▲ 6 r/Etoro
eToro is good but expensive
I was trading gold, and an extrI've realized that eToro has a lot of fees which can make day trading CFDs profitably become hard.
E.g. Open sell on Gold:
- eToro spread is 10-15 pips during normal, non-volatile market. IC Markets is 6-10 pips. Also recall they can manipulate spread somehow so they eat into your closing (had 100 pips scam spread the other day.) Their response is attached.
- Opening cost if 0.15% of trade, closing also 0.15% so 0.3% total e.g. for $400 trade you pay $1.2 USD. ICMarkets charges $7 per lot. For $400 x 20 leverage = $8000 trade, IC Markets charges $0.14 - 0.28 max.
- Overnight cost for eToro buy trade is $1.78 (weekday), $5.33(weekend) for $400 trade. ICMarkets costs around $0.2-$0.5 for weekday. Weekend swaps vary.
Total costs
| Fee Component | eToro | IC Markets/MT4 broker |
|---|---|---|
| Open/Close Fees | $1.2 | $0.14 |
| Spread Cost | ~$2.00 | ~$0.60 |
| Overnight (3 days) | $5.34 | $2.7 |
| Withdrawal cost | $5 | $0 |
| TOTAL COST | $8.5 + $5 | $3.44 + $0 |
Now imagine incurring those costs regularly. Almost 3x as expensive!
P.S: I think eToro is great for market access & convenience, but they charge heavily for this.
My take
Maintain eToro for long term investing(1-3 years) or beginner trading, not for trading CFDs.
u/AnimatorPerfect6709 — 8 days ago