FAQ

Account Interest and Fees

Yes, you will be charged with interest if any of these scenarios happens,

  • You have negative balance in any of your currency accounts
  • Net negative value from the cash balance in your main account, unrealized profits or losses from open CFDs, FX and Futures in your main account and overall margin requirement for all your currency accounts. (Interest will be accrued on main currency account)
    • Formula: Cash balance in main account + Unrealized Profit/Loss from open Leveraged Products in main account – Any margin required for financing open positions in all currency accounts.
      Result: Any negative value will result in interest accrued on main currency account.
  • Net negative value from the cash balance and the unrealized profits or losses from open CFDs, FX and Futures of the same currency account. (Interest will be accrued on respective currency account)
    • Formula: Cash balance from currency account + Unrealized Profit/Loss from open Leveraged Products in the same currency account.
      Result: Any negative value will result in interest accrued to the same currency account.

Some examples why you may have a negative balance in your currency account:

  • If you have multiple currency accounts and have sufficient funds in your overall account, you have to ensure that the currency account you have used to execute a trade has sufficient cash balance, or else you will incur interest charges when negative balance occurs. In the scenario that you have performed a trade without sufficient cash balance, check your balances after 2pm and top up your account accordingly.
    • For example,
      Overall account cash balance: SGD 10,370 (assuming FX for USD/SGD is 1.37)
      SGD account cash balance: SGD 9,000
      USD account cash balance: USD 1,000
      You have sufficient cash balance to place a trade up to SGD 10,370 or equivalent currency amount (including cost).
    • You buy Stock ABC using your SGD account for SGD 10,000.
      SGD account cash balance: SGD -1,000 (You will incur interest on the debit balance of SGD 1,000 in your SGD account)
      USD account cash balance: USD 1,000
  • If you purchased a leveraged product on a currency account that has insufficient funds to cover your unrealized losses and maintain your margin, it will result in a negative balance and you will incur financing charges.
  • You have withdrawn receivable funds that are pending for settlement. Funds from your sales transaction will be available on the settlement date. This will take up to 3 business days from the transaction date, depending on the respective exchanges. Withdrawal of funds that have not been settled will incur financing charges, given that we are required to borrow capital to finance your early withdrawal.

Debit interest fee starts to accrue from the value (settlement) date until the negative balance diminishes to zero.

Interest is calculated daily and settled monthly – within seven business days after the end of each calendar month.

For interest breakdown, please view the Interest Details report under Account > Historical reports.

The interest fee is a markup to prevailing market rate. Currently, the marked up is 8% p.a..

You should always refer to the Interest Detail report for interest rate.

Interest is calculated daily. Interest fee will be settled monthly, within seven business days after the end of each month.

There will be no email notification for interest fee. It is important to keep yourself informed and updated of all details relating to your ProsperUs account via the ProsperUs trading platform.

For details on your interest fee, you can view the Interest Details report under Accounts.

Here are some of the key information you may look out for.

  • Account Currency Indication per column – Currency of the account where interest was calculated.
  • Value Dated Cash Balance – Cash balance of the particular currency account after any trade settlement
  • Interest Unrealized P&L – Unrealized P&L amount of the particular currency account as part of the interest calculation.
  • Interest Margin Requirements – Margin Requirement of your overall ProsperUs account as part of the interest calculation. (Applicable for main account only)
  • Net Free Equity – Value Dated Cash Balance plus Interest Unrealized P&L minus Interest Margin Requirement; Any negative value will result in interest.
  • Annual Interest Rate – Rate of the interest fee. This is a marked up to the prevailing market rate.
  • Interest Days – Number of days calculated for the interest.
  • Interest Amount – Interest amount calculated.

You have accrued interest in your Interest Detail report, it means that you have insufficient cash balance or cash collateral in your overall main account and/or sub account. To avoid accruing more interest, you will need to maintain sufficient cash balance or cash collateral. Your situation can be resolved through a few methods:

  • Transfer funds from your bank account via your ProsperUs client portal.
  • Close a position
  • Move funds from the currency account with positive balance to the currency account with negative balance via sub account transfer.

ProsperUs does not waive the interest fee. You are recommended to monitor your ProsperUs account closely and ensure that your cash balance, account value and margin requirement are in healthy position.