Does eToro Offer Real Stocks? CFD vs Real Trading
Many traders ask: Does eToro offer real stocks, or do they only provide CFDs? In this guide, we explain the key differences, what’s available on eToro, and how it affects your investments.
What Are Real Stocks vs CFDs?
Before investing, it’s important to understand the difference between real stocks and CFDs. Both options are available on eToro, but they function differently.
| Feature | Real Stocks | CFDs |
|---|---|---|
| Ownership | Yes, you own the stock | No, you trade price movements |
| Leverage | No leverage | Leverage available |
| Dividends | Yes, you receive dividends | Paid as adjustments |
| Short Selling | No | Yes |
| Trading Fees | Zero commission (selected countries) | Spread + overnight fees |
Does eToro Offer Real Stocks?
eToro offers both real stocks and CFDs, but availability depends on your country and account type.
| Country | Real Stocks | CFDs |
|---|---|---|
| UK & Europe | ✅ Yes | ✅ Yes |
| USA | ✅ Yes | ❌ No (CFDs are banned in the U.S.) |
| Australia | ✅ Yes | ✅ Yes |
| Other Regions | Varies | ✅ Yes (Check local regulations) |
💡 Note: U.S. traders can only trade real stocks and crypto on eToro. CFDs are banned in the United States.
Pros and Cons of Real Stocks vs CFDs
Pros of Real Stocks
Ownership
You own the actual stock, making you eligible for dividends and shareholder rights.
No Overnight Fees
Unlike CFDs, real stocks do not incur overnight or rollover fees.
Long-Term Investment
Best suited for long-term investors looking to build a portfolio over time.
Cons of Real Stocks
No Leverage
Real stock purchases on eToro do not offer leverage, limiting potential gains on small capital.
Slower Execution
Stock transactions rely on market hours and settlement periods, unlike CFDs.
No Short Selling
Real stocks cannot be shorted directly on eToro, while CFDs allow short positions.
Pros of CFDs
Leverage
Trade with leverage to maximize potential profits (but also risks).
Short Selling
CFDs allow you to profit from both rising and falling markets.
Faster Execution
CFD trades execute instantly and do not require settlement periods.
Cons of CFDs
Overnight Fees
Holding CFDs overnight incurs additional charges, reducing profitability.
No Ownership
With CFDs, you do not own the underlying stock and do not receive dividends.
High Risk
Leverage increases potential profits but also amplifies losses significantly.
eToro Fees for Stock Trading
Understanding the costs involved in stock trading is crucial. Below is a breakdown of eToro's fees for real stocks and CFDs.
| Fee Type | Real Stocks | CFDs |
|---|---|---|
| Commission | 0% (for eligible countries) | Included in spread |
| Spread | Market spread | Variable spread |
| Overnight Fees | ❌ No | ✅ Yes (for leveraged positions) |
| Dividend Payouts | ✅ Yes | ✅ Yes (adjustments) |
| Short Selling | ❌ No | ✅ Yes |
Key Takeaways on eToro Fees
- ✅ 0% commission on real stocks in eligible countries.
- 💰 CFDs include spread costs and overnight fees.
- 📈 Real stocks are better for long-term investors.
- ⚡ CFDs allow short selling and leverage, but come with risks.
How to Buy Real Stocks on eToro
Follow these simple steps to purchase real stocks on eToro and start building your portfolio.
Create an eToro account and complete the verification process.
Deposit funds into your account using a supported payment method.
Search for a stock by entering the company name or ticker symbol.
Click the stock and select "Trade" to open the order panel.
Ensure that "Invest in Real Stock" is selected (no leverage applied).
Enter the amount you want to invest and click "Open Trade".
Frequently Asked Questions
Here are some common questions about real stocks vs CFDs on eToro. Click on a question to reveal the answer.
Does eToro offer real stocks?
Yes, eToro offers real stocks for users in eligible countries. If no leverage is applied to a stock trade, it is a real stock investment.
How do I know if I’m buying a real stock or a CFD?
When placing a trade, ensure that leverage is set to 1x. If leverage is applied, you are trading a CFD.
Are there any fees for buying real stocks on eToro?
eToro offers 0% commission on real stock purchases in certain countries. However, currency conversion and withdrawal fees may apply.
Can I sell real stocks on eToro?
Yes, you can sell real stocks at market price. However, short selling is only available through CFDs.
Do I receive dividends on real stocks?
Yes, eToro credits dividends to your account if you own real stocks. CFD traders also receive dividend adjustments.
Final Thoughts: Does eToro Offer Real Stocks?
eToro provides both real stocks and CFDs, allowing traders to choose the investment style that suits them best. Whether you're looking for long-term stock ownership or leveraged CFD trading, eToro has options for you.
If you want to start trading, click below to visit eToro or read our full review.