eToro have promoted a tweet comparing their fees to Freetrade obviously making them looking cheaper - how have they calculated the ‘total trading cost’? Seems very misleading.
Wow, eToro actually pay your stamp duty. They’re using stocks as a loss leader to attract users to their CFD/crypto or other profit making services.
They do charge a $25 withdrawal fee.
Not sure how they calculated the fees, but it wouldn’t surprise me if under some circumstances they made be cheaper. After all, they use share dealing as a lure to get people’s into CFDs, where people typically lose money and fees are higher.
The party won’t last for them, I’d be surprised if the FCA won’t start sniffing around CFDs soon.
I presume the total trading cost included both a buy and a sell, as well as the stamp duty and 2x the spread for both buy and sell trades.
so its 10 + 1+ 0.25 + 1 +0.25= 12.5
It’s disingenuous to knock off stampduty and include it for others, as that’s a tax not a fee so they must be paying it themselves as a loss leader.
This must be it - thank you. Yes, the stamp duty and the fact they are choosing to ignore Freetrade’s free service and use the instant trade fee instead.
Agree. It’s a marketing promotion they can take away at any time.
Other than that they have $25 withdrawal fee, $10 inactivity fee after a year. Who knows what else.
They try and lure you in and fleece you.
Is the free trading instant? Or do they only execute once a day?
Even as a loss leader that’s madness.
It’s definitely unsustainable and seems unnecessary.
I tried to use eToro yesterday. Couldn’t find anything from the AIM outside of the major players. If I was going to do options I’d want it on the wildly volatile stuff.
I use etoro for crypto trades, and freetrade for stocks. The distinction is clear.
I saw this advert. I had assumed it was because there were comparing their CFD service. I’ve not used eToro for a while, but I remember it being unclear to me what instrument was being used when buying. I dare say people will sign up hoping for commission free trading, and end up with CFDs anyway.
The actual analysis was done by ‘Brokerchooser’ which is supposedly an independent third party. Nevertheless I’m still skeptical whether eToro is really absorbing 0.5% on all trades…
From etoro’s web site
However, there is a way to avoid SDRT and still invest in the stock market. To maximise your investment, eToro absorbs the costs of stamp duty on UK stocks.
They are paying it themselves, not “going around and not paying it”
Basically CFD customers are subsidising the stock trading customers. I can’t see this being a pemanent thing
Are you crazy they would bancrupt paying it for all UK stock in few years time And its permament . They don,t pay it and its legal they use small go around
They literally say on their own site they are absorbing the cost, there is no legal small go around
Simple secret : London’s Alternative Investment Market (AIM) Not charge stamp duty at all
They barely list any stocks from the AIM.
No broker charges stamp duty on AIM stocks. That’s hardly a secret
I can’t wait for this explanation.