Playing with eToro´s overnight fees/refunds to make more money

You probably know that there are several ways to make money on eToro. But there is also one less know way to make additional profits on this largest social investing network.

Maybe you know that eToro charges you spread fee for each trade you open. That is how they make money. But those are not all fees you pay. eToro also charges you so called overnight fees you pay for holding your trade open. That means, longer you hold your trade open the more fees you pay.

Good news is that there are also overnight refunds. That means eToro pays you a refund for each day you keep your trading position open 🙂

To profit from this you just need to know when overnight fees are applied and when overnight refunds come into play.

Here is an example list of currency pairs and fees:

overnight fees refunds

Let´s take for example NZDUSD…according to the table above, if you open a SELL position you pay evernight fee $1,35 per every 10,000 units.  On the other hand, if you open a BUY position you get paid for each day you hold it. Overnight refund for 10,000 units of this paid is $0,15.

It is easy to check whether the trade you intend to open will have overnight fees or refunds. Just hit the TRADE button of an asset you would like to trade. Pop up like one below opens.

etoro fees refunds

At the bottom below OPEN TRADE button you can either see overnight fees or overnight refunds.  As in example above..if you intend to open BUY NZDUSD trade you will receive overnight refunds. More units you open the bigger this refund will be. Just play with it yourself to get familiar with it. Try to change leverage or amount you like to invest and see how the refund amount will change.

How to make more money playing with overnight fees and refunds?

Now we know that in some situations etoro can actually pay you for holding your trades open. The question is: “How can I profit from it?”

If you check the table above you will notice that some currency pairs have bigger refunds than others. Among best payers are USD/ZAR and USD/Rubble. Their daily refund is 1,49 and 1,5!

Also australian and New Zealand pairs offer good refunds.

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My advice for making more money:

I do not advice to change your trading strategy radically just in attempt to make more money from refunds. If your strategy is already profitable, stick to it. But once you have more trading opportunities, check if your new trade will have fees or refunds and choose the one that can pay you refunds. More trades like that you open, more money from refunds you will make.

Also, if your new trade will have overnight fees, just try to keep your leverage as low as possible so your fees are as low as possible. This way you will save money. But on the other side, if your new trade can pay you refunds, try to use as big leverage as possible because more units you open more refunds you get and more money you´ll make.

Also bear in mind that different currency pairs have different spread size, So do not just go for refunds hunt. Before you open a new trade, consider how big your spread fee will be.

You can find full list of eToro overnight fees and refunds here.

Note: “All trading involves risk. Only risk capital you’re prepared to lose. Past performance does not guarantee future results.
This post is for educational purposes and should not be considered as investment advice”

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