversion fees. A lot of people say “My God, they’re extremely high!” Other people say “No, they’re competitive.” And, to be honest, I’ve asked Etoro “Are
they competitive?” and they said we deal with global clients, you’re going to have to check your local place… They told me – I don’t know, it seems a bit weak, but they said “just go to your bank, and ask them how much they
would charge, and you’ll be able to compare against our conversion fees.” Fair
enough – and I didn’t do it, but… and I asked them “Have you compared your
conversion fees to the top five banks in the world?” and they said “No”, because again, so international, we’re not going to do that, and they’re always changing, so you’ll
have to check locally to see if they’re good conversion fees or not… I’m not sure
about that, and I hear argument both ways. Some people say they’re great, some
people say they’re terrible – you know it really depends, so check that out for
yourself… I just wanted to let you know that, when
you put your money in, or when you take your money out, there are these fees
on your deposits and on your withdrawals, okay.
And that’s separate from the ‘withdrawal fee’ – so when you take your money out,
there’s the conversion fee from dollars into your own currency, and
there’s the $25 withdrawal fee, okay. Those are two fees you’re going
to need to know about if you’re copy trading, and they deal with your money –
putting your money into the system, taking your money out of the system, okay.
So, for the other types of fees, they’re really – you don’t have to know
about these other two types of fees – ‘spread fees’ and ‘overnight and weekend
fees’… we’ll start with spread fees. Again, if you want to know more about spread
fees, up here, I made a video all about spread fees, where it goes into more
detail, and I sort of made that video from the point of view of ‘how do they
affect you when you’re trading’, because that’s what they deal with. A ‘Spread Fee’
is a fee which is contained within each trade. Whenever you make a new trade on
Etoro, it’s how the exchange makes their money – it’s how Etoro makes most of it’s
money off us. Whenever you make a trade, it charges a tiny amount of money,
which is contained within the trade… So, whenever you open a new trade, you’ll
notice it’s automatically, instantly losing money, and you have to make a
little bit of money before that trade is profitable… That little bit of money is
the spread fee – it’s charged on all different assets that you trade, it’s
always charged, and it’s how – it goes to Etoro and really, it’s up to the
person you’re copying – the trader you’re copying – he knows all about the spread
fees, and it’s part of how he trades. If I go to, let’s say, I go to Tesla… If I
want to trade Tesla – here’s the price 306.17… If I click ‘Trade’ – see, to buy it is 306.66 if I sell it, it’s 306.16 – the real price is somewhere in the middle of those two numbers. You see
it changing… That little bit of extra money that they’re charging is their
spread fee. It’s contained within the trade itself, and you’re never going to have
to deal with that. The person you’re copying has the deal with that. A good trader
knows how to… trade basically. And that involves him knowing that the spread fee
is part of every trade, and he has to make profit over and above that. You’re
not going to need to know about spread fees, but they exist – they’re very
interesting, but as a copy trader – meh… It’s up to the guy you’re copying to deal
with that. Same with overnight fees… So, the overnight fees… and wait – to find out
about the spread fees – if you want to, again on the ‘fees’ page – always go back to
that page, this shows you all the different spread fees. They’re different
depending if you’re trading currencies, indices, commodities, stocks, ETFs – the
spread fees are different, they’re different on each one. Check it out on
the – on this page. You’ll find out all about your spread fees. So, the other one
is ‘Overnight Fees and Weekend Fees’. So, every time you buy a stock, or a
commodity, or any assets, they charge you a little amount, which is known as an
overnight fee. It’s basically just the charge for holding that stock, or that
asset overnight… And weekend fees are basically just – they charge you once a
week for Friday, Saturday, and Sunday. So, say you buy it today, and sell it
today… You won’t get charged these. But if you buy it today, and sell it
tomorrow, you’ll get charged for one day. If you buy it today, and sell it in 6 months time, you’ll get charged 6 months-worth of these, okay. So, again
that’s something that … – there’s also credits. Some of the things – when you
hold them overnight, they’ll return money to you. So sometimes, you’ll see in
– if I go to my portfolio, again… you see here… Mr Fastik has incurred me fees… He’s incurred me – $2.20 in fees. However, Jay
has been trading things where, if you hold it overnight, it actually gives you
a little bit of money back, so I’ve got a little credit there – yaaay. That’s what
that is, and that’s where that comes from… So, the fees get charged – I’ll go back to
the help thing – for every time you hold something overnight, or over the weekend,
you get charged these little fees, and you don’t need to know about them… If
your copy trading, again, it’s something that is inherent to each trade, and the
the trader you’re copying has to make money. Here they are, look – here’s the
overnight fees on different things. So, they’re very tiny fractions, you know, but
they can add up… and if you use leverage, they will be amplified, you know. Some
things – stocks, for instance ‘Please note we will not charge holding fees for non
leverage buy positions.’ So, when you buy a stock, and you don’t use leverage, you don’t get
charged these. When you buy an ETF, as well – look ‘not charge holding fees for
non leverage positions’ – so if you buy an ETF, and you don’t use leverage, you won’t
get charged on them – which means you can hold on to them for a long time… These are things
the person you’re copying needs to know about, not you, If all you do
is copy trading… The second you want to start manually trading, you need to know
about these, because they do have an effect, okay. So watch those videos –
I’ll link to one up here, which is also about overnight fees and
weekend fees. So, basically there are fees. The other one you might need to know
about is – and it’s a bit rare, I’ve never heard of anyone having to actually deal
with this – it’s an ‘Inactivity Fee’. So, ‘when an account has been deemed inactive…’ which
means no login for twelve months ‘for a depositing account…’ a depositing account
is basically an account where you’ve put money in. There are other accounts, but if
you’ve put money in – which all of you probably will have, and I have, then it’s
a depositing account. Basically, if we don’t use our account – we don’t log in to Etoro
at all for twelve months, they’re going to start charging us $5
per month. So log in, you know – because after twelve months they’ll start charging
you that $5 just to maintain the account, or something. But I’ve never
heard of anyone actually having to do that, so that’s it really. The ones you
need to know about, if you’re copy trading… You’re going to get charged withdrawal fees, and you’re going to get charged conversion fees. when you put your money in,
and when you take your money out. The ones which do apply to you, because
whenever your copy trading, you’re still trading – you’re still, you know, buying an
asset, and selling an asset, and holding an asset – so all the fees apply, it’s just
it’s up to – it’s on the person you’re copying to know about them. He has to
make profit despite these fees, because all those fees are contained within the
trades, okay. They’re not going to show up externally, they’re within the trades.
So, those are the spread fees and the overnight and weekend fees. So, the only
exception to that – about “it doesn’t affect you” – fees, overnight fees and
weekend fees… They don’t affect you if you’re copy trading, because realistically,
you just care about whether someone is making you profit, or not making you
profit. If they’re not making profit, you go and find someone else to copy, you know…
However, when you’re looking for people to copy – this happened to me … that if you
copy someone who’s using a lot of leverage in their trades… ‘Leverage’ is
like a multiplier effect which you can use. If people choose to use leverage in
their trades, and they hold them for a long time, the leverage also increases
the amount of overnight fees and weekend fees that you get charged. And if they
get charged them, you’ll see them as well starting to pop up. So
if you go to your portfolio, and you’re copying someone, and you see that there are a
lot of fees associated with a particular trader, that’s probably because they’re
using a lot of leverage, and holding those assets for a long time. So, that is
something to look out for if you’re copy trading. When you’re going to pick a new
trader, does that person use a lot of leverage in their trades? And do they use
a lot of leverage in trades which they then hold for a long time? Because I sort
of got caught out on that one, so that’s the only thing you need to worry about
with overnight fees and weekend fees… Even so, all of those fees aren’t going to
be outside of the trade. They’re going to be fees which are within that copy position,
and it’s really for the trader you’re copying to worry about them. Then,
if you don’t log in for twelve months, there’s the inactivity fee, you know – I
never heard… no one’s ever complained about that one, so that’s basically it
with fees… for now. I hope you understand that and watch those videos… If you think
about doing manual trading, and not just copy trading, do actually learn about
what spread fees are, and what overnight fees are, and how leverage affects them,
because that’s really…you know, an integral part of trading, okay. So,
lastly but not least, is there a fee for actually copying someone on Etoro?
Obvious question. No, there isn’t. It’s absolutely free to copy someone – so they
do all that work, and they do all the copy trading, and that’s completely free –
for us to get them to do it. They get paid by Etoro – the more copiers they have,
the better their benefits, so it’s in their interest to trade well and get
more copiers. And we don’t get charged for it, so – no fee to actually copy
someone… But there we are… That’s it.

39 thoughts on “Copy Trading Fees on Etoro

  1. Again very useful video thank you! Dude why you don’t have Facebook page where we can share our experience from the copy trading and talk who is the right choice trader to copy that will be very helpful as well just thought to share my idea with you.

  2. i really don't know why u have only 1.5k subscribers!! and i don't know why i didn't find your channel at past!
    your videos really useful and helpful for the beginners in eToro. also in fact i know that eToro take a $25 fees for withdrew but this is my first time i know about all these kinds of fees especially that i'm a Manual trader!! Thank you for sharing this with us. i think i should be go to my account and read all the Help center :D!

  3. Please make a video on the sites you use to learn about trading, and why. Which ones you like the most and why.
    But different than this one which is very light talk.
    Would be a video like a guided tour on those sites, what you look for, which sections, what info, the ones you have account at and so on.

    Also a video on the videos on youtube you like the most and from which you've learned the most would be really cool to follow.

    Cheers, keep up the good work.

  4. In the Deutsche Bank they say you pay 8 € per order and that's it. Why does etoro have all these fees? Why is it so opaque?

  5. Sir your videos are very useful for us please made 1 video for etoro entry point how to verify entry point thank you

  6. I'm not sure if eToro makes most of the money on spreads…
    I think that they make the most of the money decreasing real value of the trades currently on rise.
    For an instance when Litecoin reached $540 they gave just $380 (or 320 ?? don't remember exactly).
    This is a huge money comparing to spreads I guess so…

  7. The no login charges seem unnecessary, they could catch you out if your a part timer or have a busy year for whatever reason

  8. If the withdraw fee is 25$, means that i have to withdraw 75$ to get 50$ or just that i can take 25$ withdrawing 50$? (Sorry for my english but im italian ahah)

  9. Hi,
    I hope you have heard about the "Stop Loss" cancelled on all cryptocurrencies by eToro. Do you think it is sensible now to stop trading cryptocurrencies on eToro because of this decision? I have invested quite a lot in 3 of the cryptos. But I do have some investment Tech stocks as well. I was fearing that there might be big sell off of the cryptos because of this decision.
    Thank you for your help

  10. Pretty useful content. If the videos are aligned as step1,2,3 it will be better too ! Thanks loads pretty good

  11. Last week I noticed that I incurred a large fee of $5 for a trader I copied with only $100. I enquired about this but the trader did not know and told me to check with etoro, who did not respond. After watching your video I realize that he is using a high leverage and holding trades long term. I wonder if I should stop copying this trader. I’ve only made 5% ( 62 dollars in 4 months) . Your thoughts?

  12. Hey Thomas, really good videos. I saw in another one of your videos you said the etoro currency conversion fees are actually quite competitive and theres really no need to convert to USD elsewhere before depositing. So is that something you've found out since making this video or do you still recommend checking locally for better rates? I'm converting from GBP.

  13. I've had issues on removing my money from a trader. Can you explain how that works? Thank you

  14. Best explanation bro.. how about forex trading do they have on etoro? Make more video for 2018..

  15. @Social Trading Vlog Hi, how much (%) etoro will charge on profit if the leverage would be X10?

  16. I copied someone but there is fee on portfolio that i've copied. what does that mean?

  17. Very useful video… I immediately subscribed to your channel… Looking forward for more… keep the good work

  18. with conversion fees and withdrawal fees, you can reckon this will reduce your money by some 10% on a $1000 account compared with the trading "profit" amounts and then the spread fees and overnight fees reduce it even more! Very difficult to make a profit for an individual, but eToro make loads of money from you

  19. thanks for the videos, I understand that there is a conversion fee, trading fee etc. You have produced very useful videos and I have just started copy trading which looks promising. I was wondering for copying traders- is there a commission fee on the overall amount invested levied by etoro or the copied trader, I heard that the copied trader can make up to 2% of the overall amount and is there a deduction made on your profits too?

  20. Hi! Thank you very much for all your informative videos! They have been really helpful!
    I have a question regarding the fees which I'm hoping you could answer: How are the "positive fees" accumulated? I sometimes see these small amounts of money credited to my account and I see which trade they came from, but I can't quite figure out the mechanism behind when and what amount of money gets credited to a trade.
    Thanks again for all the detailed information! 🙂

  21. So basically, if im a copy trader, all that i need to really concern about is the conversion fee and the withdrawal fee, ok thanks

  22. Hi i am using demo account and i am copying traders do i have to constantly look at the profit i make and close it when i think its high enough? Or does the trader that i am copying closes ot himself when the maximum amount of profit is made?

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