Forex Broker eToro Introduces Interest Payments on Client Funds

Forex broker eToro has launched a new program that allows clients to earn annual interest on their uninvested US dollars, making this social trading broker one of the few brokers competing in this rapidly growing space.

Forex broker eToro offers interest rates of up to 4.3% per year, depending on the size of the balance and the customer's location. Clients in the EU and the UK will earn 3.5% interest on uninvested USD balances up to $50,000, and 4.3% for amounts above that.

In other regions, interest rates start at 1% for balances over $10,000 and can rise to 4.3% if the account has a balance of more than $250,000. Interest will be calculated daily and paid monthly, but only applies to USD balances. Users with euros or pounds must convert their funds if they want to participate.

This launch follows a strong first quarter performance for forex broker eToro as a company listed on the stock exchange.

In previous forex broker news, it was reported that revenue for the three months ending June 30 jumped 26% year-on-year to $210 million, driven by stronger trading activity. Adjusted EBITDA increased by 31% to $72 million, and the number of funded accounts grew by 14% to 3.63 million. Managed assets also experienced a significant surge, rising 54% to $17.5 billion, partly driven by the acquisition of the Australian Spaceship app last year.

Despite recording a net profit of $30.2 million, slightly down from $30.6 million in the same period last year due to IPO costs of $15 million, adjusted net income remains higher at $54.2 million. The company closed the quarter with $1.2 billion in cash, cash equivalents, and short-term investments, reaffirming its strong financial position as the company strengthens customer incentives such as interest on idle balances.