Etoro Paying 4.5% on USD Deposits

Are my funds safeguarded?

As a regulated company we are required to safeguard your funds in accordance with specific client money rules. eToro (Europe) Ltd is a member of the Investor Compensation Fund (ICF), which compensates investors only up to twenty thousand EUR. Additionally, in certain cases your funds deposited in eligible European banks are backed by the Deposit Guaranteed Scheme (DGS). The DGS has a maximum payout limit of up to EUR 100.000 / GBP 85.000 per depositor, per bank.

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How and when is the interest calculated?

Although the interest rate is annual, it is calculated daily and paid monthly. Each day, the balance entitled for interest payment is calculated (minus any interest and/or any fees due to us). This amount is multiplied by the daily interest rate. At the end of each month, the cumulative amount of interest is totalled and then paid automatically no later than the 5th business day of the following month.

– The 1st determination is according to the amount in the balance, with $10,000 earning 2% yearly, non-compounded.
– $10,000 balance over a full calendar year earning 2% = earning $200 interest per annum
– 2% yearly when divided by 365 gives the daily rate of 0.005479%.
– 0.005479% x $10,000* = the daily interest earned at $0.5479
– Cumulative Interest for 1 month (30 days) is $0.5479 x 30 days = $16.44
– Cumulative Interest for 1 Year (365 Days) is $0.5479 x 365 days = $200

* Assuming balance is kept at that same level for the full period.

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Knuttell said:

Looks like USD from graph

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Lightning said:

Exactly. This is a USD product. Not EUR.

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