Retail forex broker Alpari is one of several in the sector which uses the enticement of interest to attract client deposits – and to encourage clients who do deposit to trade. In today’s near-zero interest rate environment, getting interest on your inactive cash is indeed a major bonus.
However at Alpari and the other forex brokers offering interest, the cash cannot be inactive in order to receive interest. Quiet the opposite.
We reported back in March that Alpari had launched interest-on-deposits, with the rate of interest paid tied to:
a) account size (account equity), and
b) monthly trading volume.
Alpari is continuing to pay interest on deposits, but has changed its payment structure somewhat. The maximum interest rate being offered by Alpari has been lowered from 10% to 8%, although the highest interest rate does kick in at a much lower account size ($50,000) than before ($500,000).
And in order to even begin earning interest, clients now much trade at least $5 million monthly, versus just a minimum of $1 million before.
The interest rates are being paid on clients with USD, EUR and GLD denominated accounts.
The new Alpari interest structure appears as follows:
The old structure was as follows:
For more on the Alpari interest rate payment structure click here.