etoro 0% commission stocks

MarkWLondon

Hi,

I know, of course, that eToro's traditional offerings of CFDs and FX and the like are nothing more than gambling.

However, I don't see what the "scam" (if any) is in the 0% commission stocks offer that I've seen advertised recently. According to their website, there is no commission of any kind, eToro will absorb any stamp duty payable, and the stock is purchased and held in your name.

I must be missing something. What's in it for eToro? Is this just a loss-leader in the hopes that punters will start playing around with CFDs and FX? Or are there some hidden charges that I am not seeing.

Alexland

Personally I wouldn't be happy doing business with a company that was happy to encourage low knowledge customers into high loss situations for years. As the regulator clamps down on their activities many are trying to get into more traditional investment in order to survive. I am yet to be convinced they are reformed characters.

tin586

They make their money from their spread between buy and sell prices.
As the platform only operates in US$ there will be a currency conversion fee when you pay money in.
Oh, and a withdrawal fee as well, which might make you reluctant to take money out (they hope).

Once you are locked in the casino, they will be delighted to see you playing around with CFDs and FX.

DrSyn

I know nothing about this site. However what I do know is:-

1. There's no such thing as a "Free Lunch".

2. It only looks to good to be true, when you do not know the risks.



Checking two review sites and this turned up:-

https://review.easycounter.com/etoro.com

https://www.scamadviser.com/check-website/etoro.com

2kidsgood3kidsheadache

I wouldn't say Etoro is a scam and most Forex review sites tend to have alterior motives.
2 that don't that I know of are Dittotrade.com and fxtruth.com/

Dird

Alexland wrote: »

Personally I wouldn't be happy doing business with a company that was happy to encourage low knowledge customers into high loss situations for years.

So you don't bank with anyone? Your free accounts are subsidised by people getting into credit card debt

Alexland

Dird wrote: »

So you don't bank with anyone? Your free accounts are subsidised by people getting into credit card debt

True but where you have choice why not go for the more reputable players who are more likely to safeguard your assets and treat you fairly?

Dird

Alexland wrote: »

True but where you have choice why not go for the more reputable players who are more likely to safeguard your assets and treat you fairly?

A different way of making money doesn't make one company less reputable. Otherwise you would be banking with somewhere that only offers paid for accounts

DrSyn

Dird wrote: »

So you don't bank with anyone? Your free accounts are subsidised by people getting into credit card debt

Any "free account" as you call it, is paid for, by the banks not paying someone interest on the use of that money. The bank then loans that money out to other, for which they get paid a large amount of interest.

Alexland

Dird wrote: »

A different way of making money doesn't make one company less reputable.

Of course it does, a reputation is built on how effectively and decently a company is known to conduct itself. Its interesting to see the activities of SVS are starting to become apparent which if known earlier would have made people think twice about investing with them.

Alex

Eco_Miser

DrSyn wrote: »

Any "free account" as you call it, is paid for, by the banks not paying someone interest on the use of that money. The bank then loans that money out to other, for which they get paid a large amount of interest.

Well obviously someone is paying for the 'free' accounts, presumably those paying overdraft fees and interest, but all my banks are both providing a free banking service, AND paying me interest.