Hello T212 community,
Would like to know if applying interest on free funds would be possible on Invest account as other brokerage firms do.
Thank you.
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Can you name examples of other firms? In my experience most discount brokerage firms do not pay interest on free funds. Those few that do pay something tiny, like 0.05%. Probably you will find that those who pay interest are not competitive with Trading 212 in many other ways. Do any of these also offer fully commission free dealing as Trading 212 do? From tax efficiency point of view, I prefer to receive less expensive investment services rather than interest that is taxable.
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I am not sure if you are aware, but half od EU is in negative interest rates.
I think majority of people who are investors would like t212 to invest that capital in new features or human resources rather then getting this meager 0.05-0.1% rates…
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the brokerage firms you are thinking of offer cash accounts which T212 does not. that is why balance left un-invested does not see any interest.
Thanks everyone for reply.
Yes, I agree that the interest normally is very tiny and thus not so important. I just wanted to know community’s opinion on that. I am very happy with T212 zero commission policy which is way more beneficial than the small interest on normally small uninvested funds (as most of the funds are invested most of the time).
Cheers.
Interactive Brokers pay 4% interest on the amount not invested. This is one of the features of IBKR that makes me put more funds there instead of Trading 212.
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That’s where competition is always good 
Potentially a good question to revisit, but at a guess they’re possibly not geared up to track and/or accrue interest?
Do they receive any interest on the accounts themselves, and have they been charged any interest on our part - the EUR rate used to be negative.
4% that’s more than most UK savings accounts, wats the catch?
Brokers don’t have the same risks to manage than bank, most of their loans are short term.
Equally, free funds are not used as deposit from their user, with overal far less people withdrawing money than against a traditional bank account; and deposits very often outweigh withdrawals.
The loans are also very safely collateralised, since they have a direct claim on the borrower’s assets.
Because of all of this combined, brokers have very little issue regarding liquidity, sizing, and maturity of the loans against the depositors, and their lending operations are far less costly to run that one’s of a bank, hence they can afford a higher interest rate.
It’s only paid on balances above a certain amount (c$10k?). Unless you have loads of idle cash the headline rate is a bit meaningless.