Best Brokers That Pay Interest On Uninvested Cash 2024

Written By

James Barra

Written By

James Barra

James is an investment writer with a background in financial services. He has worked as a management consultant, where he delivered large-scale operational transformational programmes at some of Europe's biggest banks. James authors, edits and fact-checks content for a series of investing websites.

» James Barra Profile Page

Fact Checked By

Jemma Grist

Fact Checked By

Jemma Grist

Jemma is a writer, editor and fact-checker focused on retail trading and investing. Jemma brings a unique perspective to the forex, stock, and cryptocurrency markets and works across several investment websites as a researcher and broker analyst.

» Jemma Grist Profile Page

Updated

Apr 25, 2024

An increasing number of brokers are paying interest on uninvested cash balances, incentivising clients to keep their funds in trading accounts until they decide to trade. Discover the top brokers offering interest on idle funds in April 2024.

Best Brokers That Pay Interest On Cash

These are the top 5 day trading brokers paying interest on uninvested cash:

1. AvaTrade - USD: 2.7%
2. eToro - USD: 5.3%
3. Interactive Investor - USD: 5.1%, GBP: 4.85%
4. CMC Markets - USD: 2%
5. XTB - USD: 5%, GBP: 5.2%, EUR: 3.8%

Best Brokers That Pay Interest On Uninvested Cash 2024 Comparison

Best Brokers That Pay Interest On Uninvested Cash 2024 Comparison

Broker	Interest Rate	Minimum Deposit	Markets	Platforms	Regulators	Visit
	USD: 2.7%	-	CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting	WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade	ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM	Visit
	USD: 5.3%	$50	CFDs, Forex, Stocks, ETFs, Cryptos, Futures, Commodities, Bonds	eToro Web, CopyTrader, TradingCentral	FCA, ASIC, CySEC, FSA, FSRA, MFSA	Visit
	USD: 5.1%, GBP: 4.85%	£0	Stocks, Funds, Trusts, ETFs, Bonds, Gilts, VCTs	Own	FCA	Visit
	USD: 2%	$0	CFDs, Forex, Stocks, Indices, Commodities, ETFs, Treasuries, Custom Indices, Spread Betting	Web, MT4	FCA, ASIC, MAS, CIRO, BaFin, FMA, DFSA	Visit
	USD: 5%, GBP: 5.2%, EUR: 3.8%	$0	CFDs, Forex, Stocks, Indices, Commodities, Crypto, ETFs	xStation	FCA, CySEC, KNF, CNMV, DFSA, FSC	Visit
	USD: 4.8%, GBP: 4.7%	$0	Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies	Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral	FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB	Visit
	USD: 5.1%	$0	Stocks, Options, ETFs, ADRs, OTCs	Desktop Platform, Mobile App	SEC, FINRA, MAS, ASIC, SFC	Visit
	USD: 4.9%	$10	Stocks, Options, ETFs, Crypto	eToro Trading Platform & CopyTrader	SEC, FINRA	Visit
	GBP: 5%	$0	Stocks, ETFs	Own	FCA	Visit
	USD: 1.75%, GBP: 2%, EUR: 1.5%, CHF: 1%	$1000	Forex, CFDs, Indices, Stocks, ETFs, Bonds, Options, Futures, Cryptos (location dependent)	MT4, MT5, AutoChartist, TradingCentral	FCA, FINMA, DFSA, SFC	Visit
	USD: 4%, GBP: 3.9%, EUR: 2.6%	-	Forex, CFDs, indices, shares, commodities, cryptocurrencies, futures, options, warrants, bonds, ETFs	TradingView	DFSA, MAS, FCA, SFC	Visit

#1 - AvaTrade

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Review

Why We Chose AvaTrade

AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team

• Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting
• Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
• Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
• Minimum Trade: 0.01 Lots
• Leverage: 1:30 (Retail) 1:400 (Pro)

Pros

• Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools
• The broker’s unique risk management tool, AvaProtect, protects against losses up to $1 million and is easy to activate in the platform
• Day traders can access stable spreads and zero commissions with no hidden fees

Cons

• There is no ECN account with raw spreads
• There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders
• A high $2000 minimum investment is required to use DupliTrade, which will be out of reach for many beginners

Visit AvaTrade

#2 - eToro

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Review

Why We Chose eToro

eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail accounts lose money.

"eToro's social trading platform leads the pack with a terrific user experience and active community chat that can help beginners find opportunities. There are also competitive fees on thousands of CFDs and real stocks, plus excellent rewards for experienced strategy providers."

- DayTrading Review Team

• Instruments: CFDs, Forex, Stocks, ETFs, Cryptos, Futures, Commodities, Bonds
• Regulator: FCA, ASIC, CySEC, FSA, FSRA, MFSA
• Platforms: eToro Web, CopyTrader, TradingCentral
• Minimum Deposit: $50
• Minimum Trade: $10

Pros

• eToro has bolstered its investment offering, most recently with new crypto assets, now offering over 90 digital currencies
• There's a comprehensive online training academy with accessible resources, from bitesize articles to comprehensive courses
• Exciting investment portfolios are available covering traditional market trends as well as tech, crypto and more

Cons

• Traders will face currency conversion fees for account denominations other than USD
• The lack of additional charting platforms like MT4 will reduce the appeal for seasoned day traders accustomed to using third-party software
• There is a $30 minimum withdrawal amount and a $5 fee, which will affect novices with low capital

Visit eToro

#3 - Interactive Investor

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Review

Why We Chose Interactive Investor

Interactive Investor are a hugely respected, FCA-regulated investing firm. The trading platform is easy-to-use while the sign-up and deposit process is straightforward for new investors. ii also has a long track record and a string of industry awards under its belt.

"Interactive Investor is an excellent pick for UK traders interested in longer-term investing products like ISAs and SIPP accounts. The low fixed fees for large portfolios and 40,000+ stocks will also appeal to traders with a decent bankroll."

- DayTrading Review Team

• Instruments: Stocks, Funds, Trusts, ETFs, Bonds, Gilts, VCTs
• Regulator: FCA
• Platforms: Own
• Minimum Deposit: £0
• Minimum Trade: £25

Pros

• Low fixed fees for large portfolios
• Multiple payment methods including bank cards
• FCA-regulated

Cons

• No free demo account
• No copy trading tools

Visit Interactive Investor

#4 - CMC Markets

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Review

Why We Chose CMC Markets

Established in 1989, CMC Markets is a respected broker listed on the London Stock Exchange and authorized by several tier-one regulators, including the FCA, ASIC and CIRO. More than 1 million traders from around the world have signed up with the multi-award winning brokerage.

"With advanced charting tools and an extensive range of tradable CFDs, including an almost unrivalled selection of currencies and custom indices, CMC Markets provides a fantastic online platform for traders of all levels. "

- DayTrading Review Team

• Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Treasuries, Custom Indices, Spread Betting
• Regulator: FCA, ASIC, MAS, CIRO, BaFin, FMA, DFSA
• Platforms: Web, MT4
• Minimum Deposit: $0
• Minimum Trade: 0.01 Lots
• Leverage: 1:30 (Retail), 1:500 (Pro)

Pros

• The web platform delivers a fantastic user experience with advanced charting tools for day trading and customizable features, catering to both beginners and experienced traders. MT4 (but not MT5) is also supported.
• CMC Markets is heavily regulated by reputable financial authorities and maintains its stellar reputation, helping to ensure a secure and trustworthy trading environment.
• The brokerage continues to stand out with its wide range of value-add resources, including pattern recognition scanners, webinars, tutorials, news feeds, and research from respected sources like Morningstar.

Cons

• While CMC offers an above-average suite of assets, there is no support for trading real stocks and UK clients can’t trade cryptocurrencies.
• Trading stock CFDs incurs a relatively high commission, especially compared to the cheapest brokers like IC Markets.
• An inactivity fee of $10 per month is applied after 12 months of inactivity, which may deter casual investors.

Visit CMC Markets

#5 - XTB

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Review

Why We Chose XTB

Founded in 2002 in Poland, XTB now serves more than 935,000 clients. The forex and CFD broker combines a heavily regulated trading environment with an extensive selection of 5,600+ assets and a commitment to trader satisfaction, featuring an intuitive in-house platform with superb tools to support aspiring day traders.

"XTB stands out as a top choice for new day traders with the terrific xStation platform, commission-free pricing, no minimum deposit, and excellent educational tools, many of which are seamlessly integrated into the platform. "

- DayTrading Review Team

• Instruments: CFDs, Forex, Stocks, Indices, Commodities, Crypto, ETFs
• Regulator: FCA, CySEC, KNF, CNMV, DFSA, FSC
• Platforms: xStation
• Minimum Deposit: $0
• Minimum Trade: 0.01 Lots
• Leverage: 1:30 (EU) 1:500 (Global)

Pros

• Opening an XTB account is a hassle-free, entirely online process that takes just a few minutes, making the entry into day trading smooth for new traders.
• The xStation platform continues to impress with its user-friendly interface and intuitive features, including customizable news feeds, sentiment heatmaps, and trader calculator, reducing the learning curve for newer traders.
• XTB has boosted its interest rate on all uninvested balances (up to 5.2%) while competitors like eToro only offer up to 5% on balances of $50K+.

Cons

• XTB discontinued support for MT4, limiting traders to its proprietary platform, xStation, potentially deterring advanced day traders familiar with the MetaTrader suite.
• The demo account expires after just four weeks, a serious limitation for traders who wish to thoroughly test the xStation platform and practice short-term strategies before committing real funds.
• Trading fees are competitive with average spreads of around 1 pip on the EUR/USD but still trail the cheapest brokers like IC Markets, plus there's an inactivity fee after 12 months.

Visit XTB

Higher interest rates are forcing brokers to think differently. The last few years have seen interest rates across the US and UK floating around 5% and 4.5% in the Eurozone.

When you can make this without lifting a finger, day trading returns have to be higher to make it a worthwhile activity. And uninvested cash in trading accounts making zero is a lost opportunity.

James Barra

Author

FAQ

Which Broker Pays The Highest Interest On Uninvested Cash?

We’ve listed the brokers paying the highest interest on uninvested cash, with XTB standing after recently introducing a 5.2% rate on all balances.

However, we don’t recommend choosing a day trading broker solely based on how much interest they’re paying on unused funds. Equally important is the quality of their trading environment, which our ratings take into account.

What Is The Minimum Balance I Need In My Trading Account To Earn Interest?

This varies by online broker. Some brokerages cater to traders with modest balances, notably CMC Markets, paying interest on balances from just $0.01. Other trading platforms cater to investors with higher account balances, notably Saxo, paying interest on $10,000+.

It’s important to consider the amount you plan to leave in your trading account to get the best rate. For example, XTB pays 5+% interest on all balances, while eToro only pays 5% interest on balances of 50k+.

What Do You Need To Do To Earn Interest In A Brokerage Account?

Other than meeting the minimum deposit requirements – mostly nothing. The majority of brokerages automatically pay interest on uninvested cash as long as it is held in the correct account.

For example, Interactive Brokers pays cash on securities accounts only, not commodities accounts. Alternatively, eToro requires traders to hold a Club Member account and switch on ‘Interest on Balance’ in their profile settings.

When Do Brokers Pay Interest On Unused Balances?

Most brokers pay interest monthly, with the interest calculated daily. This means you can add cash to your account on any day throughout the month, and your interest will be calculated from that day.

Platforms generally specify a day of the month that the interest will be paid. For example, XTB pays interest on the 5th working day of the month.

Can Brokers Change Interest Rates?

Yes, the interest rate can change. Brokers decide their interest rates based on government interest rate benchmarks, which will fluctuate depending on the economic environment.

Almost every day trading broker we examined confirmed that interest rates are subject to change with varying frequencies. For example, XTB recalculates their interest rates daily, while at eToro it’s quarterly.