Hey everybody... So, one of the questions I get the most, it's one of the comments I get
the most as well, and it's understandable... is about fees when your copy trading.
People who are just copy trading - they don't want to trade manually, they just want
to copy trade... They want to know what all these fees are about, because, you know
trading's associated with fees, and exchanges are associated with fees, so
what are they? So, basically, if you're just copy trading, there are two types of
fees, really, you need to know about. You could put them in two big categories, all right.
First category is fees which will apply to you - you need to know
about them, because you're going to have to pay them and you're going to say 'what's
that fee about?' The other set of fees, you don't really need to worry about - because
they're part of trading, all right. So I'll explain what I mean about that... Now,
sporadically - sometimes, throughout this video, I'm going to point up here, and a little
'i' will appear, and that's because what I'm about to talk about is a, kind of,
lengthy explanation, and I've made another video which explains it in more
detail. So if you want to find out more about it, and what it really means, then
click on the link... Okay, so - first ones you need to know
about is the withdrawal fee. It's the one most people ask about, that's why I
start with it. When you put money into eToro, and it's sitting there for a while,
you do what you want - you're trading, you've made money, you're copy trading, you want to
take those profits out... Whenever you take money out of eToro, there's a withdrawal
processing fee. So, that withdrawal processing fee - it used to be in
different levels, depending on how much you were taking out, and they changed it
to a one-time flat fee of $25. Now, I'm making this video 1st December
2017 - if you're watching this in future, check that it hasn't changed. The place
that you can check all of this stuff - you go to 'Help', and you can go to here - the 'Fees'
page, and this shows you - it's like your central hub for everything about fees...
There's all stuff about spread fees, and overnight fees; which I'll talk about
later... on 'Other' - here, you can see... that's actually the conversion fees. 'Withdrawal Fee' at the top.
'Withdrawal fee $25 USD, minimum withdrawal amount is $50.' so
the minimum you can withdraw is $50, and you'll get charged a flat $25 withdrawal
fee. If you want to find out more about fees - up here - when that went through, over
here, and what the change was - there's that little thing. But, it basically says
the same thing. When you withdraw money from eToro as a whole - $25 withdrawal fee,
and the minimum you can withdraw is 50. Now, that obviously makes sense to
withdraw larger amounts now, you know, because it means that that $25 is less
of a proportion of the total amount you're taking out. When you move money
around in eToro, and move it from one copier to another person you're copying,
and put a manual trade, and do this, there isn't a fee - that isn't withdrawal fee - if
you keep it in the system, that doesn't apply. This only applies when you take
money out of eToro, back into your bank account. So there's number one - withdrawal fee.
Number two - 'Conversion Fee'. So, when you put money into eToro, the only
currency that's dealt with in Etoro is dollars really... not 'dealt with', because we
trade currencies - but everything is in dollars in eToro...
So, when you put money in - unless you're putting your money into Etoro, directly
into dollars... When you put your money in, it's going to be transferred from your
currency, whatever you use to credit the system - it's going to be transferred into
dollars, okay. That happens when you put money into Etoro, and it also happens
when you take money out of Etoro. It's called the 'conversion fee'. Now, over here...
same page where I was before, you can see the conversion fees 'charged upon deposit
and withdrawal'. So, here they are - here are the conversion fees. Now, people argue
about whether these are good conversion fees or bad conversion fees. A lot of
people say "My God, they're extremely high!" Other people say "No, they're competitive."
And, to be honest, I've asked Etoro "Are they competitive?" and they said we deal
with global clients, you're going to have to check your
local place... They told me - I don't know, it seems a bit weak, but they said "just go
to your bank, and ask them how much they would charge, and you'll be able to
compare against our conversion fees." Fair enough - and I didn't do it, but... and I
asked them "Have you compared your conversion fees to the top five banks in
the world?" and they said "No", because again, so international, we're not going to do that,
and they're always changing, so you'll have to check locally to see if they're
good conversion fees or not... I'm not sure about that, and I hear argument both ways.
Some people say they're great, some people say they're terrible - you know it
really depends, so check that out for yourself...
I just wanted to let you know that, when you put your money in, or when you
take your money out, there are these fees on your deposits and on your
withdrawals, okay. And that's separate from the 'withdrawal
fee' - so when you take your money out, there's the conversion fee from
dollars into your own currency, and there's the $25 withdrawal
fee, okay. Those are two fees you're going to need to know about if you're copy
trading, and they deal with your money - putting your money into the system,
taking your money out of the system, okay. So, for the other types of fees, they're
really - you don't have to know about these other two types of fees -
'spread fees' and 'overnight and weekend fees'... we'll start with spread fees. Again,
if you want to know more about spread fees, up here, I made a video all about
spread fees, where it goes into more detail, and I sort of made that video
from the point of view of 'how do they affect you when you're trading', because
that's what they deal with. A 'Spread Fee' is a fee which is contained within each
trade. Whenever you make a new trade on Etoro, it's how the exchange makes their
money - it's how Etoro makes most of it's money off us. Whenever you make a
trade, it charges a tiny amount of money, which is contained within the trade... So,
whenever you open a new trade, you'll notice it's automatically, instantly
losing money, and you have to make a little bit of money before that trade is
profitable... That little bit of money is the spread fee - it's charged on all
different assets that you trade, it's always charged, and it's how - it goes to
Etoro and really, it's up to the person you're copying - the trader you're
copying - he knows all about the spread fees, and it's part of how he trades. If I
go to, let's say, I go to Tesla... If I want to trade Tesla - here's the price 306.17...
If I click 'Trade' - see, to buy it is 306.66
if I sell it, it's 306.16 - the real price is somewhere in
the middle of those two numbers. You see it changing... That little bit of extra
money that they're charging is their spread fee. It's contained within the
trade itself, and you're never going to have to deal with that. The person you're copying
has the deal with that. A good trader knows how to... trade basically. And that
involves him knowing that the spread fee is part of every trade, and he has to
make profit over and above that. You're not going to need to know about spread
fees, but they exist - they're very interesting, but as a copy trader - meh...
It's up to the guy you're copying to deal with that. Same with overnight fees... So,
the overnight fees... and wait - to find out about the spread fees - if you want to,
again on the 'fees' page - always go back to that page, this shows you all the
different spread fees. They're different depending if you're trading currencies,
indices, commodities, stocks, ETFs - the spread fees are different, they're
different on each one. Check it out on the - on this page. You'll find out all
about your spread fees. So, the other one is 'Overnight Fees and Weekend Fees'. So,
every time you buy a stock, or a commodity, or any assets, they charge you
a little amount, which is known as an overnight fee. It's basically just the
charge for holding that stock, or that asset overnight... And weekend fees are
basically just - they charge you once a week for Friday, Saturday, and Sunday. So,
say you buy it today, and sell it today... You won't get charged these.
But if you buy it today, and sell it tomorrow, you'll get charged for one day.
If you buy it today, and sell it in 6 months time, you'll get charged
6 months-worth of these, okay. So, again that's something that ... - there's also
credits. Some of the things - when you hold them overnight, they'll return
money to you. So sometimes, you'll see in - if I go to my portfolio, again... you see
here... Mr Fastik has incurred me fees... He's incurred
me - $2.20 in fees. However, Jay has been trading things where, if you
hold it overnight, it actually gives you a little bit of money back, so I've got a
little credit there - yaaay. That's what that is, and that's where that comes from...
So, the fees get charged - I'll go back to the help thing - for every time you hold
something overnight, or over the weekend, you get charged these little fees, and
you don't need to know about them... If your copy trading, again, it's something
that is inherent to each trade, and the the trader you're copying has to make
money. Here they are, look - here's the overnight fees on different things. So,
they're very tiny fractions, you know, but they can add up... and if you use leverage,
they will be amplified, you know. Some things - stocks, for instance 'Please note
we will not charge holding fees for non leverage buy positions.' So, when you buy a stock,
and you don't use leverage, you don't get charged these. When you buy an ETF, as
well - look 'not charge holding fees for non leverage positions' - so if you buy an
ETF, and you don't use leverage, you won't get charged on them - which means you can hold on
to them for a long time... These are things the person you're copying needs to know
about, not you, If all you do is copy trading... The second you want to
start manually trading, you need to know about these, because they do have an
effect, okay. So watch those videos - I'll link to one up here, which is
also about overnight fees and weekend fees. So, basically there are fees.
The other one you might need to know about is - and it's a bit rare, I've never
heard of anyone having to actually deal with this - it's an 'Inactivity Fee'. So, 'when an
account has been deemed inactive...' which means no login for twelve months 'for a
depositing account...' a depositing account is basically an account where you've put
money in. There are other accounts, but if you've put money in - which all of you
probably will have, and I have, then it's a depositing account. Basically, if we don't
use our account - we don't log in to Etoro at all for twelve months, they're
going to start charging us $5 per month. So log in, you know - because
after twelve months they'll start charging you that $5 just to maintain
the account, or something. But I've never heard of anyone actually having to do
that, so that's it really. The ones you need to know about, if you're copy trading...
You're going to get charged withdrawal fees, and you're going to get charged conversion fees.
when you put your money in, and when you take your money out.
The ones which do apply to you, because whenever your copy trading, you're still
trading - you're still, you know, buying an asset, and selling an asset, and holding
an asset - so all the fees apply, it's just it's up to - it's on the person you're
copying to know about them. He has to make profit despite these fees, because
all those fees are contained within the trades, okay. They're not going to show up
externally, they're within the trades. So, those are the spread fees and the
overnight and weekend fees. So, the only exception to that - about "it doesn't
affect you" - fees, overnight fees and weekend fees... They don't affect you if
you're copy trading, because realistically, you just care about whether someone is
making you profit, or not making you profit. If they're not making profit, you go
and find someone else to copy, you know... However, when you're looking for people
to copy - this happened to me ... that if you copy someone who's using a lot of
leverage in their trades... 'Leverage' is like a multiplier effect which you can
use. If people choose to use leverage in their trades, and they hold them for a
long time, the leverage also increases the amount of overnight fees and weekend
fees that you get charged. And if they get charged them, you'll see them as well
starting to pop up. So if you go to your portfolio, and you're
copying someone, and you see that there are a lot of fees associated with a particular
trader, that's probably because they're using a lot of leverage, and holding
those assets for a long time. So, that is something to look out for if you're copy
trading. When you're going to pick a new trader, does that person use a lot of
leverage in their trades? And do they use a lot of leverage in trades which they
then hold for a long time? Because I sort of got caught out on that one, so that's
the only thing you need to worry about with overnight fees and weekend fees...
Even so, all of those fees aren't going to be outside of the trade. They're going to be
fees which are within that copy position, and it's really for the trader
you're copying to worry about them. Then, if you don't log in for twelve months,
there's the inactivity fee, you know - I never heard... no one's ever complained
about that one, so that's basically it with fees... for now. I hope you understand that
and watch those videos... If you think about doing manual trading, and not just
copy trading, do actually learn about what spread fees are, and what overnight
fees are, and how leverage affects them, because that's really...you
know, an integral part of trading, okay. So, lastly but not least, is there a fee for
actually copying someone on Etoro? Obvious question. No, there isn't. It's
absolutely free to copy someone - so they do all that work, and they do all the
copy trading, and that's completely free - for us to get them to do it. They get
paid by Etoro - the more copiers they have, the better their benefits, so it's in
their interest to trade well and get more copiers. And we don't get charged
for it, so - no fee to actually copy someone...
But there we are... That's it.