How is the interest calculated and how does it work?
At the bottom of the statement, look for "MargInterest" or "Interest on Usable Margin".
In that section, you will see the interest you are earning. Interest on usable margin is paid monthly. The credit typically arrives within seven business days of the month's end.
The 5% APR is paid out on your average usable margin for the month. Each day at approximately 5 p.m. EST, a snapshot is taken of the usable margin in your account. This is added up and divided by the number of days in the month (provided that the account was open for the entire duration of the month). Interest is paid on the average usable margin in the account for the month paying interest for each day the account was open and eligible to receive interest.
In a 31-day month, an account that has USD 50,000 in usable margin every day at the 5 p.m. snapshot calculates interest payments as follows:
[(Total Sum of Usable Margin from Daily Snapshot/Days in the Month) x (0.05)] ÷ (months in a year) = monthly payout
What if I open my account in the middle of the month?
- You may still earn interest; you simply have fewer days used in the calculation. See the description above for calculating interest.
Is there a limit to how much I can earn?
- The maximum amount you can earn interest on is USD 50,000. However, there is no limit to the available equity or usable margin that you can have in your account.
If I close my account, how do I receive interest?
- In the event that an account's full balance is withdrawn prior to interest being credited, rights to such interest are forfeited and credit will not be made to the account.
What if I do not want to earn interest on my account?
- You can disable interest payments on your account. To request this setting, please email email@example.com
Please note: FXCM may change interest rate at any time at our discretion and Interest is only available for FXCM Retail clients who are not on commission based pricing models.