We found 11 online brokers that are appropriate for Trading Holding Cash.
Fear is one of the primary reasons behind investors holding cash. It is said fear is the worst factor in investing.
It discourages traders to place positions and investors believe holding cash is the best call for current times, until the economic and pandemic situation returns back to normal.
Fear usually comes when the market turns volatile. Let us understand below with detailed perspectives why holding cash sometimes is more important rather than investing in the money market.
In 2021, the money market liquidity in the United States spiked from under $3.5 trillion to $4.6 up until the month of June, according to data released by Refinitiv Lipper.
Similarly, the balances of commercial banks in the country have gone up to $15.5 trillion from $13.3 trillion during the same period.
This means, since January 2021 some $3 trillion has moved into the money market.
In Canada, the mutual funds and ETFs fund in May 2019 was $30.3 billion. The figure increased to $43.6 this May.
So, taking a look at the US statistics as mentioned above it can be said the bank balances have moved to more than $13 billion in Canada.
Hence, holding cash becomes important here for safety and liquidity. However, if the investment is for the long-term, holding cash would not be wise. It is only beneficial to meet short-term needs.
Take note that a spike in the balances, as discussed above, represents investment decision. For people and businesses, the holding cash is the call and not for other kinds of investments.
The trillions of dollars are potentially earning from zero to 1%. Higher rates can be earned by investing in smaller companies or else by locking the fund for a certain period.
But a disadvantage in doing so is the non-liquidity of the investment.
When talking about interest rates in the UK and Canada, the largest money market funds in those countries offer less than 1% annual returns for a period of 10 years.
If most of the investors in the UK and Canada expect more than 5% returns on long-term investment, it is due to fear or considering adding up value over time.
Money market funds have failed to offer even 1% over the long term.
One important factor needs to be discussed here. Timing the market effectively has not worked out for most investors, though it is possible, The markets have been very volitile with unexpected occurrences.
Taking a look at economic data since 2009 it can be seen investors missed out on quite a few opportunities.
The TSX 60 in the months of March to May of 2009 were a total of 26.8%. The money market was at a peak by March-end and over a period of three months it declined a total of 1.7%.
This reveals only a small percentage of investors had invested again in time even though the money markets were at an all-time peak.
Next, the eight months from June of 2009 to January of 2010 the TSX 60 moved up 3.2%.
The money market value was slashed down b 35%, which means $23.5 billion funds moved to long-term investments.
Even though it is known that fear is the reason for holding cash in long-term investments, many investors usually move to such investments after suffering losses.
In the case of the 2009 recovery, investors returned cash to investments following some big gains on the financial markets.
So, what better alternatives exist today is the big question.
Taking a look at the income yields through investments in stocks and other money markets, the range of interests is higher than the returns guaranteed in cash. This means, almost everything is better in cash today.
If growth is expected beyond these yields, a understanding in the long-term history of the markets must be part of a traders strategy.
While wrapping up this article, it is important to understand that history reveals big shifts in market movements, Investing in volitile markets that would make you want to hold on to cash investments are not for long term investment strategies.
Now trillions of dollars are being rolled back into the money markets and it is to decide whether to hit the front end to benefit from the fluctuation in currency or remain at the back end for longer term investing.
It is to understand whether to make money with the rush and in quick time or wait to the time to earn the same benefits.
Comparative 25-year returnUS stocks - 10.4% (25-year annualized return) - $1,186,388 (value of $100,00 after 25 years)
International stocks - 5.6% (25-year annualized return) - $390,479 (value of $100,00 after 25 years)
US bonds - 5.9% (25-year annualized return) - $419,179 (value of $100,00 after 25 years)
US T-bills - 2.5% (25-year annualized return) - $185,394 (value of $100,00 after 25 years)
We've collected thousands of datapoints and written a guide to help you find the best Holding Cash for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best holding cash below. You can go straight to the broker list here.
There are a number of important factors to consider when picking an online Holding Cash trading brokerage.
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
We compare these features to make it easier for you to make a more informed choice.
Here are the top Holding Cash.
Compare Holding Cash min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are holding cash. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more holding cash that accept holding cash clients
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eToro
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IC Markets
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XTB
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FP Markets
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Trading212
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Plus500
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Pepperstone
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EasyMarkets
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XM
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FXPrimus
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SpreadEx
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Regulation | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG) | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) | Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546 | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | International Financial Services Commission (IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID) | Financial Conduct Authority (FCA) |
Min Deposit | 200 | 200 | No minimum deposit | 100 | 1 | 100 | 200 | 100 | 5 | 100 | 1 |
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Used By | 17,000,000+ | 60,000+ | 250,000+ | 10,000+ | 14,000,000+ | 15,500+ | 10,000+ | 142,500+ | 70,000+ | 10,000+ | 10,000+ |
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Platforms | Web Trader, Tablet & Mobile apps | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps | MT4, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps |
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Up with spreadex |
Risk Warning | 71% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.3% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money | Your capital is at risk | Your capital is at risk | Losses can exceed deposits | Losses can exceed deposits |
Demo |
eToro Demo |
IC Markets Demo |
XTB Demo |
FP Markets Demo |
Trading 212 Demo |
Plus500 Demo |
Pepperstone Demo |
easyMarkets Demo |
XM Demo |
FXPrimus Demo |
SpreadEx Demo |
Excluded Countries | IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, US, PY, HN, GT, PR, NI, VG, AN, | AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA | US, IN, PK, BD, NG , ID, BE | US, JP, NZ | US | MY, BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO, AE | BR, KR, IR, IQ, SY, JP, US | US | US, CA, IL, KR, IR, MM, CU, SD, SY | AF, CI, CU, IQ, IR, LY, MM, KR, SD, PR, US, AU, SY, DZ, JP, EC. | US, TR |
You can compare Holding Cash ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
We also have an indepth Top Holding Cash for 2021 article further below. You can see it now by clicking here
We have listed top Holding cash below.