All clients will earn interest on your account balance above USD 10,000 (or equivalent) at a rate varying with your account balance. So the more you deposit, the higher rate you will earn.
For Platinum and VIP accounts, balance amounts above USD 100,000, you will earn the highest rate on your account balance with no upper limit or lock-in period on the deposit.
For Classic accounts, balance amounts above USD 150,000, you will earn the highest rate on your account balance with no upper limit or lock-in period on the deposit.
You can refer to the calculator to estimate the effective interest rate on your balance depending on your account tier, balance(s) and currency(ies). The higher you upgrade your account tier, the better interest rate you will earn.
If you don't know your account tier yet, you can check on trading platform:
- Click on the main menu
> Your account > Saxo Rewards
There can also be circumstances, where there is interest deducted from your account.
Interest calculation components
Interest on your main account is calculated on the Net Free Equity (NFE). Interest on sub-accounts is calculated on the Account Value. The interest is calculated daily and booked monthly.
- Positive NFE/Account value above thresholds will be given interest according to your account tier (when the currency has a positive rate). In the example below, Client A.
- Negative NFE/Account value will be deducted interest. In the example below, Client B.
The Net Free Equity is:
- The value-dated cash balance of your main trading account, plus or minus cash balances on your sub-accounts in the same currency
- Plus or minus any unrealized profits or losses from open CFDs, FX Forwards, and Futures on your main trading account and sub-accounts in the same currency
- Plus the market value of any FX Options on your main trading account and sub-accounts in the same currency
- Minus any margin required for financing open positions on your main trading account and sub-accounts regardless of sub-account currency
The account value of a sub-account is:
- The value-dated cash balance of accounts in the same currency
- Plus or minus the value of any unrealized profits or losses from open CFDs, FX Forwards, and Futures on accounts in the same currency
- Plus the market value of any FX Options on accounts in the same currency
Calculation formula
On your main account
| Interest on NFE = |
Net Free Equity* x Annual Interest Rate x Interest days ___________________________________________ |
| Annual Interest Days in Currency |
On sub-accounts
| Interest on Account value = |
Account value* x Annual Interest Rate x Interest days ___________________________________________ |
| Annual Interest Days in Currency |
*Adjusted for any threshold or floor
Client interest calculations examples
In the below examples, we describe the interest calculations for 2 different clients. The interest for clients A and B are calculated on NFE. When interest is earned on your account, the interest rate is always blended. Upon Saxo bid rate, after deducting a markdown according to the account tier, the interest rate is scaled proportionally with NFE/Account Value. The more you deposit, the higher the interest rate applies to your total balance.
You can fine more details on our homepage.
The numbers mentioned below are all indicative.
Client A
| Calculation date | Booking date | Value-dated cash balance USD | Interest Unrealized PL USD | Interest margin requirement USD | Net Free Equity USD | Annual interest rate | Interest Days | Interest amount USD |
| 23-Sep-2022 | 550,000 | -1,000 | 10,000 | 539,000 | 2.25% | 1 | 33.69 |
For Client A the interest gain on a given date is USD 33.69, calculated as:
|
33.69 = |
539,000 x 2.25% x 1 _____________________ |
|
360 |
Interest rate: The interest rate of 2.25% is a blended rate.
NFE (positive) calculation: 550,000-1,000-10,000 = 539,000
| The value-dated cash balance of your main trading account, plus or minus cash balances on your sub-accounts in the same currency | 550,000 |
| Plus or minus any unrealized profits or losses from open CFDs, FX Forwards, and Futures on your main trading account and sub-accounts in the same currency | -1,000 |
| Plus the market value of any FX Options on your main trading account and sub-accounts in the same currency | 0 |
| Minus any margin required for financing open positions on your main trading account and sub-accounts regardless of sub-account currency | -10,000 |
Client B
| Calculation date | Booking date | Value-dated cash balance USD | Interest Unrealized PL USD | Interest margin requirement USD | Net Free Equity USD | Annual interest rate | Interest Days | Interest amount USD |
| 30-Sep-2022 | 10,000 | -1,000 | 10,000 | -1,000 | 10 % | 1 | -0.28 |
For Client B the interest loss on a given date is USD -0.28, calculated as:
|
-0.28 = |
-1000 x 10% x 1 ________________ |
|
360 |
Interest rate calculation: The interest rate of 10% is calculated as a sum of the 2% Saxo ask rate and 8% markup (assuming the client is Classic).
NFE (negative) calculation: 10,000-1,000-10,000 = -1,000
| The value-dated cash balance of your main trading account, plus or minus cash balances on your sub-accounts in the same currency | 10,000 |
| Plus or minus any unrealized profits or losses from open CFDs, FX Forwards, and Futures on your main trading account and sub-accounts in the same currency | -1,000 |
| Plus the market value of any FX Options on your main trading account and sub-accounts in the same currency | 0 |
| Minus any margin required for financing open positions on your main trading account and sub-accounts regardless of sub-account currency | -10,000 |
Interest settlement and reporting
Total interest amount (Interest amount + Financing amount) is based on NFE (Net Free Equity x Annual Interest Rate x Interest Days) / Annual interest days in currency (for example 360).
Interest amount is the part of Total interest that is related to interest on your cash balance.
Financing amount is the part of Total interest that is related to interest paid/earned from margin products.
The interest is calculated daily and booked monthly.
- Navigate to the main menu
> Download report > Account Interest Details