Freetrade vs Etoro fees comparision

Hi all,

Here an humble attempt to make a fees comparison between Etoro and FT. I used Etoro in the past and currently using FT :slight_smile:

I used Etoro for comparison because it is a close competitor of FT (offering sort of similar products: fractional shares, zero commissions, etc…).

Etoro is a USD based app. So Etoro costs are in USD and the final costs are then converted to GBP.

For comparison I made the following simulation: " An UK investor invests 1000 GBP in APPLE stock ". To simulate an end-to-end process, I considered that the investor transfer the sum to the app(s), make the purchase, close the position with a 20% profit and withdrawals the sum.

Current fees to take into account are:

  • deposit fee

  • withdraw fee

  • Conversion fee from GBP to USD (when buying)

  • Conversion fee from USD to GBP ( when selling)

  • Spread fee (bid/ask):

    • On Etoro the bid/ask spread for Apple is approximatly 0.19%
      • 0.07% spread on the buy price
      • 0.12% spread on the sell price

FT used a 0.45% conversion fee while Etoro charges 50 pip.

Conclusion: overall FT seems to charge lower fees for the General Investment account (GIA). However, the costs are higher if the Plus membership is included. What are your thoughts on this?

Any feedback is appreciated. My simulation may contains some small mistakes but it should give a clear direction.

Can you hold USD balances in etoro?

This is a big issue for an active investment portfolio and would massively skew the balance if you can maintain a USD balance.

when you deposit in Etoro your balance will be in USD.

You have £0 for Freetrade Bid/Ask spread, but there is always a spread. Freetrade don’t show both Bid and ask prices, but the price you get for selling won’t be exactly the same as the buy price at any given moment.

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you are right. On Etoro I could quantified the Bid/Ask spread but I couldn’t do it for Freetrade.