free share trading?
Anyone know whats the catch?
Anyone using this ?
Etoro Zero Commission Trading? Anyone Using This
Trying2SaveABuck on 23/06/2019 - 21:46
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Plus it is likely using a margin trading model, so real ongoing costs and risks are a different game than fully owned share trading.
Under this flakey model (margin trading), about 80+% of all traders lose there money against the company hosting the CFDS. IE don't do it, unless you like to lose.
IE just trade fully owned share to gamble with fair odds.
"Zero Commission Trading" also doesn't necessarily amount to much of a saving.
For example at Selfwealth (also no commissions) if I buy, then later sell $200k Telstra shares, the cost is $19 total fees, plus one pip spread cost for roundtrip.
Thus with a shareprice of $3.00 the spread would cost a total of 1/3 of 1%, or $667. Thus extra small fees make little difference, and are just used as a cheap advertising ruse IMO.
Then you have to pay the daily margin costs, which are typically 2.5% to 3% on top of the underlying borrowed currencies official (reserve bank) interest rate. This makes a fully paid account like comsec or selfwealth much cheaper to trade, and safer (chess sponsored) which is the big point.
Thanks i use CMC markets at the moment ill just stick to that
eToro does is not a platform to trade actual shares, you use it to trade "Contracts for Difference" (CFDs) pegged to other assets (shares, commodities, etc). CFDs are a more complex product, and you do not own the underlying asset. Basically, I think you are betting against eToro on whether the underlying asset will go up or down.