eToro Cash Interest: up to 3.55% AER on uninvested USD (2026 guide)

How eToro's rates work

eToro pays only on USD cash balances — there's no EUR or GBP option. If you deposit in GBP or EUR, your funds are converted to USD first (standard conversion fee applies). The rate you receive depends on your region and your total realised equity — that's invested positions plus cash combined, not just the cash sitting idle.

Rates for EU, UK, Jersey, Gibraltar, Guernsey and Isle of Man

Germany is the regional outlier: German-registered clients get the 3.55% top rate from the first dollar, with no balance threshold. eToro doesn't publicly explain the carve-out, but it mirrors the pattern other brokers follow for German residents (separate tax-reporting flows, local withholding-tax integration). If you're registered in Germany, you skip the tier ladder entirely.

Rates for all other regions

Outside the EU/UK, entry starts at $10,000 — below that, no interest is paid. This is the one area where the EU/UK tier is genuinely better: a $5,000 balance in London earns 2.75%, the same balance in Singapore earns zero.

How it works

There are five mechanics to understand, and each one matters if you're comparing eToro to a no-friction provider like XTB:

• Opt-in required — interest isn't automatic. Toggle it on in your Club Dashboard under "Interest on USD Cash Balance".
• Daily calculation — each day's USD cash balance is multiplied by the daily rate (annual ÷ 365) and accrued.
• Compound interest — previously paid interest earns interest too, as long as it stays in your balance.
• Monthly payout — credited automatically no later than the 5th business day of the following month, early morning GMT.
• Mid-month activation — you only earn from the day you opt in, not retroactively.

Eligibility

The "Club" branding on eToro's dashboard makes this sound gated — it isn't. Every verified eToro client is automatically a Club Member from the moment the account is opened; the Club Dashboard is simply the page name where perks (including the interest toggle) live. There is no membership fee, no tier upgrade and no trading-volume floor.

• Verified eToro account — blocked, non-verified or restricted accounts are excluded.
• Minimum balance — $1 (EU/UK) or $10,000 (other regions). If you fall below the threshold, interest stops accruing until you top up.
• No fees on the programme itself — the standard currency-conversion fee applies on non-USD deposits, but there's no extra charge for enabling interest.

Currency conversion caveat

Interest is only paid on USD. If you deposit GBP, EUR or another currency and convert to USD to earn interest, you're taking on FX risk: if the USD weakens against your home currency, your headline interest gain can be wiped out by the exchange-rate move. For non-USD savers, XTB — which pays interest natively on GBP and EUR — is often the safer choice.

How eToro compares (top USD/GBP rates, April 2026)

The useful comparison isn't which broker has the highest headline number — it's which one gets you the top rate for the currency and balance you actually hold. eToro only wins on USD and only at higher tiers; on GBP, two other providers are ahead.

A concrete example

To show what the numbers actually mean, take a UK-based eToro client who copy-trades US equities and keeps, on average, $15,000 in idle USD between trades. At the 2.75% entry tier, the annualised pre-tax interest is $15,000 × 2.75% = $412.50 — paid monthly, accrued daily, with no lock-in. The same $15,000 sitting idle at most other mainstream brokers earns $0, because their cash-interest programmes either don't exist or require an active position / subscription.

The breakeven vs XTB (3.45% on USD for every client, no opt-in) happens at the $50,000 threshold: below $50k, a UK/EU eToro client earns 2.75% while XTB pays 3.45% on the same dollars; from $50k upwards, eToro's tier jumps to 3.55% and pulls ahead of XTB's flat rate. At $100k that's $3,550/year on eToro vs $3,450 on XTB — a $100 edge, which is meaningful if you carry that much in idle USD long term, and negligible if you don't.

Where eToro falls short

The top rate is attractive, but there are four real disadvantages to weigh before moving cash here:

• USD-only — no native GBP or EUR interest. If you don't already hold USD, you have to convert, and that conversion eats into the rate for anyone not already trading US markets.
• FX risk on non-USD savers — a 3.55% rate means little if the USD drops 4% against your home currency over the same year.
• Opt-in friction — the toggle is one click, but it's off by default. XTB credits interest without any action from the client.
• Tiering below $50k — a typical EU/UK retail balance of $5k–$30k earns 2.75%, below XTB's flat 3.45% USD. The 3.55% headline is only realistic for higher-net-worth clients or German residents.

Tax

Interest income is taxable. It's your responsibility to declare it and pay any tax due in your country of residence. In some jurisdictions eToro is required to withhold tax at source and remit it directly to the authority — check your eToro account for details. Australian residents who haven't submitted a TFN may have withholding tax applied at the statutory maximum.

Fund safeguards

eToro (Europe) Ltd is a member of the Cyprus Investor Compensation Fund, which compensates investors up to €20,000 if the firm fails. Client cash held at eligible European banks may also be covered by the Deposit Guarantee Scheme up to €100,000 per depositor, per bank.

eToro (UK) Ltd is covered by the Financial Services Compensation Scheme (FSCS) — up to £85,000 per eligible client. Cash held with third-party banks may attract deposit protection up to £120,000 per eligible client, per authorised firm (subject to CASS arrangements).

Funds held in qualifying money market funds are investments, not bank deposits, and aren't covered by deposit guarantee schemes.

How to activate

1. Log in to your eToro account (or open one if you don't have one).
2. Make sure you hold the minimum total balance for your region ($1 in the EU/UK, $10,000 elsewhere).
3. Open the Club Dashboard from the left sidebar.
4. Find the "Interest on USD Cash Balance" card at the top and switch the toggle from off to on — accept the T&Cs prompt.
5. Interest starts accruing from that day forward and is credited monthly.

Key parameters at a glance

FAQ