When it comes to currency trading, there are a few things you need to know about fees. You need to know which fees to avoid and which ones are necessary. First, it is necessary to understand what an effective fee structure looks like. Many FX brokers and banks have fee structures that are not transparent and often leave traders out in the cold when it comes to calculating their fees appropriately. Here is some important information about the most common fees that are charged by Forex brokers eToro Fees and where they are best avoided.
o Spread: This is the largest fee that is paid by new Forex traders and is calculated as a percentage of the entire trade spread. The spread is the difference in price between two currencies. This fee is calculated as a percentage of both the spread and the price. For example, a $100 transaction cost will result in a spread of ten cents. To make things even worse, spread fees are calculated separately for each individual trade.
o Deposits: The third most common fee in currency trading is the deposit fees. This is charged by eToro to ensure that the broker has their money when they claim your account. If eToro goes belly up, you may not get your deposits back. Deposits must be made prior to starting a new trading account. Deposits must also be made when you first start with eToro; failure to do so will result in a large penalty.
o Handled Money: The last common fee is the handling fees which are calculated as a percentage of the spread cost and the value of the trade. Handling money is required when you need to convert or withdraw your funds. It is also required when sending money to another person or to pay a commission to another party involved in the transaction. You can find more information on handling fees on the currency conversion site.
o Deposits: This fee is one of the lowest paid fees by all currency brokers. This is determined by how much you want to trade. eToro’s minimum deposit methods are twenty, ten, five and two hundred UK pounds. These are the standard deposit methods.
o Minimum Deposit Rates: This is a fee that is charged when you make a transaction that does not meet your requirements. The minimum withdrawal amount is five, the maximum is one thousand UK pounds. The minimum withdrawal amount and maximum withdrawal amount change with every currency conversion. You can find more information on these fees by visiting the currency converter website.
o Currency Conversion: This is not a fee, but it is a service that allows you to make the most out of your money. Currency conversion is free with this service. If you need to convert one currency to another you can do so by clicking on the appropriate currency symbol on the top right corner of the screen. If you need to change the rate of interest in a country you can click on the “petals” of the currency symbol. These are just a few examples of what you can do with this fee.
eToro provides a lot of flexibility and great tools to traders. Traders can get extra features for free or for a very small fee. eToro has an online demo that gives you a taste of how to use their features and tools. The demo allows you to make real money with Forex through using their basic account features. Once you have a real money account you will be able to use the tools and features they offer to increase your profits.