Investment platform eToro has scrapped its commission fees for its UK and European customers buying and selling stocks and ETFs. Users are now charged zero commission, zero stamp duty and zero management fees for the buying and selling of the investment products.
In addition to stocks and ETFs, eToro offers cryptocurrency on its platform to investors. Iqbal V. Gandham, UK Managing Director at eToro, spoke with ETF Stream last month, saying its platform’s cryptocurrency investors expanded their interests into stocks and believes there will be a similar trend into ETFs.
While eToro still applies fees for cryptocurrency, currency and commodity trading, the purpose of scrapping its commission fees for stocks and ETFs is to attract more individuals to start investing.
The only fees which still apply for stock and ETF trades is the forex conversion. eToro is a US dollar denominated platform so conversion costs apply when depositing and withdrawing.
Gandham cpmmented: "We want to get more people investing. Research shows that there is a huge difference in the costs charged by providers for investing in stocks. We have seen greater scrutiny of fund fees but not yet the same awareness of the excessive fees some providers are charging for stocks."
The commission fee waiver only applies for long and non-leveraged trades.