eToro Offers 4.3% Interest on Uninvested Cash, But Is It a Good Deal?

Etoro will pay 4.3% interest on uninvested US-dollar balances, but UK investors face a drawback of a 0.75% conversion fee for both US to GBP and GBP to USD. The interest rate depends on account balances and investments, and there are better options for uninvested cash, such as Trading 212, which pays 4.1% on uninvested dollars with no account fees and lower conversion costs.

Online trading platform eToro has joined the ranks of brokerages offering interest on uninvested U.S. dollar balances, aiming to attract and retain customers in the competitive cash market [1]. The platform, known for its copy-trading features and social investing platform, is now paying up to 4.3% annual interest on idle cash, depending on balance size and customer location.

eToro's interest rates vary by region. European and UK users receive 3.5% on idle cash up to $50,000 and 4.3% above that threshold. Clients in other regions fall under a tiered ladder starting at 1% for balances over $10,000 and rising to 4.3% for accounts above $250,000. The interest is accrued daily and paid monthly [1].

However, UK investors face a drawback. eToro charges a 0.75% conversion fee for both U.S. to GBP and GBP to USD transactions. This fee can significantly impact the net interest earned by UK investors compared to those in other regions. In contrast, Trading 212 offers a more favorable 4.1% on uninvested dollars with no account fees and lower conversion costs [2].

The move by eToro comes as part of a broader trend in the brokerage industry. As central banks raised interest rates in 2022 and 2023, clients began demanding a larger share of interest income, prompting platforms to offer clearer and more competitive yields [1]. This shift is driven by the growing demand for higher returns on cash balances.

In addition to its interest offerings, eToro has been expanding its product lineup and geographic footprint. The company reported strong financial results for the first quarter of 2025, with revenue momentum and asset growth boosted by new product launches and a push into Asia [1]. eToro's latest offerings include 24/5 trading for U.S. equities, expanded crypto coverage, and AI-powered "Alpha Portfolios."

While eToro's interest rates are competitive, UK investors should be aware of the conversion fees. Platforms like Trading 212 offer higher interest rates with lower fees, making them a more attractive option for UK investors seeking to maximize returns on their uninvested cash [2].

References:
[1] https://financefeeds.com/etoro-joins-rivals-in-paying-interest-on-idle-cash/
[2] https://www.trading212.com/interest-on-cash