eToro, the multi-asset investment platform, is scrapping commission fees for customers buying or selling stocks and ETFs on its platform. Clients using eToro to invest in stocks or Exchange Traded Funds will be charged zero commission, Stamp Duty and management fees.
Iqbal V. Gandham, UK Managing Director at eToro said: “We want to get more people investing. Research shows that there is a huge difference in the costs charged by providers for investing in stocks. We’ve seen greater scrutiny of fund fees but not yet the same awareness of the excessive fees some providers are charging for stocks.”
Research by gbi2 examined the cost of buying UK, US and German-listed stocks on nine UK platforms including eToro. The research looked at the cost of buying stocks at three price points per company/stock: £1,000, £10,000 and £100,000. The research highlights significant disparities in the cost to buy and sell stocks with some platforms charging investors as much as double other platforms.
Graham Bentley, Founder of gbi2 said: “There is so much variance in costs across the market for buying stocks. No one platform has the same fee structure and often you have to spend hours of research to understand fees. It’s a problem.”
Scrapping commission fees means that eToro is now one of the most competitively priced brokers to buy and sell stocks with in the UK.
Investors with eToro will be able to follow Popular Investors on their platform, who openly share their investment strategies and stock picks for others to learn from or copy.
Iqbal V. Gandham continued: “We want to encourage more people to invest in stocks. Going commission free is an important first-step, but it’s not enough. We need to get people excited about investing. In 1986, the Tell Sid campaign created a generation of new investors. It showed that investing is not just for the wealthy. We need to bring back Sid.
“We need to show people that their passion and expertise can count for something. They know when a product or service is proving popular and performing well; and they know when a company is delivering because they experience it on the ground. This is knowledge that can inform good investment decisions. It’s time to put this knowledge to work. It’s time to get Britain investing.”
Zero commission on stocks and ETFs is only available to UK and European clients of eToro UK Ltd. and eToro Europe Ltd. and does not apply to short or leveraged trades. Zero commission means that no broker fee has been charged when opening or closing the position. However, other fees may apply so be sure to do your research before opening an account.