On Monday, leading multi-asset and social investment broker eToro announced that they were scrapping commissions associated with buying stocks or Exchange Traded Funds.
Formerly, eToro charged fees for access to stocks or Exchange Traded Funds (ETFs). Now, this has been scrapped.
This ground-making announcement will mean that clients at eToro will now have a more affordable entry to the global financial markets and not only for the wealthy which has been the case in the past.
What does this mean?
With breaking down the barrier of 0% commissions to the stock market, it means that eToro’s 10 million users will not have to worry about commissions eroding their profits.
That’s not all…
In the announcement on Monday, eToro said that clients will also have an added advantage of not paying any stamp duty costs and management fees in addition to 0% commission. That is a whole lot of savings for the average trader!
Better still, clients residing in the UK who previously had to pay a Financial Transaction Tax of 0.5% will no longer be charged as eToro will absorb these charges. The same goes for the 1% in Ireland, 0.1% in Italy and 0.3% in France.
Now, this service is only available for UK and European citizens who are eToro’s clients.
UK Managing Director at eToro, Iqbal Gandham said that by going commission-free, it will encourage people to invest in stocks and that this first step, although not enough, will get people excited in investing.
According to him, research has revealed that there is a big difference in the charges by providers for investors investing in stocks.
The UK has come under the scrutiny of fund fees over the past twelve months from the Financial Conduct Authority. In February, they issued a statement saying that there are many platforms with complicated fee structures which makes it difficult for clients to compare services.
The UK regulator said that they were considering a ban on exit fees that are charged by retail investment platforms
eToro: Now the most competitively priced
Founder and Managing Director of gbi2, Graham Bentley said that there is a huge variance in the costs for buying stocks in the market. Each platform has a different fee structure, making it a problem and time consuming for traders who have to spend hours researching to understand the fees.
In a research conducted by gbi2, they selected nine platforms in the UK, including eToro, to examine the cost of buying UK, US and German-listed stocks.
They examined the cost of buying stocks with 3 price points per company/stock: £1,000, £10,000 and £100,000.
The result was that there were diverse variances on the costs to buy and sell stocks, with some platforms charging more than double than other platforms.
He concluded saying that with eToro scrapping commission fees, it now makes them one of the most competitive prices brokers for buying and selling stocks within the UK.
What’s the real story?
If a broker charges commission or a dealing charge, it means that even before you begin trading, part of your profits is lost. It does not matter even if the stock you are trading is profitable.
At the end of the day, when you calculate actual gains and deduct the commissions involved, it becomes a big factor in people deciding to buy stocks or not.
How can you actually use this?
Right now as a trader at eToro, investors have direct and profitable access to stocks and ETFs without having to pay excessive commissions, stamp duties and management fees.
What does this mean?
More profits go into your pocket!
Let’s face it, this makes it easy now to trade any stock from the leading global markets that is offered on eToro’s platform and with no limit on the trading volume and commission free.
Their revolutionary platform is easy to use, sign-up is free and requires a low first deposit of only $200. After that, you just need to choose your desired stock and click trade to make your first trade!
Trading at eToro, you will discover a smarter way of investing with their patented CopyTrader which allows you to automatically copy other top traders.
Plus, you can interact, discuss trading strategies and more on eToro’s revolutionary platform.
Pick from the top stocks
eToro offers a variety of top stocks to trade like Alibaba, Netflix and Alphabet to name a few all without paying any commissions.
Best of all, you are able to ‘test drive’ their platform with their free and unlimited demo account that comes with $10K virtual money. This allows you to hone your trading skills using their advanced tools and graphs before investing your own money.
You will also discover that eToro offers many perks such as:
- A big variety of assets to choose from which includes, stocks, bonds, commodities, fiat currencies and cryptocurrencies
- Powerful advanced financial tools
- Daily market analysis, live news feeds, guaranteed stops and more
- Regulated and authorized broker
- Access to eToro’s education program with in-depth trading
- Zero commission charges