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.