eToro Dividends Explained
** Content does not apply to US users**
When it comes to dividends, eToro is a one-stop-shop for aspiring and seasoned traders alike. With a robust dividends payment system and unique features not found anywhere else, eToro makes it easy to profit and prosper from dividend trading.
In this guide, we’ll take a look at:
- How eToro makes dividend payments
- What eToro pays dividends on
- What makes it so unique
- The highest dividend stocks available right now
- How to maximise dividend profit
Before we get started take a look at our other eToro guides:
Does eToro Pay Dividends?
Yes, eToro pays dividends on a range of instruments including Stocks, ETFs, Real Assets and Indices that pay a dividend. Unlike most brokers, eToro also pays dividends on CFDs. Dividends are paid into or removed from your account balance depending on the position you hold.
A quick note on Real Assets – Dividends are only paid on Non-leveraged ‘Buy' positions for Stocks, ETFs & cryptocurrencies.
How Does eToro Pay Dividends?
The way eToro pays dividends depends on the positions you hold in:
CFDs – If you hold a CFD position, you will receive a dividend on the ex-dividend date (Date of Record) that will be shown in your available balance.
Real Assets – To receive a dividend payment, you must have held the position before the market closes two days before the ex-dividend date (Date of Record).
When Does eToro Pay Dividends?
eToro dividends are usually paid out overnight. They are calculated automatically as refunds and then added to your profits. In case you had eToro fees from holding the stock, the refunds will reduce the accrued fees.
Earn Dividends with eToro
With eToro you can earn dividends on a wide range of financial instruments including stocks, ETFs and even CFDs. You can get started for just $200, or for free with a demo account.
Dividends Tax
In some instances, receiving a dividend payment is taxable depending on the laws of your country of residence. Withholding tax rates vary from country to country, so we recommend contacting eToro directly or speaking with a qualified tax professional.
How to Maximise Profit From eToro Dividends
When you trade on eToro CFDs (Contracts for difference), you have the opportunity to:
- Earn on an upward price movement when you purchase stock
- Earn from a downward price movement when you sell the stock, and
- You can use leverage on your trades.
eToro is an exception in the broker world as most other brokers don’t offer dividends on CFDs. Using the Dividend Calendar and Leverage, the following steps will help you extract profit from your eToro dividends:
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- Research the stocks that will be paying dividends on a particular day
- Open a ‘buy’ position a day before the dividends are paid out for any stocks with opportunity for dividends (use leverage if you intend to increase risk and profits)
- Receive profits from an overnight dividend pay-out
- Close at the opening and repeat the strategy the following day with different stocks
An important point to note is that you should always refrain from purchasing stock when the market is in a downtrend. To predict whether the price of a stock will go up or down the next day, use short-term technical analysis.
Unique Features of eToro
Outside of Copy Trading, the ‘Popular Investors’ programme is another unique eToro feature. It gives rewards to users based on the number of trade copiers they have in the form of monthly commissions (up to $10,000 per month). With these tools available, little or no financial knowledge is needed to get started with an eToro demo account.
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eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
FAQ
Yes. eToro operates following FCA, CySEC and ASIC regulations, meaning that there are measures in place to protect investors.
You can live off dividends in retirement, but you’ll need to either start investing early or choose safe, high-yield stocks that cover your cost of living throughout your golden years.
- Toronto-Dominion Bank (TD)
- Edison International (EIX)
- Bank of Hawaii Corp (BOH)
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .