Online forex broker Vantage FX said on Monday it has launched trading accounts with interest rate of an annual 8.88%. Interest, which is calculated on a monthly basis, can be earned on free balances by active forex traders.
The offer is available for both existing and new clients of the broker who meet a certain monthly minimum for forex trading volume. The interest will be deposited to their trading account.
“The current global financial conditions are continuing to force central bank interest rates down and in many economies such as Japan and Europe, into negative territory. Our 8.88% interest rate initiative can help neutralise this downward shift for our active traders and provide a benefit by creating a positive buffer and positive return on forex trading accounts,” said David Bily, head of sales at Vantage FX.
Many forex brokers offer high interest of deposits, mainly for active traders, in an attempt to attract clients and motivate them to be more active. Interest rates vary from broker to broker. The annual interest feature is available for users of both Standard STP and Raw ECN accounts. Here are more details on the required minimum:
“By launching our 8.88% interest rate account feature, we’re able to demonstrate our continued commitment to providing industry leading benefits and creating real value for our forex traders,” said Bily.
Last month, IFC Markets, an offshore forex and contracts for difference (CFDs) broker, raised its interest rate on its clients’ free margin to up to 7% per annum, with the value depending on the traded volume. On the other side, Alpari decided last month to stop paying interest on client funds deposited with it.
Sydney-based Vanatage FX is a brand of Vantage Global Prime Pty, which is regulated by the Australian Securities and Investments Commission (ASIC). The broker offers trading in forex, indices and commodities and the minimum required deposit starts from AU$100 or its equivalent in another currency.