Which is the spread fee formula in eToro?

Question

In their official website (in a pdf fees document), the equation they mentioned does not match reality (depending on my practice with their demo trading account), nor logic.
My equation is:
spread fee = (ask-bid) * number of units
in their pdf file :
spread fee = (ask-bid) * number of units * the share price
so If I want to buy one Amazon share (which was 4000 $ ; ask: 4007, bid: 4000)
I assume I would pay 7 * 1 = 7 $
not 7 * 1 * 4000 = 28000 $
Is there an unintended mistake in their attached commission file?

D Stanley · Accepted Answer

I don't see where they're defining the formula as (ask-bid) * number of units * the share price, I see it defined as rate * units * price.  If you look at their example, they list a "typical spread rate" of 0.18% for AAPL, which is what they're using in their formula.
In other words, they add 0.18% to the ask price as a commission (broker's fee, whatever you want to call it).

If I want to buy one Amazon share (which was 4000 $ ; ask: 4007, bid: 4000) I assume I would pay 7 * 1 = 7 $ not 7 * 1 * 4000 = 28000 $

No, you'd pay 0.18% (from their example) * 1 * 4007 = 7.21 in spread fees in addition to the ask price and other fees (overnight, etc.)

Which is the spread fee formula in eToro?

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