Blog 2014-06-06

eToro Fee Change Starts Soon

We wanted to let you know in advance about a change we are about to make to our fees structure that will become effective starting June 15th, 2014.

Up until now, we have been using the Carry Over the Weekend fee to cover our rollover charges. However, we have now decided to switch to the Overnight Rollover fees model consistent with standard industry practices.

What does this change mean?

This change means that starting June 15th, all Carry Over Weekend fees as you know them will be cancelled and instead, we will introduce a new fees model – Overnight Rollover. This new way of calculating fees is in fact not really new at all – Overnight Rollover fees are the industry standard, and are employed by almost all brokers, as it more accurately reflects the supply and demand forces driving the market.

Besides the obvious change of paying a daily fee rather than a weekly one, there’s one more important change you need to be aware of:

With Overnight Rollover fees, the fees are charged according to the direction of a given position (different fees for buy and sell positions, even if they’re on the same instrument) and in some instances, this means that you can get some money back.

As you can see in the sample fees/credits table below, negative numbers which are shown with a minus sign, indicate a fee that is deducted from your account while positive fees indicate an amount that is added to your account. We advise you to take a look at the rollover fees on our Fees page to get familiarized with all the new prices.

Example 1, EUR/USD: With our current Carry Over the Weekend fees, it costs $2 per lot (10,000 currency units) to hold a buy or sell EUR/USD position over the weekend. In our new structure, with a daily “Sell” fee of $0.23, if you were to carry a Sell position for 7 days (a comparable period to our existing Carry Over the Weekend fee), it would cost you $1.61 – less than our current fee. Moreover, you will receive $0.01 per lot for holding a “Buy” EUR/USD position overnight.

Example 2, GBP/USD: With our current Carry Over the Weekend fees, it costs $1 per lot (10,000 currency units) to hold a buy or sell GBP/USD position over the weekend. In our new structure, with a daily “Sell” fee of $0.60, if you were to carry a Sell position for seven days (a comparable period to our existing Carry Over the Weekend fee), your cost would increase to $4.20 compared to $1. However, the overnight rollover for a Buy position is plus $0.03, and so you will have $0.21 credited to your account for carrying this position for seven days, as opposed to the $1 it would cost under the old system.