You can now Invest in Stocks without Commissions on eToro

Popular online trading platform, eToro has launched commission free trading for real stocks.  This means you can trade stocks like Netflix, Apple, Tesla and more and you won’t pay commissions.  Previously eToro only offered CFD trading in Australia.  But now you can buy and own the actual stock through eToro.

Investing in U.S Stocks

While you can trade cfd stocks from all over the world on eToro, currently only real stocks are available for U.S listed stocks.  But for many Australians, this is perfect.  I know I’ve always wanted a way to invest in U.S stocks without having to pay the huge commissions that Australian brokers charge.

Commission Free Stocks eToro

Invest in Partial Shares

One of the unique features on eToro is the ability to purchase partial shares.   Alphabet (the holding company that owns Google), trades at over $1400 a share.  This is way out of reach for more small investors.  On eToro you can buy just $50 worth of a share.    This means you can invest using less capital.

Buying Shares on eToro: What you need to know

  • No commissions – on real stocks, eToro doesn’t charge a commission.  For CFD long positions that are unleveraged there are also no fees.  You are charged fees for short positions (I don’t recommend new traders experiment with short positions.  eToro makes money from the spread.  This is the price difference between the bid and ask prices.
  • ETFs – eToro lists a number of ETFs that are listed on U.S exchanges.  These are popular assets to diversify a portfolio.
  • CopyTrading – eToro has a unique copy trading feature that lets you automatically copy the trades made by more experienced traders.  A great way to learn about trading while investing at the same time.
  • PayPal, Credit Cards and Bank Deposits Supported – you can deposit money to trade using a credit card, PayPal or bank deposit.
  • Minimum First Deposit – When you open an account the minimum first deposit for Australian’s is $50.  If you’re looking to invest less than that, I would recommend Raiz or Spaceship.
  • Other Fees – eToro charges a $5 withdrawal fee.  Remember there are also fees for trading commodities and forex etc.  eToro will show you what fees they charge before you open a position.

What is eToro?

eToro is a multi-asset trading platform.  You can trade stocks, forex, commodities and cryptocurrency.  They have been around since 2006 and have over 13 million customers.

In Conclusion

I think this is a great move by eToro.  I’m excited to be able to invest and hold real stocks through eToro and save on commissions.  I also like being able to invest with as little as $50 at a time. Hopefully eToro adds real stock trading to more exchanges.    I would also love to see eToro add Australian stocks.

Find out more about eToro here.

Always remember that with any trading platform, your capital is at risk.

 

This post is for educational purposes and should not be considered as investment advice. This post is based on individual experience and journalistic research.

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