ActivTrades, a prominent broker in the forex and CFD market, has launched a new incentive for its clients: earning interest on funds not actively used in trades. This initiative aims to provide a return on the free margin that typically remains unutilized within trading accounts, addressing a common concern among active traders.
Under this program, clients who open accounts via ActivTrades' Mauritius entity, regulated by the Financial Services Commission (FSC), can receive annual interest. Specifically, balances in US dollars can earn up to 3.3% on amounts up to $100,000, while euro balances are eligible for a 2.4% annual return. This passive income is generated simply by holding funds within the trading account.
For retail forex, CFD, and crypto traders, this means their uninvested capital on the platform can now generate a return, potentially offsetting some of the holding costs or contributing to overall portfolio growth. It offers an alternative to moving funds off-platform between trading opportunities, providing an incentive to maintain liquidity with the broker.
Yield on Uncommitted Capital
Traditionally, free marginโthe portion of a trading account's equity not allocated to open positionsโhas not yielded any returns. This new offering from ActivTrades transforms this idle capital into an income-generating asset. By providing a return on these funds, the broker is giving clients a compelling reason to keep their capital within the platform, even during periods of market inactivity or when awaiting new trading setups.
The interest is calculated based on the balances held, effectively turning what was once a passive component of a trading account into a source of steady, supplementary income for traders.
This move by ActivTrades highlights a growing trend among brokers to offer additional value propositions beyond just trading execution, catering to the comprehensive financial needs of their client base.
๐ฐ Based on reporting from: ForexLive โ