London-based BidX Markets is passing the ongoing benefits of high interest to its customers as it is offering up to 5.1 percent yield on uninvested US dollar and British pound deposits and up to 3.5 percent on euros.
Passing Down the Interest to Clients
According to the official press release today (Thursday), the broker has introduced “Interest on uninvested Cash Balances,” but clients have to allocate their uninvested cash balances into interest-bearing accounts.
“We believe that sharing in the interest that BidX receives will be a huge benefit to many of our broker and professional clients who are currently unable to capitalize on the rise of interest rate,” said Simon Blackledge, the CEO of BidX Markets.
“Our new offering not only provides an innovative solution for optimizing cash resources but also empowers our clients to seize opportunities in a dynamic market environment. At BidX, we are committed to delivering value and flexibility to our clients, and this enhancement is a testament to that commitment.”
Change of Heart or Regulatory Pressure?
Interestingly, the announcement from BidX came only a couple of days after the UK’s Financial Conduct Authority (FCA) warned investment platforms on the practices of “double dipping”: investment platforms retain a part of the interest on customers’ cash balances and change them an additional fee for cash management.
The British regulator sent a letter to the CEOs of investment platforms within its jurisdiction and ordered them to change the controversial practices before the 29 February 2024 deadline.
BidX Markets is headquartered in London and is regulated by the FCA. It offers forex and CFDs trading services targeted to institutional and professional clients. The platform also added spread betting services for professional traders.
As Finance Magnates reported earlier, the UK-based firm reported an annual revenue of more than £1 million with a net profit of over £40,000 for the fiscal year that ended on 31 May 2023. The year was very productive for the company as the revenue increased by 253 percent.
