Check your fees: eToro may be the most cost-effective platform

Most businesses reward their loyal customers, right? But when it comes to investing in financial markets, many platforms seem to take the opposite view – the more you invest, the more you pay.

Thanks to fees and commissions, many investment platforms can feel like a shop that charges you just for walking through the door, or that takes a fee whenever you turn down a new aisle.

eToro is different, which is why among all the leading platforms we are pleased to be the most cost-effective platform.


Your capital is at risk. Other fees apply.

Research into the investment costs of 10 leading platforms has shown eToro to be the cheapest option for investing across UK, European and US markets.

The savings of using eToro can amount to hundreds of pounds on every deal and for those investing larger values, the cost difference between eToro and other platforms can run into the thousands.

The research, carried out for eToro by gbi2, calculated the total costs of various round-trip trades on 10 leading platforms. The study found the full cost of a £2,000 round trip deal to the consumer can be as high as £170, and the average across all 10 platforms is still £90.

At eToro, carrying out the same deal costs just £21.39.

The only platforms that appeared cheaper came with far less choice – limiting investments to just one market or placing a cap on the number of trades that can be carried out per day. As any experienced investor knows, such barriers restrict both your choices and your ability to react to events and make the most of unexpected opportunities.

For those looking to access and invest regularly and with agility across all three of those huge, global markets, eToro is the most cost-effective choice.

Among the platforms that offer access to the UK, European and US, eToro was the cheapest for any investment above £3,250. When three or more trades are carried out, eToro is cheaper for any round-trip deal above £2,000.

The message from our rival appears to be: ‘The only way to invest cheaply is to invest less’.

But eToro takes an alternative approach, providing access across all three of those three major markets, on more than 2,000 popular stocks, with no cap on the number of trades, while keeping costs low.

The higher costs of other platforms are due to three main factors – transaction charges, fees for foreign exchange (FX), and stamp duty. These three costs can put a significant dent in any profits and the more you invest the higher the price.

But eToro is different.

While most platforms levy a charge for each transaction – with most levying between £8 and £10 for every deal – eToro levies none.

Foreign exchange costs can also mount up, with most platforms charging fees of between 1% and 1.5%. Again, eToro levies no charges on trades in foreign currency.

As for stamp duty – levied at 0.5% on UK stocks – we simply absorb this cost ourselves.

Inexperienced investors may miss the significance of these charges. Those in the know take them into account when choosing a platform.

The cost-effectiveness of eToro becomes even more clear for larger investments. As well as looking at round trip deals of £2,000, the research by gbi2 analysed investments of £20,000 and £200,000. In both cases, eToro was cheaper than any other platform able to offer access to all three major markets of the UK, Europe and the US.

And the extra costs of using other platforms are more than just small change. On a round-trip investment of £20,000 an eToro customer would incur total costs of just £182.02. The average across all 10 platforms in the study was £288 and, incredibly, the highest cost a total of almost £500.

Meanwhile, for a £200,000 round-trip deal, eToro cost £1,788.26. Again, the average across all 10 platforms was much higher at £2,044. And the most expensive platform would hit the customer with an eye-watering total cost of £3,400. That’s quite a dent in any profits.

The key to investing is choice – the ability to invest when, where and how you like. Using eToro provides that choice while keeping the costs down.

Invest more – don’t pay more.


Your capital is at risk. Other fees apply.

 

Here’s a UK fee comparison table for stocks below:

IG
Hargreaves Lansdown
Interactive Investor
Revolut
Halifax
Trading212
AJ Bell
Freetrade
Barclays
eToro  
Round trip cost on £2,000 deal
£125.52
£170.33
£157.90
£7.80
£145.93
£8.08
£146.92
£17.04
£51.50
£21.39
Round trip cost on £20,000 deal
£287.61
£396.92
£497.78
£51.01
£441.53
£206.59
£401.21
£170.18
£156.02
£182.02
Round trip cost on £200,000 deal
£1,957.78
£1,623.90
£3,311.00
£483.18
£3,400.53
£2,194.68
£1,727.71
£1,704.64
£1,216.93
£1,788.26

See the full table of comparison here.

Independent research firm gbi2 carried out a study of stocks and shares platforms catering to UK investors in February and March 2021. A total of 10 share trading platforms were looked at including eToro, Hargreaves Lansdown, IG, Interactive Investor, Halifax, Barclays, Revolut, Trading 212, Freetrade and AJ Bell.

Each platform’s costs were tested based on buying three UK-listed shares (Lloyds, BP, Tesco), two US-listed shares (Amazon, Pfizer), and one German-listed share (Volkswagen). Equal amounts of these shares were bought at three price points: £1,000, £10,000 and £100,000, meaning a total theoretical spend of £6,000, £60,000 and £600,000.

All fees were researched and added to the calculation, including any fees on deposits, withdrawals, custody fees, fees on market spreads and stamp duty.

Zero commission is only available to clients of eToro Europe Ltd. and eToro UK Ltd., and does not apply to short or leveraged stock trades. Zero commission means that no broker fee has been charged when opening or closing the position. Other fees apply. For additional information regarding fees visit https://www.etoro.com/trading/fees. Your capital is at risk.

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