eToro
announced today (Wednesday) it will pay up to 4.3% annual interest on cash
sitting in customer trading accounts, the latest move by the social investing
platform to keep client money working between trades.
This brings
the Israeli fintech in line with several other retail trading companies that
introduced similar offerings this year and last, including Interactive Brokers
and XTB.
eToro Offers 4.3% Interest
on Cash Balances
The feature
launches without minimum balance requirements for European users, who can earn
3.5% on balances up to $50,000 and 4.3% on amounts above that threshold.
Customers in other regions face tiered requirements starting at $10,000 for 1%
interest, climbing to 4.3% for balances exceeding $250,000.
eToro
calculates interest daily and credits accounts monthly, with no lock-up periods
or penalties for withdrawals. The money remains available for immediate trading
or cash-outs, addressing a common frustration among retail investors whose idle
cash typically earns nothing while they research their next moves.
“Sometimes
the most prudent decision is to wait,” said Dan Moczulski, eToro’s UK
managing director. “By paying up to 4.3% per annum on uninvested US-dollar
balances, we ensure clients’ capital continues to earn a competitive return
while they prepare for their next trade.”
The fintech
claims that the rates significantly exceed what most traditional banks offer on
checking accounts, though they trail some high-yield savings products. eToro
applies the interest only to cash balances, not invested funds, but determines
eligibility based on total account equity including investments.
Platform Expansion
Strategy
The cash
interest program joins several features eToro rolled out this year, including
recurring investment plans and stock lending options. The company also went public under the ticker ETOR, launched
a debit card offering cashback rewards, signaling its push to become a more
comprehensive financial services provider beyond its core trading platform.
eToro built
its reputation on social trading, where users can copy the investment
strategies of successful traders on the platform. The company now serves over
40 million users across 75 countries, positioning itself as both a brokerage
and social network for investors.
The
interest feature, however, faces some geographical restrictions. eToro can
exclude customers from the program for policy violations and reserves the right
to modify or discontinue the offering. The company also warns that currency
conversion costs could offset interest gains for non-dollar deposits.
eToro Joins the Gang
The cash
interest program reflects broader competition among retail brokerages to
capture and retain customer assets. As commission-free trading became standard,
platforms increasingly compete on auxiliary services and features that generate
revenue from customer cash and investments.
One of the
first to introduce interest on uninvested cash was BidX Markets at the end of
2023. The trend continued in 2024, with Webull and Poland-based XTB joining in.
It
accelerated in 2025, when other direct competitors of eToro followed, including
Germany’s NAGA, which offers just under 2.8% APY, as well as Interactive
Brokers and IG Group. Similar solutions are also available from Trading 212, Trade Republic,
and Lightyear, where standard rates hover around 2%
eToro’s interest
payments start from the first dollar for eligible European customers, with
monthly crediting by the fifth business day of each following month. Customers
must manually activate the feature through their account dashboard, and eToro
maintains discretion over program participation.
This article was written by Damian Chmiel at www.financemagnates.com.
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