Online broker eToro has issued an update regarding its CFD overnight fee structure.
These changes will be implemented in two phases. Phase One was implemented effective from Monday, July 3rd.
Phase One: Zero Overnight Fees On Short Positions on Most Stocks
eToro is removing overnight fees for short positions on the vast majority (approximately 98%) of available stocks. This change will have a significant impact on eToro clients’ trading experience, and the broker believes it will save you money, especially if you hold short positions.
This applies to all stocks with a yearly borrow cost of less than 10%. Borrow Cost represents the fee associated with facilitating a short position in a specific stock. As a result, instead of paying 6%-8% as of today, the new offering will be a 0% cost on overnight fees for the majority of short stock positions.
Phase Two of the fee structure updates will be announced soon.
