What do I purchase when I buy stocks on eToro?
When you open a non-leveraged BUY (long) position on a stock, you are investing in the underlying asset, and the stock is purchased in your name. This also applies to fractional shares: for example, on eToro, you can invest as little as $50 to purchase part of a share whose price per unit is $1,000.
When you open a non-leveraged BUY (long) position on a stock, you will pay zero commission* — no markup, no ticket fee, no management fee.
eToro also offers additional functions using CFD trading. With CFDs, you can open SELL (short) positions and use leverage. Keep in mind that if you hold a CFD stock position, you do not actually own the stock. Any CFD trade will be marked 'CFD' in the trade line.
The eToro investment platform is not an exchange or a market. This means that you can BUY or SELL stocks within the eToro investment platform, but it is not possible to move open positions out of your eToro account to another broker or to another person. You can, however, close positions and withdraw your funds should you choose to. If you open a stock position on the eToro investment platform, eToro will hold the stocks on your behalf in a segregated omnibus account. Should the company issue dividends, your balance will be updated in accordance with your holdings. However, at the moment, you cannot use the allocated voting rights.
Zero-commission is available to clients of eToro (Europe) Ltd, eToro (UK) Ltd and eToro AUS Capital Limited (AFSL 491139). Click here to learn more. To find out which regulation your account is under, please click here.
All stock trades made on the Copenhagen, Helsinki, Milan, Oslo and Saudi Arabia stock exchanges are executed as CFDs, regardless of the account regulation.