eToro, the trading and investing platform, is today announcing its next step in the ongoing diversification of its offerings with the launch of an interest on cash feature. Accessible via eToro Options, interest on cash offers account holders 4.9% APR on cash balances within eligible eToro Options accounts.
With the launch of its interest on cash feature, eToro is furthering its mission “to democratize investing as a neo-broker with bank beating rates giving consumers access to more financial equity.”
Lule Demmissie, eToro U.S. CEO, commented:
“Retail investors are constantly told to diversify their portfolio and ensure they’re maximizing their investments – our new high interest on cash offering helps investors make their money work even when it is at rest. Our high rate offering is accessible to real investors unlike other brokers who have high minimum balance requirements to earn their rates. eToro is committed to lowering barriers for retail investors.“
The new opt-in program offers “an 4.9% APR on cash reserves not actively invested, and is free for eligible users with an at-rest cash balance of $5,000 or more.”
Users who opt in to the program and “maintain less than $5,000 at rest in their account will still benefit from the offering but be charged a small monthly fee.”
eToro Options account holders do “not have to meet a minimum balance. Unlike other fixed-income investments which require minimum terms and balances, the eToro options account can be funded with as little as $10 and allows users to withdraw or invest their cash at any time.”
Demmissie adds:
“Our latest Retail Investor Beat Survey showed that more investors are holding cash, either through fear due to the uncertain market environment or while they wait for investment opportunities. Yet to date, even in this time of high interest rates, the everyday person has either been excluded from, or had to jump through crazy hoops, to access attractive interest rates on cash. As part of our mission to open up the world of finance to all, we’re thrilled to be able to offer an easy way for retail investors to earn interest on cash.”
As noted in the update, eToro is the trading and investing platform “that empowers you to invest, share and learn.”
They were founded in 2007 “with the vision of a world where everyone can trade and invest in a simple and transparent way.”
Today they claim to “have over 32 million registered users from more than 100 countries.”
They believe there is power “in shared knowledge and that they can become more successful by investing together.”
So they’ve created a collaborative investment community designed to “provide you with the tools you need to grow your knowledge and wealth.”
On eToro, you can hold “a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors.”