A well-known social investing platform recently made headlines by announcing it will offer up to 4.3% annual interest on cash held in customer trading accounts. This initiative aimed to ensure that funds remain productive between transactions aligns the company with a growing trend among retail trading platforms to enhance how they utilize customer funds.
The new interest feature is particularly appealing for European users, where there are no minimum balance requirements. Customers can earn a rate of 3.5% on balances up to $50,000, and those with larger amounts can earn 4.3% on balances exceeding that amount. In other regions, a tiered system applies, starting at $10,000 for a 1% interest rate and reaching up to 4.3% for balances over $250,000.
Interest is calculated daily and credited to accounts monthly, ensuring that customers can easily access their cash anytime without facing withdrawal penalties or lock-up periods. This addresses a common issue faced by retail investors, who often see idle cash earn little to no interest as they contemplate their next investment moves.
A representative of the company expressed that waiting for the right investment decision can sometimes be beneficial. Therefore, offering up to 4.3% annual interest on uninvested cash allows clients to earn a competitive return on their capital while strategizing their next trades.
This financial technology firm claims that its interest rates are significantly higher than what typical banks provide for checking accounts, although they may not match rates available in high-yield savings accounts. It’s important to note that this interest only applies to cash balances and not to funds that are actively invested. Eligibility is determined based on the total equity in the account, which includes both cash and investments.
In addition to this new cash interest program, various other features were launched recently, including recurring investment plans and stock lending options. The company has also made strides toward becoming a full-fledged financial services provider by introducing cashback rewards on their debit card offerings, moving beyond the core focus of trading.
Building a reputation in the realm of social trading, the platform allows users to replicate the investment strategies of successful traders. Currently, it enjoys a user base that exceeds 40 million across 75 countries, functioning as both a brokerage and a social network for investors.
However, geographical restrictions exist regarding the interest feature. The company maintains the authority to exclude clients from this program for policy violations and reserves the right to update or terminate the offering at any time. Additionally, the firm cautions that currency conversion fees could potentially negate interest earnings for deposits not in US dollars.
This initiative to offer interest on cash deposits mirrors a broader competitive effort among retail brokerages to attract and hold onto customer assets. With commission-free trading now standard, firms are discovering the need to differentiate themselves through additional features and services that generate income from customer cash and investments.
The trend of paying interest on idle cash began gaining momentum in recent years, with BidX Markets being among the first to roll out such a feature. As of 2024, other platforms like Webull and XTB followed suit, further solidifying this market shift. The push intensified in 2025, as additional competitors emerged, including NAGA, Interactive Brokers, and IG Group, who introduced their offerings.
For eligible customers in Europe, interest payments start accumulating from the very first dollar, with monthly credits issued by the fifth business day of each following month. Customers need to activate this feature through their account settings, and the platform keeps discretion over participation in the program.
Overall, by introducing a cash interest program alongside other innovative features, this platform continues to enhance its offerings and compete in an ever-evolving landscape of financial services.