Forex Brokers With Interest of Margin: Receivable – How To Earn Interest On Capital?

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Some brokers offer traders the convenience of earning interest on unused capital in their trading accounts. Although retail traders mostly trade the markets using a small amount of trading capital, several professional, as well as institutional traders, are known to hold a significant amount of trading capital that may or may not be used for trading purposes. Under such circumstances, brokers offer a great incentive for such traders to earn interest on their unused capital to the tune of 2% to up to 10% per annum. Of course, the actual interests accrued on these accounts vary, but a few brokers sometimes offer higher returns to attract massive investments from wealthy traders.

A majority of retail Forex traders usually use up their entire capital for trading, and most of the accounts blow up within a few months of trading. Therefore, Forex brokers with interest on margin are offered for those investors who are looking for alternate ways of diversifying their investments. These interest-bearing accounts do have several limitations such as higher margin requirements and other trading conditions; therefore, traders should open an interest-bearing account only after careful considerations of all the terms and conditions.

There are many ways by which traders can earn money in the markets without actually depending on the price movements in the market. Forex trading with interest on margin can either work by choosing currency pairs with a vast difference in their interest rates, or by investing a hefty sum of money in interest-bearing accounts that pay well over the course of a year. Using an interest on margin strategy has been used by numerous Forex traders with consistently favorable results, but the average returns might not be as attractive as the results gained from successful investments in the Forex markets.

Reprinted from Forexbonuses, the copyright all reserved by the original author.