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I am using Etoro to trade US stocks and they charge overnight fees. However, nowhere can I find a definition of what an overnight fee in the context of stock broking is. Their Terms & Conditions only state that they charge an overnight fee and an internet search for overnight fees only delivers results for postal services.

Is an overnight fee the fee charged to the client for accepting orders while the market is closed, or is it charged on all stock holdings, i.e. a daily charge for open positions?

Adriaan Joubert
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From the etoro website:

In the financial trading industry, rollover is the interest paid or earned for holding currency overnight. Each currency has an interest rate associated with it, and because currencies are traded in pairs, every trade involves two different interest rates.

If the interest rate on the currency you bought is lower than the interest rate on the currency you sold, then you will pay rollover fees.

If the interest rate on the currency you bought is higher than the interest rate of the currency/commodity you sold, then you will earn rollover fees.

http://www.etoro.com/blog/product-updates/05062014/important-upcoming-change-fee-structure/

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