We have all seen numerous FX brokerage companies desperately trying to attract new clients by luring them with all sorts of welcome bonuses. Usually it’s a monetary bonus but we’ve seen brokers offering anything from formula one tickets to sports cars to a small yacht! Now we don’t want to spoil the dreams of any people out there but the simple truth is, no one actually ever receives that 5000 USD bonus or that brand new Maserati. There are always clauses that prevent the account holder from ever actually profiting from what’s being offered.
At Liquid Markets we like to deal with reality, facts and not fiction, and we do not think that making empty promises is the right way to start off a business relationship with any client. Instead of a bonus, which you will never receive, Liquid Markets will pay interest on your account balance, every single day. We’ll pay you the base currency interest rate even if you don’t trade on your account (a LIBOR proxy interest rate), but if you do trade you’ll receive a much higher interest rate, in fact, the more you trade the higher the rate all the way to LIBOR +5%. Additionally, even the margin you’re using to trade is paid interest on, so even if you have open positions, you’ll still receive the associated interest payment on the margin you’re using.
As opposed to any bonus scheme, there are no strings attached, you can withdraw your interest payment at any time, at a moment’s notice.
As a financial markets participant, we want to provide you with a true interbank money markets environment. In that respect, we are offering daily deposit interest rates based on your cash equity and your day-to-day volume
The formula we use is:
Effective Interest Rate = End-of-Day Free Cash
Equity * (Account Base Currency Benchmark Rate + Reward Rate) / 360 day
year (standard day-count convention).
Example of USD Base Currency:
An investor has a 100,000 USD cash equity available in his USD denominated trading account and the benchmark rate on USD is currently at 0.12%.
At end-of-day, 5,300,000 USD or equivalent has been traded through the account, which generates a daily volume ratio of 53 (5,300,000/100,000=53). This daily volume ratio offers a 5% reward rate
to the investor.
Daily Effective Interest Rate = 100,000 * (0.0012+0.05)/360 = 14.22 USD
Let your money work for you with these unique interest-bearing daily deposit rates. For a more detailed account of our exclusive service, please visit our new Interest Rate on Deposits page.
This offer is completely different and complementary to overnight swaps on open positions.
Please note: Interest on deposit payments is not available on Islamic accounts.