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Broker fees explained: commissions, spreads, currency conversion and other costs to compare
What an online broker can charge and how to compare it: commissions, spreads, conversion, withdrawals and a worked example on small trades.
In short
- Costs come from several places: commission, spread, currency conversion, withdrawals, the product itself and sometimes transaction taxes.
- A fixed fee weighs far more on small trades than on large ones, so compare the cost for the amounts you actually plan to invest.
- "No commission" does not mean "no cost": check the other lines of the fee table before you decide.
The costs a broker can charge
| Cost | What it is | When it matters most |
|---|---|---|
| Commission | A fee for each order, fixed or a percentage of the trade | Small trades and frequent trading |
| Spread | The gap between the buy and sell price. It is not always shown as a fee | Less liquid products and volatile moments |
| Currency conversion | A fee when you convert euros into the currency of the account or of the product | Every deposit, withdrawal or foreign-currency trade |
| Deposit and withdrawal fees | Charges for moving money in or out, sometimes with a minimum amount | Frequent or small transfers |
| Account and inactivity fees | Opening, custody or fees for not trading | Long holding periods and dormant accounts |
| Product costs | For funds and ETFs, the yearly cost (TER) is charged inside the product | Long-term holdings |
| Financing costs | Overnight charges on leveraged or borrowed positions | Leveraged products only |
| Transaction taxes | Taxes some countries charge on purchases, for example stamp duty | Specific markets and products |
A worked example: how a fixed fee weighs on small trades
Suppose a broker charges a fixed fee of 2 units of currency to open and close a position together. The same fee is a very different share of the trade:
| Trade size | Fixed fee, open and close | Share of the trade |
|---|---|---|
| 100 | 2 | 2% |
| 1,000 | 2 | 0.2% |
| 10,000 | 2 | 0.02% |
It is an illustration, not a quote from any broker. The lesson is that a fee that looks small can erase a large part of the return on a small amount: see fractional shares explained for what this means when you invest small sums.
How to compare two brokers
- Write down your own case: how much per trade, how often, which products and in which currency.
- Add the lines that apply to you: commission, conversion in and out, withdrawal and the yearly cost of the product.
- Read the footnotes: fees often depend on country of residence, exchange or client tier.
- Check the date of the fee table: costs change.
- Remember the costs you cannot see on the table: the exchange rate if you hold another currency, and tax. See taxes on investing with a foreign broker.
A concrete example: eToro's fee table
Data from eToro's official fees page for EU and UK retail clients, checked on 3 October 2026, with the conversion fee from the page checked on 2 October 2026. They can change: verify on the site before deciding.
| Line | What eToro's page says |
|---|---|
| Account opening and management | No charge listed for investment accounts |
| Commission on ETFs | Zero commission on ETF trades, regardless of size, for non-leveraged positions |
| Overnight fees on non-leveraged stocks and ETFs | None listed |
| Withdrawal | No charge from local-currency accounts such as EUR; $5 from a US dollar account, with a $30 minimum |
| SEPA transfers (eToro Money) | No charge listed, in and out |
These are the lines where the table looks favourable to small, long-term investors who use the euro account and ETFs. The same page also lists costs to weigh:
- Stock commission: $1 or $2 to open and to close a position, depending on country of residence and exchange. So it is not zero.
- Currency conversion: base 0.75% between the euro account and the dollar account, with Club-tier discounts, and about 1.3-1.5% when depositing euros straight into the dollar account. Details in depositing euros on eToro and what conversion costs.
- Spread: on real assets, eToro describes it as a reflection of market conditions, not a separate charge, but it still affects your price.
- Transaction tax: the page lists a 0.5% UK stamp duty reserve tax on purchases of UK-listed stocks.
- Other products: CFDs, crypto and leveraged products have their own spreads and overnight fees. They carry additional risks and are not covered here.
Whether this suits you depends on how you invest, so run your own numbers with the method above. If you want to see the full fee table on the platform, you can open eToro through my affiliate link. I earn a commission if you open an account: read the disclosure.
Capital at risk. The value of investments can go down as well as up, and you may lose some or all of the money you put in. Copy trading and Smart Portfolios do not remove this risk and are not investment advice. Past performance is not a guide to future results.
Frequently asked questions
Are zero-commission brokers really cost-free?
No. Even without a commission, a broker can earn from the spread, currency conversion, withdrawals or other services, and the products you buy have their own costs. Always read the whole fee table.
Is the spread a fee?
It is a cost, even if it is not listed as a fee: you buy at a slightly higher price than you sell. It is usually smaller on liquid products and larger on thinly traded ones.
Do fees change over time?
Yes. Brokers update their tables, and fees may depend on country, exchange or client tier. Check the date and re-read the table before large decisions.
What does an ETF cost beyond the broker's fee?
The ETF itself charges a yearly cost, the TER, which is taken inside the fund. Compare it separately from the broker's fees. See ETFs versus single stocks.
Does eToro charge commission on stocks?
According to eToro's fee page, $1 or $2 applies when opening and closing a stock position, depending on country of residence and exchange. For ETFs it lists zero commission.
What does a withdrawal cost on eToro?
According to the same page, no charge from local-currency accounts such as euro, and $5 from a US dollar account, with a $30 minimum. Conversion fees can apply if you move between currencies.