Yes I imagine it would. Yesterday I looked at comparative stock position between a few CFD brokers, and found the following:
- 1:5 stock CFD on T212 had 0.1% per day fee on a long position, or 36.5% per year!
- 1:5 stock CFD on Plus500 had a 0.0442% per day (long), or 16.1% per year
- 1:5 stock CFD on eToro had about 0.018% per day (long), or a 6.5% per year
(and before anyone says the calculation is wrong, no, those fees are not compounded!)
Keep in mind these fees are applied on the total leveraged position, not your own initial margin requirement. Holding a stock CFD on T212 over any extended period of time looks like pure madness, and would reduce a strong outperformance to almost nothing; it is a suitable position only for very short lived bet on a given catalyst.
On the other hand, it would appear that eToro has reasonable enough fees to keep a position many months or longer and still yield some nice results, but if it was ever the plan, I would rather advice to either use a IBKR margin account, or IBKR CFDs (can be both in a margin or cash account), both would equally cost you about 1.5% per annum.