NAGA has become the latest trading platform to offer interest on its customers’ uninvested cash balances. Announced today (Friday), uninvested euro cash balances of NAGA customers will earn up to 2.77 per cent APY.
The interest offers have been launched under the brand NAGA Earn. There will be no lock-up periods or minimum commitments for NAGA customers to receive the interest. They will have full access to the funds for trading and can withdraw them at any time.
The company further highlighted that interest on the euro balances will be accumulated daily.
“Activating NAGA Earn is simple—users can enable it directly in the NAGA App. Once switched on, the available euro cash balance starts generating daily interest, which is automatically credited to the users’ accounts,” the company noted.
The Trend of Interest-Bearing Accounts
Currently, the NAGA Earn programme is available only through NAGA’s European entity. However, the company plans to extend the programme to other currencies and regions.
NAGA is not the only brokerage offering interest on uninvested cash. Platforms like XTB and BidX Markets have been offering similar features since 2023. Other brokers such as Interactive Brokers, Webull, Trading 212, IG-owned Freetrade, and eToro US also offer interest on uninvested cash.
The trend of offering interest on uninvested cash began when central banks in the Western world raised interest rates aggressively. Brokers were already earning a significant amount of income from interest on customer cash. Some of these brokers later started sharing part of that income with customers, which led to a wider industry trend.
The Future of NAGA
Meanwhile, NAGA has been expanding its product line in other areas as well. Earlier this year, it introduced direct access to Romanian equities.
In December 2023, CAPEX.com, an online trading brand with a strong presence in the Middle East, acquired NAGA through a reverse merger. As part of the deal, CAPEX.com’s CEO invested $9 million in NAGA and took over as Group CEO of the combined company.
Just three months after the merger, NAGA’s co-founder and Chief Information Officer, Ben Bilski, left the company. Earlier reports from Finance Magnates revealed that NAGA had reduced its workforce by 40 per cent in 2023.
In 2024, the combined group generated EUR 62.3 million in revenue, down from EUR 77.5 million the previous year. EBITDA was EUR 8.1 million with a 13% margin, slightly lower than the EUR 8.5 million and 11% margin recorded in 2023.
This article was written by Arnab Shome at www.financemagnates.com.
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